The electric vehicle transmission market has seen tremendous growth in recent years driven by rising environmental concerns and stringent government regulations mandating reduced vehicular emissions. Electric vehicles offer several advantages over conventional internal combustion engine vehicles such as lower operating costs, reduced dependency on oil imports, and zero tailpipe emissions. Transmissions play a vital role in smoothly delivering power from electric motors to wheels. Key features of EV transmissions include optimized gear ratios for improved acceleration and regeneration of braking energy.
The global electric vehicle transmission market is estimated to be valued at US$ 15.26 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period of 2024 to 2031.
Factors such as growing infrastructure for EVs, favorable government policies and subsidies, Electric Vehicle Transmission Market Trends expanding product ranges from automakers, and increasing consumer awareness about environmental benefits offered by EVs are anticipated to fuel the market growth.
Key Takeaways
Key players operating in the electric vehicle transmission market are Aisin Seiki Co., Ltd., Allison Transmission Inc., AVL List GmbH, BorgWarner Inc., Continental AG, Dana Incorporated, Eaton Corporation plc, GKN Automotive Limited, JATCO Ltd., Magna International Inc., Nidec Corporation, Schaeffler AG, Valeo SA, Vitesco Technologies, ZF Friedrichshafen AG.
Key opportunities in the market include development of multi-speed transmissions for improved performance and range of EVs. Technologies such as dual-clutch transmissions and continuously variable transmissions are garnering increased interest from automakers. The EV transmission market is also witnessing rising global expansion supported by automaker partnerships, joint ventures, and foreign direct investments across major regions.
Market Drivers:
Growing infrastructure for charging stations is expected to boost electric vehicle adoption. Government incentives and subsidies for electric vehicles aim to reduce their upfront costs and accelerate transition towards greener mobility solutions.
Market Restraints:
Range anxiety continues to be a major challenge limiting mass adoption of electric vehicles. High costs of EV batteries remain another impediment to faster transition from internal combustion engine vehicles to electric vehicles. Lack of standardization in EV technologies poses challenges for battery swapping and cross-brand compatibility.
Segment Analysis
The electric vehicle transmission market can be segmented based on transmission type, vehicle type, and geography. Based on transmission type, the automatic transmission segment dominated the market in 2021 and is expected to continue its dominance during the forecast period. Automatic transmissions provide ease of use and require less driver effort compared to manual transmissions. Based on vehicle type, the passenger car segment accounted for the largest share of the market in 2021 owing to the growing sales of electric passenger vehicles across the world.
Global Analysis
In terms of region, Asia Pacific dominated the electric vehicle transmission market in 2021 and is projected to continue its dominance during the forecast period. Factors such as rapid urbanization, rising demand for fuel-efficient vehicles due to growing environmental concerns, and supportive government policies are driving the adoption of EVs in countries such as China and India. China is the largest producer and consumer of EVs globally due to presence of domestic EV manufacturers and government schemes to phase out petrol/diesel vehicles. Europe is also a major regional market aided by stringent emission norms and availability of developed charging infrastructure across major countries.
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