Electric Vehicle Traction Motor Global Market Report 2024

The electric vehicle traction motor market size has grown exponentially in recent years. It will grow from $8.91 billion in 2023 to $12.78 billion in 2024 at a compound annual growth rate (CAGR) of 43.5%. The historical growth can be attributed to increased sales of hybrid electric vehicles (HEVs), a rise in disposable income, a growing focus on electric vehicles, and a surge in urbanization.

The electric vehicle traction motor market size is expected to see exponential growth in the next few years. It will grow to $50.65 billion in 2028 at a compound annual growth rate (CAGR) of 41.1%. Projected growth is driven by railway network expansion, strict environmental regulations, and increased demand for energy-efficient motors. Key trends include a focus on sustainability in the entire electric vehicle supply chain, adoption of rare-earth-free motors, partnerships, innovative motor designs, and investments for financial strength and product portfolio improvement.

The electric vehicle traction motor market is anticipated to experience growth propelled by the increased sales of hybrid electric vehicles. Hybrid electric vehicles, integrating internal combustion engines with electric propulsion systems, are witnessing rapid sales growth, contributing to heightened demand for traction motors, integral components in these vehicles. For instance, in February 2022, the U.S. electric vehicle market recorded sales of 59,664 hybrid vehicles, marking a 10.2% increase from February 2021, with 15,763 cars and 43,801 light trucks. Toyota held a significant 63.7% share of total hybrid sales in February, with the Prius model accounting for 3.9% of hybrid vehicle sales. The upward trend in hybrid electric vehicle sales is expected to drive the demand for electric vehicle traction motors in the forecast period.

Stringent environmental regulations and emission requirements are poised to be key drivers for the growth of the electric vehicle traction motor market. Global efforts to reduce emissions and address climate change are leading governments to implement regulations mandating lower-emission vehicles from automakers. Electric vehicles, with their zero tailpipe emissions, are gaining popularity in response to these regulations. The traction motor, a crucial component in electric vehicles, experiences heightened demand as the adoption of electric vehicles increases. In 2022, the U.S. Environmental Protection Agency (EPA) approved guidelines for new vehicle emissions through 2026, resulting in an anticipated reduction of 3.1 billion tons of CO2 emissions by 2050. Furthermore, the U.S. government aims for 50% of all new vehicles produced in 2030 to be electric or plug-in hybrid versions. Consequently, the escalating environmental regulations and more stringent emission requirements are expected to drive demand for electric vehicles and their components, including electric vehicle traction motors.

A key trend gaining momentum in the electric vehicle traction motor market is technological advancement. Numerous companies operating in this space are actively engaged in the development of new products and technologies to enhance their positions within the market. One notable example is Nidec, which, in August 2021, introduced the E-Axle, an EV traction motor system comprising three components such as a motor, an inverter, and a reducer. This system, mountable in a vehicle, is designed to generate rotating torque from the drive shaft attached to the tires, propelling the vehicle when powered by electricity. Nidec implemented a new cassette inserter method to achieve high productivity and wire-winding performance for the E-Axle. Additionally, the E-Axle features a new cooling mechanism, showcasing Nidec's commitment to advancing technology in electric vehicle traction motors.

A noteworthy trend in the electric vehicle traction motor market is the increasing adoption of rare-earth-free motors. These motors operate without relying on rare-earth metals, such as neodymium and dysprosium, which are commonly used in the production of permanent magnets - an essential component in many electric vehicle traction motors. The shift towards rare-earth-free EV traction motors is driven by a growing awareness of the volatility and geopolitical factors affecting the supply of rare-earth metals. Manufacturers are actively exploring alternative materials and designs to reduce dependence on rare-earth metals. For instance, in July 2022, MAHLE, a Germany-based automotive parts manufacturer, launched a high-performance electric vehicle traction motor featuring a novel cooling technique. Notably, this electric motor is manufactured without the use of rare earth elements, offering a clean, lightweight, and efficient solution to meet the evolving demands of the electric vehicle market.

In June 2021, Turntide Technologies, a US-based intelligent and sustainable motor systems company, successfully acquired AVID Technology Limited for an undisclosed sum. This strategic move supports Turntide's goal of decarbonizing the transportation industry by offering a high-performance alternative to the use of rare earth magnets in electric vehicles. AVID Technology Limited, the acquired company, is based in the UK and specializes in producing electrified powertrain components, traction motors, and systems.

Major companies operating in the electric vehicle traction motor market report are Siemens, ABB Limited, Hitachi Ltd., CRRC Corporation Limited, AB SKF, Robert Bosch GMBH, Mitsubishi Motors Corporation, Parker-Hannifin Corp, Bharat Heavy Electricals Ltd., Nidec Corporation, Kawasaki Heavy Industries Ltd., Ametek Inc., Mitsubishi Electric Corporation, CG Power & Industrial Solutions Ltd., Toshiba Corporation, Alstom Logo, EUROLOOP Ltd., Born Electric, GarageStore, Continental AG, Ford Motor Company, Fiat Chrysler Automobiles, Nissan, Rivian Automotive, VIA Motors, Chevrolet, Lucid, WEG, Eberle Motors, Voges Motors, Nova Motores, Cestari Industrial e Commercial S.A, Tintori Motores Elétricos, Motomil Motores Elétricos, Taizhou Dongchun Motor Co. Ltd., Iconiq Motors, One Moto, MG Motor, M Glory Holding Group, General Electric, wattEV2buy, Solzen Hunters, Malesedi Energy Solutions, Forever Powered, Zimi Charge.

Asia-Pacific was the largest region in the electric vehicle traction motor market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle traction motor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle traction motor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of electric vehicle traction motors include permanent-magnet synchronous EV traction motors (PSM) and asynchronous EV traction motors (ASM). PSMs excel in torque-to-current ratios, power-to-weight ratios, efficiency, and robustness, making them widely used in modern variable-speed AC drives. Electric vehicle traction motors are categorized based on voltage ratings, including high-voltage EV traction motors and low-voltage EV traction motors. These traction motors find application in various vehicle types, such as hybrid vehicles, battery electric vehicles, and fuel-cell electric vehicles. They are utilized in diverse applications, including railways, passenger and commercial vehicles, and other automotive applications.

The electric vehicle traction motors market research report is one of a series of new reports that provides electric vehicle traction motors market statistics, including electric vehicle traction motors industry global market size, regional shares, competitors with an electric vehicle traction motors market share, detailed electric vehicle traction motors market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle traction motors industry. This electric vehicle traction motors market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric vehicle traction motor market consists of sales of DC motors, brushless DC motors, permanent magnet synchronous motors, three-phase induction motors, and switched reluctance motors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.