The electric vehicle reducer market is expected to cross market value of USD 2,148.8 million in 2027 from USD 211.7 million in 2020. It is expected to grow at a CAGR of over 39.25% during the forecast period.
Key Market Drivers and Restraints
The use of high-efficiency reducers can save energy significantly which is a factor expected to drive growth of the global electric vehicle reducer market. In addition, the use of reducers, such as gear reducers, can reduce motor power consumption, thereby, augment growth of the global electric vehicle reducer market. Also, technological advancement in EVs have boosted growth of global electric vehicle reducer market over the forecast period.
However, frequent replacement of reducer components is a factor that is expected to hinder the global electric vehicle reducer market. Adoption of speed reducer to reduce fuel cost as well as greenhouse emissions, coupled with technological advancements in electric vehicles are factors expected to create potential opportunities for the prominent manufacturers operating in the market.
Impact of COVID 19
The electric vehicle reducer market will show considerable growth on the back of the global pandemic. Due to the COVID-19 outbreak, global or partial shutdown have a negative impact on the supply chain and product demand. In addition, decline in trading activities and transport restrictions in this pandemic has impacted the market growth negatively and hampered its growth.
Asia Pacific to Dominate the global electric vehicle reducer market
The global electric vehicle reducer market covers the six regions, namely Europe, North America, Asia Pacific, Latin America (LATAM), Middle East and Africa, including all the key economies in these regions. Asia Pacific market is dominated the global market and accounted for more than 32.3% of the target market. This is attributed to increasing demand for the reducer in electric vehicles and rising collaboration among players to enhance market penetration.
Multi-stage type would continue to dominate the global electric vehicle reducer market in terms of product type
Single-stage type and multi-stage type are the product type of electric vehicle reducer market. In 2020, multi-stage type segment accounted for the largest share of global electric vehicle reducer market, owing to growing demand in commercial and residential sectors.
Battery electric vehicle is the major segment in the global electric vehicle reducer market in terms of vehicle type
Battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles are the vehicle type of electric vehicle reducer market. In 2020, battery electric vehicles segment accounted for the largest share of global electric vehicle reducer market.
Aftermarket is the major segment in the global electric vehicle reducer market in terms of Sales Channel
Based on sales channel, the global electric vehicle reducer market is segregated into original equipment manufacturer (OEM) and aftermarket. In 2020, aftermarket segment is accounted for a significant share in 2020 of the global electric vehicle reducer market.
Frequently asked questions about global electric vehicle reducer market
- What are the consequences of COVID 19 on global electric vehicle reducer market?
Ans: Disruption of supply chain and shutdown of production lines caused by the current pandemic
- Which is the key product type through electric vehicle reducer market?
Ans: Multi-stage type is the most frequently through electric vehicle reducer market
- Which is the key vehicle type through which electric vehicle reducer market occurs?
Ans: Battery electric vehicle is the main vehicle type segment in electric vehicle reducer market
- Which is the key sales channel through which electric vehicle reducer market occurs?
Ans: Aftermarket is the major vehicle type segment in electric vehicle reducer market
- Who are the key players in the global electric vehicle reducer market?
Ans: BorgWarner Inc., Robert Bosch GmbH, ZF Friedrichshafen AG, GKN, GETRAG FORD Transmission GmbH, AVL GmbH, HOTA Industrial, Tsingshan Industry, Aichi Machine Industry, Magna International, SAGW, Zhuzhou Gear, and Others are key players operating in this market
- Which is the leading regional market for global electric vehicle reducer market?
Ans: Asia Pacific has the largest share owing to local presence of market players and increasing demand in electric vehicles
- What will be the CAGR (2021-2027) of in global electric vehicle reducer market?
Ans: The market is anticipated to grow at a CAGR of 39.25% throughout the forecast period
- Which are the major factors driving the growth of global electric vehicle reducer market?
Ans: Increasing demand for the reducer in electric vehicles is a key driving factors propelling the growth of this market
