Electric Vehicle Transmission Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The electric vehicle transmission market size has grown exponentially in recent years. It will grow from $9.22 billion in 2024 to $11.24 billion in 2025 at a compound annual growth rate (CAGR) of 21.9%. The growth in the historic period can be attributed to early innovations and experiments, rising popularity in EVs, environmental concerns, climate change.

The electric vehicle transmission market size is expected to see rapid growth in the next few years. It will grow to $22.25 billion in 2029 at a compound annual growth rate (CAGR) of 18.6%. The growth in the forecast period can be attributed to regulatory policies and emission standards, focus on sustainability and environmental awareness, investments in infrastructure, and cost reduction efforts. Major trends in the forecast period include optimization for efficiency, motor and transmission integration, multi-speed transmission development, standardization and modularization, and adoption of advanced materials.

The increasing demand for electric vehicles is expected to propel the growth of the electric vehicle transmission market going forward. Electric vehicles (EVs) refer to automobiles that are powered by one or more electric motors, using electrical energy stored in rechargeable batteries or other energy storage devices. Electric vehicle transmissions are used for electric vehicles to transfer power from the electric motor to the wheels efficiently and effectively, addressing the unique characteristics of electric propulsion. For instance, in April 2023, according to reports published by the International Energy Agency, a France-based intergovernmental organization, global electric car sales exceeded 10 million units in 2022, with predictions for a 35% growth to 14 million units in 2023. Therefore, the increasing demand for electric vehicles is driving the growth of the electric vehicle transmission market.

Major companies operating in the electric vehicle transmission market are concentrating on innovative advancements such as electrified e-transmission to meet the needs of electric and hybrid commercial vehicles and provide efficient power delivery. It is an EV transmission system for commercial vehicles designed to provide the highest level of efficiency and performance with maximum startability, gradeability, and road speed. For instance, in May 2023, Dana Incorporated, a US-based automotive industry company, introduced spicer electrified e-transmissions, which are designed for medium-duty electric vehicle applications. These e-Transmissions are engineered to provide high efficiency and performance, with features such as a Dana high-efficiency motor and integrated inverter system, an electromechanical actuation system with a patented Dana Graziano clutch design, and an optimized three-speed system with Ravigneaux gearing. Additionally, it is available in two models, the eS4700t and the eS7900t, offering 4,700 and 7,900 Nm of output torque, respectively.

In August 2023, Gulf Oil Lubricants India Ltd., an India-based manufacturer and distributor of lubricants, acquired 51% stake of Tirex Transmission Private Limited for 75.19 billion (Rs 103 crore). Through this acquisition, GOLIL aims to make a strategic move to position itself as a leader in the growing EV market and offer a complete range of EV solutions. Tirex Transmission Private Limited is an India-based manufacturer of lithium-ion battery binders, manufacturer of auto parts, including electric vehicle transmissions.

Major companies operating in the electric vehicle transmission market are Hitachi Automotive Systems Ltd., BYD Company Limited, ZF Friedrichshafen AG, Continental AG, Hyundai Motor Company, Magna International Inc., Aisin Seiki Co. Ltd., Valeo SA, Eaton Corporation plc, Nidec Corporation, Schaeffler AG, Parker Hannifin Corporation, BorgWarner Inc., Dana Incorporated, Vitesco Technologies, NIO Inc., Voith Group, GKN Automotive Limited, Allison Transmission Holdings Inc., AVL Schrick GmbH, Punch Powertrain NV, Ricardo plc, Romax Technology Limited, Torqeedo GmbH.

Asia-Pacific was the largest region in the electric vehicle transmission market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle transmission market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle transmission market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle transmission market includes revenues earned by entities by providing services such as installation services, maintenance services, repair services, upgrade enhancements, consulting and advisory services, and training and education. The market value includes the value of related goods sold by the service provider or included within the service offering. The electric vehicle transmission market consists of sales of electric motors, gear boxes, power electronics, transmission fluids and lubricants, wiring harnesses and connectors, charging systems, and cooling systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Electric vehicle (EV) transmission refers to the system or mechanism used to transmit power from the electric motor to the wheels of the vehicle. The purpose of an electric vehicle (EV) transmission is to manage the power output of the electric motor and regulate the distribution of power to the wheels.

The main types of electric vehicle transmission are single-speed and multi-speed. A single-speed transmission refers to a transmission system with a fixed gear ratio where the electric motor is directly connected to the wheels without the need for multiple gears. It can be operated in various transmission systems that include automated manual transmissions, continuously variable transmissions, dual clutch transmissions, dedicated hybrid transmissions, and automatic transmissions and is used for various vehicles, such as battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles.

The main types of electric vehicle transmission are single-speed and multi-speed. A single-speed transmission refers to a transmission system with a fixed gear ratio where the electric motor is directly connected to the wheels without the need for multiple gears. It can be operated in various transmission systems that include automated manual transmissions, continuously variable transmissions, dual clutch transmissions, dedicated hybrid transmissions, and automatic transmissions and is used for various vehicles, such as battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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