by The global electric vehicle transmission market has witnessed robust growth in recent years owing to advancements in transmission technologies. Electric vehicle transmissions play a crucial role in electric mobility as they help transfer the rotational force of an electric motor to the wheels of the vehicle. Growing adoption of electric vehicles due to stringent emission norms and declining battery prices has fueled demand for efficient transmission systems. The electric vehicle transmission market comprises manual transmissions, automated manual transmissions, continuously variable transmissions, and dual-clutch transmissions. Continuous variable transmissions offer enhanced driveability and better fuel efficiency compared to conventional gear transmissions.
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 2024 to 2031.
Key Takeaways
Key players: 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: Advancements in automated transmission technologies are expected to create significant opportunities for Electric Vehicle Transmission Market Trends Growing demand for lightweight and efficient transmission systems from emerging economies also presents lucrative growth prospects.
Technological advancements: Continuous variable transmissions are gaining popularity due to their optimized performance. Dual-clutch transmissions offer better driving dynamics than conventional automatic transmissions. Development of efficient e-axle systems that integrate electric motor and transmission is another key trend.
Market Drivers
Stringent emission norms: Stringent emission norms worldwide are coercing automakers to accelerate EV adoption. This is expected to drive demand for efficient electric powertrain components like transmissions over the forecast period.
Declining battery prices: Considerable decline in lithium-ion battery prices in the last few years has made electric vehicles more affordable and boosted their adoption. This growing EV adoption and sales will augment transmission market growth.
Increased vehicle electrification: Ongoing vehicle electrification trend and focus on development of hybrid and plug-in hybrid vehicles are expected to propel the electric vehicle transmission market revenue during the forecast period.
Challenges in the Electric Vehicle Transmission Market
The electric vehicle transmission market faces various challenges related to cost, technology, infrastructure and customer acceptance. The initial costs of manufacturing and purchasing electric vehicles is significantly higher as compared to internal combustion engine cars. Developing efficient and durable transmission systems that can operate across different drive modes poses a technical challenge. Lack of adequate public charging infrastructure acts as a deterrent for customers. Changing customer mindsets and creating mass awareness about benefits of electric mobility will take time. Standardization of technology and development of greener raw material suppliers can help address some of these issues.
SWOT Analysis
Strength: Higher efficiency and lower maintenance costs compared to conventional vehicles. Regulations pushing for electric vehicles will boost demand.
Weakness: High initial purchase cost. Range anxiety and long charging times are user inconveniences.
Opportunity: Developing countries present a huge untapped market. Advancements in battery technology will improve performance.
Threats: Customers may find alternatives like hybrid vehicles more suitable. Dependence on rare earth minerals can impact supply chain.
Geographical Regions
In terms of value, the Asia Pacific region holds the largest share of the electric vehicle transmission market currently. Countries like China, Japan and South Korea are major EV hubs with strong government mandates and local manufacturing capabilities. Europe is the second largest region driven by electric mobility targets in Germany, France and UK to meet climate goals.
The electric vehicle transmission market is witnessing the fastest growth in North America led by the US. Major automakers are investing heavily in design and production of electric cars to cater to the region’s increasing customer demand for sustainable mobility solutions. Partnerships with local battery and component makers are helping expand the domestic EV supply chain.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
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