The global EV Transmission accounted for US$ 2,236.4 Mn in 2019 and are expected to grow at a CAGR of 14.0% over the forecast period 2020-2027, to account for US$ 3,860.7 Mn by 2027.

Apart from the traction motor, another critical component related to the power performance in an electric vehicle's systems is the transmission or gearbox in the drive system. When traveling, electric vehicles should have sufficient driving force to overcome road load. The acceleration performance and maximum speed performance of electric vehicles can be observed based on the wheel axle driving force curve and road load curve.

It has been observed that as multi-speed transmission has a different gear ratio, the performance scope of the motor can be expanded (with massive torque at low speed and with the high rotate speed at high speed). Thus, an electric vehicle with transmission has better road load resistance performance than that with a single ratio gearbox. It can reduce the power requirements for the motor and enhance the performance of the electric vehicle. Therefore, transmission is a better choice to improve the performance of an electric vehicle.

Despite several advantages offered by heavy duty electric vehicles such as buses and trucks, there are various factors that could affect the adoption of these vehicles and thus limit the growth of EV transmission system market in the coming years. Due to initial development phases of heavy-duty electric vehicles, the upfront cost of these vehicle is considerably high in comparison to conventional diesel and natural gas vehicles. Since, buses and trucks are ordered in bulk by government and private contractors, price plays a crucial role in the purchase decision which could take over the intensions of clean energy vehicle adoption. Many cities and municipalities have a fixed budget and may not opt for expensive electric buses and trucks. Hence, there is a huge need of strong government support to increase the adoption. Alternative payment methods such as leasing options coupled with efforts to reduce the overall cost of electric vehicles and battery systems could help in promoting the adoption in the coming years. Scalability of electric buses and trucks is another major concern for manufacturers worldwide, as most major contracts for these heavy vehicles made possible with the national and regional grants. This is not a scalable solution in the long term. Hence, reduction in the upfront cost of these vehicles is anticipated to play a major role in the future adoption of these vehicles as well as EV transmission systems during the forecast period of 2020 to 2027.

The presence of fast-growing countries, rising technology adoption, adoption of high-end automation solutions, and the rise in industrialization are some of the major factors that are expected to drive the growth of EV Transmission market in the APAC region. Other developing regions such as MEA and SAM are also projected to grow at a steady pace, owing to the increasing government initiatives to digitalize the economy with the adoption of advanced technologies across several industries such as consumer electronics, automotive, aerospace, and food & beverages among others.

Transportation is the major source of pollution all across the world and heavy-duty vehicles such as trucks and buses are the major contributors in this category. To address this issue, governments of major countries such as the US, the UK, Germany, Japan, and China are taking initiatives to boost the adoption of electric buses and trucks at a fast rate. The high efficiency of electric trucks and buses over conventional diesel and natural gas vehicles is another factor that is expected to drive the growth of this segment in the coming years. With still in the initial growth stages, this segment is anticipated to see an impressive growth with increasing push for the electrification of transport sector worldwide. China is one of the largest countries that is aggressively pushing the world's largest electric bus market, followed by Europe and the US. As per Electric Vehicle Outlook 2019 of BloombergNEF, in the next 20 years, electric vehicles in the LCV category will reach around 56% which includes light trucks and vans and medium commercial electric vehicles will reach 31% in the US, China, and Europe. The future production of these heavy electric vehicles depends on various factors such as improvements in fuel efficiency, energy costs, reducing emissions, declining costs of batteries and alternative fuels. With fast changing electric vehicle technology, improvement in batteries, and favorable regulatory environment, the demand for electric buses, trucks and other heavy duty electric vehicles is anticipated to grow at an impressive rate and it offers ample growth opportunities for the EV transmission system providers during the forecast period of 2019 to 2027.

The well-established market players operating in the EV Transmission market include Hewland Engineering Ltd, Borgwarner Inc., Continental AG, Porsche AG, Dana Limited, Eaton, and Zf Friedrichshafen AG.

The overall global EV Transmission market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the global EV Transmission. It also provides an overview and forecast for the EV Transmission based on all the segmentation provided for the global region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, EV Transmission intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the EV Transmission industry.