An e-axle combines several elements. The electric motor, power inverter, transmission and differential are housed in a single package. E-axle 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.
On global scale,roughly put 65%-75% of traction motors produced globally are in-sourced and in future, when EV volumes further increase we expect the share to go even higher.Therefore,the same sourcing pattern exists for e-axles.
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
In China, which 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 are using an e-axle.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. The EV market is heavily skewed towards low powered compacts using single speed transmission. 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 is the market leader in EV(BEV+ PHEV)s in Europe, it had 18% share of ~390,000 EVs sold in Europe in 2018.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.
The onset of WLTP in Europe in Sep`18 will provide a much needed boost to EV manufacturing in the region and simultaneously drive PHEV adoption. The rollback of CAFÉ 2025 by Trump administration in US has stalled EV and related infrastructure growth and is one of the major challenge to the e-axle market.
In US,Tesla had 53% share of electrified vehicles in US in 2018, but it does not use 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.
COMMERCIAL VEHICLE SEGMENT
In the commercial vehicle segment, Nikola will generate bulk of the demand for CV e-axle in US as it has 9,000 pre-orders for its long haul, fuel cell electric truck by 2025.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.
|Supplier||Weight(Kg)||Max Power output(kW)||Start of Production||Passenger vehicles||Commercial vehicle|
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. Its 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.
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.
The biggest challenge for E-axle suppliers is to contain costs, as E-axles are the second most expensive component in an EV after battery. 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.
- 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
|4||Insights from Industry stakeholders||11|
|5||Key criteria for E-axle adoption by OEMs||12-13|
|6||E-Axle manufacturing in US, Europe and China||14-15|
|7||Breakdown of new EV concept vehicles by powertrain||16-17|
|8||Upcoming EV platforms utilizing E-axle||18-19|
|9||Disruptive innovations in E-axle market||20-21|
|10||About new companies in E-axle market||22-23|
|11||Market Size ,Dynamics and Forecast By Vehicle type||29-38|
|12||Market Size ,Dynamics and Forecast By Vehicle type||29-38|
|13||Market Size ,Dynamics and Forecast By EV type||39-48|
|14||Market Size ,Dynamics and Forecast By Geography||49-65|
|15||Market Size ,Dynamics and Forecast By Power output||66-78|
|17||OEM-supplier relationship in e-axle market||27-28|
|19||Unmet needs and Market Opportunity for suppliers||96-97|
|21||5 Key predictions||100|