Electric Axle Drive Systems Market Share

Electric Axle Drive System Market Overview:

The Electric Axle Drive System market industry is foreseen to grow from USD 5.16 Billion in 2024 to USD 11.5 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 10.53% during the forecast period (2024 - 2032). Electric Axle Drive System Market Size was valued at USD 4.6 Billion in 2023. Increased demand for eco-friendly vehicles and government initiatives to encourage electric vehicle use are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electric Axle Drive System Market Trends

• 
  

  The increasing acquisition of electric vehicles is driving the market growth

  
  

Market CAGR for electric axle drive system market is being fueled by the growing adoption of electric vehicles. The rising demand for eco-friendly vehicles, the popularity of hybrid vehicles, and the growing need for fuel efficiency in automobile manufacturers are the key reasons to increase in the requirement for electric vehicles and thus fueling the electric axle drive system market. Governments are taking the initiative to promote environment-friendly vehicles, reducing the harmful effects of fossil fuel-powered vehicles on human health and the environment.

The energy efficiency and NVH (noise, vibration, and harshness) performance are improved with the use of E-axles in vehicles. They are available in various vehicle designs that provide high-performance scalability. The increasing population is increasing the supply and demand for energy. Hence the, customers are opting for electric vehicles. People are becoming conscious of the harmful effects of fossil-fueled vehicles on the environment and the health of humans. The demand for electric cars is being impacted because of the requirement for eco-friendly transportation globally. The demand for electric vehicle is rising as it provides increased energy efficiency while reducing pollution and other greenhouse gas emissions. Thus, the electric drive axles market is foreseen to grow during the forecast period. The government of various countries is emphasizing the utilization of electric vehicles through various schemes and subsidies, thus boosting the market of electric axle drive and wheel drive.

The electric axle drive system serves as a power source for electric and hybrid automobiles which is fully integrated into the front or rare axle with the important function of delivering power for turning the wheels. The electric axle drive systems are manufactured of completely contained units inclusive of high-strength, metals of lightweight, and compact by design powering the vehicle's axle directly. The electric axle drive system consists of traction motors along with a gear train, motor drives, and other power electronics, making a sub assemble and then connected directly with the rear axle of the vehicle. The design of this system is less complex and simpler, which supports a smoother and more efficient drive experience.

The automotive industry is the main contributor to the rising demand of the global electric axle market, used in various vehicles as part of electrification. The longer product life cycle, cost advantage, lightweight vehicles, and level of comfort for the customers are the main focus of automobile manufacturers. The latest technological advancement provides minimum power losses as a result of mechanical actions. The increase in spending power of consumers, improved lifestyle, governmental rules, and regulations for auto manufacturers are the macroeconomic factors that have increased the demand in the market. Thus, driving the Electric Axle Drive System market revenue.

Electric Axle Drive System Market Segment Insights:

Electric Axle Drive System Type Insights

The Electric Axle Drive System Market segmentation, based on system type, includes electric systems and hybrid electric systems. The hybrid electric system segment dominated the market, accounting for the largest market revenue due to their simple and less multiplex design. These are cost-effective to maintain are authentic, that is estimated to boost the market growth. Furthermore, electric systems are projected to grow at a significant CAGR due to technological improvements and innovations.

Electric Axle Drive System Vehicle Type Insights

The Electric Axle Drive System Market segmentation, based on vehicle type, includes passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car category dominated the electric axle drive system market because of the rising demand for electric vehicles among customers. The innovative technology and increasing concern about carbon emissions produced by gasoline vehicles is promoting market growth. Passenger vehicles give better performance and effectiveness compared to commercial vehicles. Commercial vehicles make use of complex mechanical systems for power distribution and traction control, but with electric vehicles, everything is simple.

Figure 1: Electric Axle Drive System Market, by Vehicle Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electric Axle Drive System Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific Electric Axle Drive System market dominates this market, owing to an increase in government regulation for vehicular emissions and rising investment in research and development for advanced electric vehicles, as these are less polluting and have lesser environmental effects. China is the largest market, as there is rising demand for electric vehicles globally.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Electric Axle Drive System Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Electric Axle Drive System market accounts for the second-largest market share due to the development and adoption of electric vehicles, passenger cars, and light commercial vehicles are majorly used. Further, the German Electric Axle Drive System market had the highest market share, and the UK Electric Axle Drive System market was the fastest-growing market in the European region.

The North American Electric Axle Drive System Market is expected to grow at the rapid CAGR from 2024 to 2032. This is due to the government initiatives for expanding the adoption of zero-emissions vehicles a growing development of electric vehicles. Moreover, the US Electric Axle Drive System market had the largest market share, and the Canadian Electric Axle Drive System market was the fastest-growing market in the North American region.

Electric Axle Drive System Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Electric Axle Drive System market grow even more. Market participants are also undertaking a various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Electric Axle Drive System industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Electric Axle Drive System industry to benefit clients and increase the market sector. In recent years, the Electric Axle Drive System industry has offered some of the most significant advantages to the automobile industry. Major players in the Electric Axle Drive System market, including ZF Friedrichshafen AG (ZF), Dana Ltd., HELLA, Toyota Industries, Meritor Inc., Manga Iinternational Inc., Continental AG, Ziehl Abegg SE, Robert Bosch GmbH, American Axle & Manufacturing Holdings, Borgwarner Inc., GKN Plc, and others, are trying to increase market demand by investing in research and development operations.

Dana is a leading designer and manufacturer of highly efficient propulsion and provides energy-management solutions that power vehicle and machines in all mobility markets throughout the world. It is based in Maumee, Ohio, USA, founded in 1904, was named one of 'America's Most Responsible Companies 2023' by Newsweek because of its emphasizes on sustainability and social responsibility and its conventional and clean-energy solutions it provides in drive and motion systems; electrodynamics technologies, consisting of software and controls; thermal, sealing, and digital solutions. In September 2021, Dana Ltd. introduced the eS9000r EV E-Axle for numerous Class 7 & 8 medium and heavy-duty vehicles, which will in the future advance the adoption of electric motility in the commercial vehicle segment.

ZF Friedrichshafen AG (ZF) is a global technology company providing systems for passenger cars, commercial vehicles, and industrial technology that allows the next generation of mobility with vehicle motion control, integrated safety, automated driving, and electric mobility. Their products contribute to minimizing emissions, protecting the climate, and improving safe mobility. It operates in over 32 countries with 165,000 employees globally. In February 2021, it announced that in September 2023, it would start producing its first 800V electric drive axle in Hangzhou's Xiaoshan district. The development process was overseen by the local team from ZF's Electrified Powertrain Technology division in Shanghai. It made almost $300 million investment in this factory.

Key Companies in the Electric Axle Drive System market include

• ZF Friedrichshafen AG (ZF)


• Dana Ltd.


• HELLA


• Toyota Industries


• Meritor Inc.


• Manga Iinternational Inc.


• Continental AG


• Ziehl Abegg SE


• Robert Bosch GmbH


• American Axle & Manufacturing Holdings


• Borgwarner Inc.


• GKN Plc

Electric Axle Drive System Industry Developments

November 2022: The high-voltage EV Power Electronics industry was joined by HELLA with large customer orders. HELLA avails high-voltage voltage converters to ten different car series of German luxury automakers, for which production will start in mid-2025.

August 2022: The new Ishihama Plant has added an onboard battery production by Toyota Industries, thus increasing the production output of bipolar nickel-hydrogen batteries for hybrid automobiles.

May 2018: To provide electric drivetrains for 250 refuse trucks and Class 8 Model 579 tractors in collaboration with Transpower, US-based integrated drive systems and energy storage sub-systems company, the Meritor Inc. Build a partnership with Peterbilt Motor Company.

Electric Axle Drive System Market Segmentation:

Electric Axle Drive System Type Outlook

• Electric System


• Hybrid Electric System

Electric Axle Drive System Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicles


• Heavy Commercial Vehicles

Electric Axle Drive System Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America