The driveline market for electric and hybrid vehicle is estimated to grow at a CAGR of 16.92% from 2017 to 2025, to reach USD 63.32 Billion by 2025. Increasing stringency in emission regulations has triggered the development and sale of battery electric vehicles (BEV), hybrid vehicles (HEV), and Plug-In Hybrid Vehicles (PHEV). Factors such as increase in sales of the electric & hybrid vehicles, technological advancements such as E-CVT, E-axle, E-drive, and lightweight & efficient drivelines are ultimately fueling the driveline market for electric and hybrid vehicle.
The driveline system manufacturers have adopted the strategies of new product development and geographical expansion to gain traction in the driveline market for electric and hybrid vehicle. While new product development helps a company to have a technological advantage, expansion helps to formulate a better business strategy as it enables a strong global footprint. For example, Schaeffler (Germany) has developed a highly integrated wheel hub drive, which would reduce the overall vehicle weight since all components required for the drive will be installed inside the wheel rim. GKN (UK) has introduced an integrated e-drive system for hybrid vehicles. Such integrated modules reduce the overall weight, which increases the battery performance. Even some inorganic developments have taken place, such as expansion, joint ventures, and supply contracts. For example, Schaeffler expanded its Wooster (US) plant with an investment of USD 60 million. The Wooster location is Schaeffler’s E-mobility manufacturing center.
On the basis of factors such as revenue generation, product branding strategy, geographic footprint, and organic and inorganic strategies, the top players in the Driveline market for electric and hybrid vehicle are identified to be ZF (Germany), Schaeffler (Germany), GKN (UK), Borgwarner (US) and Robert Bosch (Germany).
Schaeffler is one of the leading Tier 1 players in driveline market for electric and hybrid vehicle. The company is focusing on new product developments and also on inorganic developments such as expansion and joint venture. Schaeffler developed a new strategy titled as “Mobility of Tomorrow” in 2016, in which, it plans to focus on four areas-environment friendly drive systems, urban mobility, interurban mobility, and the energy chain. The company focuses on the trend of drivetrain electrification for automotive division. Also, the company is investing progressively into both R&D and production capability, as the company recently announced its plans to increase its production capacity in the US by building two new production facilities in Fort Mill, South Carolina, and Wooster, Ohio. In 2017, Schaeffler presented customized products and solutions for the Chinese market. The products included electric axle, P2 hybrid module, and “E-Clutch” for the hybridization of manual transmissions.
GKN is another leading player in this market, which has plans to create solutions that support cleaner and more energy-efficient vehicles. The company has adopted new product development as its core business strategy in driveline market for electric and hybrid vehicle. For the past 3 years, the company invested approximately 4% of the sales revenue in R&D. In addition, a diversified geographical presence helps the company to mitigate risks associated with dependence on a single market. To capture the Asian market, GKN opened a new manufacturing facility in China in 2017 and even an R&D facility to support new product developments. GKN Driveline developed a fully integrated e-drive system in 2017. This e-drive system is 10% lighter, 15% smaller, more advanced, and more efficient compared to the conventional e-drive.
Driveline Market for Electric & Hybrid Vehicle by Architecture (Series, Parallel, Power split), Transmission (AT, DCT, E-CVT), Motor Output (45-100, 101-250, >250kW), Final Drive, Drive Type, Power Electronics, Vehicle Type, Region - Global Forecast to 2025
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