OEM Electric Drive Unit (EDU) Market Size

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.

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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.