Electric Vehicle Transmission Market Size and Trends

Global electric vehicle transmission market is estimated to be valued at US$ 15.26 Bn in 2024 and is expected to reach US$ 36.54 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.3% from 2024 to 2031.

Electric Vehicle Transmission Market Key Factors

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Stricter emission norms for electric vehicles globally can boost demand for electric vehicle transmission. Major automotive companies are shifting focus towards developing electric powertrains for commercial and passenger electric vehicles. Furthermore, declining battery prices and advancement in battery technology makes electric vehicles more viable and affordable option for consumers. Growing consumer demand for fuel efficient vehicles along with government support through subsidies and incentives on electric vehicles purchase boosts the sales of electric vehicles. However, complexity and high cost of electric vehicle transmission systems as compared to conventional transmission can hamper wider adoption of electric vehicles.

Government support and regulations

Many governments around the world have realized the need to shift towards more sustainable modes of transportation, in order to reduce carbon emissions and pollution levels. Several nations have drafted and implemented stringent regulations and policies targeted at accelerating the adoption of electric vehicles. Major economies like China, U.S., Germany, France, U.K., and others had announced bans on the sale of conventional internal combustion engine (ICE) vehicles within the next 10-15 years. This has motivated large scale investments into EV manufacturing and infrastructure development. Governments are offering purchase incentives and subsidies for EVs as well as exemptions from road tax and tolls. Setting emission caps on new cars along with fuel efficiency and emissions standards have compelled automakers to invest heavily in electrification of their product portfolio. Conversion of public transport fleets to electric is encouraged through procurement policies. Certain countries have developed extensive public charging networks and are working on building strategic locations and highways that can facilitate long distance travel in EVs.

Changing consumer preferences

Rising environmental awareness, evolving mobility needs and attractive total cost of ownership have triggered a shift in consumer preferences. Customers now prefer more sustainable yet feature-rich transportation options. The potential to reduce fuelling costs significantly while gaining silent, vibration-free driving experiences is appealing many first-time EV buyers. Advancements in battery technology have alleviated range anxiety concerns. to Automakers are able to offer longer range vehicles that can meet daily driving needs of the average user. An array of exciting new electric vehicle models from different segments like SUVs and premium/luxury categories has increased choices for consumers. Technology features like zero emission drivetrains, smartphone integration, autonomous driving assists, and others further add to the appeal. Growing availability of public fast charging infrastructure boosts confidence in electric vehicles as a practical substitute for gasoline/diesel cars. This change in attitudes and buyer behaviour worldwide can boost adoption of electric vehicles.