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.