Electric Drive Unit Market Size - By Vehicle Type (BEV, HEV, PHEV), By Sales Channel (OEM, Aftermarket), By Coolant (Water Glycol, Oil Based) & Forecast, 2024 – 2032

Electric Drive Unit Market Size

Electric Drive Unit Market size was valued at USD 20 billion in 2023 and is projected to grow at over 22.8% CAGR from 2024 to 2032. Continuous & exponential rising demand for electric vehicles across the globe along with automotive industry undergoing a transformative shift towards electrification, thereby adopting electric drive units (EDUs) have emerged as critical market influencing factors. For instance, in July 2023, ZF launched the EVSys800, a compact permanent magnet-based drive unit for electric vehicles, which includes radial flux electric motor, coaxial planetary reduction gears, and a compact differential.
 

Government incentives, stringent emissions regulations, and advancements in battery technology are accelerating adoption of EVs, thereby fuelling product demand. Furthermore, technological advancements in electric drive units, including improved motor efficiency, power density, and thermal management, enhance the performance and range of electric vehicles, increasing consumer appeal.
 

Electric Drive Unit Market Trends

The market is experiencing increasing adoption of EVs, driven by government incentives, stringent emissions regulations, and growing environmental consciousness. Additionally, manufacturers are prioritizing EDU technological advancements to optimize electric vehicle performance and range which is driving the demand for the product. Moreover, increasing innovation in electric propulsion systems are highlighting dynamic growth and opportunities in the market.
 

For instance, in November 2023, GKN Automotive Limited unveiled a new modular electric drive unit to meet the growing demand for electric vehicles. Moreover, rising demand for diverse electric drive unit configurations to meet the needs of different vehicle types will fuel the business outlook over the coming years.
 

Electric Drive Unit Market Analysis

Based on vehicle type the market is divided between BEV, HEV and PHEV. EDU for BEV is expected to surpass USD 56 billion by 2032, surged by electric mobility due to environmental concerns and battery technologies. Unlike hybrid vehicles, BEVs rely solely on electric power, necessitating robust and efficient electric drive units to power their propulsion systems. Additionally, BEVs offer zero-emission driving, making them increasingly attractive to environmentally conscious consumers and businesses seeking sustainable transportation solutions. Furthermore, ongoing innovations including improved motor efficiency and thermal management, are enhancing vehicle performance and range, solidifying the leading position in the market.
 

Sales channel segment consists of OEM and aftermarket, in which OEM sector holds the largest electric drive unit market share and is predicted to expand at a CAGR of 23% from of 2024 to 2032. These are vital in automotive industry, overseeing the design, production, and integration of electric drive units into vehicles, leveraging their expertise and resources for efficient delivery. Additionally, they often collaborate closely with electric drive unit suppliers to develop customized solutions tailored to their specific vehicle platforms, ensuring optimal performance and compatibility.
 

Asia Pacific electric drive unit market size is poised to reach USD 84 billion by 2032, strengthened by robust supply chains, skilled labour, and supportive government policies. In addition, region significant private & public investments are leading to continuous technological advancements in electric drive units and related components. Furthermore, implementation of government policies and initiatives is contributing to the increasing demand. Government policies and initiatives are further propelling the market demand for these units.
 

For instance, in June 2023, China announced a tax exemption of up to USD 4,000 per vehicle for new energy vehicles (NEVs) purchased in 2024 and 2025, stimulating their adoption and boosting demand for electric drive units.
 

U.S. plays a significant role in the market, driven by its strong automotive industry and leading companies like Tesla, General Motors, and Ford. Government incentives and regulations further promote electric vehicle adoption, while a robust research and development ecosystem supports innovation in electric drive unit technology. Overall, the U.S. holds a strategic position in the market due to its industry leadership, government support, and innovation.
 

Electric Drive Unit Market Share

Hofer powertrain, GKN Automotive, DANA TM4 INC., Schaeffler AG, Vitesco Technologies GmbH are among the dominating market players in the electric drive unit industry. Schaeffler AG, efficient and high-performance electric drive units along with hofer powertrain, & GKN Automotive high clientele offers them a competitive edge.
 

Electric Drive Unit Market Companies

Some of the key market players operating across the electric drive unit industry are:

• AVL
• Aisin Corporation
• BorgWarner Inc.
• DANA TM4 INC.
• Equipmake
• ElringKlinger AG
• FRIWO Gerätebau GmbH
• hofer powertrain
• LG Magna e-Powertrain
• MAHLE Polska Sp. z o.o
• Magnetic Systems Technology Limited
• Magna International Inc.
• Nidec Corporation
• Punch Powertrain nv
• Robert Bosch GmbH
• Schaeffler AG
• Saietta Group
• Voith GmbH & Co. KGaA
• Vitesco Technologies GmbH
• Zytek Automotive Ltd.
• ZF Friedrichshafen AG
   

Electric Drive Unit Industry News

• In April 2023, hofer powertrain launched a new establishment in the Austrian capital to offer local and global assistance to clients and accelerate advancements in electric drive technology. The new facility focuses on developing inverters, software, systems, and electric motors, tailored to the specific requirements of automotive clients and implementing cutting-edge drive technology for enhanced performance.
   
• In June 2023, NIDEC CORPORATION and Renesas Electronics Corporation formed a partnership to develop cutting-edge semiconductor solutions. These solutions will be used in the newest generation of E-Axle, which integrates electric vehicle drive motors and power electronics. This collaboration aims to advance the technology used in electric vehicles, with a focus on improved efficiency and performance.
   

The electric drive unit market research report includes an in–depth coverage of the industry with estimates & forecast in terms of volume in ‘Units’ and revenue in ‘USD Billion’ from 2021 to 2032, for the following segments:

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Market, By Vehicle Type

• BEV
• HEV
• PHEV

Market, By Sales Channel

• OEM
• Aftermarket

Market, By Coolant

• Water Glycol
• Oil Based

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Norway
  • Germany
  • France
  • Netherlands
  • UK
  • Austria
  • Belgium
  • Denmark
  • Finland
  • Ireland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Hong Kong
  • New Zealand
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Israel
  • South Africa
• Latin America
  • Brazil
  • Argentina