Europe Electric Drive Unit Market Size - By Vehicle type (BEV, HEV, PHEV), By Sales Channel (OEM, Aftermarket), By Coolant (Water Glycol, Oil Based), By Country Outlook & Forecast, 2024 - 2032

Europe Electric Drive Unit Market Size - By Vehicle type (BEV, HEV, PHEV), By Sales Channel (OEM, Aftermarket), By Coolant (Water Glycol, Oil Based), By Country Outlook & Forecast, 2024 - 2032

Europe Electric Drive Unit Market will witness 23.1% CAGR between 2024 and 2032 due to rising investments from leading regional companies. As major European companies continue to invest in electric vehicles (EVs) and hybrid electric vehicles (HEVs), the demand for electric drive units (EDUs) is skyrocketing. EDUs, which include electric motors, inverters, and power electronics, are essential components for powering electric and hybrid vehicles. For instance, in April 2024, Germany's BMW Group allocated an additional €200 million for Plant Landshut to enlarge the manufacturing capabilities for the central housing of the highly integrated electric drive unit, which will be installed in Neue Klasse models.

With growing concerns about emissions and a shift towards sustainable transportation, European companies are increasingly focusing on electrification to meet strict emission regulations and consumer demands for greener vehicles. Consequently, the Europe Electric Drive Unit Market is witnessing a surge in demand, driven by significant investments from leading companies in the region toward electrification initiatives.

The overall Europe Electric Drive Unit Industry is classified based on the vehicle type, sales channel, coolant, and country.

The HEV segment will undergo rigorous development from 2024 to 2032. HEVs, which combine internal combustion engines with electric propulsion systems, require efficient electric drive units (EDUs) for optimal performance. As European consumers and manufacturers increasingly embrace environmentally friendly transportation options, the demand for HEVs is rising sharply. This trend directly contributes to the increased demand for electric drive units in Europe as HEVs become a prominent choice for consumers looking to reduce emissions and lower fuel consumption, thus driving growth in the electric drive unit market.

Europe electric drive unit market share from the Aftermarket segment will register a notable CAGR from 2024 to 2032. As more electric and hybrid vehicles enter the market, there's a growing need for replacement parts and upgrades, including electric drive units (EDUs). Owners of electric vehicles (EVs) and hybrid electric vehicles (HEVs) often seek aftermarket EDUs for maintenance, repairs, or performance enhancements. Moreover, as older vehicles transition to electrification, retrofitting with aftermarket EDUs becomes necessary. This trend is propelling the demand for electric drive units in the aftermarket sector, reflecting the increasing adoption and maintenance requirements of electric and hybrid vehicles in Europe.

London Electric Drive Unit Market will showcase a commendable CAGR from 2024 to 2032. With the implementation of low-emission zones and stringent environmental regulations, there's a growing preference for electric vehicles (EVs) and hybrid electric vehicles (HEVs) among Londoners. Electric drive units (EDUs) are essential for these vehicles, driving regional demand.

Additionally, government incentives and initiatives to promote electric mobility further boost the adoption of EDUs in London. As the city continues to prioritize clean transportation, the demand for electric drive units is expected to rise steadily. For instance, in November 2023, London-based, GKN Automotive unveiled its plug-and-play drive unit concept known as the eCrate. Leveraging its 20 years of eDrive expertise, GKN Automotive developed a cost-effective modular electric drive system.