Automotive E-axle Market Size, Share & COVID-19 Impact Analysis, By Electric Vehicle Type (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Drive Type (All Wheel Drive, Front Wheel Drive, Rear Wheel Drive), and Regional Forecast, 2021-2028

The global automotive e-axle market size was USD 7.21 billion in 2020. The market is expected to grow from USD 9.71 billion in 2021 to USD 65.73 billion by 2028 at a CAGR of 31.4% in the 2021-2028 period. Europe dominated the global market with a share of 46.88% in 2020. The global impact of COVID-19 has been unprecedented and staggering with automotive e-axle witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 25.4% in 2020 s compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The automotive e-axle market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1142.7 million by 2028.

Automotive e-axle refers to a compact electric drive solution that combines the transmission, electric motor, and power electronics into a single unit. This single casing allows for simple integration of several components, a single cooling system for all parts, streamlined packaging, and improved efficiency. It acts as the powertrain of the EV and offers vehicle manufacturers increased performance gains. The aggressive electrification targets set by key OEMs and a greater number of available models will influence the market's growth.

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Global Automotive E‑Axle Market Overview

Market Size:

• 2020 Value: USD 7.21 billion
• 2021 Value: USD 9.71 billion 
• 2028 Forecast: USD 65.73 billion, with a CAGR of 31.4% from 2021 to 2028 

Market Share

• Fastest‑Growing Region: Asia Pacific projected to maintain the highest growth through 2030 due to aggressive EV rollouts and industrial incentives 
• End‑User Leader: Passenger Cars (primarily BEVs) dominate share; Commercial Vehicles segment gaining momentum with electrification of fleet, delivery, and transit applications 

Industry Trends

• BEV Segment Dominant: Battery-electric vehicles account for the vast majority of e‑axle installations, with accelerating adoption globally 
• Drive-Type Development: Front-wheel drive (FWD) e‑axles represent the largest volume share, while all-wheel drive (AWD) systems are growing fastest in performance and luxury EV models 
• Commercial Vehicle Uptick: Commercial vehicle electrification is driving accelerating demand for e‑axles in heavy-duty trucks, buses, and vans 

Driving Factors

• EV Adoption Surge: Rapid transition to electric mobility across passenger and commercial vehicles is fueling e‑axle demand 
• Regulatory & Policy Support: Government incentives, emission mandates, and fleet-level electrification programs support market growth 
• OEM & Supplier Investment: Tier-1 suppliers like Dana, ZF, Bosch, Nidec are investing in compact, integrated, high-efficiency e‑axle systems; partnerships with OEMs advancing deployments

COVID-19 IMPACT

COVID-19 has Accelerated Shift toward Electric Mobility

Despite the pandemic-induced downturn in overall global car sales, which dropped by 16% (according to the OICA), electric car sales increased by more than 40% in 2020. For instance, in Europe, the car market decreased by 22% in 2020. However, around 1.4 million electric cars were sold in the region (more than double the amount sold in 2019). The exponential growth can be attributed to increased subsidy schemes in several countries, such as Germany and the U.K., as part of pandemic-related stimulus measures.

Similarly, in China, EV sales declined initially in the first half of 2020. However, as China constrained COVID-19 and key policy actions led to a strong rebound in sales in Q3 & Q4 of 2020. The government extended purchase subsidies through 2022 that were initially set to expire in 2020. Subsequently, the sales share of electric cars increased from 4.8% in 2019 to 5.7% in 2020. Registrations of electric trucks and buses also grew in key markets, such as China, the U.S., and Europe, and reached global stocks of 31,000 and 600,000, respectively.

Hence, these measures have accelerated the transition to electric mobility despite the negative effect on overall automobile sales. These factors will positively influence the growth of the market.

LATEST TRENDS

Increasing Collaboration between Key Players in the Value Chain Will Positively Influence Growth

There is an increasing demand for electric vehicles, especially in high-volume emerging economies. However, there is a significant discrepancy between the performance offered and affordability of EVs. Hence, strategic partnerships have increased exponentially between key players in the industry to accelerate electric mobility and achieve mass adoption.

For instance, Linamar entered into a partnership with Exro Technologies to develop an automotive e-axle (using Exro’s Coil Driver technology) to improve cost optimize integration and performance of Linamar’s e-axle portfolio. Hence, the increased collaboration will accelerate the deployment of EVs and e-axles during the forecast period.

DRIVING FACTORS

Increasing Number of Electric Vehicle Models in Key Regions such as China and the U.S. Will Drive Market Growth

According to the International Energy Agency (IEA) global annual EV outlook report published in April 2021, around 370 electric car models were available in 2020. It represents an increase of 40% year on year. The most significant expansion and various models were observed in the popular SUV segment in 2020. Electric SUVs are witnessing rapid adoption in China and Europe and account for the largest market share in the U.S. For instance, in Europe, the share of electric sports utility vehicles is higher than for the total SUV market.

Hence, these factors will propel the automotive e-axle market growth.

Aggressive OEM Electrification Targets Will Augment Market Growth

According to the IEA, 18 of the 20 largest OEMs (in terms of vehicles sold in 2020), which accounted for around 90% of the total new car registrations worldwide in 2020, have announced plans to boost the availability and production of light-duty electric vehicles. For instance, Volvo plans to sell only electric cars globally from 2030. Ford will sell electric cars only in Europe from 2030. General Motors aims to sell only light-duty electric vehicles by 2035.

Hence, these factors will fuel the demand for automotive e-axles during the forecast period.

RESTRAINING FACTORS

High Cost of Electric Vehicles to Restrain Growth

According to Kelley Blue Book (a subsidiary of Cox Automotive), the average transition price of an electric vehicle is around USD 55,000. Hence, an electric vehicle is equivalent to an entry-level luxury car in terms of pricing. Furthermore, users need to install a Level 2 charging outlet in their home that costs an additional USD 2,500 (to save time and extend battery life) compared to Level 1 charging (cheaper, exponentially longer charging time). Hence, the higher upfront costs for EVs will restrain the market growth.

SEGMENTATION

By Electric Vehicle Type Analysis

BEV Segment to Hold Largest Share Owing to Lower Total Cost of Ownership (TCO)

By electric vehicle type, the market is segmented into battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV).

The BEV segment held the largest share of the market, which can be attributed to the comparatively lower total ownership costs over the long term, higher efficiency, and lesser maintenance involved. The PHEV segment is anticipated to show substantial growth due to the benefits of faster charging, more range, and reduced carbon footprint.

By Vehicle Type Analysis

Passenger Car Segment to Hold Largest Share Due to Policy Support

By vehicle type, the market is segmented into passenger cars and commercial vehicles.

The passenger car segment is estimated to reach a value of 27.23 billion in 2025, which can be attributed to the significant purchase incentives and subsidies offered in key markets, along with the stringency of emission standards driving large-scale electrification in this segment. The commercial vehicle segment is expected to show exponential growth due to increasing policy support for adopting heavy-duty electric vehicles (HDVs) and rising private sector demand for zero-emission last-mile delivery vehicles.

By Drive Type Analysis

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FWD Segment Dominated in 2020 Propelled by Low Cost and High Efficient Performance

By drive type, the market is segmented into all-wheel drive (AWD), front-wheel drive (FWD), and rear-wheel drive (RWD).

The FWD segment held the largest share of the market in 2020, owing to its low weight, superior traction, and considerably lower cost and complexity in terms of design & setup. The AWD segment is expected to exhibit exponential growth in the market with a share of 15.07% in 2025 as it offers both high-level handling and balance (offered by RWD) and excellent traction (achieved by FWD).

REGIONAL INSIGHTS

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Europe held the largest market share and is valued at USD 3.38 billion in 2020. Factors such as increasing stringency of CO2 emission targets and the implementation of decarbonization strategies such as the EU Sustainable and Smart Mobility Strategy and Action Plan and the EU Green Deal will propel the market growth in this region. Europe is projected to exhibit a CAGR of 32.5%.

Asia Pacific is anticipated to exhibit exponential growth in the market during the forecast period. The market in China is expected to grow at a steady CAGR of 33.3%. Rapid deployment of charging infrastructure, aggressive electrification of heavy-duty fleets and public transportation, and decrease in the total cost of ownership of EVs will drive the growth of the market in this region. The automotive e-axle market in Japan is expected to reach an estimated value of USD 56.4 billion in 2025.

North America is expected to exhibit good growth in the market during the forecast period. Initiatives at a state level for stronger EV deployment and available EV models (particularly in the SUV segment) continue to increase in the U.S. Moreover, the government has also announced intentions to revise tax credit programs at a federal level to encourage zero-emission vehicle adoption and support domestic manufacturers. These factors will propel the demand for e-axles in this region.

KEY INDUSTRY PLAYERS

Diverse Product Portfolio to Strengthen Leading Position of Dana Limited in Market

Early investment in strategic partnerships, extensive R&D investments, and a comprehensive product portfolio has enabled Dana Limited to strengthen its leading position as a key player in the market. Based on vehicle type, the company offers an industry-leading six different e-axles. In September 2021, the company launched the eS9000r e-axle for various Class 7 & 8 medium and heavy-duty vehicles that will further advance the adoption of electric mobility in the commercial vehicle segment. Hence, these factors will propel the leading position of Dana in the market.

LIST OF KEY COMPANIES PROFILED:

• Dana Limited (Ohio, U.S.)
• Robert Bosch GmbH (Gerlingen, Germany)
• GKN Automotive Limited (London, U.K.)
• Nidec Corporation (Kyoto, Japan)
• ZF Friedrichshafen AG (Friedrichshafen, Germany)
• Continental AG (Hanover, Germany)
• Schaeffler AG (Herzogenaurach, Germany)
• AxleTech (Meritor, Inc.) (Michigan, U.S.)
• Linamar Corporation (Guelph, Canada)
• Magna International Inc. (Aurora, Canada)

KEY INDUSTRY DEVELOPMENTS:

• October 2021 – Nidec announced the implementation of Ni200Ex, the company’s 200kW, e-axle traction motor system, in the ZEEKR 001, an EV produced by Geely Automobile Group, one of the largest auto manufacturers in China
• July 2021 – Schaeffler started the production of its 2in1 electric axles at its facility in Taicang, China. Following the adoption of this product in China, this e-axle will also be used by a major European auto manufacturer.

REPORT COVERAGE

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The global automotive e-axle market report covers a detailed analysis of the industry and focuses on key aspects, such as leading companies, product types, and leading applications of the product. Besides this, the study offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth automotive e-axle study analysis of several factors that have contributed to its growth in recent years.

Report Scope & Segmentation