Chicago, Aug. 07, 2025 (GLOBE NEWSWIRE) -- The global electric vehicle transmission market was valued at US$ 12.51 billion in 2024 and is expected to reach US$ 77.14 billion by 2033, growing at a robust CAGR of 22.4% during the forecast period, 2025–2033.
The global electric vehicle transmission market is currently navigating a period of unprecedented transformation and explosive growth, signaling a definitive shift in the automotive industry's powertrain paradigm. As the world accelerates its transition to sustainable mobility, the transmission—once a familiar component of internal combustion engines—has been fundamentally reimagined for the electric age. This critical component is no longer just about gear ratios; it is the linchpin of vehicle efficiency, performance, range, and the overall driving experience. The market's potential is not merely growing; it is redefining the boundaries of innovation at a breakneck pace. For stakeholders, from Tier 1 suppliers to original equipment manufacturers (OEMs), the period between 2024 and 2025 represents a pivotal window of opportunity.
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The competitive landscape is being reshaped by a torrent of new technologies, massive capital investments in production, and strategic alliances aimed at securing a dominant position in this lucrative and rapidly evolving sector. The sheer volume of quantitative advancements underscores a market brimming with vitality, where every technological leap and strategic maneuver holds the potential to capture significant market share and dictate the future of electric mobility. This dynamic environment makes a deep understanding of the market more crucial than ever.
Key Findings in Electric Vehicle Transmission Market
| Market Forecast (2033) | US$ 77.14 billion |
| CAGR | 22.40% |
| Largest Region (2024) | Asia Pacific (54.40%) |
| By Transmission Type | Single Speed (80.10%) |
| By Transmission System | Automatic Transmission (58.20%) |
| By Vehicle Type | Battery Electric Vehicles (54.20%) |
| By Vehicle Design | Electric Cars (63.70%) |
| By Distribution Channel | Offline (90.6%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Pioneering Technological Innovations Driving Unprecedented Performance and Efficiency Gains in 2024
At the core of the electric vehicle transmission market's dynamism is a relentless pursuit of technological supremacy. In early 2024, Dana launched its Spicer Electrified™ Zero-6 e-Transmission, available in two formidable models delivering 4,700 Nm and 7,900 Nm of output torque, respectively. This groundbreaking design is protected by six patents covering its unique shifting and lubrication methodologies. Concurrently, ZF's 2025 EV Select platform introduces reduction gears that are approximately 10 kg lighter than their predecessors, a significant gain in the quest for efficiency.
In the micro-mobility space, Valeo's 2024 Cyclee™ technology for e-bikes features a 7-speed automatic transmission that delivers an astounding 130 Nm of torque, while a 2024 update reduced its noise level by around 7dB. For commercial vehicles, ZF's TraXon 2 Hybrid transmission for 2025 integrates an electric motor providing 190 kW of continuous power. Meanwhile, BorgWarner’s HVH220 eMotor, part of a major 2024 business win, features a 220 mm stator outer diameter, generates up to 300kW, and reaches a maximum speed of 18,000 rpm.
The Fiercely Contested Competitive Landscape and Key Strategic Alliances for 2025
The competitive arena of the Electric vehicle transmission market is a hotbed of strategic activity. In 2024, Dana Incorporated proudly secured its ninth Automotive News PACE Award for its innovative electro-mechanical, infinitely variable transmission (EMIVT) system. Demonstrating the global race for market share, BorgWarner announced four significant eMotor business awards with three major Chinese OEMs, with these programs set to launch in 2025 and 2026. A landmark collaboration was solidified in March 2024 when Aisin and Subaru entered a contract for the joint development and production of eAxles for Subaru's upcoming BEVs. Not to be outdone, ZF is introducing a modular two-speed EV transmission system in 2024 to extend vehicle range.
Looking ahead, Valeo is preparing for a major series production project in early 2026 with a leading automaker and operates a vast network of 159 manufacturing plants and 64 R&D centers as of mid-2024. With more than ten major automotive suppliers actively competing in 2025 and Bosch ramping up volume production of its new 800V powertrain systems, the competitive intensity is at an all-time high.
Massive Investments in Production Capacity Fueling the Global Supply Chain Expansion
To meet the soaring demand, suppliers in the electric vehicle transmission market are aggressively expanding their manufacturing footprints. Dana's Spicer Electrified™ e-Transmissions are set to debut on a global EV platform in early 2024, a testament to their production readiness. ZF is gearing up to begin ramping up production of its comprehensive 'E-Mobility kit' for commercial vehicles in 2025, supported by a new 2,000-square-meter "eMobility Campus" becoming operational in 2025 for its CeTrax and AxTrax drive systems. This follows ZF’s construction of its third e-mobility production plant in China, which began in July 2023.
Similarly, Continental AG commenced mass production of electric powertrains at its Chinese plant in 2024. In the U.S., Allison Transmission has completed a new 10,000-square-meter facility in Auburn Hills, Michigan, capable of manufacturing all products within its eGen Power portfolio and has invested in new dynamometers to validate its e-axle technologies. The scale of this expansion is underpinned by deep innovation, with Dana holding over 1,900 electrification patents and having over 51,000 vehicles on the road with its e-Motors as of early 2024.
Heavy-Duty Commercial Vehicles: A High-Torque Segment Powering Market Growth
The electrification of commercial vehicles represents a uniquely demanding and lucrative segment of the electric vehicle transmission market. Dana's Zero-6 e-Transmission is engineered to handle a gross vehicle weight rating of up to 59,500 lbs and is featured in specialized applications like the Pierce Volterra Electric Fire Truck. In 2024, the European electric city bus market saw 7,779 new vehicle registrations, highlighting the sector's rapid adoption. Allison Transmission is a key player, with its eGen Power 100D e-axle designed for heavy-duty 6x2 applications and the 130D targeting European and Asia-Pacific markets. For tandem-axle trucks, Allison offers the eGen Power 100S.
ZF is also making significant strides; its 4-speed transmission for electric trucks, introduced in 2024, improves torque handling by nearly 22% and can increase battery range by almost 13%. This is critical as China accounted for over 80% of global electric medium- and heavy-duty truck sales in 2024. In a major win, Allison Transmission was selected in January 2024 to supply e-Axles for North America’s first fully integrated electric refuse truck.
Passenger and Light Vehicle Transmissions: Pushing Boundaries for Mainstream Consumer Adoption
In the passenger vehicle space, the focus is on enhancing efficiency and performance to drive mainstream adoption. BorgWarner's iDM220 integrated drive module, showcased in 2024, is highly customizable, offering power between 150 and 250kW in 400V systems and up to 500kW in 800V architectures, all while achieving a peak efficiency of over 97%. A 2025 study from the International Energy Agency noted that in 2024, the sales share of light-duty EVs in the electric vehicle transmission market surpassed that of two- and three-wheelers for the first time globally. Catering to a wide range of vehicles, Allison's eGen Power 85S e-Axle is tailored for midi-buses and small trucks requiring a lower 8.5-tonne gross axle weight rating. Its larger eGen Power 100S features a two-speed parallel axis gear design and is capable of 100% regenerative braking. Supporting the aftermarket, Schaeffler is set to present its E-Axle RepSystem G and M repair kits at Automechanika Frankfurt 2024.
The Inevitable Rise of E-Axles: Revolutionizing Powertrain Design and Vehicle Architecture
A defining trend reshaping vehicle architecture is the rise of the e-Axle in the electric vehicle transmission market . These highly integrated systems are engineered to entirely replace the traditional powertrain, fitting compactly between the wheels of commercial and passenger vehicles. Allison's eGen Power e-Axles exemplify this design philosophy, integrating a sophisticated two-speed gearbox directly into the central housing.
The single-motor eGen Power 100S e-Axle from Allison has a gross axle weight rating of 10.4 tons. This integration allows for optimized packaging, reduced weight, and simplified assembly, contributing significantly to the overall efficiency and performance of the electric vehicle. The move towards e-axles marks a fundamental departure from legacy powertrain layouts, creating new opportunities for vehicle designers and engineers. This shift underscores a key development vector within the broader Electric vehicle transmission market, favoring suppliers who can master this complex integration.
Integrated Drive Modules: The Unstoppable Future of the EV Transmission Market
Taking integration a step further, Integrated Drive Modules (IDMs) are becoming the new frontier. These modules consolidate the e-motor, transmission, and power electronics into a single, cohesive unit. Dana's 4-in-1 e-Beam, introduced in 2024, takes this to the extreme by combining thermal management, an e-Motor, an inverter, software, and an e-Beam axle into one package. Similarly, Schaeffler’s 3-in-1 electric axle merges the core components into a single system.
The dual-motor eGen Power e-Axle from Allison, also with a 10.4-tonne gross axle weight rating, demonstrates immense power density, generating over 450 kilowatts of continuous power and a staggering 650 kilowatts of peak power. BorgWarner’s Viper power module is a critical enabler for these systems, serving as the core of their Silicon Carbide (SiC) inverter. The trend towards complete motor and transmission integration is definitively reshaping the competitive landscape of the electric vehicle transmission market.
Single-Speed vs. Multi-Speed Transmissions: A Strategic Battleground for Niche Dominance
While single-speed transmissions will continue to be the predominant choice in the immediate future due to their simplicity and cost-effectiveness, a fascinating battle is emerging. The adoption of multi-speed transmissions is expected to grow significantly in the coming years. In 2023, battery electric vehicles accounted for 78% of global EV sales, and within this massive segment, multi-speed transmissions are gaining crucial traction. Two-speed transmissions, in particular, are becoming increasingly popular in high-performance EVs. The development of multi-speed transmissions is emerging as a significant trend shaping the future of the electric vehicle transmission market, especially as a strategic choice for heavy-duty trucks and high-performance sports cars where torque multiplication and top-end efficiency are paramount. The single-speed transmission segment is projected to hold a major market share in 2025, but the development of multi-speed solutions is a key trend for the forecast period beyond.
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Future Outlook: Emerging Trends Shaping the Next Generation of EV Transmissions
Looking toward the horizon, the evolution of the Electric vehicle transmission market will be defined by software, standardization, and further innovation. Software is becoming as critical as hardware, exemplified by Valeo’s Predict4Range software, highlighted in 2024, which can improve an EV’s range by up to 24% by optimizing thermal management. Innovations in driver assistance, like the Valeo Aquablade™ system that improves reaction time by 315 milliseconds, also contribute to the holistic performance ecosystem. Beyond individual components, the industry is moving towards greater standardization and modularization of transmission systems, a trend highlighted for the forecast period beyond 2025. This, coupled with the continued push for multi-speed transmissions, will enable faster development cycles, cost reductions, and greater flexibility for automakers, ensuring that the pace of innovation in this critical market continues to accelerate.
Global Electric Vehicle Transmission Market Major Players:
- Aisin Seiki Co., Ltd.
- Allison Transmission Inc.
- AVL List GmbH
- BorgWarner Inc.
- Continental AG
- Dana Limited
- Denso Corporation
- EATON Corporation
- GKN Plc
- Hewland Engineering Ltd.
- Hitachi Automotive Systems Ltd
- JATCO Ltd.
- Magna International
- Mando Corporation
- Porsche AG
- Robert Bosch GmbH
- Schaeffler Technologies AG & Co. KG
- Xtrac Ltd
- ZF Friedrichshafen AG
- Other Prominent Players
Key Market Segmentation:
By Transmission Type
- Single Speed
- Multi Speed
- 2 Speed EV Transmission
- 3 Speed EV Transmission
- 4 Speed EV Transmission
By Transmission System
- AMT Transmissions
- AT Transmission
- CVT Transmissions
- DCT/DHT Transmissions
By Vehicle Type (Power)
- Battery EV
- Plug-In EV
- Hybrid EV
By Vehicle Type (Design/Model)
- Cars
- Buses
- Trucks
- Other
By Distribution Channel
- Online
- Offline
- OEMs
- Aftermarket
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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