Europe OEM Electric Drive Unit (EDU) Market Size - By Vehicle Type (BEV, HEV, PHEV), By Coolant (Water Glycol, Oil Based) & Forecast, 2024 – 2032

Europe OEM Electric Drive Unit Market Size

Europe OEM Electric Drive Unit Market size was valued at USD 4 billion in 2023 and is projected to grow at a CAGR of 22.9% between 2024 and 2032. Increasing stricter emission norms and plans from several countries across the region to phase out internal combustion engine (ICE) vehicles in favor of electric vehicles (EVs), Original Equipment Manufacturers (OEMs) are making significant investments in the development and production of Electric Drive Units (EDUs), a core component of EVs, which in turn is bolstering the market growth in the region.
 

Advancements in battery technology, especially in lithium-ion and solid-state variants, are propelling the OEM EDU market. Enhanced energy density, quicker charging, and extended lifecycles of these batteries are paving the way for more efficient and potent electric drive units. Such integration not only boosts vehicle performance but also extends their range, making EVs increasingly attractive to consumers.
 

Europe OEM Electric Drive Unit Market Trends

Growing consumer demand for high-performance electric vehicles (EVs) and the increasing integration of advanced technologies in these vehicles are shaping a positive business outlook. As consumer preferences evolve, original equipment manufacturers (OEMs) are responding by developing more powerful and sophisticated electric drive units (EDUs) that prioritize high torque, acceleration, and efficiency. The emergence of performance-centric EV brands in the European region, notably Tesla, has established new industry benchmarks, compelling traditional automakers to elevate their EDU offerings to maintain competitiveness.
 

Furthermore, the adoption of cutting-edge technologies like artificial intelligence (AI), machine learning, and Internet of Things (IoT) connectivity is revolutionizing the OEM EDU landscape. These advancements facilitate smarter electric drive systems, optimizing performance in real-time according to driving conditions, energy consumption, and user preferences.
 

Europe OEM Electric Drive Unit Market Analysis

Based on vehicle type, the market is segmented into BEV, HEV, and PHEV. The OEM EDU market for BEV is projected to surpass over USD 10.5 billion by 2032. Ongoing advancements in enhancing battery performance, including increased energy storage capacity, along with the expansion of charging infrastructure across Europe, have been major factors driving the growing adoption of battery electric vehicles (BEVs) in recent years.
 

Based on coolant, the Europe OEM electric drive unit market is divided into water glycol & oil based. The oil based EDU industry will grow at CAGR of over 24% by 2032. The increasing power density in Electric Drive Units (EDUs), fueled by the demand for greater vehicle efficiency and performance in the European market is creating a need for advanced cooling solutions. This is making oil-based coolants more essential, thus driving the demand for oil-based coolants in EDUs across the region.

The Germany OEM electric drive unit market is anticipated to surpass over USD 7.5 billion by 2032. In Germany, the market is thriving due to the country's established automotive industry and a strong focus on innovation in electric mobility. Government incentives and the push toward electrification are driving demand for advanced electric drive units in both passenger and commercial vehicles.
 

In the UK, the market is expanding owing to increased investments in electric vehicle production and charging infrastructure. The government's commitment to achieving net-zero emissions and the growing popularity of electric cars are further fuelling demand for efficient and high-performance electric drive units.
 

Europe OEM Electric Drive Unit Market Share

Leading market players such as BorgWarner Inc., GKN Automotive Limited, LG Magna e-Powertrain, Schaeffler AG, and Vitesco Technologies GmbH are dominant manufacturers in the market. Their leadership is driven by factors including strong brand reputation, continuous technological innovation, reliability, and high levels of customer satisfaction, solidifying their position as preferred manufacturers and suppliers in the industry.
 

Europe OEM Electric Drive Unit Market Companies

Some of the key market players operating across the Europe OEM electric drive unit industry are:

• Aisin Corporation
• AVL
• BorgWarner Inc.
• C.F.R. Srl.
• DANA TM4 INC.
• ElringKlinger AG
• Equipmake
• FRIWO Gerätebau GmbH
• GKN Automotive Limited
• hofer powertrain
• Integral Powertrain Limited
• LG Magna e-Powertrain
• Magna International Inc.
• Magnetic Systems Technology Limited
• MAHLE Polska Sp. z o.o
• Nidec Corporation
• Punch Powertrain nv
• Robert Bosch GmbH
• Saietta Group
• Schaeffler AG
• Vitesco Technologies GmbH
• Voith GmbH & Co. KGaA
• ZF Friedrichshafen AG
• Zytek Automotive Ltd
   

Europe OEM Electric Drive Unit Industry News

• In January 2024, Hofer Powertrain and VisIC Technologies Ltd. Came into a strategic partnership to develop gallium nitride (GaN)-based, high-frequency inverters for 800V electric vehicle (EV) applications. These inverters are engineered to be more compact, cost-effective, and efficient, addressing the needs of the expanding EV market. Furthermore, the technology provides notably faster switching speeds and a smaller, lighter design, contributing to a reduction in overall system costs.
   
• In January 2024, Magna International Inc. unveiled its Next Generation eDrive at CES 2024, featuring an 800V solution that establishes new benchmarks in efficiency, power-to-weight ratio, and torque density. This lightweight, compact, and sustainable product offers exceptional efficiency and power, suitable as a primary or complementary secondary drive solution for C, D, and E segment vehicles. It also includes an optional eDecoupling unit and delivers a peak power of 250 kW with a peak axle torque of 5,000 Nm.
   

The Europe OEM electric drive unit market research report includes an in–depth coverage of the industry with estimates & forecast in terms of volume in ‘Units’ and revenue in ‘USD Billion’ from 2021 to 2032, for the following segments:

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Market, By Vehicle Type

• BEV
• HEV
• PHEV

Market, By Coolant

• Water Glycol
• Oil Based

The above information has been provided for the following countries:

• Norway
• Germany
• France
• Netherlands
• UK
• Austria
• Belgium
• Denmark
• Finland
• Ireland