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2024 Update Coming Soon Published Date: Jan 2021 Number of Pages: 130
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.
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.
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.
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.
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.
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.
Market Segmentation of the E-Axle Market:
By Application:
By End-Use Industry:
By Type:
By Vehicle Type:
Geographic Segmentation:
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 6×4 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 4×2 and 6×2 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
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.
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.
