Electric and Hybrid Vehicles Driveline - Global Strategic Business Report

The global market for Electric and Hybrid Vehicles Driveline was estimated at US$41.7 Billion in 2024 and is projected to reach US$95.7 Billion by 2030, growing at a CAGR of 14.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Electric and Hybrid Vehicles Driveline market.

Global Electric and Hybrid Vehicles Driveline Market - Key Trends and Drivers Summarized

What Is the Role of Drivelines in Electric and Hybrid Vehicles?

The driveline in electric and hybrid vehicles is a critical component that transmits power from the engine or motor to the driving wheels. Unlike traditional internal combustion engine vehicles that rely primarily on a complex gearbox and driveshaft system, electric and hybrid drivelines often use simpler, more efficient designs that capitalize on the direct torque delivery characteristics of electric motors. These systems can include configurations such as direct drive, single-speed gearboxes, and advanced multi-speed transmissions specifically designed to handle the high torque and rapid response rates of electric motors. In hybrid vehicles, the driveline may also integrate components that allow seamless switching between electric and combustion engine power, optimizing efficiency and performance under various driving conditions.

How Are Innovations in Driveline Technology Enhancing Electric Vehicle Performance?

Innovations in driveline technology are central to enhancing the performance and appeal of electric and hybrid vehicles. One significant advancement is the development of electronically controlled all-wheel-drive systems that can distribute power dynamically between the wheels. This not only improves vehicle handling and stability but also optimizes energy use and extends the driving range. Another breakthrough is the use of lightweight materials and novel gearbox designs that reduce energy losses through mechanical inefficiencies and contribute to overall vehicle weight reduction, further increasing efficiency. Furthermore, the integration of regenerative braking systems within the driveline helps in recovering energy that would otherwise be lost during braking, converting it into electricity to recharge the battery and extend the vehicle’s range.

What Challenges and Opportunities Exist in the Development of Electric and Hybrid Vehicle Drivelines?

The development of drivelines for electric and hybrid vehicles presents both challenges and opportunities. One major challenge is the need for high initial investments in research and development to create systems that are both efficient and capable of handling the high power and torque characteristics of electric motors. Additionally, the integration of such advanced drivelines into vehicle architectures requires extensive modification to traditional vehicle design and manufacturing processes. On the opportunity side, the shift toward electric mobility opens up new markets for manufacturers specializing in advanced drivetrain components and systems, including those offering solutions for noise, vibration, and harshness (NVH) reduction, which is particularly important in the quieter running electric vehicles. Moreover, the push towards sustainability and reduction in global carbon emissions provides a strong impetus for the development and adoption of these technologies, supported by government incentives and tightening environmental regulations.

What Drives the Growth in the Electric and Hybrid Vehicle Driveline Market?

The growth in the electric and hybrid vehicle driveline market is driven by several factors, including technological advancements, increasing consumer demand for energy-efficient vehicles, and supportive government policies. As the global automotive industry moves towards electrification in response to environmental concerns and fuel economy standards, there is a growing need for driveline systems that are specifically designed for electric and hybrid applications. Consumer preferences are also evolving, with more drivers seeking vehicles that offer not only reduced emissions but also lower operating costs and high performance. Additionally, many governments around the world are offering financial incentives for electric vehicle purchases and investing in charging infrastructure, which further stimulates the market. The technological push towards connected and autonomous vehicles, which are largely electric, also contributes to the growth of the driveline market, as these future vehicles will require highly sophisticated drivelines that integrate seamlessly with electronic control systems for optimal performance. These factors, combined with ongoing research and development in driveline efficiencies, ensure a dynamic and rapidly evolving market landscape.

SCOPE OF STUDY:

The report analyzes the Electric and Hybrid Vehicles Driveline market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Transmission (Electronic Continuously Variable Transmission (E-CVT), Automatic Transmission (AT), Dual Clutch Transmission (DCT)); Vehicle Type (Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Electric Vehicle (EV))
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Hybrid Electric Vehicle (HEV) segment, which is expected to reach US$48.9 Billion by 2030 with a CAGR of a 16.0%. The Plug-in Hybrid Electric Vehicle (PHEV) segment is also set to grow at 14.3% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $11.1 Billion in 2024, and China, forecasted to grow at an impressive 20.2% CAGR to reach $23.1 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Electric and Hybrid Vehicles Driveline Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Electric and Hybrid Vehicles Driveline Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Electric and Hybrid Vehicles Driveline Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as BorgWarner, Inc., Continental AG, Delphi Technologies, Denso Corporation, GKN PLC and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 46 companies featured in this Electric and Hybrid Vehicles Driveline market report include:

• BorgWarner, Inc.
• Continental AG
• Delphi Technologies
• Denso Corporation
• GKN PLC
• Hitachi Ltd.
• Robert Bosch GmbH
• Schaeffler AG
• Valeo SA
• ZF Friedrichshafen AG

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.