- Europe and China cumulatively accounted for 82% of the global e axle market volume in 2019 and the share will grow to 86% in 2025. PHEV passenger cars will remain the dominant application, followed by electric buses
- On global scale,~65%-72% of traction motors produced are in-sourced and in future, when EV volumes further increase, we expect the share to go even higher.But, the e-axle sourcing pattern will be completely opposite
- Vehicles with high sticker price, typically in mid size and premium segment can absorb the cost of e-axle and still return a profit
- China, despite accounting for 50% of EV sales in 2019, only ~4% vehicles were fitted with E-axle,compared to 1% in 2018 but by 2020-21, this will change and GAC, Byton, Volvo and Polestar will lead the charge by fitting multiple models with E-axle
- “Our next range of premium BEVs with >400km range will have e-axles instead of traction motors. We are looking at many options right now and it will take another 12-18 months to finalize the right e-axle, suitable for 3 nameplates” –Lead -HEV/EV PT Traction Motor, a leading Chinese OEM, China
- More than 12 tier 1 suppliers have developed E axles for passenger vehicles but GKN is still the market leader with >70% market share in 2019
An e-axle combines electric motor, power inverter, transmission and differential in a single package. It allows neat packaging and simplified integration in even older vehicle platforms. GKN produced world`s first mass production two speed e-axle in 2014, for BMW i8. The development came at a time when most of the EV transmission in use was single speed.
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 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 production of EVs has led many OEMs create a separate brand for their “green vehicle” segment.
Owing to complexity in EV manufacturing, OEMs are designing modular and scalable electric vehicle architecture. The advantage being, 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, power dense and efficient E-axles.
MARKET SIZE AND FORECAST
COMMERCIAL VEHICLE SEGMENT
In the commercial vehicle segment, Nikola will generate bulk of the demand for CV e-axle in US as it has 14,000+ pre-orders for its long haul, fuel cell electric truck as of Feb 2020..Also, we see stronger demand from LCV segment. 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 mile delivery EV platform and supplying Dongfeng in China with e-axles. We expect many more collaborations in coming years.
|Sl no||OEM||Vehicle type||Mass production timeline||E-Axle Remarks|
|1||BYD||Fuel Cell Electric bus||2022-2025||No|
|2||Thomas Built||Electric School bus||2021||No|
|3||Peterbilt||Class 8 Electric truck||2021||Yes|
|4||Daimler Trucks||Electric Linehaul truck||2021||No|
|5||Blue Bird and Lion Buses||Electric transit bus||2019||No|
|6||Nikola Motors||Class 8 Electric truck||2021||Yes|
PASSENGER VEHICLE SEGMENT
China accounts for 50% of global EV sales, almost all domestic manufacturers have declared plans to setup a separate EV brand, but very few of them have fitted their vehicles with an e-axle.In 2019, EV sales slowed down to just ~4% YOY. BEVs comprised 78% of total EV sales in 2019 as compared to 74% in 2018.
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 14% share of overall new car sales in 2018 but in EV segment, the two segments accounted for 35% of total sales. Read our EV transmission report to know more about it.
In 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)s in Europe, it had 18% share of ~390,000 EVs sold in Europe in 2018 but in 2019 its share reduced to 15% . 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.But, it is more likely to use dedicated hybrid transmission than 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 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 few of them to be powered by E-axle in their next refresh/update.
Tesla had 56% market share of electrified vehicles in US, and 19% share of global BEVs in 2019, but it does not have 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 US alone.
|Supplier||Weight(Kg)||Max Power output(kW)||Start of Production||Passenger vehicles||Commercial vehicle|
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 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 where it has no presence as of date and a 200kW version which will be aimed at Premium BEVs.
GKN`s products have 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.
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 of competition from hybrid transmissions in PHEVs and single speed(very cost effective) transmission in BEVs. The cost factor is secondary because conversion of an ICE only to PHEV costs about $4,000 including batteries.
- Robert Bosch GmbH
- GKN Driveline
- Linamar Corporation
- AVL List GmbH
- ZF Friedrichshafen
- Dana Incorporated
- Continental AG
- Nidec Corporation
- Schaeffler Group
- Magna International
- American Axle Manufacturing
- The Sona Group
THIS REPORT WILL ANSWER FOLLOWING QUESTIONS
- The market size (volume-Units and value-$M) of global E-axle Market in 2019-2025 and every year in between?
- Market size and forecast segmented by application, geography, power output and EV type
- Market dynamics(trends, risks and opportunities), by region
- Present and forecasted sub-components margin
- Market share of suppliers in BEV and PHEV segment respectively
- About new companies active in this market
- Cost breakup of E-axle
- Latest trends in E-axle market
- Disruptive innovations in E-axle market
- Breakdown of new Electric concept vehicles by powertrain
- Future e-axle evolution roadmap
- E-Axle manufacturing in US, Europe and China
- OEM-supplier relationship in E-axle market
- 5 key predictions for next 5 years
- Unmet needs and opportunity for new suppliers
|2||Scope of the Report||5|
|5||Insights from Industry stakeholders||20-21|
|6||Key criteria for E-axle adoption by OEMs||22-23|
|7||E-Axle manufacturing in US, Europe and China||24-25|
|8||Breakdown of new EV concept vehicles by powertrain||26-33|
|9||Upcoming EV platforms utilizing E-axle||34-36|
|10||New Companies And Innovation In The E Axle Market||37-39|
|11||E-axle Adoption In Performance Cars||40-42|
|12||Market Size ,Dynamics and Forecast By Geography||44-67|
|13||Market Size ,Dynamics and Forecast By Vehicle Type||69-78|
|14||Market Size ,Dynamics and Forecast By EV Type||82-85|
|15||Market Size ,Dynamics and Forecast By Power output||87-95|
|17||OEM-supplier relationship in e-axle market||98|
|19||5 Key predictions||117|