Allied Market Research published a report, that projected the Global Opportunity Analysis and Industry Forecast, 2019–2026. According to the report, the global electric vehicle (EV) transmission industry generated $2.52 billion in 2018, and is estimated to reach $15.38 billion by 2026, registering a CAGR of 25.8% from 2019 to 2026.
Rise in demand for fuel efficient and low-emission vehicles, growth in production of electric vehicles, and government initiatives to support adoption of electric vehicle drive the global EV transmission market growth. However, high cost of electric vehicles restraint the growth of the market. On the other hand, technological advancements in electric vehicles and incorporation of Vehicle-To-Grid (V2g) EV charging stations are expected to provide opportunities for the market.
Single speed segment dominated in terms of revenue
Based on transmission type, the single speed segment accounted for the major share in the global electric vehicle transmission market in 2018, contributing around 98% of the total share. This is due to the advantages such as requirement of less space, cheap, economical & easy construction, and instant torque provided when coupled with motor. Contrarily, the multi-speed transmission segment is expected to register the highest CAGR of 45.3% from 2019 to 2026. This is attributed to the factors such as higher efficiency range, lower noise, and better launch acceleration.
Hybrid electric vehicle segment to continue its dominant share by 2026
Based on vehicle type, the hybrid electric vehicle segment held the highest market share in the EV transmission market in terms of revenue in 2018, contributing more than two-fifths of the total share. This segment is expected to continue its dominant share during the forecast period. This is due to factors such as remarkable efficiency, availability of gasoline-powered ICE for long range, and others. On the other hand, the plug-in hybrid electric vehicle segment would register the fastest growth rate, with a CAGR of 30.9% from 2019 to 2026. This is due to lower purchasing and running cost as compared to other electric vehicles (EVs) and increased distance range than other EVs owing to range-extending gasoline engine.
AT transmission segment to contribute highest share during the forecast period
On the basis of transmission system, the AT transmission segment held the highest market share in the electric vehicle transmission market in 2018, contributing more than half of the total share. This is because AT transmissions are powerful than manual transmission and these gears shifts faster than majority of the manual transmission. On the other hand, the AMT transmissions segment would register the fastest growth rate, with a CAGR of 29.7% from 2019 to 2026, owing to efficient fuel consumption and driving comfort provided by AMT transmission.
Asia Pacific to contribute the highest share, North America to follow
Asia-Pacific contributed nearly two-fifths of the total share of the global EV transmission market in 2018, due to remarkable growth of electric vehicle production and government initiatives for adoption of electric vehicle. On the other hand, North American region contributed nearly one-fourth of the total revenue in 2018. LAMEA is estimated to grow at the highest CAGR of 30.7% from 2019 to 2026, due to rise in demand for fuel efficient and low-emission vehicles.
The full report is available at the Allied Market Research website, by following this link.