Global E-Axle Market 2024-2030
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Global E-Axle Market 2024-2030

Last Updated:  Apr 25, 2025 | Study Period: 2024-2030

E-AXLE MARKET

KEY FINDINGS

  1. The E-Axle market is experiencing significant growth globally, driven by the increasing demand for electric vehicles (EVs) and the shift towards electrification in the automotive industry.
  2. E-axles integrate electric motors, power electronics, and transmission systems into a single compact unit, simplifying vehicle design and enhancing efficiency.
  3. The growing adoption of E-Axles is fueled by trends toward vehicle electrification, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs).
  4. Stringent emissions regulations and government incentives promoting cleaner transportation solutions are driving the adoption of E-Axles to reduce carbon emissions and achieve sustainability targets.
  5. E-axles offer improved performance characteristics compared to traditional internal combustion engine (ICE) vehicles, including instant torque delivery, smoother acceleration, and enhanced driving dynamics.
  6. E-axles contribute to extending the driving range of electric vehicles by optimizing powertrain efficiency and reducing energy consumption.
  7. The integration of components in E-Axles results in cost savings for automakers through reduced complexity in vehicle assembly, lower maintenance requirements, and improved overall vehicle efficiency.
  8. The E-Axle market is highly competitive, with key players investing in research and development to innovate new technologies, enhance product offerings, and gain a competitive edge.
  9. Strategic partnerships between automotive OEMs and E-Axle manufacturers are emerging to accelerate technology development, streamline supply chains, and meet growing market demand.
  10. The E-Axle market is expanding beyond passenger cars to include commercial vehicles, buses, and other transportation applications, offering significant growth opportunities for market players.

 

E-AXLE MARKET OVERVIEW

The E-Axle market is experiencing rapid growth and transformation driven by the increasing demand for electric vehicles (EVs) worldwide. E-Axle, or electric axle, integrates electric motor, power electronics, and transmission functionalities into a single compact unit, enabling vehicle electrification while simplifying design and manufacturing processes.

 

With the automotive industry transitioning towards electrification to meet stringent emissions regulations and address environmental concerns, E-Axles has emerged as a crucial technology to power electric and hybrid vehicles efficiently. Major automotive manufacturers and suppliers are investing heavily in the development of E-Axle solutions to enhance vehicle performance, extend range, and reduce overall costs, fostering innovation and competition within the market.

 

As the adoption of electric vehicles continues to rise, the E-Axle market is poised for significant expansion in the coming years. Factors such as government incentives, declining battery costs, and advancements in electric drivetrain technology are driving the growth of the market.

 

Additionally, increasing consumer awareness about the environmental benefits of electric vehicles and the growing preference for sustainable transportation solutions are further fueling demand for E-Axle systems. With ongoing research and development efforts focused on improving efficiency, reliability, and integration capabilities, the E-Axle market is expected to witness continued innovation and investment, shaping the future of automotive electrification.

 

INTRODUCTION TO E-AXLE MARKET

The E-Axle market represents a transformative shift in the automotive industry as it embraces electrification and sustainability. E-axles, also known as electric axles, are innovative propulsion systems that integrate electric motors, power electronics, and transmission into a single compact unit. This consolidation of components allows for greater efficiency, reduced weight, and simplified vehicle architecture, making it a cornerstone technology in the development of electric vehicles (EVs). With the global automotive landscape witnessing a rapid transition towards electric mobility to mitigate environmental concerns and comply with stringent emissions regulations, the E-Axle market is poised for exponential growth.

 

As the demand for electric vehicles continues to surge, driven by advancements in battery technology, government incentives, and shifting consumer preferences towards cleaner transportation solutions, the E-Axle market is experiencing unprecedented expansion. Automakers and technology providers are investing heavily in research and development to enhance E-Axle performance, increase power density, and optimize integration with vehicle platforms. Moreover, the E-Axle market is witnessing collaboration and partnerships among industry players to accelerate innovation, address supply chain challenges, and capitalize on emerging opportunities in the burgeoning electric vehicle segment.

 

E-AXLE MARKET SIZE AND FORECAST

 

E-Axle Market SIZE

 

The E-Axle Market is estimated to be worth $ XX billion by 2030 and is expected to grow at a compound annual growth rate (CAGR) of YY%. Another report projects that the market will reach $XX billion by 2030, growing at a CAGR of YY% from 2024 to 2030.

 

TREND IN E-AXLE MARKET

The E-Axle market is experiencing significant growth and innovation, driven by the increasing adoption of electric vehicles (EVs) worldwide. One prominent trend is the integration of multiple powertrain components into a single, compact unit, known as the E-Axle. This innovative approach combines the electric motor, transmission, and power electronics into a single housing, offering automakers a space-saving solution for EV drivetrains.

 

This trend is particularly appealing as automakers strive to enhance the efficiency and performance of their EVs while maximizing interior space and reducing overall vehicle weight. Furthermore, advancements in E-Axle technology, such as the development of integrated cooling systems and improved power density, are enabling automakers to achieve higher levels of efficiency and range in their electric vehicles.

 

Another emerging trend in the E-Axle market is the increasing demand for modular and scalable E-Axle solutions. As the EV market continues to evolve and diversify, automakers are seeking flexible drivetrain solutions that can accommodate various vehicle types, sizes, and performance requirements. Modular E-Axle platforms allow automakers to quickly and cost-effectively develop a range of electric vehicles, from compact city cars to high-performance SUVs and commercial vehicles.

 

This trend is driving innovation among E-Axle manufacturers, who are designing versatile platforms that can be easily customized and adapted to meet the specific needs of different vehicle models and market segments. Overall, these trends are shaping the future of the E-Axle market, driving innovation, efficiency, and sustainability in the electric vehicle industry.

 

E-AXLE MARKET NEW PRODUCT DEVELOPMENT

The E-Axle market is witnessing notable advancements in product development, driving innovation in electric vehicle (EV) propulsion systems. One significant trend is the integration of multiple drivetrain components into a single compact unit, known as an E-Axle, which houses the electric motor, power electronics, and transmission in a single housing.

 

This integration optimizes space utilization, reduces weight, and simplifies assembly, contributing to improved vehicle performance, efficiency, and packaging. Manufacturers are investing in the development of E-Axles with higher power densities, enhanced thermal management systems, and advanced control algorithms to meet the performance requirements of a wide range of vehicle applications, from compact cars to commercial vehicles.

 

Furthermore, there is a growing focus on modular E-Axle designs that offer scalability and flexibility to accommodate different vehicle architectures and performance requirements. Modular E-Axle platforms enable automakers to streamline vehicle development and production processes while maximizing design flexibility and cost-effectiveness.

 

Additionally, advancements in materials science and manufacturing technologies are facilitating the production of lightweight and durable E-Axle components, further enhancing vehicle efficiency and range. Overall, the continuous innovation in E-Axle technology is driving the electrification of the automotive industry and accelerating the transition towards sustainable mobility solutions.

 

E-AXLE MARKET DYNAMICS

The initial adoption of E-axles started as a result of growth in all-wheel drive (AWD), where some premium vehicle manufacturers replaced mechanical AWD with e-AWD.

 

The move was aimed at providing AWD with torque vectoring and reduced CO2 emission. Going forward, we believe this global trend of vehicle electrification will be a major growth driver for the E-axle market.

 

The supply chain of EV manufacturing is completely different than gas-powered cars. Also, the supply chain of EVs is still evolving whereas that of gas-powered cars is matured and well established. This marked difference in the production of EVs has led many OEMs to create a separate brand for their “green vehicle” segment.

 

Owing to the complexity of EV manufacturing, OEMs are designing modular and scalable electric vehicle architecture. The advantage is, that they could source just one e-axle from a supplier rather than sourcing individual power-train components from multiple suppliers.

 

The market trend is clearly towards more compact, powerful dense, and efficient E-axles.

 

Honda Motor Co., Ltd. has placed orders for electric axles for mid-size and large-size battery-electric vehicles with Hitachi Astemo, Ltd., a world leader in electrification.

 

As a systems integrator, Hitachi Astemo will provide Honda with a high-performance, integrated drive unit, with the e-Axle system combining a highly effective silicon carbide (SiC) inverter, a square-wire, low-loss, and high-efficiency motor, and a small, silent gearbox from a gearbox manufacturer.

 

E-AXLE MARKET SEGMENTATION

Market Segmentation of the E-Axle Market:

 

By Application:

  1. Passenger Vehicles
  2. Commercial Vehicles
  3. Electric Buses
  4. Electric Trucks
  5. Others (such as Electric Two-Wheelers, Electric Off-Road Vehicles)

 

By End-Use Industry:

  1. Automotive OEMs (Original Equipment Manufacturers)
  2. Aftermarket

 

By Type:

  1. Single Motor E-Axle
  2. Dual Motor E-Axle

 

By Vehicle Type:

  1. Battery Electric Vehicles (BEVs)
  2. Plug-in Hybrid Electric Vehicles (PHEVs)
  3. Hybrid Electric Vehicles (HEVs)

 

Geographic Segmentation:

  1. North America
  2. Europe
  3. China
  4. Asia Ex China
  5. ROW

 

E-AXLE MARKETCOMMERCIAL VEHICLE SEGMENT

In the commercial vehicle segment, Nikola will generate the bulk of the demand for CV e-axle in the US as it had 14,000+ pre-orders for its long haul, fuel cell electric truck as of Q3 2020.GM and a few fleet operators were also interested in developing a light pickup truck with Nikola but during Sep-Dec 2020 many deals fell apart.

 

Nikola is now solely focused on its core product “ electric truck” which it plans to mass produce this year.As city planning authorities tighten the noose on urban CO2 emissions, the LCVs used for last-mile distribution will be electrified first. Dana is already working with Workhorse to create last last-mile delivery EV platform and supply Dongfeng in China with e-axles.

 

Hyzon Motors has developed a new eAxle design that provides extremely high efficiency for 6x4 Class-8 commercial vehicles.

 

Hyzon’s eAxle eliminates right-angle hypoid gears and uses one motor per wheel with optimized performances both at low speed and high speed. Paired with a virtual differential, the design achieves an efficiency of up to 97%, compared to the industry-standard 95%.

 

Allison, ZF, Bosch, and AxleTech are some of the major suppliers who have launched e-axles for different segments of commercial vehicles

 

MAN and Volkswagen in South America have chosen Meritor to supply e-axles. In Q3-2019, Meritor under its Blue Horizon product line, developed the 12Xe axle for Class 4, 5, 6, and 7 applications and the 17Xe axle for heavy-duty 4x2 and 6x2 trucks.

 

It is striving to become an end-to-end e-mobility powertrain provider for commercial vehicles including battery packs, controls, and e-drive modules.

 

We expect many more collaborations in the coming years. Allison, ZF, Bosch, and AxleTech are some of the major suppliers who have launched e-axles for different segments of commercial vehicles

 

Sl noOEMVehicle typeMass production timelineE-Axle Remarks
1BYDFuel Cell Electric bus2022-2025No
2Thomas BuiltElectric School bus2021No
3PeterbiltClass 8 Electric truck2021Yes
4Daimler TrucksElectric Linehaul truck2021No
5Blue Bird and Lion BusesElectric transit bus2019No
6Nikola MotorsClass 8 Electric truck2021Yes

 

E-AXLE MARKETPASSENGER VEHICLE SEGMENT

China accounts for 50% of global EV sales, almost all domestic manufacturers have declared plans to set up a separate EV brand, but very few of them have fitted their vehicles with an e-axle.

 

In 2021, EV sales increased by about 153% year-over-year, from 1.27 million in 2020 to 3.22 million. BEVs comprised 82.6% and PHEVs comprised 17.4% of total EV sales in 2021

 

The EV market in China is heavily skewed towards low-powered compacts using single-speed transmission. The entry-level cars(A00 and A0 segment) made up for just 18% share of overall NEV car sales in 2021

 

Read our EV transmission report to know more about it.

 

In the passenger vehicle segment, Europe is leading and also driving global market growth for E-axles.BMW+ Mini was the market leader in EV(BEV+ PHEV) in Europe, it had a 15% share of ~500,000 EVs sold in Europe in 2019 but in 2020 its share reduced to 7%.

 

The E-axle-equipped 2 Series Active Tourer sales grew by more than 6% in 2019. Going forward, the sales of BMW and Mini PHEVs will have a significant impact on E-axle volumes in Europe.

 

Audi is trying to catch up fast and announced in Feb 2019 that it will start offering PHEV variants of its high-end models like A6, A7, A8, and Q5. However, it is more likely to use dedicated hybrid transmission than an E-axle.

 

The onset of WLTP in Europe in Sep`18 has provided a much-needed boost to EV manufacturing in the region and driven PHEV adoption.

 

In the US, where SUVs and Pickups make up for  ~71% of annual new car sales, ~25-28%of those vehicles are fitted with mechanical 4WD/AWD. As the average transaction prices of SUVs and pickups now exceed $45,000, we expect a few of them to be powered by E-axle in their next refresh/update.  

 

Tesla had a 72% market share of electric vehicles in the US, and a 21% share of global BEVs in 2021, but it does not have an e-axle in any of them. It uses its in-house developed induction/PMSRM motors for propulsion. Tesla Model 3 is the best-selling passenger car globally, in terms of revenue, generating ~$8 Billion in the US alone.

 

E-AXLE MARKETCOMPETITIVE LANDSCAPE

 

SupplierWeight(Kg)Max Power output(kW)Start of ProductionPassenger vehiclesCommercial vehicle
Nidec831502019YesNo
Dana3051302018NoYes
GKN54652019YesNo
Continental751502018YesNo
Bosch30-18050-3002019YesYes
Schaeffler751502017YesNo
ZF1131502018YesNo

 

The low scale of EVs has not allowed suppliers to achieve economies of scale. Further, the OEM margins on BEVs and PHEVs are already low, as the market is driven more by regulation than consumer demand.

 

There are about 15 Tier-1 suppliers active in the E-axle market. GKN is the undisputed market leader in this space but its leadership is likely to be challenged in coming years by Nidec. In Feb 2020, Nidec launched two E-axles i.e. a 50kW version for PHEVs/Kei cars which has no presence as of date, and a 200kW version which will be aimed at Premium BEVs.

 

Nidec’s products are used in GAC’s Aion S, Aion LX, Aion V, GAC Toyota’s iA5, Hycan 007, and Geometry C. They expect innovators to utilise E-axle in their vehicle range which will later shift to early adopters and early majority. Nidec believed the profits will mainly come from early adopters onwards post 2025

 

GKN`s products have been featured on more than 15 EV models across the globe. In addition, it has a very diverse portfolio including single-speed, co-axial, and multi-speed e-axles which allows it to cater to diverse requirements and gives it an edge over others.

 

In Q3-2019, Vitesco( Continental) struck a deal with PSA and Hyundai for the supply of E-axles to high-volume platforms. Vitesco`s new electric drive system will be supplied for PSA`s e-CMP modular electric platform, powering battery electric vehicle models such as the Peugeot e-208 and Opel Corsa-e. The Hyundai China through its joint venture Beijing Hyundai will equip two models with Vitesco Technologies’ electric drive system: the Encino compact SUV and the Lafesta sedan.

 

To learn more about the e-axle market from a supplier point of view. Read our article    E-axle market, an unmissable opportunity for auto suppliers

 

Bosch has a more versatile and scalable product, which can cater to passenger as well as commercial vehicles but its market reach has been limited so far. There are also some new entrants like Sona Group, Hyllion, and AxleTech(now acquired by Meritor).

 

The biggest challenge for E-axle suppliers is to fight competition from hybrid transmissions in PHEVs and single-speed (very cost-effective) transmission in BEVs. The cost factor is secondary because the conversion of an ICE only to a PHEV costs about $4,000 including batteries.

 

E-AXLE MARKETCOMPANIES PROFILED

  1. AVL List GmbH
  2. ZF Friedrichshafen
  3. Dana Incorporated
  4. Continental AG
  5. Nidec Corporation
  6. Schaeffler Group
  7. Magna International
  8. GKN Automotive Limited
  9. BorgWarner Inc
  10. Hitachi Automotive Systems Ltd.

 

THISE-AXLE MARKETREPORT WILL ANSWER FOLLOWING QUESTIONS

  1. What is the current market size of the E-Axle market, and what are the projected growth rates?
  2. What are the key drivers influencing the growth of the E-Axle market globally?
  3. How is the increasing adoption of electric vehicles impacting the demand for E-Axle systems?
  4. What are the major challenges faced by companies operating in the E-Axle market?
  5. Which regions are expected to witness the highest growth in the E-Axle market, and why?
  6. What are the different types of E-Axle systems available in the market, and how do they differ?
  7. What role does government regulation play in shaping the E-Axle market landscape?
  8. How are advancements in electric vehicle technology influencing the design and functionality of E-Axle systems?
  9. What are the emerging trends in the E-Axle market, such as the integration of motor, transmission, and power electronics?
  10. Who are the key players in the E-Axle market, and what are their strategies for market growth?
  11. How do cost considerations impact the adoption of E-Axle systems in electric vehicles?
  12. What are the environmental benefits associated with the adoption of E-Axle systems in electric vehicles?
  13. What are the potential applications of E-Axle systems beyond passenger cars, such as commercial vehicles and buses?
  14. How do different vehicle segments, such as sedans, SUVs, and trucks, contribute to the demand for E-Axle systems?
  15. What are the technological innovations driving advancements in E-Axle systems, such as regenerative braking and integrated motor designs?
  16. What are the prospects and growth opportunities for the E-Axle market, considering factors such as battery technology advancements and infrastructure development for electric vehicles?
Sl noTopic
1Market Segmentation
2Scope of the report
3Research Methodology
4Executive Summary
5Introduction
65 Key Predictions for E-Axle  Market
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Average B-2-B selling price in past 5 years
10New product development in past 12 months
11Expansion and  Applications of the E-Axle 
12Importance of Technological innovation
13Impact Thermal Storage Systems and Smart Grid Integration 
14Market Size, Dynamics and Forecast by Application , 2024-2030
15Market Size, Dynamics and Forecast by End-use industry, 2024-2030
16Market Size, Dynamics and Forecast by Type, 2024-2030
17Market Size, Dynamics and Forecast by  Geography, 2024-2030
18Market Size, Dynamics and Forecast by Technology, 2024-2030
19Competitive Landscape
20Gross margin and average profitability of suppliers
21M&A in past 12 months
22Growth strategy of leading players
23Market share of vendors, 
24Company Profiles
25Unmet needs and opportunity for new suppliers
26Conclusion