Europe Oil Based Electric Drive Unit Market Size By Vehicle Type (BEV, HEV, PHEV), By Sales Channel (OEM, Aftermarket), Growth Forecast 2024 – 2032

Europe Oil Based Electric Drive Unit Market Size

Europe Oil Based Electric Drive Unit Market was valued at USD 3.2 billion in 2023 and will grow at a CAGR of 24.8% from 2024 to 2032. Increasing industrial automation along with increasing regulations around energy conservation is driving the market growth across the region.
 

Electric drive units are crucial in providing high torque and power density required by EVs, especially for heavy-duty or performance-focused vehicles. Oil-based drive units handle these demands efficiently, making them ideal for electric trucks, buses, and high-performance EVs, where mechanical strength and energy efficiency is required.
 

Shifting focus towards integration in Hybrid Electric Vehicles (HEVs) along with the expansion of EV infrastructure across various countries including Norway, Germany, Netherlands, among others are further fuelling the business outlook. In addition, oil-based electric drive units help optimize energy management between the engine and electric motor, improving fuel efficiency and reducing emissions, making HEVs more attractive to consumers and regulators, thereby adding to the overall market growth.
 

Europe Oil Based Electric Drive Unit Market Trends

Increasing focus on high power density & torque EDUs owing to their installation across fast charging EVs along with favourable government incentives & regulations are bolstering the product adoption across the region. Electric drive units are crucial in providing high torque and power density required by EVs, especially for heavy-duty or performance-focused vehicles. Oil-based drive units handle these demands efficiently, making them ideal for electric trucks, buses, and high-performance EVs, where mechanical strength and energy efficiency are paramount. Furthermore, stringent regulations on vehicle emissions and fuel efficiency push automakers to integrate more efficient electric drive technologies, including oil-based systems. Government incentives for EV production and purchase further encourage manufacturers to adopt advanced drive units to meet regulatory and market demands.
 

Europe Oil Based Electric Drive Unit Market Analysis

Based on vehicle type, the market is segmented into BEV, HEV, and PHEV. The BEV oil-based EDU market is projected to surpass USD 10 billion by 2032. Advancements in battery technology, including improved energy storage capacity and expanding charging infrastructure, are key factors driving the increased adoption of Battery Electric Vehicles (BEVs) in recent years.
 

Based on sales channel, the market is divided into OEM & aftermarket. The OEM industry will grow at CAGR of over 25% by 2032. OEMs are leading innovations in product design and development, investing significantly in research and development to create advanced solutions that improve the performance, efficiency, and reliability of electric vehicles (EVs).
 

The Germany oil based electric drive unit industry is anticipated to surpass USD 7 billion by 2032. The oil-based electric drive unit industry in Germany has experienced significant growth, primarily due to proactive government support for advanced vehicle technologies and EV infrastructure development. This expansion is further driven by fluctuating oil prices and an increasing preference for energy-efficient automotive solutions in the German market.
 

The UK electric drive unit market is expanding as automakers focus on integrating advanced technologies. Manufacturers are developing more compact and efficient drive units to improve vehicle performance and range. Additionally, companies are investing in local production facilities to reduce costs and meet growing demand.
 

Europe Oil Based Electric Drive Unit Market Share

Key market players such as BorgWarner Inc., GKN Automotive Limited, LG Magna e-Powertrain, Schaeffler AG, and Vitesco Technologies GmbH are the leading manufacturers in the market. Their dominance is attributed to factors including brand reputation, technological advancements, product reliability, and customer satisfaction. These attributes have established them as preferred manufacturers and suppliers in the industry.
 

Europe Oil Based Electric Drive Unit Market Companies

Some of the key market players operating across the industry are:

• AVL
• BorgWarner
• Bosch
• Dana TM4
• ElringKlinger
• Equipmake
• FRIWO
• GKN Automotive
• hofer powertrain
• Integral Powertrain
• LG Magna e-Powertrain
• Magna International
• MAHLE
• Nidec
• Punch Powertrain
• Saietta Group
• Schaeffler
• Vitesco Technologies
• Voith
• ZF
   

Europe Oil Based Electric Drive Unit Industry News

• In January 2024, Hofer powertrain and VisIC Technologies Ltd. have teamed up to create GaN-based inverters for 800V EV applications. These inverters are smaller, cheaper, and more efficient, meeting the needs of the growing EV market. The technology boasts faster switching speeds and a compact design, helping to reduce overall system costs.
   
• In October 2023, NIDEC CORPORATION created an electric oil pump to cool the E-Axle, a traction motor system for electric vehicles. This pump improves cooling efficiency by directly cooling the motor. It combines a high-quality pump and motor, simplifying assembly and electrical connections. The system's output and interface can be easily adjusted for different customers. This innovation is set to play a key role in advancing the automobile market.
   

This Europe oil based 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 Sales Channel  

• OEM
• Aftermarket

The above information has been provided for the following countries:

• Norway
• Germany
• France
• Netherlands
• UK