The global electric vehicle transmission market was valued at US$ 12.51 billion in 2024 and is projected to reach US$ 77.14 billion by 2033, reflecting a Compound Annual Growth Rate (CAGR) of 22.4% during the forecast period from 2025 to 2033. The global electric vehicle (EV) transmission market is witnessing significant expansion, fueled by the rapid adoption of electric vehicles across the world. This growth is closely tied to the increasing demand for transmission systems that are specifically engineered to meet the unique requirements of EVs. Unlike traditional internal combustion engine vehicles, many electric vehicles utilize single‑speed transmissions, which simplify the drivetrain while optimizing efficiency and performance. This trend is exemplified by advanced transmission solutions such as Dana’s Zero‑6, capable of handling gross vehicle weights up to 59,500 pounds, demonstrating the market’s ability to cater to heavy‑duty applications.

**Electric Vehicle (EV) Transmission Market Key Takeaways**
- Based on transmission, the electric vehicle transmission market is predominantly led by the single‑speed transmission segment, which commands a substantial revenue share exceeding 80.1%. 
- When examining the market based on transmission systems, Automatic Transmission (AT) systems hold the largest share at 58.2%. 
- Looking at the market through the lens of vehicle type, Battery Electric Vehicles (BEVs) emerge as the largest consumers of electric vehicle transmissions, accounting for over 54.2% of the market share. 
- Considering vehicle design, electric cars lead the market by capturing more than 63.7% of the market.

**Regional Analysis**

### Asia‑Pacific Emerges as the Global Leader in EV Transmission Market
The Asia‑Pacific region, with China at its helm, is rapidly establishing itself as the undisputed global center for the electric vehicle transmission market. This dominance is characterized by extensive production scale‑ups and sophisticated technological integration that drive innovation and output capacity.
- **BorgWarner’s Strategic Manufacturing Base in Wuhu:** Parallel to ZF’s expansion, BorgWarner is also ramping up its manufacturing capabilities in China with the opening of a new production base in Wuhu scheduled for early 2025. This facility will focus on electric drive systems, further strengthening BorgWarner’s position in the Asian EV market.
- **Advanced Manufacturing Techniques Boost Performance:** BorgWarner’s Wuhu facility will employ advanced manufacturing technologies to optimize electric motor performance. Notably, the company’s use of an ultra‑short hairpin welding process enables higher power density and a reduction in motor size. This technique allows for more compact and efficient electric motors, which are essential for enhancing vehicle performance while minimizing weight and space requirements.

### Europe’s Powerful Position in the Global Market
Europe is establishing a distinctive position in the electric vehicle transmission market by prioritizing the electrification of commercial vehicles and the development of highly efficient, integrated drivetrain systems.
- **Major International Orders Highlighting Global Reach:** ZF’s influence, the company secured a substantial order in 2025 from an Indian bus manufacturer for several thousand AxTrax 2 electric drive axles. This deal highlights the growing global demand for advanced electric drivetrain systems tailored to commercial vehicles, as well as ZF’s expanding footprint beyond Europe.
- **Growing Demand for Electric City Buses in Europe:** The importance of robust and efficient electric drivetrains is further emphasized by the registration of 7,779 new electric city buses across Europe in 2024 alone. This surge reflects strong governmental support and increasing public adoption of electric public transport solutions.
- **Allison Transmission’s Targeted Approach with the eGen Power 130D:** Complementing the efforts of European manufacturers, Allison Transmission is actively targeting the region with its eGen Power 130D e‑axle, designed specifically for demanding commercial vehicle applications. This product aims to meet the growing needs for powerful, reliable, and efficient electric drivetrains capable of handling the operational stresses of heavy‑duty vehicles.

### North America Dominance in the Market
North America’s electric vehicle transmission market is distinguished by a strong emphasis on high‑performance, fully integrated e‑axle systems, particularly tailored for specialized and heavy‑duty vehicle applications.
- **Allison Transmission’s Pivotal Role in Zero‑Emission Refuse Trucks:** A landmark development in 2024 cemented this direction when Allison Transmission was selected to supply its e‑Ales for North America’s first fully integrated, zero‑emission electric refuse truck. This project represents a major milestone in the electrification of heavy‑duty municipal vehicles, showcasing the capability of electric drivetrains to replace traditional diesel‑powered fleets in demanding environments.
- **Expansion of Manufacturing Capabilities in Michigan:** Supporting this strategic push, Allison Transmission recently inaugurated a cutting‑edge 10,000‑square‑meter e‑axle production facility located in Auburn Hills, Michigan. This state‑of‑the‑art plant significantly enhances the company’s manufacturing capacity, enabling it to produce the entire eGen Power portfolio of electric axles under one roof.
- **Powerful eGen Power Portfolio:** The eGen Power portfolio includes some of the most powerful e‑axles available, featuring a dual‑motor design capable of delivering over 450 kilowatts of continuous power and surging to 650 kilowatts at peak output. This exceptional power generation capability makes these e‑axles ideal for heavy‑duty applications, providing the torque and durability required for demanding operational conditions.

**Top Trends Escalating Electric Vehicle (EV) Transmission Market**
- **Increased Development and Adoption of Multi‑Speed Transmissions:** The electric vehicle market is witnessing a growing focus on the development and adoption of multi‑speed transmissions, particularly aimed at enhancing vehicle performance.
- **Integration of Motor and Electronics:** Another significant advancement in the electric vehicle transmission landscape is the integration of the motor and electronics into compact e‑axle units.
- **Focus on Using Advanced Lightweight Materials:** Manufacturers are increasingly turning to advanced lightweight materials such as aluminum alloys, carbon fiber composites, and high‑strength steels.
- **Stringent Government Regulations and Emissions Standards Push EV Adoption:** Governments worldwide are enforcing stricter fuel efficiency requirements and limits on greenhouse gas emissions.
- **Growing Consumer Preference and Demand for Eco‑Friendly, Efficient Vehicles:** Consumer preferences are shifting decisively in favor of eco‑friendly and efficient vehicles.
- **Continuous Technological Advancements Improve Transmission Performance and Efficiency:** Ongoing innovation is steadily improving both performance and efficiency.

**Electric Vehicle (EV) Transmission Market Segmentation**

### By Transmission
The single‑speed transmission segment unmistakably dominates the electric vehicle transmission market, commanding an impressive revenue share exceeding 80.1%.

### By Transmission System
Automatic Transmission (AT) systems dominate the electric vehicle transmission market, holding a commanding share of 58.2%.

### By Vehicle Type
Battery Electric Vehicles (BEVs) stand out as the primary consumers in the electric vehicle transmission market, commanding a substantial share of over 54.2%.

### By Vehicle Design
Electric cars have firmly established themselves as the undisputed leaders in the electric vehicle transmission market, commanding a remarkable market share exceeding 63.7%.

**Recent Developments in the Electric Vehicle (EV) Transmission Market**
- **Ford Motors’ Revolutionary Leap in EV Engineering and Manufacturing:** In August 2025, Ford Motors announced a groundbreaking move in engineering and manufacturing aimed at making high‑quality, affordable electric vehicles accessible to millions worldwide. Central to this initiative are the new Ford Universal EV Platform and the Ford Universal EV Production System.
- **JK Fenner India Enters the Electric Vehicle Drivetrain:** In June 2025, JK Fenner India made a significant entry into the electric vehicle drivetrain segment by forming a technology partnership with South Korean firm NMC Motors. The partnership was formalized at an event held in Chennai, marking JK Fenner’s debut in e‑axle manufacturing.
- **Valeo’s €650 Million Green Bond for Low‑Carbon Mobility:** In May 2025, Valeo successfully issued a €650 million green bond, with maturity set for 2031. The proceeds are dedicated exclusively to financing projects and investments directly linked to Valeo’s portfolio of low‑carbon mobility technologies, with a key focus on vehicle electrification.

**Major Players in the Electric Vehicle Transmission Market**
- Aisin Seiki Co., Ltd.
- Allison Transmission Inc.
- AVL List GmbH
- BorgWarner Inc.
- Continental AG
- Dana Limited
- Denso Corporation
- EATON Corporation
- GKN Plc
- Hewland Engineering Ltd.
- Hitachi Automotive Systems Ltd
- JATCO Ltd.
- Magna International
- Mando Corporation
- Porsche AG
- Robert Bosch GmbH
- Schaeffler Technologies AG & Co. KG
- Xtrac Ltd
- ZF Friedrichshafen AG
- Other Prominent Players

EV Transmission Market Accelerates Toward US$ 77.14 Billion Milestone by 2033

The global electric‑vehicle transmission market grew to US$12.51 billion in 2024 and is projected to reach US$77.14 billion by 2033, driven by rapid EV adoption and a CAGR of 22.4% from 2025 to 2033. Single‑speed transmissions dominate the market, with automatic transmissions and battery‑electric vehicles (BEVs) also commanding large shares. Asia‑Pacific, particularly China, leads market growth, while Europe and North America focus on commercial and heavy‑duty applications. Key players such as BorgWarner, ZF, Allison Transmission, Ford Motors, JK Fenner India, and Valeo are expanding manufacturing capacity, launching new platforms, and securing major orders. Emerging trends include multi‑speed transmissions, integrated motor‑electronics e‑axles, lightweight materials, and regulatory‑driven EV adoption.