Electric Vehicle Transmission Market Size By Type (Single Speed, Multi-Speed), By Vehicle Type (Passenger Electric Vehicle, Commercial Electric Vehicle), By Transmission System (Automated Manual Transmissions, Continuously Variable Transmissions), By Geographic Scope And Forecast

Electric Vehicle Transmission Market Valuation – 2024-2031

The electric vehicle (EV) transmission market is revving up, driven by the surge in electric vehicles themselves. Governments pushing for cleaner air, consumers wanting eco-friendly options, and falling battery costs fuel the EV market. This translates to a growing demand for EV transmissions, expected to reach over a valuation of USD 56220.42 Million in 2031, up from a market valuation of USD 9624.89 Million 2023, growing at a CAGR of 27.23% from 2024 to 2031.

Two main types of EV transmissions exist, single-speed, which is simpler and cheaper, and multi-speed, offering better efficiency at high speeds but at a higher cost. The market is dominated by single-speed transmissions for now, but as electric vehicles become more performance-oriented, multi-speed options are expected to gain traction. The Asia Pacific region is leading the charge, with Europe and North America close behind, all thanks to their booming electric vehicle markets.

Electric Vehicle Transmission MarketDefinition/ Overview

An electric vehicle (EV) transmission is a system within an electric vehicle that uses the power generated by the electric motor to efficiently drive the wheels. Unlike typical internal combustion engine vehicles, which frequently utilize multi-speed transmissions to manage varied power demands, many EVs use single-speed gearboxes since the electric motor can generate consistent torque over a wide range of speeds. Passenger cars, buses, lorries, and other commercial vehicles benefit from EV gearboxes, which improve economy, cut emissions, and enable smoother, quieter running than traditional vehicles.

How will the increasing demand for high-performance electric vehicles impact the adoption of multi-speed transmissions?

The growing desire for high-performance electric vehicles (EVs) is anticipated to be a significant factor driving the adoption of multi-speed transmissions in this segment. There are several reasons for this trend. Single-speed transmissions, commonly found in most EVs today, offer advantages in terms of simplicity and cost-effectiveness. However, at high speeds, the electric motor might not be operating within its most efficient RPM range. This can result in a reduction in overall efficiency and potentially a shorter driving range.

Multi-speed transmissions address this issue by enabling the electric motor to remain within its optimal operating zone for a wider range of speeds. This translates to potential gains in efficiency, particularly for high-performance EVs that frequently reach higher speeds. Furthermore, high-performance EVs necessitate exceptional power delivery and acceleration. Multi-speed transmissions can provide a wider range of gear ratios. This allows the motor to deliver power more effectively across the entire speed range, potentially leading to quicker acceleration and improved overall performance.

Efficiency improvements from multi-speed transmissions can also address range anxiety, a major concern for many EV owners. Range anxiety refers to the fear of running out of battery power before reaching a charging station. By improving efficiency, multi-speed transmissions have the potential to extend the driving range of high-performance EVs, thus alleviating a key consumer concern. However, the adoption of multi-speed transmissions is not without its challenges. These transmissions are more complex and expensive to manufacture compared to single-speed options, potentially increasing the overall cost of high-performance EVs.

Additionally, integrating a multi-speed transmission into an EV drivetrain necessitates careful design to ensure smooth gear changes. This is crucial to minimize any potential power interruptions that could negatively impact the driving experience.

What are the Key Obstacles Faced by the Electric Vehicle Transmission Market?

Unlike traditional transmissions, which have defined norms, the EV transmission sector is witnessing technological divergence. This comprises single-speed and multi-speed gearboxes, as well as innovative continuously variable transmissions (CVTs) designed expressly for electric vehicles. The lack of a single dominating technology presents issues for automakers in terms of platform development, production scale, and, perhaps, maintenance costs for several transmissions.

EV transmissions must strike a compromise between maximizing efficiency and providing required vehicle performance. Single-speed transmissions are simpler and more efficient, but they limit acceleration and towing capacity. In contrast, multi-speed gearboxes provide superior performance but result in efficiency losses. Finding the best balance between these parameters is a constant problem in EV transmission development.

Furthermore, the cost of EV gearboxes must be carefully examined, particularly by budget-conscious car customers. Furthermore, flawless integration with various electric motor designs and power outputs is essential for peak performance and efficiency. Balancing these aspects while keeping costs low necessitates unique design approaches and maybe new manufacturing procedures for EV transmissions, which limits market growth.

Category-Wise Acumens

How Does Single Speed Transmission Drive the Market Growth?

The single-speed segment is estimated to dominate the market during the forecast period. Single-speed transmissions are mechanically simpler than multi-speed gearboxes. This leads to lower production costs, lighter weight (which contributes to a longer vehicle range), and maybe improved overall efficiency due to fewer moving parts and less energy lost through friction. Single-speed transmissions provide distinct advantages for automakers looking to maximize range while keeping costs down.

Unlike internal combustion engines, which require gear changes to maintain power across varied RPM ranges, electric motors provide high torque nearly instantly. Electric motors’ inherent torque curve makes single-speed transmissions enough for most driving conditions, reducing the need for sophisticated gear-shifting devices.

Furthermore, cost-effectiveness is an important concern as the electric vehicle sector evolves and seeks widespread adoption. Single-speed transmissions are often less expensive to manufacture than multi-speed choices. This is consistent with the present focus on making EVs more accessible to a broader spectrum of users.

What are the Drivers Propelling Demand for Transmission in Passenger Electric Vehicles?

The passenger electric vehicle segment is estimated to dominate the market during the forecast period. In terms of pure manufacturing volume, the global passenger automobile market outperforms the commercial and off-highway segments. As electric vehicle adoption accelerates, passenger electric vehicles are seeing the most significant rise due to factors such as government subsidies, increased customer interest in eco-friendly transportation, and manufacturers offering a greater selection of passenger EV models. This increased production volume inevitably leads to a larger market share for PEV transmissions.

When shopping for an electric vehicle, passenger car customers prioritize characteristics such as driving range and energy economy. EV transmissions for passenger cars are frequently designed with these principles in mind, with single-speed gearboxes that improve economy and help to expand the driving range on a single charge. This emphasis on efficiency is consistent with customer preferences in the passenger car segment.

Furthermore, Transmission technology is evolving in the passenger electric vehicle category. While single-speed gearboxes are prevalent, multi-speed gearboxes and even continuously variable transmissions (CVTs) are being developed expressly for passenger electric vehicles. This versatility enables automakers to meet a wide range of performance and efficiency requirements in the passenger car segment, reinforcing their position as market leaders in EV transmission.

Gain Access to Electric Vehicle Transmission Market Report Methodology

Country/Region-wise Acumens

How Does a Strong Manufacturing Base in the Asia Pacific region Drive the Market Growth?

The Asia Pacific region is estimated to dominate the market during the forecast period. The Asia-Pacific region has a well-established and powerful car manufacturing industry. This comprises prominent indigenous carmakers such as BYD (China), Toyota (Japan), and Hyundai (South Korea), as well as a strong presence of foreign automotive titans. This robust manufacturing base enables the development and production of electric vehicles with localized transmission solutions, meeting unique area needs and perhaps lowering dependency on imports.

Many Asian governments, particularly China, are leading the way in supporting the adoption of electric vehicles. They provide substantial subsidies for EV purchases, invest extensively in charging infrastructure construction, and set lofty goals for electric car penetration. These policies generate a strong market pull for electric vehicles, increasing in demand for EV transmissions to sustain their rapid expansion.

Furthermore, consumers in several Asian countries are price-conscious. This emphasis on affordability leads to a desire for electric vehicles that are both efficient and cost-effective. EV transmission manufacturers in the Asia Pacific prioritize value engineering, creating efficient and dependable transmissions that reduce overall car costs. This focus on pricing makes electric vehicles a more attractive alternative for a broader spectrum of purchasers in the region.

What are the Potential Factors Leading to the Growth of Market in Europe?

Europe region is estimated to exhibit substantial growth during the forecast period. European customers are becoming more ecologically conscious and looking for sustainable transportation solutions. This shift in consumer tastes generates high demand for electric vehicles, resulting in a developing market for EV transmissions. As sustainability becomes a key issue for automobile consumers, demand for EVs and related technology such as transmissions will increase.

Furthermore, several European countries provide incentives for purchasing electric vehicles as well as financing for charging infrastructure development. These regulations assist in lowering the initial cost of electric vehicles and alleviate range anxiety, making them a more appealing option for consumers. Increased affordability due to government subsidies will result in more electric vehicles on the road, fueling demand for EV transmissions.

Competitive Landscape

The electric vehicle transmission market is a dynamic landscape buzzing with established industry leaders, innovative startups, and forward-thinking technology providers. This diverse group caters to the evolving needs of the EV industry as it strives for ever-increasing efficiency. Key players differentiate themselves through a strategic blend of technological advancements, collaborative partnerships, and a comprehensive offering of transmission solutions. Companies at the forefront are those providing cutting-edge single-speed and multi-speed transmissions, as well as exploring innovative options like continuously variable transmissions (CVTs) specifically designed for electric motors. Those offering integrated solutions that combine efficient transmissions with advanced power electronics are well-positioned for future success.

Some of the prominent players operating in the electric vehicle transmission market include

Allison Transmission Inc., Aisin Seiki Co. Ltd., AVL List GmbH, Continental AG, BorgWarner Inc., Dana Limited, EATON Corporation, Denso Corporation, GKN Plc, Hitachi Automotive Systems Ltd., Hewland Engineering Ltd., JATCO Ltd., Mando Corporation, Magna International, Porsche AG, Schaeffler Technologies AG & Co., BYD Company Ltd, Mitsubishi Electric, ZF Friedrichshafen

Latest Developments

• In April 2024, Inmotive made an announcement regarding their collaboration with Suzuki to develop an IngearTM 2-speed EV transmission for upcoming Suzuki electric vehicles. The joint development agreement, which was signed in January of 2023, aimed to evaluate the feasibility and suitability of the Ingear EV transmission for future Suzuki electric vehicles.
• In September 2023, Musashi formed a joint venture (JV) with Delta Electronics and Toyota Tsusho Corporation to sell EV drive units for two-wheelers.
• In April 2023, Modern Automotives became the first Indian company to receive approval for deliveries of Differential Pinion Shafts to BMW AG Munich for their electric powertrains.
• In July 2023, Mercedes-Benz introduced the all-new AMG performance version of its GLC SUV. The powertrain is designed and built in Germany at the Affalterbach plant.
• In June 2023, Lucid Group, Inc. announced a technology partnership with Aston Martin to provide Aston Martin with Lucid-engineered and manufactured electric powertrain technology to power future Aston Martin battery electric vehicles (BEV).

Report Scope

Electric Vehicle Transmission Market, By Category

Type

• Single Speed
• Multi-Speed

Vehicle Type

• Passenger Electric Vehicle
• Commercial Electric Vehicle
• Off-Highway Electric Vehicle

Transmission System

• Automated Manual Transmissions
• Continuously Variable Transmissions
• Dedicated Hybrid Transmissions/Dual Clutch Transmissions
• Automatic Transmissions

Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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