Electric Traction Motor Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Electric Traction Motor Market is projected to expand from USD 21.18 Billion in 2025 to USD 43.82 Billion by 2031, achieving a CAGR of 12.88%. These electromechanical devices, which convert electrical energy into mechanical torque, are essential for propelling electric vehicles, railways, and industrial machinery. The market's growth is primarily supported by strict government emission standards and a worldwide shift toward sustainable mobility, creating a strong need for efficient propulsion technologies. This demand is evident in major markets; for instance, the China Association of Automobile Manufacturers reported that new energy vehicle sales in China hit 12.87 million units in 2024, highlighting the critical role of these components in the automotive sector.

However, the volatility of raw material supply chains poses a significant barrier to market growth, particularly regarding the rare earth metals needed for permanent magnet motors. Reliance on these specific resources exposes manufacturers to fluctuating production costs and potential supply shortages. These supply chain vulnerabilities create financial risks and threaten the industry's ability to scale production effectively to meet rising global demand while remaining price-competitive.

Market Drivers

The escalating global demand for electric and hybrid vehicles serves as the primary catalyst for the Global Electric Traction Motor Market, fundamentally reshaping automotive supply chains. As OEMs expedite their shift toward all-electric portfolios to comply with decarbonization mandates, the need for high-efficiency propulsion systems has surged across both passenger and commercial sectors. In its 'Global EV Outlook 2024' released in April 2024, the International Energy Agency (IEA) projected that global electric car sales would reach approximately 17 million units in 2024, capturing a 20% market share. This electrification wave is also expanding into the logistics industry, offering a new avenue for growth in heavy-duty motors; notably, the European Automobile Manufacturers' Association (ACEA) reported a 51.6% increase in electrically chargeable lorry registrations in the EU during the first half of 2024.

concurrently, the expansion of railway electrification projects and metro transit systems acts as a crucial driver, requiring advanced motors for sustainable mass transit. Governments globally are prioritizing the decarbonization of rail networks by replacing diesel locomotives with electric counterparts that depend on powerful, reliable traction motors. This infrastructure push is highlighted by ambitious modernization goals in developing economies; for example, the Ministry of Railways, Government of India, announced in November 2024 that the national network had achieved cumulative electrification of 64,285 route kilometers, covering nearly 97% of its broad gauge network. Such extensive electrification initiatives ensure consistent, long-term demand for railway-grade motors, shielding manufacturers from the fluctuations of the consumer automotive market.

Market Challenges

The instability of raw material supply chains, especially regarding rare earth metals, represents a formidable obstacle to the growth of the Global Electric Traction Motor Market. Permanent magnet synchronous motors, which are favored for electric vehicles due to their high power density, rely heavily on specific elements like neodymium and dysprosium. The erratic pricing and inconsistent availability of these finite resources make it difficult for manufacturers to stabilize production costs. When supply chains fracture or prices surge, manufacturers often face increased operational expenses that are passed down the value chain, inflating the final cost of electric vehicles and diminishing their competitiveness against internal combustion engine alternatives.

This supply insecurity directly hampers the industry's capacity to scale operations. According to the International Energy Agency's 'Global Critical Minerals Outlook 2024,' the demand for rare earth elements and other critical minerals rose by up to 15% in the previous year, straining existing production capabilities. This intensifying demand, combined with supply unpredictability, creates substantial financial risks for motor suppliers, causing hesitation in capital investment and delaying the mass production necessary to achieve global electrification targets.

Market Trends

The adoption of Multi-in-One E-Axle Drive Systems is fundamentally transforming propulsion design by integrating the traction motor, inverter, gearbox, and auxiliary components into a single, compact unit. This consolidation decreases the drivetrain's physical footprint and overall weight while reducing the need for complex high-voltage cabling, thereby lowering manufacturing costs and enhancing vehicle range through weight optimization. Manufacturers are increasingly advancing from basic 3-in-1 units to complex 8-in-1 or 12-in-1 topologies to maximize power density. Reflecting the rapid scaling of these systems, BorgWarner’s 'Full Year 2023 Results' in February 2024 projected that its 2024 eProduct sales would range between $2.5 billion and $2.8 billion.

Simultaneously, the shift toward High-Voltage 800V Motor Architectures is accelerating to meet consumer demand for ultra-fast charging and superior energy efficiency. By doubling the operating voltage of legacy 400V systems, this architecture significantly lowers current flow, allowing for thinner stator windings and lighter wiring harnesses, which reduces resistive copper losses. This transition is often paired with silicon carbide inverters to manage higher thermal loads and switching frequencies. The market success of this technology was underscored by XPeng Inc. in January 2025, reporting a quarterly record of 91,507 vehicle deliveries, driven largely by its product lineup built on the SEPA 2.0 800V high-voltage silicon carbide platform.

Key Players Profiled in the Electric Traction Motor Market

• ABB Ltd.
• Siemens AG
• General Electric Company
• Kirloskar Electric Company Ltd.
• CG Power and Industrial Solutions Ltd.
• CRRC Corporation Limited
• Alstom SA
• Toshiba Corporation
• Skoda Transportation AS
• Robert Bosch GmbH

Report Scope

In this report, the Global Electric Traction Motor Market has been segmented into the following categories:

Electric Traction Motor Market, by Type:

• Alternating Current
• Direct Current

Electric Traction Motor Market, by Power Rating:

• Below 200 kW
• 200 - 400 kW
• Above 400 kW

Electric Traction Motor Market, by Application:

• Railway
• Electric Vehicle
• Industrial Machinery
• Others

Electric Traction Motor Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electric Traction Motor Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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