Asia Pacific Electric Drive Unit Market Analysis

Asia Pacific Electric Drive Unit Market Analysis

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Based on vehicle type, the market is segmented into BEV, HEV, & PHEV. The BEV Asia Pacific electric drive unit industry is anticipated to surpass over USD 37 billion in 2032. Rising production capacity and advancing battery technology in battery electric vehicles (BEVs) are key drivers in the industry. Increased investment in charging infrastructure, including fast-charging networks, residential charging solutions, and workplace charging stations, is also contributing significantly to market expansion.

Based on sales channel, the market is segmented into OEM & aftermarket. The OEM Asia Pacific electric drive unit sales channel industry is set to grow at a rate of over 24% by 2032. The region is experiencing a swift rise in electric vehicle (EV) adoption due to heightened sustainability efforts. Consequently, there is a growing demand for aftermarket services such as maintenance, repairs, and replacements of electric drive units (EDUs). This trend creates opportunities for companies specializing in EDU services and spare parts, thereby enhancing the overall business landscape.

The China electric drive unit market is forecasted to exceed over USD 90 billion by 2032. Government aid for electric vehicle adoption and high EV charging infrastructure development has played a pivotal role in driving industry expansion. The sector's growth is primarily propelled by escalating energy expenses and a growing inclination towards energy-efficient solutions. For instance, in June 2023, the Government of China announced that the new energy vehicles (NEVs) bought in 2024 and 2025 will get a tax exemption of up to 30,000 USD 4,000 per vehicle, incentivizing their adoption in the market. This will set to witness an increase in demand for electric drive unit, thereby boosting the business landscape.