Global Electric & Hybrid Vehicle Driveline Market By Architecture (Series, Parallel and Power split), By Transmission (Automatic transmission, Dual Clutch transmission and Electronic Continuously Variable Transmission (E-CVT)), By Motor Output (45-100 kW, 101-250 kW and Above 250kW), By Vehicle Type (Hybrid Vehicles, Plug-in Hybrid Vehicles & Battery Electric Vehicles), By Drive Type (Front Wheel Drive (FWD), Rear Wheel Drive (RWD) & All Wheel Drive (AWD)) and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Industry Perspective

Electric & Hybrid Vehicle Driveline Market size was worth around USD 25.96 billion in 2021 and is predicted to grow around USD 67.43 billion by 2030 with a compound annual growth rate of roughly 12.6% between 2022 and 2030. The report analyzes the market's drivers, restraints/challenges, and the effect they have on the demands during the projection period.

Market Overview

The driveline of a vehicle is responsible for transmitting power from the engine or motor to the wheels. Hybrid cars feature various power sources, including an internal combustion engine (ICE) and a battery-powered electric motor. Vehicle batteries are charged using regenerative braking and internal combustion engines. In the case of an electric vehicle, the electric motor is the source of power that drives the wheel via an externally charged battery.

Moreover, there are other varieties of hybrid cars, such as the parallel hybrid, in which the electric motor and gasoline engine are joined in common transmission via a one-way clutch so that one can rotate freely when the other is giving the power. With addition, in a series hybrid, the engine is only utilized to replenish the battery when necessary, while the motor powers the wheels. In a plug-in hybrid, a bigger battery pack that can be charged externally is utilized, and the vehicle changes to parallel hybrid mode when the charge is low.

Key Insights

• As per the analysis shared by our analyst team, the global electric & hybrid vehicle driveline market is estimated to grow annually at a CAGR of around 12.6% over the forecast period (2022-2030).
• In terms of revenue, the global electric & hybrid vehicle driveline market size was valued at around USD 25.96 billion in 2021 and is projected to reach USD 67.43 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• Based on architecture, the parallel segment was predicted to show maximum market share in the year 2021.
• Based on transmission, the automatic transmission segment was the leading revenue-generating type in 2021.
• On the basis of motor output, the 45–100 kW segment was projected to show largest share in the year 2021.
• On the basis of vehicle type, the plug-in hybrid segment was dominating the market share in the year 2021.
• On the basis of drive type, the Front Wheel Drive (FWD) segment was projected to show largest share in the year 2021.
• On the basis of region, Europe was the leading revenue generator in 2021.

Adoption of Advanced Technologies in Electric Vehicles Augmenting the Market Growth

Advanced technologies such as e-axle reduces the weight of electric cars and increases their efficiency. However, this technology is extremely complex and pricey. Despite the fact that the use of E-axles is in its infancy at present, E-axles are expected to increase the electric & hybrid vehicle driveline market share throughout the projection period due to the benefits associated with increasing the range covered and reducing noise, among others.

The requirement for high power applications has contributed to the rising demand for 48 V and more powerful designs. Future demand for E-axle systems is expected to skyrocket as a result of all these higher voltage architectural advancements. E-axles would have a significant influence on the future driveline industry owing to its advantages, such as reducing vehicle weight and increasing electric vehicle economy.

Rising Stringent Government Regulations to Curb Pollution to Propel Market Growth

Governments' stringent pollution laws are compelling OEMs to implement hybrid and electric vehicle technologies, which is favorably affecting the market growth. In addition, the rising demand for improved fuel efficiency and the rising sales of electric and hybrid cars are anticipated to boost the electric and hybrid vehicle driveline market sales in the future years. For instance, in March 2022, UK government is aiming to deliver around 4000 zero-emission buses across the country to curb from pollution.

Limited Charging Infrastructure for Electric Vehicles in Developing Nations

The absence of a charging infrastructure for electric vehicles hinders the electric vehicle industry. However, the development of a solid infrastructure for electric vehicles is one of the most important prerequisites for the widespread use of electric automobiles. The EV charging infrastructure in the majority of developing nations is inadequate and has yet to catch up to meet the demand, so impeding the expansion of the electric car industry.

In addition, although China is one of the largest markets for electric vehicles, the government struggles to sustain a suitable infrastructure for recharging electric vehicle fleets, which is expected to impede the electric & hybrid vehicle driveline market. Consequently, the absence of charging infrastructure hinders the expansion of the EV market.

Concerns Pertaining to Risk of Security and Privacy Issues will be Challenging Factor

The constraints of electric & hybrid vehicle driveline necessitate caution when integrating this transmission into its diverse and extensive applications. These can involve security hazards, as these systems manage vast quantities of data and are susceptible to breaches. Another obstacle is the lengthy development period required to launch a highly sophisticated transmission. This may make it more difficult for businesses with smaller development teams to create applications incorporating electric & hybrid vehicle driveline techniques.

Recent Development

August 2022- GKN Automotive achieved a milestone of selling more than 2 million eDrive technology to multiple electric vehicle manufacturers.

December 2021- GKN Automotive collaborates with the University of Nottingham and the Newcastle University Advanced Research Centre to create a pipeline for automotive electrification innovation and boost the UK's expertise capacity to assist in the development of future electric car eDrive technologies.

March 2021- Nexteer Automotive continues to develop its Driveline product line with innovative Halfshaft technology designed to tailor the specific needs of electric cars (EVs).

Regional Landscape

Europe is Dominating the Market Share Due to Rising Government Norms

Europe is dominating the \electric & hybrid vehicle driveline market share by 2030 owing to rising legal standards enforced by numerous organizations and governments to restrict pollution levels and promote zero-emission automobiles. Hence, this has compelled manufacturers to expand spending on electric car research and development, allowing them to sell electric vehicles as the future. Governments throughout the globe have enacted a variety of programs and efforts that encourage consumers to select electric vehicles over conventional ones.

Competitive Landscape

The players contributing in the electric & hybrid vehicle driveline industry are Robert Bosch GmbH, GKN Automotive, Schaeffler Technologies AG & Co. KG, BorgWarner Inc., Nexteer Automotive Corporation, ZF Friedrichshafen AG, Continental AG, Delphi Technologies, DENSO Corporation, Valeo Inc., amongst others.

The global electric & hybrid vehicle driveline market is segmented as follows:

By Architecture

• Series
• Parallel
• Power split

By Transmission

• Automatic transmission
• Dual Clutch transmission
• Electronic Continuously Variable Transmission (E-CVT)

By Motor Output

• 45-100 kW
• 101-250 kW
• Above 250kW

By Vehicle Type

• Hybrid Vehicles
• Plug-in Hybrid Vehicles
• Battery Electric Vehicles

By Drive Type

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

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America