Market Snapshot

Electric vehicle transmission market was valued at US$ 12.51 billion in 2024 and is projected to attain market size of US$ 77.14 billion by 2033 at a robust CAGR of 22.4% during the forecast period, 2025–2033.

Demand in the electric vehicle transmission market is rapidly evolving from a focus on basic functionality to a requirement for highly specialized and powerful solutions. For stakeholders in the commercial vehicle segment, the demand is unequivocally for high torque and durability. This is demonstrated by the need for transmissions like Dana's Zero-6, which can handle a gross vehicle weight rating of up to 59,500 lbs, and ZF's 2025 TraXon 2 Hybrid, which integrates a motor delivering 190 kW of continuous power. The registration of 7,779 new electric city buses in Europe in 2024 underscores this growing industrial demand. Concurrently, in the passenger and performance segments, OEMs are demanding high-speed capability and power density. This is met by components like BorgWarner’s HVH220 eMotor, which reaches a maximum speed of 18,000 rpm and produces up to 300kW.

Industry players are observing a powerful and undeniable shift in demand towards fully integrated systems. The electric vehicle transmission market is moving beyond standalone components to favor e-axles and drive modules that combine motor, electronics, and gearing. This is driven by an OEM need for space efficiency, weight reduction, and simplified vehicle assembly. Allison's eGen Power 100S, with a 10.4-tonne gross axle weight rating, is a direct response to this trend. The demand for efficiency gains is tangible; ZF's 2025 EV Select platform features reduction gears that are 10 kg lighter than previous versions. The ultimate demand is for power density, which is being met by innovations like Allison's dual-motor e-axle, generating a peak power of 650 kilowatts from a single unit.

A more nuanced demand shaping the future of the electric vehicle transmission market involves advanced gearing and intelligent software. While single-speed transmissions are prevalent, a distinct demand for multi-speed transmissions is emerging from the heavy-duty and high-performance sectors. ZF's 4-speed truck transmission from 2024, which increases battery range by almost 13%, directly caters to this need for enhanced efficiency and performance under varying loads. Crucially, demand is no longer just for hardware; it extends to the software that optimizes it. Valeo’s Predict4Range software, capable of improving an EV's range by up to 24%, shows that stakeholders now expect transmission systems to be intelligent components that actively contribute to overall vehicle energy management.

Key Findings in Electric Vehicle Transmission Market 

• Based on transmission, the single speed segment is leading the market with revenue share of over 80.1%
• Based on transmission system, Automatic Transmission (AT) systems holding the largest share at 58.2%
• Based on vehicle type, Battery Electric Vehicles (BEVs) are the largest consumers of electric vehicle transmissions and is currently accounting for over 54.2% market share
• Based on Vehicle Design, electric cars are at the forefront of the market as it captured more than 63.7% market share
• Asia Pacific is set to remain the largest contributor to the market with more than 54.40% market share
• Electric vehicle transmission market is projected to generate a revenue of the US$ 77.14 billion by 2033

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Future Forward: A Trend Analysis of the Global Electric Vehicle Transmission Market

• A dominant trend is the rapid consolidation of components into highly integrated e-axles and drive modules. Suppliers are moving beyond selling individual transmissions to offering complete systems like Dana’s 4-in-1 e-Beam, which merges the motor, inverter, thermal management, and axle. This shift is driven by OEM demand for reduced complexity, lower weight, and optimized packaging, making system-level integration a key competitive differentiator in the market.
• The market is undergoing significant technological bifurcation to serve distinct vehicle segments. For commercial vehicles, the trend is toward robust, high-torque, multi-speed transmissions, such as ZF's 4-speed unit that improves truck range by nearly 13%. In contrast, the passenger vehicle segment is prioritizing extremely high-speed, power-dense single or two-speed solutions like BorgWarner’s HVH220 eMotor, which can reach 18,000 rpm to maximize performance.
• A pivotal emerging trend is the rise of the software-defined transmission, where intelligent control systems are becoming as crucial as the hardware itself. The focus is shifting to how software can optimize performance and efficiency in real-time. For instance, Valeo’s Predict4Range software can improve an EV's range by up to 24% by optimizing thermal management, proving that future value will be created by integrating predictive analytics directly into the transmission's control logic.

Unyielding Pursuit of Power: Defining Tomorrow's High-Performance EV Drivetrains Today

The global demand for electric vehicle transmission market is intensely shaped by an insatiable appetite for higher power and peak performance. Automakers are fiercely competing to deliver vehicles that offer superior acceleration and hauling capability, pushing suppliers to engineer drivetrains with unprecedented power density. This trend is vividly illustrated by Allison Transmission's dual-motor eGen Power e-Axle, which delivers a staggering 650 kilowatts of peak power and over 450 kilowatts of continuous power. In parallel, BorgWarner’s iDM220 integrated drive module, configured for 800V systems, can achieve power outputs of up to 500kW, while its standalone HVH220 eMotor generates up to 300kW. High power is intrinsically linked to high rotational speed, a domain where the HVH220 eMotor excels, reaching a maximum speed of 18,000 rpm.

This demand for power extends deep into the commercial vehicle sector of the electric vehicle transmission market. Dana’s 2024 Spicer Electrified™ Zero-6 e-Transmission is offered in a model providing a massive 7,900 Nm of output torque, while Allison's eGen Power 100D e-axle supports a 28-tonne gross vehicle weight rating. ZF’s 2025 TraXon 2 Hybrid transmission integrates an electric motor with 190 kW of continuous power, and its 2024 4-speed truck transmission improves torque handling by nearly 22%. This performance-driven demand even permeates the micro-mobility space, where Valeo's 2024 Cyclee™ system offers a class-leading 130 Nm of torque for e-bikes, proving that the quest for power is universal across all electric vehicle segments.

Maximizing Every Electron: The Critical Industry-Wide Demand for Ultimate Drivetrain Efficiency

Alongside the pursuit of power is an equally critical demand for ultimate efficiency to maximize vehicle range and minimize operational costs. This has ignited a race among suppliers to reduce energy losses through lightweighting, advanced software, and innovative component design. Software is a key frontier in the electric vehicle transmission market, with Valeo’s Predict4Range system, highlighted in 2024, capable of improving an EV's range by up to 24% through intelligent thermal management. Hardware innovations are just as crucial; ZF’s 2025 EV Select platform features reduction gears that are approximately 10 kg lighter than their predecessors. Efficiency gains are also found in auxiliary systems, where ZF’s new e-comp Scroll compressor can pressurize air to 12.5 bar in a single, more efficient stage.

The direct impact of transmission design on range is clear. ZF’s 2024 4-speed truck transmission can increase battery range by almost 13%. This is complemented by a focus on recapturing energy in the electric vehicle transmission market, with Allison’s eGen Power 100S e-axle capable of facilitating 100% regenerative braking. Component-level efficiency is paramount, with BorgWarner’s HVH220 eMotor achieving a peak electrical efficiency of over 97%. This drivetrain efficiency is part of a larger ecosystem, supported by innovations like CATL's 2024 Shenxing Plus battery, which achieves a gravimetric energy density of 205 Wh/kg and can add 600 km of range in just 10 minutes. Even subtle refinements, like Valeo’s 7dB noise reduction or its Aquablade system that improves reaction time by 315 milliseconds, contribute to a more efficient and optimized driving experience.

Segmental Analysis 

Single-Speed’s Unrivaled Dominance: Why Simplicity Wins in the EV Transmission Market

The single-speed transmission segment unequivocally leads the electric vehicle transmission market, commanding an impressive revenue share of over 80.1%. This supremacy is a direct result of the inherent nature of electric motors, which generate instant torque and operate efficiently across an extremely wide RPM range, capable of reaching up to 20,000 RPM. This contrasts sharply with the 4,000 to 6,000 RPM limit of typical internal combustion engines, making multi-gear systems redundant for most EVs. This fundamental advantage allows for a mechanically simpler design, serving as a reduction gear to optimize the motor's high speed for the wheels. The original Tesla Roadster, for instance, used a single 8.27:1 gear ratio to achieve speeds up to 125 mph. This simplicity is a powerful driver for the electric vehicle transmission market, reducing manufacturing costs, weight, and potential points of failure.

• A notable exception is the Porsche Taycan, which uses a two-speed transmission to boost its high-speed performance.
• Major supplier ZF has developed a two-speed gearbox that can increase an EV's range by up to five percent.
• Illustrating the dramatic part reduction, a Chevrolet Bolt's drivetrain contains 80% fewer moving components than a comparable ICE vehicle.

The market appeal is further magnified by enhanced reliability and the elimination of power interruptions common during gear shifts in traditional vehicles. A Tesla Model S drivetrain, for example, contains fewer than 20 moving parts, showcasing a design ethos centered on efficiency and longevity. For the vast majority of consumers, the seamless and responsive acceleration offered by single-speed systems is ideal for the typical demands of urban and highway driving. This combination of lower production costs, superior driver experience, and reduced maintenance solidifies the single-speed gearbox's position as the cornerstone of the mainstream EV landscape, perfectly aligning with manufacturer and consumer priorities for efficiency and performance in today's burgeoning electric vehicle transmission market.

The Automatic Choice: How AT Systems Captured the Largest Market Share

Automatic Transmission (AT) systems represent the largest segment, holding a commanding 58.2% share of the electric vehicle transmission market. This leadership position is directly tied to the prevalence of single-speed gearboxes, which are functionally a type of automatic transmission. Since drivers do not manually shift gears, the user experience is inherently automatic, providing the smooth, uninterrupted acceleration that has become a hallmark of electric driving. The market classifies these systems under the broader AT umbrella, cementing its top position. The cost-effectiveness of this approach is significant; while a conventional automatic transmission can have up to 800 parts and cost between $1,800 and $3,400 to replace, an EV's automatic system is vastly simpler and more durable, offering a compelling long-term value proposition for consumers that heavily influences the electric vehicle transmission market.

• Innovations are emerging to enhance driver engagement, such as Hyundai's N e-Shift system which simulates the feel of a manual gearbox.
• The upcoming Dodge Charger Daytona EV will feature a multi-speed automatic transmission called eRupt to deliver a more traditional muscle-car feel.
• Continuously Variable Transmissions (CVTs), another automatic variant, can offer an infinite number of gear ratios to potentially maximize motor efficiency.

While single-speed automatics dominate, the AT segment also includes more complex multi-speed automatic transmissions developed for the high-performance EV sector. These systems in the electric vehicle transmission market are engineered to provide a wider range of gear ratios for more effective power delivery, improving both acceleration and top speed. For instance, ZF's two-speed automatic transmission for EVs is precisely designed to execute its gear shift at approximately 43 miles per hour to optimize power and efficiency. The core function remains the automated transmission of power from the motor to the wheels, a process managed automatically in all mass-market EVs. This versatility, catering to both mainstream efficiency and high-end performance, ensures the automatic transmission's continued dominance.

Why BEVs Are the Top Transmission Market Consumers

Battery Electric Vehicles (BEVs) are the primary consumers within the electric vehicle transmission market, accounting for over 54.2% of the market share. The reason is fundamental: BEVs depend exclusively on electric propulsion, making an efficient transmission an indispensable component of every single vehicle produced. As global automakers pivot towards an all-electric future, with projections of more than 100 new EV models being introduced by 2024, the demand for transmissions grows in direct proportion. This growth is bolstered by strong consumer loyalty; a majority of current BEV owners expect their next vehicle to also be a BEV, indicating high satisfaction with the technology. This trend solidifies the BEV segment's foundational role in driving volume and innovation.

• Data shows that fewer than 10 percent of current BEV owners planning to switch vehicle types would even consider going back to an ICE vehicle.
• Remarkably, less than 1 percent of all EV owners state they will never purchase another EV.
• Ownership of a Plug-in Hybrid Electric Vehicle (PHEV) is frequently a gateway, with many owners choosing a full BEV for their next purchase.

Consumer adoption in the electric vehicle transmission market is further accelerated by growing experience with the technology. Surveys reveal that having prior experience with an EV positively influences the likelihood of a future purchase. While battery range remains a primary consideration for potential buyers, a factor that transmission efficiency directly impacts, consumer confidence is rising. Approximately one-third of consumers in Europe and the United States are now willing to pay a premium for a BEV over a comparable ICE model. However, some hesitancy remains due to misconceptions about the technology. As these barriers erode and the charging infrastructure expands, the BEV segment's consumption of transmissions is set for sustained and substantial growth.

Cars in Command: How Passenger Vehicles Drive the EV Transmission Market

Electric cars are the undisputed leaders, capturing more than 63.7% of the market share for electric vehicle transmission market. This dominance is a direct reflection of the global automotive landscape, where passenger cars—sedans, hatchbacks, and SUVs—represent the largest vehicle segment by volume. The industry's electrification efforts have logically focused on this core segment first, resulting in the highest production and sales figures. The market has responded with incredible momentum, growing from 1.3 million global EV sales in 2017 to an estimated 2.9 million by 2020. Projections show this trend continuing, with the global share of electric vehicles in car sales expected to reach between 20% and 25% by 2030, ensuring a massive and growing demand for transmissions from the electric car segment of the electric vehicle transmission market.

• Demographics play a role, with one study of over 2,000 people finding that being male, having children, and living in an urban area positively influence EV preference.
• If the vehicle leasing industry accelerates its adoption of EVs, it could introduce an additional 18 million households to electric cars.
• A consumer's decision can be complex, with some buyers only preferring an EV if it carries a higher price tag, associating cost with reputation.

For consumers, the path to EV adoption is influenced by several key factors. Research consistently shows that reducing the purchase price is the most powerful incentive to promote the adoption of BEV cars. After addressing range anxiety, which a longer driving range could solve for nearly half of potential buyers, priorities shift to the purchase price and the speed of charging. Concerns about better value stability for EVs also weigh on buyers' minds as the technology continues to evolve rapidly. As manufacturers address these priorities through technological advancements and economies of scale, the electric car segment will continue to be the primary engine powering the entire electric vehicle transmission market.

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Regional Analysis 

Asia-Pacific is the Epicenter of Production and Advanced Tech Integration

The Asia-Pacific region, led by China, is solidifying its position as the unequivocal global hub for the electric vehicle transmission market, characterized by massive production scale-ups and deep technological integration. In 2025, ZF will commence operations at its third Chinese e-mobility plant in Shenyang, a facility designed to produce electric axle drives with power outputs ranging from 100kW to 300kW. This expansion is mirrored by BorgWarner, which in early 2025 will open a new manufacturing base in Wuhu for electric drive systems and has already secured four new eMotor contracts with three major Chinese OEMs, with production slated for 2025 and 2026. These facilities will leverage advanced techniques, such as BorgWarner's ultra-short hairpin welding process, to increase power density and reduce motor size.

The region is also a hotbed for strategic collaborations and cutting-edge component development. In Japan electric vehicle transmission market, Subaru and Aisin have partnered to jointly develop and produce e-axles for Subaru's next-generation BEVs, starting in the latter half of the 2020s. Underscoring the region's technological prowess, Chinese giant CATL unveiled its Shenxing Plus battery in 2024 with a gravimetric energy density of 205 Wh/kg and the ability to add 600 km of range in just 10 minutes of charging. Furthermore, by 2025, BYD is launching its Han L model featuring the new DM-i 5.0 hybrid platform, and Xiaomi will start deliveries of its SU7 Ultra, a performance EV, on March 3, 2025. In 2024, China's New Energy Vehicle (NEV) production surpassed 10 million units for the first time.

Europe Pioneering Commercial Vehicle Electrification and System Efficiency

Europe is carving out a distinct identity in the electric vehicle transmission market by championing the electrification of commercial vehicles and advancing highly efficient, integrated systems. Germany's ZF is at the forefront, opening a new 2,000-square-meter "eMobility Campus" in 2025 dedicated to assembling its CeTrax and AxTrax drive systems for commercial vehicles. The company also announced a major order in 2025 from an Indian bus manufacturer for several thousand AxTrax 2 electric drive axles. This focus on heavy-duty applications is critical, as demonstrated by the 7,779 new electric city buses registered across Europe in 2024. The demand is for robust solutions, with Allison Transmission targeting the region with its eGen Power 130D e-axle.

European suppliers in the electric vehicle transmission market are also leading the charge in system-level innovation and efficiency. Valeo of France is set to begin a major series production project in early 2026, leveraging its vast network of 64 R&D centers. Their Predict4Range software, highlighted in 2024, can boost an EV's range by up to 24% through advanced thermal management. Furthermore, Valeo's 2024 Cyclee™ system for e-bikes, featuring a 7-speed automatic transmission and 130 Nm of torque, showcases innovation across all vehicle classes. ZF is also introducing a modular two-speed EV transmission in 2024 designed to extend vehicle range and has received a major order for electromechanical brakes to equip almost five million vehicles for a global OEM. In 2024, Chinese EV exports to the European Union exceeded 60,000 units in September alone.

North America Become A Hub for High-Performance E-Axles and Specialized Applications

North America's electric vehicle transmission market is defined by its focus on high-performance, fully integrated e-axle systems and their application in specialized and heavy-duty vehicles. In a significant 2024 development, Allison Transmission was chosen to supply its e-Axles for North America's first fully integrated, zero-emission electric refuse truck. The company's commitment is backed by a new 10,000-square-meter e-axle production facility in Auburn Hills, Michigan, now capable of manufacturing the entire eGen Power portfolio. This portfolio includes the powerful dual-motor e-axle capable of generating over 450 kilowatts of continuous power and 650 kilowatts at its peak.

The region's innovation is being driven by established suppliers pushing the performance envelope. Dana Incorporated, headquartered in the U.S., launched its Spicer Electrified™ Zero-6 e-Transmission in early 2024 with torque outputs as high as 7,900 Nm. This transmission is already featured in the specialized Pierce Volterra Electric Fire Truck. The company's innovative prowess in the electric vehicle transmission market was recognized in 2024 with its ninth Automotive News PACE Award for its EMIVT system. Further underscoring the region's focus on powerful drivetrains, BorgWarner's iDM220 integrated drive module, promoted in 2024, can be configured for up to 500kW in 800V systems. With over 51,000 vehicles on the road using Dana e-Motors as of early 2024, the installed base of these advanced North American technologies is rapidly growing.

Strategic Power Plays: Top 10 Deals Defining the 2024 Electric Vehicle Transmission MarketLandscape

• Schaeffler Completes Vitesco Merger (October 2024): Schaeffler AG successfully finalized its merger with Vitesco Technologies Group AG, creating a unified "Motion Technology Company." The deal was completed with an exchange ratio where Vitesco shareholders received 11.4 Schaeffler shares for each Vitesco share, marking one of the most significant consolidations in the German automotive supply sector.
• ZF Plans $500 Million Investment in U.S. Plant (February 2024): ZF announced a planned $500 million investment in its Gray Court, South Carolina, facility. This strategic funding will transform the plant into a "flex manufacturing facility" capable of producing both conventional and advanced e-mobility transmission technologies for North American customers starting in 2025.
• Valeo Raises €650 Million via Green Bond (May 2025): Valeo successfully placed a €650 million green bond issuance set to mature in 2031. The net proceeds are explicitly targeted for financing projects and investments directly linked to its portfolio of low-carbon mobility technologies, with a primary focus on vehicle electrification.
• Allison Transmission Commits $10 Million to Venture Capital (May 2024): Allison Transmission announced a $10 million investment commitment to EnerTech Capital, a venture capital firm. This strategic investment in the electric vehicle transmission market is aimed at fostering the development of emerging technologies and innovative business models within the commercial mobility and transportation space.
• BorgWarner Forms Joint Venture with Shaanxi Fast Auto Drive (January 2024): To deepen its penetration into the Chinese commercial vehicle market, BorgWarner established a joint venture with Shaanxi Fast Auto Drive Group. The partnership is focused on accelerating the development and production of high-voltage inverter applications for heavy-duty electric trucks and off-road vehicles.
• Indonesia and CATL Announce $1.2 Billion Battery Venture (October 2024): While focused on batteries, this move is critical for the entire EV powertrain ecosystem. The Indonesian government and CATL announced a joint venture to invest $1.2 billion in a battery production facility in West Java, aiming for an annual capacity of 15 gigawatts to support the regional EV supply chain.
• Subaru and Aisin to Jointly Develop e-Axles (March 2024): Subaru Corporation and AISIN CORPORATION agreed to collaborate on the joint development and shared production of next-generation e-Axles. These integrated drive units will be used in battery electric vehicles that Subaru plans to start producing in the latter half of the 2020s.
• Dana Invests $50 Million in New Swedish E-Propulsion Facility (2024): Dana Incorporated announced a significant $50 million investment to build a new electrodynamics facility in Åmål, Sweden. This plant will produce the company's advanced e-propulsion systems and electric motors, strengthening its manufacturing footprint in Europe to serve premium automotive OEMs.
• BorgWarner to Acquire FinDreams Battery IP (February 2024): BorgWarner signed an eight-year deal with FinDreams Battery, a subsidiary of BYD. In addition to securing a supply of LFP blade cells, the agreement grants BorgWarner an intellectual property license to use FinDreams' proprietary battery pack design and manufacturing process.
• Allison Ventures Invests in Niron Magnetics (2024): Through its venture capital arm, Allison Ventures made a strategic investment in Niron Magnetics. Niron is a pioneer in developing sustainable, rare-earth-free permanent magnets, a critical component for electric motors, signaling a strategic push to secure future supply chains and reduce dependence on critical materials.

Major Players in Electric Vehicle Transmission Market

• 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

Market Segmentation Overview:

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
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America