Global Electric Vehicle Transmission Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In March 2023, BorgWarner introduced its iDM220 electric drivetrain system featuring a compact transmission for EVs​

• In September 2023, Hyundai showcased a multi-speed electric transmission designed for heavy-duty EVs, improving efficiency and performance

The electric vehicle (EV) transmission market is witnessing significant growth, driven by the escalating demand for sustainable transportation solutions and stringent emission regulations worldwide. One prominent segment within this market is the battery electric vehicle (BEV) transmission sector. BEVs rely solely on electric power for propulsion, necessitating a specialized transmission system to efficiently transfer power from the electric motor to the wheels. The increasing adoption of BEVs, fueled by government incentives and growing environmental awareness among consumers, is propelling the demand for advanced transmission solutions tailored to the unique requirements of electric propulsion systems.

Another pivotal segment within the electric vehicle transmission market is plug-in hybrid electric vehicles (PHEVs). PHEVs combine an internal combustion engine with an electric motor and a battery pack, offering the flexibility to operate in all-electric mode or utilize the internal combustion engine when needed. The transmission systems in PHEVs must seamlessly manage power delivery from both the electric motor and the engine, optimizing efficiency and performance across various driving conditions. As automakers expand their PHEV offerings to cater to diverse consumer preferences and regulatory mandates, the demand for innovative transmission technologies capable of enhancing overall vehicle efficiency and driving dynamics continues to surge.

Within the realm of electric commercial vehicles, such as electric buses and trucks, there exists a distinct market segment for transmission solutions tailored to heavy-duty applications. Electric commercial vehicles are gaining traction as viable alternatives to traditional diesel-powered vehicles, driven by factors like lower operating costs, reduced emissions, and government initiatives promoting electrification in the transportation sector. The transmission systems in electric commercial vehicles are engineered to withstand high torque loads and extended operating cycles, ensuring reliable performance and durability in demanding urban environments. With urbanization trends driving the need for cleaner and quieter transportation solutions, the electric commercial vehicle transmission market is poised for substantial growth in the coming years.

Global Electric Vehicle Transmission Segment Analysis

In this report, the Global Electric Vehicle Transmission Market has been segmented by Type, Electric Vehicle Type, Distribution Channel, and Geography.

Global Electric Vehicle Transmission Market, Segmentation by Type

The Global Electric Vehicle Transmission Market has been segmented by Type into Multi-speed transmission and Single-speed transmission.

One segment comprises Single-Speed Transmission Systems. These systems are characterized by their simplicity and efficiency, often found in electric vehicles (EVs) with smaller motors or those designed for urban commuting. Single-speed transmissions provide a seamless driving experience, with fewer moving parts, resulting in reduced maintenance requirements and increased reliability.

Another significant segment is Multi-Speed Transmission Systems. Unlike single-speed systems, multi-speed transmissions offer variable gear ratios, optimizing performance across a wider range of driving conditions. This versatility is particularly beneficial for larger electric vehicles, such as trucks and SUVs, where the ability to adjust gear ratios enhances both acceleration and energy efficiency.

Furthermore, Continuously Variable Transmissions (CVTs) represent a growing segment within the electric vehicle market. CVTs offer an infinite number of gear ratios, enabling smooth and efficient power delivery without discrete gear shifts. This technology is often favored in hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), where seamless transitions between electric and internal combustion power are crucial for maximizing fuel economy and reducing emissions.

Each of these transmission types plays a vital role in shaping the performance, efficiency, and driving experience of electric vehicles, catering to diverse consumer preferences and vehicle applications. As the electric vehicle market continues to evolve, advancements in transmission technology will further enhance the capabilities and appeal of electric mobility solutions.

Global Electric Vehicle Transmission Market, Segmentation by Electric Vehicle Type

The Global Electric Vehicle Transmission Market has been segmented by Electric Vehicle Type into Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-In Hybrid Electric Vehicles (PHEVs).

BEVs, which are fully electric, rely solely on electric motors for propulsion and require specialized transmissions designed to handle the power delivery from their electric drivetrains efficiently. These vehicles typically use single-speed transmissions due to the nature of electric motors' ability to produce torque instantly across a wide range of speeds.

HEVs combine an internal combustion engine with an electric motor, necessitating more complex transmission systems that can manage power from both sources. These transmissions enable seamless switching between the gasoline engine and electric motor, optimizing fuel efficiency and performance. PHEVs, similar to HEVs, also feature both an internal combustion engine and an electric motor, but their transmissions are designed to allow for extended electric-only driving ranges as well as hybrid operation, offering flexibility in how power is used. Each vehicle type requires specific transmission solutions tailored to its unique drivetrain configuration and performance needs.

Global Electric Vehicle Transmission Market, Segmentation by Distribution Channel

The Global Electric Vehicle Transmission Market has been segmented by Distribution Channel into Original Equipment Manufacturer (OEM) and Aftermarket.

The OEM segment includes transmissions that are directly supplied by the vehicle manufacturers during the production process. These transmissions are custom-designed to meet the specific requirements of each electric vehicle model, ensuring optimal performance and seamless integration with other vehicle systems. OEM transmissions are essential for new vehicle production, where manufacturers focus on delivering high-quality, reliable components that align with the vehicle's design and specifications.

The Aftermarket segment, on the other hand, caters to vehicle owners and service providers who require replacement or upgraded transmission systems after the initial purchase. Aftermarket transmissions are available through third-party suppliers and are typically used for maintenance, repairs, or performance enhancements. This segment plays a crucial role in extending the lifespan of electric vehicles and providing cost-effective solutions for vehicle owners who seek to replace or upgrade their transmission components outside of the original manufacturing process. Both segments contribute significantly to the overall market, addressing the needs of both new vehicle production and vehicle maintenance.

Global Electric Vehicle Transmission Market, Segmentation by Geography

In this report, the Global Electric Vehicle Transmission Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Electric Vehicle Transmission Market Share (%), by Geographical Region, 2024

The global electric vehicle transmission market is experiencing significant growth across various geographical regions. In North America, the market is witnessing robust expansion due to stringent emission regulations, government incentives, and increasing consumer awareness regarding environmental sustainability. Additionally, the presence of key market players and ongoing research and development activities in the region contribute to market growth.

In Europe, the electric vehicle transmission market is thriving, driven by supportive government policies aimed at reducing carbon emissions and promoting electric vehicle adoption. Countries like Norway, the Netherlands, and Germany have been at the forefront of electric vehicle adoption, creating a conducive environment for market growth. Furthermore, the presence of established automotive manufacturers focusing on electric vehicle production further propels market expansion in the region.

Asia Pacific emerges as a dominant region in the electric vehicle transmission market, attributed to the rapid expansion of the automotive industry and increasing investments in electric vehicle infrastructure. Countries like China, Japan, and South Korea are leading the market, with significant investments in electric vehicle technology and infrastructure development. Moreover, favorable government policies, such as subsidies and incentives for electric vehicle purchases, drive market penetration and stimulate demand for electric vehicle transmissions in the region.

This report provides an in depth analysis of various factors that impact the dynamics of Global Electric Vehicle Transmission Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Key players in Global Electric Vehicle Transmission Market include:

• Aisin Seiki Co. Ltd.
• BorgWarner Inc.
• Eaton Corporation Plc
• GKN Automotive Ltd.
• Hewland Engineering Ltd.
• OC Oerlikon Corp. AG
• Ricardo Plc
• Schaeffler AG
• Xtrac Ltd.
• ZF Friedrichshafen AG

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis