- The growing focus on optimizing vehicle performance and maximizing interior space is further fueling the demand for these technologies. In addition, the trend towards all-wheel-drive electric vehicles, particularly in the premium and off-road segments, is boosting the adoption of electric wheel drive systems
- However, challenges such as high development costs and the complexity of integrating these systems into existing vehicle architectures could restrain market growth
- North America dominated the electric axle drive and wheel drive market with the largest revenue share of 39.4% in 2024, driven by strong EV sales, robust automotive infrastructure, and aggressive investments in electrified powertrain system
- Asia-Pacific electric axle drive and wheel drive market is projected to register the fastest CAGR of 24.0% from 2025 to 2032, driven by rapid electrification, expanding EV infrastructure, and favorable government initiatives
- The Permanent Magnet AC Motor segment dominated the market with the largest revenue share of 48.5% in 2024, driven by its high power density, efficiency, and compact size
