EV Transmission System Market Growth, Key Players, and Future Trends (2025-2034)

The Electric Vehicle (EV) transmission system market is experiencing significant growth, projected to reach USD 62.34 billion by 2034, up from USD 14.03 billion in 2025, with a compound annual growth rate (CAGR) of 18.02% over the forecast period. The increasing demand for electric vehicles (EVs), government incentives for EV adoption, and the rise of EV startups are some of the key factors contributing to the market’s expansion. Furthermore, ongoing research and development in advanced transmission systems, such as permanent magnet synchronous motors (PMSM), are expected to open new growth opportunities for market players.

EV Transmission System Market Highlights

1. Revenue Generation: North America currently leads the EV transmission systems market in terms of revenue.

2. Regional Growth: Asia Pacific is anticipated to experience significant growth during the forecast period.

3. Transmission Type Dominance: The single-speed transmission segment led the market in 2025, with the multi-speed segment expected to grow at a high CAGR.

4. Vehicle Type: Battery Electric Vehicles (BEVs) dominated the market, with Fuel Cell Electric Vehicles (FCEVs) projected to grow at a notable CAGR.

5. End-Use: Passenger vehicles led the EV transmission system market in 2025, with the commercial vehicle segment expected to expand considerably.

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Key Trends in the EV Transmission System Market

1. Partnerships: Automotive brands are partnering with engine manufacturers to create advanced EV transmission systems.

2. Rising EV Sales: The increasing adoption of EVs in countries such as China, the U.S., and India is driving market growth.

3. Government Initiatives: Several governments are launching initiatives to increase EV adoption and the deployment of EV charging infrastructure.

Transmission Type Insights

• Single-Speed Segment: The single-speed transmission system dominated the market in 2025. Its simplicity, cost-effectiveness, and performance in BEVs have led to its widespread adoption.

• Multi-Speed Segment: The multi-speed segment is expected to experience robust growth, driven by high-performance electric vehicles like the Porsche Taycan and Audi e-tron.

Vehicle Type Insights

• Battery Electric Vehicles (BEVs): BEVs held the largest share of the market in 2025. The growing adoption of BEVs in regions such as China and the U.S. has boosted the demand for EV transmission systems.

• Fuel Cell Electric Vehicles (FCEVs): The FCEV segment is expected to grow at a significant rate, driven by rising demand for hydrogen-powered vehicles, especially in industries like logistics and mining.

End-Use Insights

• Passenger Vehicles: The passenger vehicle segment dominated the market, owing to the rapid growth of electric car sales and government subsidies for EV purchases.

• Commercial Vehicles: The commercial vehicle segment is expected to grow steadily, with increasing adoption of electric trucks across various industries.

Geographical Insights

• North America: North America led the EV transmission system market, driven by the increasing sales of luxury EVs in the U.S. and Canada. Government investments in EV infrastructure and the presence of market leaders such as BorgWarner Inc. and Allison Transmission are pivotal factors.

• Asia Pacific: Asia Pacific is projected to grow at a high CAGR, fueled by rising EV adoption in countries like China, India, and Japan.

Key Players in the EV Transmission System Market

1. Allison Transmission Inc.

   • About: Allison Transmission is a global leader in the design and manufacturing of automatic transmissions for commercial vehicles and hybrid and electric vehicles.

   • Products: Hybrid and electric drivetrain systems for commercial and passenger vehicles.

   • Market Cap: Approximately USD 15.3 billion.

2. Aisin Seiki Co., Ltd.

   • About: Aisin Seiki is a Japanese manufacturer specializing in automotive parts, including EV transmission systems and other drivetrain components.

   • Products: Electric powertrains, hybrid and electric vehicle transmission systems, and other automotive components.

   • Market Cap: Approximately USD 26 billion.

3. BorgWarner Inc.

   • About: BorgWarner is a leading supplier of advanced technology for combustion, hybrid, and electric vehicles, focusing on propulsion systems.

   • Products: Electric drive systems, battery thermal management systems, and power electronics for EVs.

   • Market Cap: Approximately USD 12.4 billion.

4. Dana Incorporated

   • About: Dana is a global leader in the development of advanced propulsion systems, including electric drivetrains and hybrid vehicle transmission systems.

   • Products: Electric drivetrains, hybrid systems, and transmission systems for electric vehicles.

   • Market Cap: Approximately USD 8.5 billion.

5. Eaton Corporation

   • About: Eaton is a power management company that offers sustainable and innovative solutions, including e-mobility technologies.

   • Products: Electric vehicle charging solutions, powertrains, and transmission systems.

   • Market Cap: Approximately USD 63.3 billion.

6. Denso Corporation

   • About: Denso is a leading supplier of advanced automotive technologies and components, including transmission systems for electric vehicles.

   • Products: Electric and hybrid vehicle components, including transmission systems, powertrains, and climate control systems.

   • Market Cap: Approximately USD 48 billion.

7. GKN Automotive Limited

   • About: GKN Automotive is a leading supplier of drivetrain technologies, including electric drivetrains and transmission systems.

   • Products: Electric drive systems, hybrid drivetrains, and power electronics for electric vehicles.

   • Market Cap: Private company (part of Melrose Industries).

8. Hitachi Automotive Systems Ltd.

   • About: Hitachi Automotive Systems is a division of Hitachi focusing on automotive systems and components, including EV transmissions.

   • Products: Electric drivetrains, motor systems, and powertrain solutions for electric and hybrid vehicles.

   • Market Cap: Approximately USD 40 billion (Hitachi Group).

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Recent Developments

• ZF launched a new range of 8-speed hybrid transmission systems designed for battery electric vehicles (BEVs) in June 2025.

• Hyundai Motors introduced a new hybrid powertrain system in April 2025, aimed at improving range and performance in hybrid vehicles.

Frequently Asked Questions (FAQs)

1. What is driving the growth of the EV transmission system market?

   • The primary factors include the rising demand for electric vehicles, government incentives for EV adoption, and advancements in EV transmission technology.

2. Which region dominates the EV transmission system market?

   • North America currently leads the market, driven by the growing sales of luxury EVs in the U.S. and Canada.

3. What are the main types of EV transmission systems?

   • The main types include single-speed, multi-speed, and dual-clutch transmission systems.

4. Which segment of the EV transmission system market is expected to grow the fastest?

   • The multi-speed transmission segment is expected to experience significant growth during the forecast period.

5. What is the role of government initiatives in the EV transmission system market?

   • Governments are providing subsidies and incentives to promote the adoption of electric vehicles, which is expected to drive the demand for EV transmission systems.

Source : https://www.towardsautomotive.com/insights/ev-transmission-system-market-sizing