Electric Drive Module Market Analysis | 2019-2025

Market Insights

The electric drive module market is a multi-million-dollar business today and its size is estimated to grow at a CAGR of 33.9% during 2019-2025 to reach USD 10.7 billion in 2025.

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Market Dynamics

Electric Drive Module aids in achieving synergy effects by integrating power electronics and the next-generation motor generator together in a system. This electric module is specially designed for electric vehicles. It can also be said that they offer the facilities of an electric powertrain for electric as well as hybrid vehicles.

Electric Drive Module is not just compact, scalable, and versatile. It is also very much cost-effective, as the cost of connecting cables and other components can be saved.

This decade is proving to be the most disruptive for the automotive industry, with key trends, such as alternative vehicles, autonomous vehicles, shared vehicles, and connected vehicles, primarily transforming the industry. Among all, alternative vehicles, especially electric vehicles, earned the most traction in the industry, owing to their zero-emission feature. The sheer interest of the non-automotive companies, such as Google and Apple, for the development of electric vehicles further augments the positive outlook of the electric vehicles in the coming years.

To make electric vehicles a more viable option for customers, automakers have rigorously been working on the development of efficient infrastructure and supply chains as well as high-performance and cost-effective components. Among many developments, One of the most promising achievements is the development of the electric drive module. Electric vehicle powertrains have significantly evolved in the past few years, as researchers and manufacturers in the industry are paying significant attention and interest in the development of efficient powertrain solutions for electric vehicles.

Electric drive module offers a compact, highly integrated, and all-in-one solution for the electric vehicle powertrain. The main three components (electric motor, power electronics, and transmission) of an electric powertrain are integrated into a single module in order to deliver improved performance and to omit many components, such as connectors, cables, and hydraulic connections.

The expected journey of EVs from the current multi-million-dollar business to a two-digit billion-dollar opportunity is primarily propelled by a magnificent growth in the demand for electric vehicles, owing to increasing adoption of electric vehicles over ICE vehicles, coupled with superior benefits of eDMs. This integrated system delivers high power-to-size ratio, excellent cost effectiveness, high system efficiency, excellent durability, and weight savings. It is a suitable claimant addressing the challenge of procuring individual components from a different supplier and further assembling of each component in the electric vehicle.

Segment Analysis

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By Powertrain Type

The global market is segmented based on the powertrain type, such as BEVs and PHEVs. BEVs are likely to remain the growth engines of the market during the forecast period. Increasing production of BEVs, especially from Tesla and Nissan, and an entry of other new start-ups and existing OEMs in the BEV segment are the major factors propelling the demand for eDMs in the vehicle type segment. Increasing penetration of eDMs and recent advancements, such as the development of 5th generation electric powertrain by BMW, are likely to drive the market in the PHEV segment during the same period.

By Peak Power Type

Based on the peak power type, the eDM market is segmented into <150 KW and >150 KW.  >150 kW type is projected to remain the most dominant segment over the next five years, whereas <150 kW type is expected to witness a higher growth over the same period. >150 kW-based eDM currently founds usage in all the models of Tesla. Expected penetration of eDMs in MHCVs is further likely to boost the demand for >150 kW-based EDM in the future.

Regional Insights

Based on the region, the Americas is projected to remain the largest market for eDMs during the forecast period. The USA is likely to remain the growth engine of the region’s market, owing to the presence of assembly houses of the major electric vehicle OEMs, such as Tesla and Nissan; stringent emission standards from the regulatory bodies; and increasing penetration of electric vehicles.

At present, EMEA (Europe, Middle East, and Africa) is the second-largest market for eDMs. The UK and Germany are the two major contributors in the EMEA’s eDM market, owing to the presence of major auto OEMs and significant investment towards research & development to enhance electric powertrains.

Asia-Pacific is expected to witness the highest growth during the forecast period, owing to increasing adoption of electric vehicles in the economies, such as China, Japan, and South Korea, to curb fuel emission as well as targeting exports.

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Key Players

The supply chain of this market comprises raw material suppliers, component manufacturers, tier players, and OEMs.

The key players in the eDM market are

• Tesla Inc.
• Nissan Motor Co., Ltd.
• BorgWarner Inc.
• Continental AG
• Magna International, Inc.
• GKN Driveline
• Robert Bosch GmbH
• Siemens AG.

Development of compact design and close work with EV OEMs are some of the strategies adopted by the key players in order to gain a competitive edge in the market.

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s electric drive module market realities and future market possibilities for the forecast period of 2019 to 2025. After a continuous interest in our electric drive module market report from the industry stakeholders, we have tried to further accentuate our research scope to the electric drive module market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as in the formulation of the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors

Market Segmentation

This report studies the market, covering a period of 12 years of trends and forecasts. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The electric drive module market is segmented into the following categories:

By Powertrain Type

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle

By Vehicle Type

• Light Duty Vehicle
• Medium & Heavy-Duty Vehicle

By Peak Power Type

• Less than 150 kW
• More than 150 kW

By Region

• The Americas (Country Analysis: The USA and Rest of the Americas)
• Europe, Middle East and Africa (EMEA) (Country Analysis: the UK, Germany, and Rest of EMEA)
• Asia-Pacific (Country Analysis: China, Japan, and Rest of Asia-Pacific)

Report Customization

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].