Oil Based Electric Drive Unit (EDU) Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Oil Based Electric Drive Unit (EDU) Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Oil based electric drive unit market is anticipated to register a 24.5% CAGR from 2024 to 2032, driven by the increasing demand for high-efficiency electric vehicles (EVs) and hybrid vehicles. As automakers strive to enhance the performance and range of EVs, the use of oil-based electric drive units (EDUs) has gained prominence due to their superior cooling and lubrication capabilities. As per IEA (International Energy Agency), the global electric car sales nearly hit 14 million, marking a 35% increase from 2022, leading to an electric vehicle fleet of 40 million in 2023. Oil-based EDUs are increasingly preferred for their ability to manage high power densities and deliver smoother torque transitions, which are critical for performance-oriented electric vehicles. Moreover, the shift towards downsizing engines and integrating more compact, high-performance powertrains has led to greater reliance on oil-based EDUs. The overall industry is divided into vehicle type, sales channel, and region. Based on vehicle type, the oil based EDU market size from the HEV segment is poised to witness substantial growth over 2024-2032. This is due to the robust need for efficient and reliable powertrain systems by hybrid vehicles to seamlessly combine electric and internal combustion engine power. Oil-based EDUs are ideal for HEVs as they provide superior cooling and lubrication, ensuring optimal performance even under high loads and extended usage. With respect to sales channel, the oil based electric drive unit industry from the aftermarket segment is anticipated to observe a significant growth rate during 2024 and 2032, owing to the increasing demand for vehicle maintenance, upgrades, and replacements. As vehicle owners seek to enhance the performance and longevity of their electric and hybrid vehicles, oil-based EDUs are becoming a popular choice for aftermarket modifications and repairs.   North America oil-based EDU industry size will grow significantly through 2032, attributed to the strong focus on advancing EV technology and increasing adoption of hybrid and electric vehicles. The automotive sector across the region is investing heavily in developing high-performance powertrains, where oil-based EDUs help in enhancing efficiency, managing high power densities, and ensure smooth operation.