Automotive Electric Drive Axle market is expected to register a CAGR of over 15% during the forecast period (2020 - 2025).
- The electric drive axle is a compact, cost-attractive electric drive solution for battery-electric vehicles and hybrid applications.
- With the increasing emission standards, the need for adoption of the electric vehicle has been a prominent initiative among various countries, globally.
- Government policies played a huge role in promoting electric vehicles. The result has started to show in the European countries, where electric vehicles have occupied a significant portion of the total vehicle population. In the coming years, China, the United States, and a few European countries like Norway, France, etc., are positioned to take the leading role in the electric vehicle, owing to the supporting government policies.
Key Market Trends
Increasing Sales of Electric and Hybrid Vehicles are Expected to Drive the Market
The electric vehicle (EV) market has witnessed significant growth due to the need for addressing future energy requirements. The need to attain sustainable transportation plays a significant role in driving electric vehicle demand. The EV market is coming up as an integral part of the automotive industry and represents a pathway towards achieving energy efficiency along with reduced emission of pollutants and other greenhouse gases.
The sales of Electric drive axle are expected to grow, as every year sales of Electric Vehicles are growing. In 2017, global Electric Vehicle sales were 1 million units which were increased to 2 million units in 2018.
Many major automobile technology companies are working towards improving electric drive axle technology. For instance, in 2017; GKN Automotive announced that the company has developed a semi-integrated co-axial single-speed electric axle system. According to the company, this eAxle will provide hybrid and electric modes along with energy-efficient AWD functionality to maximize customer benefit.
Another automobile technology company Continental AG in 2019 has announced that the company is developing a fully integrated Axle Drive for mass production. According to the company, the highly integrated axle drive comes in two performance levels, 120 kW and 150 kW. The 150-kW electric axle will provide a torque of 310 Nm which is nearly equivalent to torque provided by two-liter turbo diesel engine.
Asia-Pacific to Dominate Automotive Electric Drive Market During the Forecast Period
Globally, Asia-Pacific has been capturing the largest share in the electric drive axle market, owning to high EV sales, majorly from China. China has been consistently taking aggressive steps to tackle the issue of environmental pollution, which in turn, has resulted in the high adoption rate of electric vehicles in its transportation sector. China is the largest market for electric cars across the world. During 2019, electric vehicle sales in the country accounted for more than 1.21 million. Furthermore, in 2017, Beijing announced plans to transform its entire taxi fleet to that of electric propulsion.
Major global electric vehicle manufacturers are setting their plants in China to meet the growing demand for electric vehicles, for instance, in May 2018, Tesla inaugurated manufacturing facility in the country. According to the company, the production facility has the capacity of producing 250,000 electric cars per annum.
Apart from that, Nissan, BYD, Honda, and Toyota Motor Corporation have announced their investment plans in the Chinese market, which are expected to collectively sum up to USD 50 billion.
The Automotive Electric Drive Axle Market is a consolidated market. Some of the major players dominating the market are Robert Bosch GmbH, ZF Friedrichshafen AG, Dana Incorporated, GKN PLC, Bonfiglioli Riduttori Spa, and Magna International, amongst others.
- In May 2018, Dana Incorporated has established an electric axle drive manufacturing unit in China to cater to commercial vehicles, such as buses and trucks.
- In May 2018, Meritor Inc. has established a partnership with Peterbilt Motor Company to supply electric drivetrains for 520 refuse trucks and Class 8 Model 579 tractors, in collaboration with TransPower, US-based integrated drive systems, and energy storage sub-systems company.
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