Europe OEM Electric Drive Unit Market Size & Share 2024 - 2032
Market Size by Vehicle Type (BEV, HEV, PHEV), by Coolant (Water Glycol, Oil Based) & Forecast.
Report ID: GMI11360
|
Published Date: September 2024
|
Report Format: PDF
Download Free PDF
Authors:
Preeti Wadhwani, Aishvarya Ambekar
Europe OEM Electric Drive Unit Market Size
Europe OEM Electric Drive Unit Market size was valued at USD 4 billion in 2023 and is projected to grow at a CAGR of 22.9% between 2024 and 2032. Increasing stricter emission norms and plans from several countries across the region to phase out internal combustion engine (ICE) vehicles in favor of electric vehicles (EVs), Original Equipment Manufacturers (OEMs) are making significant investments in the development and production of Electric Drive Units (EDUs), a core component of EVs, which in turn is bolstering the market growth in the region.
Europe OEM Electric Drive Unit Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Advancements in battery technology, especially in lithium-ion and solid-state variants, are propelling the OEM EDU market. Enhanced energy density, quicker charging, and extended lifecycles of these batteries are paving the way for more efficient and potent electric drive units. Such integration not only boosts vehicle performance but also extends their range, making EVs increasingly attractive to consumers.
Europe OEM Electric Drive Unit Market Trends
Growing consumer demand for high-performance electric vehicles (EVs) and the increasing integration of advanced technologies in these vehicles are shaping a positive business outlook. As consumer preferences evolve, original equipment manufacturers (OEMs) are responding by developing more powerful and sophisticated electric drive units (EDUs) that prioritize high torque, acceleration, and efficiency. The emergence of performance-centric EV brands in the European region, notably Tesla, has established new industry benchmarks, compelling traditional automakers to elevate their EDU offerings to maintain competitiveness.
Furthermore, the adoption of cutting-edge technologies like artificial intelligence (AI), machine learning, and Internet of Things (IoT) connectivity is revolutionizing the OEM EDU landscape. These advancements facilitate smarter electric drive systems, optimizing performance in real-time according to driving conditions, energy consumption, and user preferences.
Europe OEM Electric Drive Unit Market Analysis
Based on vehicle type, the market is segmented into BEV, HEV, and PHEV. The OEM EDU market for BEV is projected to surpass over USD 10.5 billion by 2032. Ongoing advancements in enhancing battery performance, including increased energy storage capacity, along with the expansion of charging infrastructure across Europe, have been major factors driving the growing adoption of battery electric vehicles (BEVs) in recent years.
Based on coolant, the Europe OEM electric drive unit market is divided into water glycol & oil based. The oil based EDU industry will grow at CAGR of over 24% by 2032. The increasing power density in Electric Drive Units (EDUs), fueled by the demand for greater vehicle efficiency and performance in the European market is creating a need for advanced cooling solutions. This is making oil-based coolants more essential, thus driving the demand for oil-based coolants in EDUs across the region.
The Germany OEM electric drive unit market is anticipated to surpass over USD 7.5 billion by 2032. In Germany, the market is thriving due to the country's established automotive industry and a strong focus on innovation in electric mobility. Government incentives and the push toward electrification are driving demand for advanced electric drive units in both passenger and commercial vehicles.
In the UK, the market is expanding owing to increased investments in electric vehicle production and charging infrastructure. The government's commitment to achieving net-zero emissions and the growing popularity of electric cars are further fuelling demand for efficient and high-performance electric drive units.
Europe OEM Electric Drive Unit Market Share
Leading market players such as BorgWarner Inc., GKN Automotive Limited, LG Magna e-Powertrain, Schaeffler AG, and Vitesco Technologies GmbH are dominant manufacturers in the market. Their leadership is driven by factors including strong brand reputation, continuous technological innovation, reliability, and high levels of customer satisfaction, solidifying their position as preferred manufacturers and suppliers in the industry.
Europe OEM Electric Drive Unit Market Companies
Some of the key market players operating across the Europe OEM electric drive unit industry are:
Europe OEM Electric Drive Unit Industry News
The Europe OEM 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:
Click here to Buy Section of this Report
Market, By Vehicle Type
Market, By Coolant
The above information has been provided for the following countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →