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

OEM Electric Drive Unit Market Size

OEM Electric Drive Unit Market size was valued at USD 13 billion in 2023 and is projected to grow at a CAGR of 23.2% between 2024 and 2032. Rapid push towards electrification by key automakers along with increasing advancement in battery technology is driving the product deployment across the globe. Respective governments are imposing stricter emission norms, and several countries have announced plans to phase out internal combustion engine (ICE) vehicles in favor of electric vehicles (EVs). As a result, Original Equipment Manufacturers (OEMs) are investing heavily in the development and production of Electric Drive Units (EDUs) as a core component of EVs.
 

The continuous advancements in battery technology, particularly in lithium-ion and solid-state batteries are significantly boosting the OEM EDU market. Improved battery energy density, faster charging times, and longer lifecycle are enabling the development of more efficient and powerful electric drive units. This integration leads to enhanced vehicle performance and range making EVs more appealing to consumers. ?The reduction in battery costs coupled with increased energy efficiency also contributes to the overall affordability of EVs, thereby driving demand for EDUs in mass-market vehicles.
 

OEM Electric Drive Unit Market Trends

Rising consumer demand for high-performance electric vehicles along with increasing integration of advanced technologies across EVs will complement the business outlook. shift in consumer preference is pushing OEMs to develop more powerful and sophisticated EDUs that can deliver high torque, acceleration, and efficiency. The rise of performance-oriented EV brands such as Tesla has set new benchmarks in the industry, prompting traditional automakers to enhance their EDU offerings to remain competitive.
 

In addition, the integration of advanced technologies, such as artificial intelligence (AI), machine learning, and Internet of Things (IoT) connectivity, is transforming the OEM EDU market. These technologies enable smarter and more efficient electric drive systems that can optimize performance in real-time based on driving conditions, energy consumption, and user preferences.
 

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 37.5 billion by 2032. Ongoing advancements in enhancing battery operational capabilities, such as improved energy storage capacity, combined with the expansion of charging infrastructure, are key factors driving the increased adoption of BEVs in recent years.
 

Based on coolant, the OEM electric drive unit market is divided into water gylcol & oil based. The oil based EDU segment will grow at CAGR of over 24.5% through 2032. The rising power density in EDUs, driven by the demand for higher vehicle efficiency and performance, necessitates advanced cooling solutions, making oil based coolants increasingly prime, thereby driving the demand for the oil based coolant for electric drive unit.
 

The Asia Pacific OEM electric drive unit market is anticipated to surpass over USD 53.2 billion by 2032. Automakers in developing nations such as China, India, and Indonesia are making significant investments in the research and development of electric drive unit system components, with a strong emphasis on related infrastructure development. The competitive landscape features a blend of established OEMs and emerging startups, both driving advancements in electric drive unit technology.
 

Proactive government support for the adoption of electric vehicles and the development of EV charging infrastructure has significantly contributed to overall industry growth. This expansion is largely driven by rising energy prices and an increasing preference for energy-efficient solutions. Moreover, countries like the U.S. and Canada are expected to experience higher growth rates due to stringent policies promoting electric vehicle adoption and a strong emphasis on reducing carbon footprints.
 

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.
 

OEM Electric Drive Unit Market Companies

Some of the key market players operating across the 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
   

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 October 2023, NIDEC CORPORATION has developed an Electric Oil Pump specifically designed to cool the E-Axle, the traction motor system used in EVs. This traction motor requires enhanced cooling efficiency, and the Electric Oil Pump provides direct cooling to the motor. The pump, which integrates a high-quality motor, streamlines both the mechanical component fastening process and electrical connections.
   

The OEM electric drive unit (EDU) 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 Gylcol
• Oil Based

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Norway
  • Germany
  • France
  • Netherlands
  • UK
  • Austria
  • Belgium
  • Denmark
  • Finland
  • Ireland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Hong Kong
  • New Zealand
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina