Electric Drive Module (eDM) Market to Reach $10.7 Billion in 2025

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This market report, from Stratview Research, studies electric drive module market in the global automotive industry over the trend and forecast period of 2013 to 2018 and 2019 to 2025, respectively. The report provides detailed insights on the market dynamics to enable informed business decision making and growth strategy formulation based on the opportunities present in the market. 

Electric Drive Module (eDM) Market: Research Highlights 

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 non-automotive companies, such as Google and Apple, for the development of electric vehicles further augments its positive outlook in the coming years. 

To make electric vehicle a more viable option for customers, automakers have rigorously been working on the development of efficient infrastructure, supply chain as well as high-performance and cost-effective components. Among many developments, one of the most promising one is the development of electric drive module (eDM). Electric vehicle powertrain has 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 solution for electric vehicles.

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

As per Stratview Research, the electric drive module market is a multi-million-dollar business today and is estimated to grow multi folds over the next seven years to reach US$ 10.7 billion in 2025. The expected journey of eDM from the current multi-million-dollar business to two-digit billion-dollar opportunity is primarily propelled by a magnificent growth in the demand for electric vehicles, owing to increasing adoption of 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. 

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

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 more dominant segment over the next five years, whereas <150 kW type is expected to witness 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.

In terms of 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 house of 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 powertrain. However, 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 target exports. 

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, and Siemens AG. Development of compact design and closely working with EV OEMs are some of the strategies adopted by the key players to gain a competitive edge in the market.