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

Oil Based Electric Drive Unit Market Size

Oil Based Electric Drive Unit Market size was valued at USD 12.2 billion in 2023 and is projected to grow at a CAGR of 24.5% between 2024 and 2032. Industry growth is being significantly driven by increasing financial incentives and substantial spending on supporting infrastructure. These measures are being adopted by governments and policymakers across the globe as a strategic response to the pressing concerns of environmental sustainability and the transition towards cleaner transportation alternatives.
 

The global shift towards electric vehicles is a significant driver. As EV adoption rises, the demand for efficient and reliable electric drive units, including oil-based systems, is increasing. These units are crucial for ensuring the performance and longevity of EVs. In addition, continuous advancements in technology, particularly in battery efficiency and electric drive systems, are propelling market growth. Innovations such as improved lubrication solutions and enhanced thermal management systems contribute to the efficiency and performance of electric drive units?.

 

Oil Based Electric Drive Unit Market Trends

Stringent environmental regulations and government incentives promoting the use of electric vehicles are fostering the growth of the oil-based electric drive unit market. Policies aimed at reducing carbon emissions and encouraging sustainable transportation are key factors in this regard.
 

In addition, rapid EV infrastructure development along with shifting concerns of consumers towards increasing conventional fuel prices are favoring the expansion of EVs, thereby catering to a significant demand in oil based electric drive unit having high operational efficiencies. Furthermore, growing consumer awareness about the environmental impact of traditional vehicles and the benefits of electric vehicles are influencing market dynamics. Consumers are increasingly opting for EVs, which in turn drives the demand for efficient electric drive units.
 

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 over USD 38.5 billion by 2032. Ongoing developments in boosting the operational capabilities of batteries including better energy storage capacity coupled with the developing charging infrastructure are among the key factors augmenting the deployment of BEVs over the years.
 

Based on sales channel, the oil based electric drive unit market is divided into OEM & aftermarket. The OEM industry will expand at a CAGR of over 24.5% through 2032. OEMs are driving innovations in the design and development of the product and are investing heavily in research & development to create cutting-edge solutions that enhance the performance, efficiency, and reliability of electric vehicles (EVs).
 

The Asia Pacific oil based electric drive unit market is anticipated to surpass over USD 58.2 billion by 2032. The automakers in developing nations including China, India, Indonesia, among others are heavily investing in the research & development of electric drive unit system components with a strong focus on related infrastructure development. The competitive landscape is characterized by a mix of established OEMs and emerging startups, which are contributing to the advancements in electric drive unit technology.
 

Proactive government support toward the adoption of electric vehicles and development of EV charging stations has further translated into an overall industry growth. The industry expansion is largely attributed to escalating energy prices, and growing preference for energy-efficient solutions. In addition, the countries including U.S. & Canada are expected to grow at a higher rate owing to stringent policies towards adoption of electric vehicles along with accelerating trends toward reducing carbon footprints.
 

Oil Based Electric Drive Unit Market Share

Key market players, BorgWarner Inc., GKN Automotive Limited, LG Magna e-Powertrain, Schaeffler AG, Vitesco Technologies GmbH are the leading manufacturers in the market. Their dominance is attributed to factors like strong brand reputation, technological innovations, reliability, and high customer satisfaction, cementing their status as preferred manufacturer and suppliers in the sector.
 

Oil Based Electric Drive Unit Market Companies

Some of the key market players operating across the oil based 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
   

Oil Based Electric Drive Unit Industry News

• In January 2024, Hofer powertrain and VisIC Technologies Ltd. have partnered to develop gallium nitride (GaN)-based, high-frequency inverters for 800V applications in electric vehicles (EVs). These inverters are designed to be smaller, more cost-effective, and more efficient, meeting the demands of the growing EV market. Additionally, the technology offers significantly improved switching speeds and a smaller, lighter package, thereby reducing the overall system cost.
   
• In October 2023, NIDEC CORPORATION developed Electric Oil Pump to cool E-Axle, the traction motor system for EVs. The traction motor requires better cooling efficiency for cooling system to directly cool the motor. The Electric Oil Pump consists of a pump and a motor with high quality while simplifying mechanical component fastening process and electric connection. The company has designed the system whose output and interface can be adjusted easily for individual consumers. Henceforth, the company’s technological development will contribute to the evolution of automobile market.
   

The oil based 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 Sales Channel

• OEM
• Aftermarket

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