Fuelled by environmental concerns and government support for electric vehicles, the global EV transmission system industry is witnessing substantial growth. Asia, with a particular emphasis on India, is emerging as a dominant region due to its robust manufacturing base and supportive government initiatives. Technological advancements, especially in response to the rise of autonomous vehicles, are poised to shape the future of the industry. According to Future Market Insights, the collaborations between automakers and suppliers are expected to enhance efficiency, reduce weight, and improve overall system performance.
The global EV transmission system industry was valued at $ 5.16 billion in 2019. From 2019 to 2023, the market experienced a CAGR of 11.3%, reaching $ 8.8 billion by 2023. The market is projected to continue its upward trajectory, expected to reach $ 10.37 billion in 2024 and $ 53.34 billion by 2034.
Regional Insights
India is eExpected to dominate the sector from 2024 to 2034 with a remarkable CAGR of 26.5% while China continues to be a global leader with a projected CAGR of 19.9%. Spain is anticipated to grow at a CAGR of 13.4%.
Segment Analysis
In terms of vehicle type the Battery electric vehicles (BEVs) are leading the market, projected to hold a 44.4% value share in 2024. From the transmissions standpoint the sSingle-speed transmissions are predominant, which is likely to account for a 67.4% value share in 2024, the report noted.
The rise of autonomous driving technologies is expected to necessitate intelligent interfaces in transmission systems. Strategic partnerships between automakers and suppliers are crucial for improving efficiency, reducing weight, and enhancing system performance to meet evolving vehicle requirements.
The industry is highly competitive, with key players like Allison Transmission Inc., Aisin Seiki Co., Ltd., AVL List GmbH, and Continental AG focusing on lightweight and affordable battery technologies. However, the market fragmentation presents opportunities for new entrants, and ongoing advancements in materials and designs aim to enhance EV range with minimal power loss. Balancing performance, affordability, and efficiency remains crucial, with market consolidation expected as technology advances.
A Few New Initiatives
In November 2023, Hyundai and Kia unveiled the 'Uni Wheel,' a novel EV drivetrain system that can be used on the wheel. Toyota announced in December 2023, its launch of a simulated manual EV transmission featuring up to 14 gears, signalling significant innovation in the sector.
Conclusion
The global EV transmission system industry is set for steady growth, driven by environmental concerns, technological advancements, and strong government support. With Asia, particularly India and China, leading the charge, the market is poised for significant expansion, presenting numerous opportunities for innovation and growth in the coming decade.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Allison Transmission
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