The global automotive e-axle market accounted for US$ 9.7 Bn in 2021 and is expected to reach US$ 113.1 Bn by 2030 with a considerable CAGR of 31.9% during the forecast timeframe of 2022 to 2030.

An automotive e-axle, additionally called an electric-powered axle, serves as a strong supply for battery electric powered motors and hybrid electric powered motors. An e-axle can be implemented on the vehicle's front or rear axle. If the e-axle is installed on the back axle of a hybrid vehicle, its front wheel is motorized by an internal combustion engine or the other way round. It manages to combine electric motors, power electronics, and transmission into a truly united compact system, reducing complexity and allowing end-users to customize capacity, engine power, and installation space based on their needs. Furthermore, the design and configuration of e-axles differ significantly from that of conventional axles. However, e-axles can improve overall drivetrain efficiency by minimizing gear losses, particularly when inefficient hypoid gears are removed. It can also provide more packaging space within the chassis for other important battery or electric hybrid components like battery packs.

Drivers

• Increase in the sale of electric and hybrid vehicles
• Significantly rise in fuel costs

Restraint

• High cost of an electric axle drive system

Opportunity

• Stringent emission guidelines to reduce vehicle weight and emissions

Report Coverage: 

Automotive E-Axle Market Dynamics

One of the major market growth drivers is the increasing use of hybrid electric vehicles, heavy-duty trucks, and passenger or commercial vehicles owing to economic growth, increasing disposable income, and expanding market international trade. In addition, an increase in research and development activities for the improvement of electric and hybrid vehicles, as well as an increase in the implementation of e-axle in conventional vehicles, will provide profitable opportunities for the growth of the automotive E-axle market. Other factors driving the market growth include government regulations and policies aimed at enhancing the advancement and adoption of electric vehicles. Beyond that, the high cost of an electric axle propulsion system can be a major obstacle to some extent.

Market Segmentation

Market By Electric Vehicle Type

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-in Hybrid Electric Vehicle

In terms of electric vehicle type, battery-electric vehicles held the largest market share in 2021. A highly integrated e-axle is essential for optimizing the performance of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) without increasing the cost. The e-axle, with its added benefits in the form of weight and packaging, is anticipated to become a standard component of the electrical powertrain. Furthermore, many automakers are increasing their focus on reducing the total weight of electric vehicles. However, integrated components such as the E-axle help to reduce the weight of the electric vehicle and increase the performance of the vehicle, thereby driving the growth of the market.

Market By Drive Type

• All-Wheel Drive (AWD)
• Front Wheel Drive (FWD)
• Rear Wheel Drive (RWD)

Based on the drive type, the market is divided into three segments: all-wheel drive, front-wheel drive, and rear-wheel drive. Over the projected years, the all-wheel-drive segment is expected to witness significant growth in terms of market share. All-wheel-drive systems are experiencing exponential growth in the automotive market like tribbles on Kirk's Starship Enterprise. These systems guarantee their effectiveness in all-weather as well as dry-road with versatile benefits, and many consumers believe they are a must-have on any new-vehicle checklist. Furthermore, cars and trucks with AWD have greater confidence and traction in snowy, wet, or icy road conditions. AWD systems can help drivers to get started on slippery roads by transferring the amount of torque that needs it the most and can even assist in correct wheel slip while the vehicle is on the highway to help it stay on the road and continue driving.

Market By Vehicle Type

• Commercial Vehicle
• Passenger Vehicle

Based on the vehicle, the passenger cars accounted the significant market shares in 2021. Due to the steady advancement in the global macroeconomic situation, increased global GDP, and subsequent increase in customer demand have positively contributed to the global automotive sector in general and the passenger car market in particular. Moreover, automotive e-axles have been used in passenger vehicles to improve overall engine performance and reduce emissions. Furthermore, it is used in passenger cars to enhance fuel-efficiency, making them a very appealing proposition. They also help to improve comfort and quality when driving around in cities with heavy traffic.

Automotive E-Axle Market Regional Overview

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Brazil
• Mexico
• Rest of Latin America

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa

In 2021, North America is expected to be the largest region for the global automotive e-axle market, owing to the factors such as technological advancement, favorable government initiatives and investments, and the rapid rate of economic growth, among others. Substantial improvements in passenger car production are expected in the North American region. Moreover, the shifting preference of the US population for compact electric cars over high-torque vehicles and large SUVs is expected to boost the growth of automotive e-axle in the region. Furthermore, the growing adoption of self-driving vehicles, the increasing adoption of battery-powered trucks and buses, and the rising prevalence of passenger transport are all providing significant growth opportunities for the market in the North American region.

Competitive Landscape

Some of the prominent players in the global automotive e-axle market are Axletech International, ZF Friedrichshafen AG, Continental AG, Dana Incorporated, Borgwarner Inc, GKN plc, Schaeffler Technologies AG & Co. KG, Linamar Corporation, Robert Bosch GmbH, Nidec Corporation, AVL List GmbH, and Magna International Inc.