Electric Drive Unit Market Size

Electric Drive Unit Market size was valued at USD 20 billion in 2023 and is projected to grow at over 22.8% CAGR from 2024 to 2032. Continuous & exponential rising demand for electric vehicles across the globe along with automotive industry undergoing a transformative shift towards electrification, thereby adopting electric drive units (EDUs) have emerged as critical market influencing factors. For instance, in July 2023, ZF launched the EVSys800, a compact permanent magnet-based drive unit for electric vehicles, which includes radial flux electric motor, coaxial planetary reduction gears, and a compact differential.

Government incentives, stringent emissions regulations, and advancements in battery technology are accelerating adoption of EVs, thereby fuelling product demand. Furthermore, technological advancements in electric drive units, including improved motor efficiency, power density, and thermal management, enhance the performance and range of electric vehicles, increasing consumer appeal.