Electric Vehicle E-axle Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Drive Type (All-Wheel Drive, Front-Wheel Drive, and Rear-Wheel Drive), and Regional Forecasts, 2023-2030

The global electric vehicle e-axle market size valued at USD 41.13 billion in 2022. The market is projected to grow from USD 50.27 billion in 2023 to USD 152.61 billion by 2030, exhibiting a CAGR of 17.2% during the forecast period.

An electric vehicle e-axle is a drivetrain component that combines an electric motor, transmission, and differential into a single unit. It is designed to power one or more of the wheels of an electric vehicle. The e-axle is responsible for converting electrical energy stored in the vehicle’s battery pack into mechanical power to run the vehicle. It is more efficient and compact than a traditional drivetrain system, as it eliminates the need for a separate internal combustion engine, transmission, and differential.

The increasing adoption of electric vehicles due to rising concerns about climate change and awareness of reducing greenhouse gas emissions will drive the market during the forecast period. Moreover, consumer demand, improvement in EV technologies, and government incentives & regulations to promote the deployment of electric vehicles will also propel the market growth. However, the high manufacturing & capital costs and dependency of e-axle on rare earth metals might restrain the e-axle for electric vehicles market growth.

COVID-19 IMPACT

Demand for Electric Vehicles Declined due to Tough Challenges during the Pandemic

Several automotive factories and their supply chain networks were disrupted due to lockdowns and other measures implemented by governments to mitigate the spread of COVID-19. This led to delays in the production and delivery of electric vehicles, thereby hampering the demand for e-axles. The pandemic caused a decline in the demand for all types of vehicles as people stayed home and traveled less due to the travel restrictions imposed by the government and regulatory bodies. This had a negative impact on the electric vehicle e-axle market development. However, several governments implemented measures to stimulate the electric vehicle market growth, such as extending or increasing incentives for the purchase of electric vehicles, which fueled the market growth post-pandemic.

LATEST TRENDS

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Development of Sustainable EV Components through Collaborations, Agreements, and Partnerships to Push Market Growth

The demand for electric vehicles is growing across the world. However, there is a significant variance between their performance and affordability. This is why strategic partnerships between automotive parts manufacturers and vehicle manufacturers have increased exponentially to accelerate electric mobility and achieve mass adoption.

Automotive part manufacturers are focusing on providing efficient, high-performance, and highly integrated e-axles per the automotive manufacturers' requirements. Moreover, diversity and continuous innovation are being introduced in e-axle due to active involvement of companies in different strategies, expanding the electric vehicle e-axle market growth.

For instance, in June 2021, Linamar Corporation signed a partnership deal with Exro Technologies to focus on jointly developing an advanced electric vehicle e-axle by using Coil Driver technology that will help reduce the cost and improve the performance of Linamar's eAxle product line. Additionally, in October 2022, GKN Automotive signed a partnership deal with Ariel. Under the collaboration, GKN will develop and produce an electric powertrain for Ariel HIPERCAR.

DRIVING FACTORS

Rising Demand and Adoption of Electric Vehicles to Drive Market Growth

A growing number of people are adopting electric vehicles to promote an efficient, clean, and sustainable environment. This has created lucrative growth opportunities for the market.

Environmental concerns stemming from vehicle pollution and climate change have increased the demand for electric vehicles. The depletion of fossil fuel reserves and hikes in the prices of petrol and diesel have pushed people to switch to electric vehicles. This has propelled the market progress.

Around 6.6 million electric cars were registered in 2021, bringing the total number of on-road electric cars to 16.5 million. According to the IEA, keeping in mind the Net Zero Emissions protocol by 2050, the organization foresees that the volume of electric cars will cross 300 million by 2030, with 60% of it coming from new car sales registration. These factors will increase the adoption of electric vehicles, which will propel the market growth over the forecast period.

Development of EV Infrastructure and Availability of Government Subsidies & Schemes to Augment Market Growth

To create a sustainable future and increase the electric vehicle adoption rate, governments are focused on implementing schemes and subsidies to boost the sales of these vehicles. For instance, the government of India launched a scheme called “FAME” (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) and e-AMRIT. Under these schemes, the government will provide incentives, discounts, and subsidies to people who purchase electric vehicles.

To provide efficient servicing for electric vehicles, governments and regulatory bodies of several countries, in partnership with major players, are focusing on the installation of EV charging stations that will enhance the adoption of electric vehicles. For instance, in September 2022, Blink Charging Co. signed a contract with the City of Newton, Iowa. The contract focuses on the installation of the Blink IQ 200 fast level 2 charging station in the city. The IQ 200 generates 80 amps of output, providing 65 miles of travel in an hour of charging. The charger can charge any battery-electric or plugin hybrid vehicle. These initiatives will boost the electric vehicle e-axle market growth.

RESTRAINING FACTORS

High Manufacturing Cost of E-axle and Electric Vehicles to Hamper Market Growth

Electric vehicles need a large capital base for manufacturing. The advancements of new technologies in the electric vehicle powertrain and e-axles make it more complicated for the automakers, resulting in overall increasing investment costs in research & development. Moreover, as rare earth metals are used in permanent magnets for synchronous motors, EV manufacturers face difficulty due to the high cost of these raw materials and their less availability in the market. Thus, the disrupted supply chain causes a shortage of raw materials, which leads to increase in the cost of electric vehicles, which is a major restraint to the market growth.

SEGMENTATION

By Vehicle Type Analysis

Rising Preference for Private Over Public Transportation to Drive Passenger Car Segment Growth

By vehicle type, the market is segmented into passenger car and commercial vehicle.

The passenger car segment captured a significant share of the market. The segment is also considered to be the fastest-growing in the market, recording a considerable CAGR over the forecast period. The growth is attributed to the increase in adoption of passenger cars as more people were using private vehicles over public transportation due to the COVID-19 outbreak.

The commercial vehicle segment accounted for a considerable market share in 2022. The growth is attributed to the rising inclination of the governments toward electric buses to reduce CO2 emissions and provide sustainable public transportation.

By Drive Type Analysis

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Affordability of Four Wheelers and Rising Popularity of Front-Wheel Drive in Vehicle to Boost Segmental Growth

Based on drive type, the market is divided into all-wheel drive, front-wheel drive, and rear-wheel drive.

The front-wheel drive segment is currently dominating the global market. The segment is also expected to grow at the fastest CAGR during the forecast period. These systems are more cost-effective to manufacture and maintain than rear-wheel drive or all-wheel drive systems. This makes the front-wheel drive vehicle more affordable for customers, thereby fueling the market growth.

The all-wheel drive segment accounted for a significant market share in 2022. This is due to the increasing popularity of all-wheel drive in the global automotive industry. Moreover, the rising adoption of SUVs and crossovers is likely to boost the demand for this drive during the forecast period.

The rear-wheel drive segment accounted for a considerable market share in 2022. Vehicle systems are undergoing continuous advancements every year. The rear-wheel drive system tends to have better handling and traction, particularly in performance-oriented vehicles. This might propel the market growth during the forecast period.

REGIONAL INSIGHTS

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Increasing Electric Vehicle Sales in Developing Countries of Asia and Robust Supportive Eco-system are Responsible for Asia Pacific Market Growth 

Asia Pacific dominated the electric vehicle e-axle market share in 2022 with the fastest-growing CAGR over the forecast period, and its value stood at USD 20.97 billion in 2022. The region is witnessing rapid urbanization and the population of many Asian countries continues to grow. This has increased the demand for sustainable transportation alternatives that can help alleviate congestion and air pollution in urban areas. This creates a lucrative demand for electric vehicles, thereby fueling the regional market.

The North America market witnessed significant growth in 2022. The increasing awareness and concerns about climate change and the impact of fossil fuels have compelled consumers to buy electric vehicles. This will expand the regional market size over the coming years.

The Europe market accounted for a sizable market share in 2022. Many European governments have implemented policies and incentives to boost the adoption of electric vehicles, including grants, tax credits, and other financial perks. This has improved the demand for electric vehicles, which will propel the regional market growth.

The rest of the world market witnessed decent growth in 2022. Many key companies are increasing their investments in electric vehicle infrastructure, driving the sales of electric vehicle e-axle during the forecast period.

KEY INDUSTRY PLAYERS

Focus on New Development of E-axle Technologies to Drive Market Competition

The global market consists of numerous global as well as regional players. It is observed that both global and regional players have a diverse product portfolio with a strong focus on geographic expansion. A vast majority of the regional players are focused on their acquisitions & expansion plans through dealerships and production activities. They are also developing products and increasing their investment in research & development to discover the latest trends and technologies.

Dana Limited Dominates the Market Owing to Industrious Partnerships and Industry-Leading Products

Dana Limited is a leading provider of drivetrains and e-propulsion systems. The company’s engineers manufacture and distribute power conveyance and energy management solutions for automobiles. Dana Limited was established in 1904. The company has a workforce of 40,200 professionals and is headquartered in Maumee, Ohio, U.S. In 2022, the company generated a revenue of USD 8.94 billion, recording a revenue growth of 25.91% as compared to 2020. Dana Limited offers its products and services for light vehicles, commercial vehicles, and off-highway vehicles. Under these sectors, the company is manufacturing and providing electric vehicle e-axle for better driving efficiency.

LIST OF KEY COMPANIES PROFILED:

•  Dana Limited (U.S.)


•  Robert Bosch GmbH (Germany)


•  GKN Automotive Limited (U.K.)


•  Nidec Corporation (Japan)


•  ZF Friedrichshafen AG (Germany)


•  Schaeffler AG (Germany)


•  Linamar Corporation (Canada)


•  Magna International Inc. (Canada)


•  Suzhou Inovance Automotive Co., Ltd. (China)


•  Vitesco Technologies Group AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2022 – Nidec conducted a signing ceremony for the construction of its flagship e-axle factory in Pinghu, Zhejiang, China. After constructing this factory, the company aims to sell 3.6 million e-axle units with a planned production capacity of 7 million units by 2025.


• October 2022 – GKN Automotive signed a partnership with Ariel. Under the partnership, GKN will develop and produce an electric powertrain for Ariel HIPERCAR.


• September 2021 – Dana Limited started the production of e-axles for Freightliner Custom Chassis Corporation’s zero-emission electric delivery vehicles. Under the contract, Dana will provide its eS9000r e-axle for the Freightliner Custom Chassis Corporation’s (FCCC) all-electric MT50e medium-duty last-mile delivery vehicles. The eS9000r e-Axle - the first in a line of Spicer Electrified Zero-6 e-Axle - is designed with a custom Spicer S130 rear-drive axle that includes a gearbox and motor and provides up to 240 kW of power to support a driving range of 170 miles.


• September 2021 – Linamar Corporation launched its eLin Product Solution Group, which focuses on generating market opportunities for Linamar's products in industrial and mobility segments as well as other new markets. The new eLIN Group focuses on four major areas such as power generation, power storage, propulsion systems, and structural & chassis offerings for electric vehicles. Under this Group, the company will develop, design, and manufacture e-axles to improve an electric vehicle’s efficiency and performance.


• August 2020 – Vitesco Technologies launched its fully integrated electric axle drive EMR3 for Dongfeng Passenger Car Corporation. The EMR3 will be used by Dongfeng for its all-electric version of the Yixuan car, a Chinese A-segment car. The EMR3 delivers 120 kW of power with a torque of up to 260 Nm. It weighs less than 80 kilograms and is highly compact and fully validates the system.

REPORT COVERAGE

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The research report covers detailed analysis of the market. It focuses on key aspects such as leading companies, product types, and major product applications. Besides this, the report offers insights into the latest market trends and highlights key automotive industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of several factors that have contributed to the market growth in recent years.

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