Electric vehicles are gaining popularity worldwide due to their minimal environmental impact and lower operating costs compared to traditional combustion engine vehicles. An electric vehicle transmission system is a key component that transfers power from the electric motor to the wheels. It consists of gears and gear sets to adjust torque and speeds for optimal vehicle propulsion. Common transmission types include single-speed, multi-speed, and continuously variable transmissions. They improve energy efficiency, extend battery range, and provide smooth gear changes for comfortable riding. The rising electric vehicle sales and stringent emission norms are fueling advancements in transmission technologies.
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 from 2024 to 2031.
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. Aisin Seiki Co. and JATCO Ltd. are leading transmission system suppliers for Nissan and other OEMs.
The Electric Vehicle Transmission Market Trends Stringent emission norms worldwide are forcing automakers to increase electrified vehicle production. Consumer preference for electric vehicles is rising due to concerns over air pollution and noise in cities. Transmission system manufacturers are developing new solutions to maximize driving range and performance of electric vehicles.
Global expansion of key players in Asia and Europe is expected to boost the electric vehicle transmission market share. Growing investments by Chinese auto manufacturers in electric powertrains will support local transmission component supply. European countries are providing purchase incentives for electric vehicles to meet climate change goals. Their initiatives are expanding the global electric vehicle parc and increasing collaboration between automakers and transmission system developers.
Market Key Trends
Lightweight drivetrain designs are a key trend in the electric vehicle transmission market. Manufacturers are utilizing advanced materials like carbon fiber and magnesium alloys to reduce the weight of gearboxes, shafts, and casings. Lightweight transmissions improve the torque-to-weight ratio and energy efficiency of electric vehicles. Dual-clutch andautomated manual transmission systems with faster gear shifts are gaining popularity for commercial electric vehicles. Electronics and software innovations will lead to advanced automated transmissions controlled by AI and lithium batteries. New transmission technologies support higher torque output from motors and performance needs of electric sports utility vehicles.
Porter’s Analysis
Threat of new entrants: High costs of infrastructure and technology required to manufacture electric vehicles and transmissions pose barriers to entry.
Bargaining power of buyers: Large automotive manufacturers have significant bargaining power over transmission suppliers due to their purchasing power and ability to source parts globally.
Bargaining power of suppliers: Key suppliers of specialized electric vehicle transmission components have some bargaining power, though automakers can source from multiple component suppliers globally to avoid dependence on a single supplier.
Threat of new substitutes: No significant substitutes currently exist for transmissions in electric vehicles, though some models use single-speed drivetrains.
Competitive rivalry: Intense competition exists among transmission manufacturers to develop new, more efficient technologies and gain large long-term supply contracts from automakers.
Geographical Regions
North America currently accounts for the largest share of the global electric vehicle transmission market in terms of value, led by the United States. Factors such as supportive government policies and initiatives, increasing consumer acceptance, and investments by vehicle manufacturers are driving electric vehicle adoption in the region.
The Asia Pacific region is projected to grow at the fastest pace over the forecast period. Rapid infrastructure development, declining battery prices, and stringent emission norms are fueling electric vehicle sales in countries such as China and India. Considerable transmission manufacturing capacity expansion is underway to cater to rising regional demand.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
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