The global electric axle drive market is anticipated to witness considerable growth over the forecast period. One of the major factor driving the electric axle market is the fact that these systems are highly compact and cost-effective, as they combine the three powertrain components - power electronics, gear drive, and the electric motor - in a single unit. An electric axle is a power source for electric and hybrid vehicles integrated into the vehicle’s rear or front axle. These systems help in delivering the power required to turn the vehicle and are composed of high-strength, lightweight metal such as aluminium, which makes them light in weight.
The growth of the electric axles market is directly proportional to the rising uptake of electric vehicles across the globe. Another predominant factor expected to favour the market growth over the forecast period is the notable rise in government regulations and mandates for the electrification of vehicles. Governments of European countries, China, and California (the Zero Emission Vehicle (ZEV) mandate) have taken initiatives promoting the adoption of electric vehicles. For instance, the New Energy Vehicle (NEV) mandate announced by China, which went into effect in April 2018, is a part of a plan to sell nearly 4.6 million electric vehicles by 2020 and ban cars powered by conventional combustion engines in the long run.
Furthermore, several stringent regulations across numerous countries are compelling automakers to consistently focus on reducing greenhouse gas emissions from their vehicles. The scenario is also leading to vast developments in the field of electric vehicles. The Euro VI emission standards, for instance, tightens previously set limits on the emission of air pollutants such as carbon monoxide (CO), methane, ammonia, smoke, and other harmful gases by vehicles. Several countries across the globe have adopted the Euro VI standards and several have also patterned their emission norms on the standards.
Another important factor expected to drive the market growth in the near future is the paradigm shift in the mind set of people. There has been a notable rise in customer awareness about the environmental issues caused by the emissions from vehicles powered by traditional fuels over the past few years. Moreover, the fact that electric vehicles lead to considerably low volumes of harmful emissions as they are battery operated has also begun to gain larger acclaim. Furthermore, the development of infrastructure for Electric Vehicles (EV) charging and increasing spending power of the global population are some of the other reasons that are expected to increase the electric vehicles sales, which, in turn, is likely to positively impact the market growth.
Technological advancements in the axle designs are also expected to boost to the electric axle drive systems market growth over the forecast years. The development of solutions that help in the electrification of vehicles with minimal changes to the vehicle’s architecture are propelling the progress of electric drivetrain products. For instance, Bosch has come up with a prototype solution called eAxle. It is a setup of electronics, gearbox, and the motor, which can be retrofit into cars that currently run on internal combustion engines. Solutions such as these can help the electrification of existing vehicles at low costs and these emerging technologies are expected to have a major impact on the growth prospects of the market in the future. However, the high costs of electric vehicles are still a major drawback for the market, which could hamper its growth over the next few years.
Some of the key players operating in the global electric axle drive market are American Axle & Manufacturing, Inc., AXLETECH, Bonfiglioli Riduttori S.p.A., Continental AG, Dana Limited, Magna International Inc., Robert Bosch GmbH, UQM Technologies Inc., Ziehl-Abegg, and ZF Friedrichshafen AG. Cost efficiency and new product development are expected to be the major strategies adopted by industry participants to sustain competition.
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