The adoption of Electric Vehicle Reducers is expected to increase at a CAGR of 26.6% during the forecast period. The Electric Vehicle Reducer market size is anticipated to rise from US$ 1,974.7 million in 2023 to US$ 20,884.9 million in 2033.
In 2023, the automotive industry will be vulnerable to global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain disruptions. With sales of commercial vehicles declining, the only bright spot will be electric vehicles.
Electric vehicles outperform conventional vehicles in terms of fuel economy, CO2 emissions, and maintenance, as well as the convenience of charging at home, a smooth ride, and lower engine noise.
Governments all over the world are working hard to reduce greenhouse gas emissions from the automotive industry. As a result, manufacturers of electric vehicle components are increasing investment in the production of electric vehicle components, which is expected to propel the electric vehicle reducer market globally.
Tax exemptions, non-monetary benefits such as new car registration and carpool lane access, increasing vehicle range, active OEM participation, providing charging infrastructure in regular areas, and other factors can all contribute to the growth of the EV reducer market trends.
Components of speed reducers suffer from significant wear on frictional surfaces. As a result, the gearbox stages in the motor perform poorly, necessitating frequent replacement of speed reducer components which could be an obstacle to market growth.
| Attribute | Details |
|---|---|
| Electric Vehicle Reducer Market Estimated Size (2023) | US$ 1,974.7 million |
| Electric Vehicle Reducer Market CAGR (2023 to 2033) | 26.6% |
| Electric Vehicle Reducer Market Forecasted Size (2033) | US$ 20,884.9 million |
Several significant companies that provide differential gearboxes, shafts, and reducer housing for electric vehicles are growing their investments around the globe especially in developing regions.
During the forecast period, the expansion of the electric vehicle market is also expected to provide significant opportunities for EV component manufacturers of the electric vehicle speed reducer.
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Speed reducers lower a motor's speed to provide the torque sensor that a machine needs to work properly. Due to this, automakers are constantly seeking novel strategies to obtain a competitive edge through the launch of new products on the global market. The market for electronic vehicle reducers is being driven by pressure on the automotive industry to provide high-quality speed due to safety concerns, as well as demands for sustainability and performance excellence in brake systems. Additionally, the seamless operation of automobile speed reducers has improved their efficiency as a driving aid and has been identified as a key reason for the market's growth.
High-efficiency speed reducers can save a significant amount of energy while lowering component costs. Using high-efficiency reducers, such as gear reducers, can also significantly reduce motor power consumption. As a result, global demand for electric vehicle reducers is expected to rise.
Governments worldwide are focusing their efforts on combating climate change. As a result, electric vehicle component manufacturers are ramping up their investment in the production of electric vehicle components, which is expected to propel the global electric vehicle reducer market.
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Lightweight design and electrified powertrains have emerged as important strategies in the automotive industry for reducing fuel demand and lowering emissions. Electric vehicles (EVs) lightweight is regarded as a step forward because the benefits of both EVs and lightweight design could be combined to reduce environmental impacts even further.
The increased demand for electric and hybrid vehicles, which rely heavily on composites for lightweight, has shifted automakers' attention to lightweight composite materials as a replacement for heavier steel and iron in all types of vehicles.
The Multi-Stage Type segment is anticipated to boost market expansion. No torque interruptions occur during ratio changes according to Zeroshift's approach, which also eliminates the need for a clutch - a problem that may have discouraged EV manufacturers from using multi-speed gearboxes in their designs.
In the projected time frame, PHEV is expected to have the fastest market growth. The internal combustion engine of plug-in hybrid electric vehicles (PHEVs) normally runs on gasoline, while an electric motor is typically powered by batteries (ICE). The ICE, a power outlet, a charging station, or regenerative braking can all be used to charge PHEV batteries.
The global market for electric vehicles is rapidly expanding. As they age, they, like their internal combustion engine-powered counterparts, will require timely, efficient servicing and repair. This represents a massive opportunity for the aftermarket, but only for garages that have invested in the necessary tools and knowledge to work safely on these vehicles. Simultaneously, early-model hybrid and electric vehicles (H/EV) are leaving vehicle manufacturers' dealer networks and entering the aftermarket.
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The global electric vehicle reducer market is expanding rapidly in Europe. This is due to the increased demand for electric vehicles in Germany. Germany is the leading market in Europe, with a market share of nearly 11.2%. The surge in the growth of the European electric vehicle market is largely attributed to the European Union's harmonious developments in implementing strict emigration regulations and focusing on reducing the number of conventional buses.
The USA dominates the North American electric vehicle reducer market with a share of 9.3%. This proportion is due to the rising demand for electric vehicles in the USA. Furthermore, Electrify America, a non-profit organization dedicated to promoting the adoption of electric vehicles, announced plans to invest $200.0 million in California in 2018. As a result, demand for electric vehicles in North America is expected to rise over the forecast period.
Asia Pacific is expected to be the most profitable region during the forecast period, having dominated the global electric vehicle reducer market in 2021. China is the world's largest electric vehicle market, accounting for nearly half, or 45%, of global electric vehicle sales. Whereas India is showing the highest growth trajectory of 30.1% among other regions. Other countries, such as Japan, Korea, and India, are also opportunistic markets because their governments are heavily investing in EV start-ups to promote the manufacturing and sale of EVs globally. Subsidies from governments in both developing and developed countries, as well as stringent regulations, are driving the growth of the Asia-Pacific electric vehicle reducer market.
MG Motors India launched the fourth edition of their Developer Programme and Grant (MGDP) as the country strives to generate 50% of its installed electricity capacity from non-fossil sources by 2030. The project aims to accelerate, mentor, and incubate innovative Indian electric mobility start-ups.
For the previous three editions of the program, over 830 auto-tech start-ups submitted entries. MG and its consortium members identified, supported, and mentored 180 companies, including Koinearth, Electreefi, Voxomos, Redbot Technologies, and Mihup. For the fourth iteration of the Grant, the automaker has partnered with Invest India and start-up India as lead partners, and Jiobp, Exicom, Fortum, CESL, Attero, MapmyIndia, and Bosch as technology partners.
Due to the presence of a large number of market players, the global electric vehicle reducer market is consolidated with high competition. Existing players are heavily focused on innovation and the development of new components and technology in order to overcome disadvantages and strengthen their positions in the global market. Some market participants are also investing in EV startups to expand their regional presence.
Some of the Key Players Operating in the Electric Vehicle Reducer Market Include:
September 2023 - ZF Friedrichshafen AG (ZF) announced the production of its first 800V electric drive axle in Hangzhou's Xiaoshan District. The development process was led by a local team from ZF's Electrified Powertrain Technology division in Shanghai. ZF invested approximately $300 million in its Hangzhou manufacturing facility.
On August 10, BorgWarner announced that Hyundai Motor Company (HMC) had chosen its iDM146 integrated drive module (iDM) to power an additional A-Segment electric vehicle platform, with production set to begin in Q3 2024.
With the possibility of 100% FDI, new manufacturing centres, and intensified efforts to improve charging infrastructure, the electric car industry in India are gaining momentum. Other growth factors for the Indian EV market include federal subsidies, a regulation that favours higher discounts for electric two-wheelers built in India, as well as an increase in localised ACC battery storage production. The Ministry of Power released the Revised Consolidated Guidelines & Standards for Charging Infrastructure for Electric Vehicles (EV) in January and made changes in November 2023.
Additionally, the Cabinet approved a production-linked incentive programme for the automobile industry in September 2021 to promote the development of electric and hydrogen fuel cell vehicles. In the months of April through September 2023, India reported selling 277,910 electric two-wheelers, a 404 per cent increase over the same time the previous year when 55,147 units were sold. 18,142 electric automobiles were sold in H1 FY 2023 to 23, a 268 per cent increase.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 26.6% from 2023 to 2033 |
| Base Year of Estimation | 2023 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in US$ million and Volume in Units and F-CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | By Product Type, By Vehicle Type, By Sales Channel, By Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Middle East & Africa; Oceania |
| Key Countries Profiled | United States of America, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | BorgWarner Inc.; Robert Bosch GmbH; ZF Friedrichshafen AG; GKN; GETRAG FORD Transmission GmbH; AVL GmbH; HOTA Industrial; Tsingshan Industry; Aichi Machine Industry; Magna International; SAGW; Zhuzhou Gear |
| Customization & Pricing | Available upon Request |
The global Electric Vehicle Reducer market is estimated to be valued at US$ 1,974.7 million in 2023.
The Electric Vehicle Reducer market is likely to grow at a CAGR of 26.6% from 2023 to 2033.
The Electric Vehicle Reducer market is projected to reach a valuation of US$ 20,884.9 million by 2033.
Asia-Pacific is projected to lead the global Electric Vehicle Reducer market by 2033.
1. Executive Summary | Electric Vehicle Reducer Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032
4.1. Historical Market Size Value (US$ million) Analysis, 2017 to 2021
4.2. Current and Future Market Size Value (US$ million) Projections, 2022 to 2032
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ million) Analysis By Type, 2017 to 2021
5.3. Current and Future Market Size Value (US$ million) Analysis and Forecast By Type, 2022 to 2032
5.3.1. Multistage Type
5.3.2. Single Stage
5.4. Y-o-Y Growth Trend Analysis By Type, 2017 to 2021
5.5. Absolute $ Opportunity Analysis By Type, 2022 to 2032
6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ million) Analysis By Application, 2017 to 2021
6.3. Current and Future Market Size Value (US$ million) Analysis and Forecast By Application, 2022 to 2032
6.3.1. Electric Vehicles
6.3.2. Plug-In Hybrid Electric Vehicles
6.4. Y-o-Y Growth Trend Analysis By Application, 2017 to 2021
6.5. Absolute $ Opportunity Analysis By Application, 2022 to 2032
7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region
7.1. Introduction
7.2. Historical Market Size Value (US$ million) Analysis By Region, 2017 to 2021
7.3. Current Market Size Value (US$ million) Analysis and Forecast By Region, 2022 to 2032
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. South Asia
7.3.5. East Asia
7.3.6. Oceania
7.3.7. Middle East and Africa (MEA)
7.4. Market Attractiveness Analysis By Region
8. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
8.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
8.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
8.2.1. By Country
8.2.1.1. United States of America
8.2.1.2. Canada
8.2.2. By Type
8.2.3. By Application
8.3. Market Attractiveness Analysis
8.3.1. By Country
8.3.2. By Type
8.3.3. By Application
8.4. Key Takeaways
9. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
9.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
9.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
9.2.1. By Country
9.2.1.1. Brazil
9.2.1.2. Mexico
9.2.1.3. Rest of Latin America
9.2.2. By Type
9.2.3. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Type
9.3.3. By Application
9.4. Key Takeaways
10. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
10.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
10.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
10.2.1. By Country
10.2.1.1. Germany
10.2.1.2. United Kingdom
10.2.1.3. France
10.2.1.4. Spain
10.2.1.5. Italy
10.2.1.6. Rest of Europe
10.2.2. By Type
10.2.3. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Type
10.3.3. By Application
10.4. Key Takeaways
11. South Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
11.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
11.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
11.2.1. By Country
11.2.1.1. India
11.2.1.2. Malaysia
11.2.1.3. Singapore
11.2.1.4. Thailand
11.2.1.5. Rest of South Asia
11.2.2. By Type
11.2.3. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Type
11.3.3. By Application
11.4. Key Takeaways
12. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
12.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
12.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
12.2.1. By Country
12.2.1.1. China
12.2.1.2. Japan
12.2.1.3. South Korea
12.2.2. By Type
12.2.3. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Type
12.3.3. By Application
12.4. Key Takeaways
13. Oceania Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
13.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
13.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
13.2.1. By Country
13.2.1.1. Australia
13.2.1.2. New Zealand
13.2.2. By Type
13.2.3. By Application
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Type
13.3.3. By Application
13.4. Key Takeaways
14. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
14.1. Historical Market Size Value (US$ million) Trend Analysis By Market Taxonomy, 2017 to 2021
14.2. Market Size Value (US$ million) Forecast By Market Taxonomy, 2022 to 2032
14.2.1. By Country
14.2.1.1. GCC Countries
14.2.1.2. South Africa
14.2.1.3. Israel
14.2.1.4. Rest of MEA
14.2.2. By Type
14.2.3. By Application
14.3. Market Attractiveness Analysis
14.3.1. By Country
14.3.2. By Type
14.3.3. By Application
14.4. Key Takeaways
15. Key Countries Market Analysis
15.1. United States of America
15.1.1. Pricing Analysis
15.1.2. Market Share Analysis, 2021
15.1.2.1. By Type
15.1.2.2. By Application
15.2. Canada
15.2.1. Pricing Analysis
15.2.2. Market Share Analysis, 2021
15.2.2.1. By Type
15.2.2.2. By Application
15.3. Brazil
15.3.1. Pricing Analysis
15.3.2. Market Share Analysis, 2021
15.3.2.1. By Type
15.3.2.2. By Application
15.4. Mexico
15.4.1. Pricing Analysis
15.4.2. Market Share Analysis, 2021
15.4.2.1. By Type
15.4.2.2. By Application
15.5. Germany
15.5.1. Pricing Analysis
15.5.2. Market Share Analysis, 2021
15.5.2.1. By Type
15.5.2.2. By Application
15.6. United Kingdom
15.6.1. Pricing Analysis
15.6.2. Market Share Analysis, 2021
15.6.2.1. By Type
15.6.2.2. By Application
15.7. France
15.7.1. Pricing Analysis
15.7.2. Market Share Analysis, 2021
15.7.2.1. By Type
15.7.2.2. By Application
15.8. Spain
15.8.1. Pricing Analysis
15.8.2. Market Share Analysis, 2021
15.8.2.1. By Type
15.8.2.2. By Application
15.9. Italy
15.9.1. Pricing Analysis
15.9.2. Market Share Analysis, 2021
15.9.2.1. By Type
15.9.2.2. By Application
15.10. India
15.10.1. Pricing Analysis
15.10.2. Market Share Analysis, 2021
15.10.2.1. By Type
15.10.2.2. By Application
15.11. Malaysia
15.11.1. Pricing Analysis
15.11.2. Market Share Analysis, 2021
15.11.2.1. By Type
15.11.2.2. By Application
15.12. Singapore
15.12.1. Pricing Analysis
15.12.2. Market Share Analysis, 2021
15.12.2.1. By Type
15.12.2.2. By Application
15.13. Thailand
15.13.1. Pricing Analysis
15.13.2. Market Share Analysis, 2021
15.13.2.1. By Type
15.13.2.2. By Application
15.14. China
15.14.1. Pricing Analysis
15.14.2. Market Share Analysis, 2021
15.14.2.1. By Type
15.14.2.2. By Application
15.15. Japan
15.15.1. Pricing Analysis
15.15.2. Market Share Analysis, 2021
15.15.2.1. By Type
15.15.2.2. By Application
15.16. South Korea
15.16.1. Pricing Analysis
15.16.2. Market Share Analysis, 2021
15.16.2.1. By Type
15.16.2.2. By Application
15.17. Australia
15.17.1. Pricing Analysis
15.17.2. Market Share Analysis, 2021
15.17.2.1. By Type
15.17.2.2. By Application
15.18. New Zealand
15.18.1. Pricing Analysis
15.18.2. Market Share Analysis, 2021
15.18.2.1. By Type
15.18.2.2. By Application
15.19. GCC Countries
15.19.1. Pricing Analysis
15.19.2. Market Share Analysis, 2021
15.19.2.1. By Type
15.19.2.2. By Application
15.20. South Africa
15.20.1. Pricing Analysis
15.20.2. Market Share Analysis, 2021
15.20.2.1. By Type
15.20.2.2. By Application
15.21. Israel
15.21.1. Pricing Analysis
15.21.2. Market Share Analysis, 2021
15.21.2.1. By Type
15.21.2.2. By Application
16. Market Structure Analysis
16.1. Competition Dashboard
16.2. Competition Benchmarking
16.3. Market Share Analysis of Top Players
16.3.1. By Regional
16.3.2. By Type
16.3.3. By Application
17. Competition Analysis
17.1. Competition Deep Dive
17.1.1. BorgWarner Inc.
17.1.1.1. Overview
17.1.1.2. Product Portfolio
17.1.1.3. Profitability by Market Segments
17.1.1.4. Sales Footprint
17.1.1.5. Strategy Overview
17.1.1.5.1. Marketing Strategy
17.1.2. Robert Bosch GmbH
17.1.2.1. Overview
17.1.2.2. Product Portfolio
17.1.2.3. Profitability by Market Segments
17.1.2.4. Sales Footprint
17.1.2.5. Strategy Overview
17.1.2.5.1. Marketing Strategy
17.1.3. ZF Friedrichshafen AG
17.1.3.1. Overview
17.1.3.2. Product Portfolio
17.1.3.3. Profitability by Market Segments
17.1.3.4. Sales Footprint
17.1.3.5. Strategy Overview
17.1.3.5.1. Marketing Strategy
17.1.4. GKN
17.1.4.1. Overview
17.1.4.2. Product Portfolio
17.1.4.3. Profitability by Market Segments
17.1.4.4. Sales Footprint
17.1.4.5. Strategy Overview
17.1.4.5.1. Marketing Strategy
17.1.5. GETRAG FORD Transmission GmbH
17.1.5.1. Overview
17.1.5.2. Product Portfolio
17.1.5.3. Profitability by Market Segments
17.1.5.4. Sales Footprint
17.1.5.5. Strategy Overview
17.1.5.5.1. Marketing Strategy
17.1.6. AVL GmbH
17.1.6.1. Overview
17.1.6.2. Product Portfolio
17.1.6.3. Profitability by Market Segments
17.1.6.4. Sales Footprint
17.1.6.5. Strategy Overview
17.1.6.5.1. Marketing Strategy
17.1.7. HOTA Industrial
17.1.7.1. Overview
17.1.7.2. Product Portfolio
17.1.7.3. Profitability by Market Segments
17.1.7.4. Sales Footprint
17.1.7.5. Strategy Overview
17.1.7.5.1. Marketing Strategy
17.1.8. Tsingshan Industry
17.1.8.1. Overview
17.1.8.2. Product Portfolio
17.1.8.3. Profitability by Market Segments
17.1.8.4. Sales Footprint
17.1.8.5. Strategy Overview
17.1.8.5.1. Marketing Strategy
17.1.9. Aichi Machine Industry
17.1.9.1. Overview
17.1.9.2. Product Portfolio
17.1.9.3. Profitability by Market Segments
17.1.9.4. Sales Footprint
17.1.9.5. Strategy Overview
17.1.9.5.1. Marketing Strategy
17.1.10. Magna International
17.1.10.1. Overview
17.1.10.2. Product Portfolio
17.1.10.3. Profitability by Market Segments
17.1.10.4. Sales Footprint
17.1.10.5. Strategy Overview
17.1.10.5.1. Marketing Strategy
17.1.11. SAGW
17.1.11.1. Overview
17.1.11.2. Product Portfolio
17.1.11.3. Profitability by Market Segments
17.1.11.4. Sales Footprint
17.1.11.5. Strategy Overview
17.1.11.5.1. Marketing Strategy
17.1.12. Zhuzhou Gear
17.1.12.1. Overview
17.1.12.2. Product Portfolio
17.1.12.3. Profitability by Market Segments
17.1.12.4. Sales Footprint
17.1.12.5. Strategy Overview
17.1.12.5.1. Marketing Strategy
18. Assumptions & Acronyms Used
19. Research Methodology
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Electric Vehicle Reducer Market
