Electric Vehicle (EV) Transmission Market

Global Electric Vehicle (EV) Transmission Market Size (2024 to 2029)

The global electric vehicle (EV) transmission market size is expected to be valued at USD 10.35 billion in 2024 and USD 23.48 billion by 2029, growing at a CAGR of 17.80% from 2024 to 2029.

Reducing the size of the transmission system presents potential opportunities for companies in the electric vehicle (EV) transmission market. People often complain about the range and mileage of EVs and are anticipated to perform against conventional vehicles in these parameters in the future. Moreover, producers are searching for and developing materials to reduce the overall weight of the transmission system without compromising performance. Hence, the demand will rise because of all of these factors.

Global Electric Vehicle (EV) Transmission Market Drivers:

Strict emission laws and rising electrification of transportation networks will propel the growth of the electric vehicle (EV) transmission market. The growing popularity of EVs is fuelling the expansion of the EV transmission market. The rising demand for EVs also caused an increase in demand for environment-friendly and energy-efficient automobiles. Furthermore, policies by the government to decrease carbon footprints have led to tight enforcement of emission regulations and the provision of subsidies. It will boost the deployment of electric cars. In addition, the market expansion is fuelled by guidelines around the world for the development of electric vehicle charging infrastructure. Moreover, the ability of automated gearbox systems to provide a smooth driving experience without shifting gears is further accelerating the market value.

Besides that, technological developments in new transmission systems are anticipated to propel the electric vehicle (EV) transmission market. E-axles, battery management systems, signal isolation, and other innovations have improved safety and efficiency. For instance, in October 2023, Allison introduced the latest e-axle, Egan Power 85S, into the Isuzu Novo VOLT all-electric transport exhibited at Bus World Europe in Brussels, Belgium. Compared to internal combustion engines, electric vehicles have several advantages. The demand for EVs has grown exponentially in recent years due to this. The electric vehicle (EV) transmission market would grow because of the higher capital expenditures made by manufacturers. Also, the infrastructure demand will rise due to increased sales and production. Advancements in dual motor transmission systems, e-axles, and two-speed transmission systems are predicted to elevate the market share. The dual motor TS provides the benefits of both a hybrid system and a conventional electric motor. They offer improved effectiveness and performance. Also, these motors utilize fuel sources such as petrol and electricity.

Global Electric Vehicle (EV) Transmission Market Restraints:

The lack of charging infrastructure in developing countries hinders the expansion of the electric vehicle (EV) transmission market, despite countries promoting their use for business travel to reduce greenhouse gas emissions. Building a strong infrastructure is crucial for EV acceptance. Therefore, the growth of electric cars is constrained by the lack of proper equipment. The cost of developing an innovative gearbox system is a primary challenge for the electric vehicle (EV) transmission market. There are additional expenses associated with designing a novel TS. This affects the final cost of electric vehicles. Moreover, advancements in fuel efficiency and maintenance are promising, but initial costs pose a concern for manufacturers and consumers. Frequent issues in functionality are hampering the growth of the electric vehicle (EV) transmission market. These are complex systems, and any problem will take considerable time to rectify and implement changes in existing and current vehicles.

Impact of COVID-19 on the global electric vehicle (EV) transmission market:

The growth of the electric vehicle (EV) transmission market was slower due to COVID-19. It significantly affected the sales and manufacturing of transmission systems for EVs. Also, there was a decrease in demand during the pandemic because of factories closing. Moreover, it caused a negative market trend that affected every continent and disrupted supply chain and industry activities. However, the global crisis also drew attention to sustainability and lower emissions. This raised the preference for hybrid and electric cars. There was a substantial increase in sales in 2021-22 post covid-19. Therefore, increased the demand for these transmission systems.

 REPORT COVERAGE:

This research report on the global electric vehicle transmission market is segmented and sub-segmented into the following categories.  

Global Electric Vehicle (EV) Transmission Market - By System:

• AMT
• CVT
• AT

Based on system, the AMT segment is predicted to showcase the highest CAGR in the global market during the forecast period. Several factors, including the increasing demand for fuel-efficient vehicles, the shortage of skilled drivers, and the integration of advanced technologies, are driving the segment forward. Moreover, these gearboxes provide extra power in the manual gearbox and comfort in long-distance travel. Additionally, the lack of trained drivers is also contributing to the trend towards AMTs. These systems can close the skill gap by allowing drivers to operate cars at the same level as more seasoned drivers. Furthermore, the expansion is fueled by the original equipment manufacturer’s vertical integration of engines with internal automatic transmissions.

Global Electric Vehicle (EV) Transmission Market - By Type:

• Single-Speed
• Multi-Speed

The single-speed segment is expected to drive forward the electric vehicle (EV) transmission market value. It is propelled by the growing usage of these systems in popular electric car models. Also, due to its affordability, manufacturers are incorporating single-speed gearbox systems widely. This is boosting market expansion. In addition, the technology requires less space due to lower drivetrain mass, energy loss, and volume. Likewise, it also provides high-performance cars with a simple transmission. When combined with a motor, it produces rapid torque.

Global Electric Vehicle (EV) Transmission Market - By Vehicle:

• Battery Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Hybrid Electric Vehicles

The battery electric vehicles (BEV) segment holds the maximum portion of the electric vehicle (EV) transmission market share. People choose BEVs because of various advantages, such as lower maintenance costs and no harmful emissions. As a result, it accounted for 70 percent of all-electric vehicles on the road in 2022. Hence, the market for EV transmission systems is projected to grow. Meanwhile, the plug-in hybrid electric vehicles segment is predicted to grow at a significant rate throughout the projection period because of their growing popularity in industrialized nations.

Global Electric Vehicle (EV) Transmission Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Asia Pacific will hold a large share of the global electric vehicle (EV) transmission market. The reason behind this growth is the rising middle-class purchasing power in the region and the growing manufacturing and sales of modern electric cars, especially in China and Japan. Also, the market expansion of electric vehicle gearboxes is supported by strict government rules. It is aimed at encouraging environmentally friendly transportation. Furthermore, the South Korean government has decided to aggressively promote technical advancements in EVs to lower the cost of electric automobiles. For instance, in South Korea, Hyundai Motor Company and Kia Corporation introduced their uni wheel or universal wheel drive technology.

Europe is projected to grow at a steady growth rate during the forecast period. The growing demand for electric cars is likely to place the region at the forefront of the global electric vehicle (EV) transmission market. The expansion is also driven by the rapid development of EV car components by regional companies. Additionally, there was a 15 percent sales rise in 2022 over 2021. The number of electric cars sold in Europe reached 2.7 million. In 2022, sales of BEVs increased by 30 percent against 65 percent growth in 2021 over 2020. On the other hand, sales of PHEVs decreased by around 3 percent. Europe contributed 10% of the global increase in new electric car sales.

North America is expected to propel at a higher CAGR in the future. The rise of the regional electric vehicle (EV) transmission market is influenced by the growth in demand for electric cars in both the passenger and commercial segments. Moreover, the market is expanding due to the introduction of new goods and technological advancements. Furthermore, major EV and battery companies announced combined post-IRA investments of USD 52 billion in North American EV supply chains between August 2022 and March 2023. Of these, around 20 percent each went towards production and battery manufacturing, and 50 percent went towards producing its components.

Middle East and Africa are expected to move forward at an elevated pace in the coming years. The growing popularity of EVs and the continuous development of transmission technology are propelling the market growth. Also, the region is profiting from the increase in passenger car sales worldwide. Moreover, to properly take advantage of the opportunity, it is necessary to overcome the lack of EV infrastructure and charging stations. Furthermore, the region holds significant potential for the growth of the EV transmission market due to growing electric vehicle preferences and advancements in transmission technologies.

Latin America is anticipated to register a moderate growth rate during the forecast period. The region market is experiencing an upward trend due to the growing preference for non-fossil fuel-based vehicles and the demand for advanced transmission systems. Its renewable energy resources and increasing adoption of electric vehicles present lucrative opportunities despite challenges like transmission line saturation and energy losses.

KEY MARKET PLAYERS:

DANA INCORPORATED, SCHAEFFLER TECHNOLOGIES AG & CO. KG, CONTINENTAL AG, ZF FRIEDRICHSHAFEN AG, JATCO LTD., AISIN SEIKI CO., LTD, BORGWARNER INC, ALLISON TRANSMISSION INC, EATON CORPORATION PLC, AVL LIST GmbH. Some of the major market players are involved in the global electric vehicle transmission market.

RECENT HAPPENINGS IN THE MARKET:

• In January 2024, BorgWarner established a joint venture with Shaanxi Fast Auto Drive Group to focus on drivetrain and gearbox systems located in China. 
• In March 2023, Continental introduced the latest generation of polyurethane timing belts. It is part of its Truly Endless Product range under the brand name Synchro Motion.