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 gylcol & 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.