Electric Vehicle Traction Motors Market Size, Share, Forecast, & Trends Analysis by Type (PMSM, Induction Motor, BLDC), Power Output (Less than 100 kW, 100 kW to 250 kW, More Than 250kW), Propulsion Type, Vehicle Type, and Geography - Global Forecast to 2031

The Electric Vehicle Traction Motors Market is expected to reach $173 billion by 2031, at a CAGR of 25.5% from 2024 to 2031. By volume, this market is projected to reach 497.6 million Units by 2031, at a CAGR of 20.7% from 2024 to 2031. 

Electric Vehicle Traction Motors Market Size & Forecast

The growth of this market is driven by stringent emission regulations driving the manufacture and sales of hybrid and electric vehicles, the increasing demand for high-performance motors, and favorable government policies and subsidies aimed at promoting the adoption of EVs.

The increasing demand for electric vehicles is expected to generate growth opportunities for the stakeholders in this market.

Electric Vehicle Traction Motors Market Growth Drivers

Stringent Emission Regulations Driving the Manufacturing and Sales of Electric and Hybrid Vehicles

Stringent regulations for emission control are encouraging OEMs to focus on developing and selling electric and hybrid vehicles. The automotive industry is a major contributor to greenhouse gas emissions and air pollution. Governments worldwide are implementing regulations to reduce carbon emissions and promote cleaner transportation solutions. Non-compliance with emission regulations can lead to significant financial penalties for automakers. Major standards for emission control include the California Air Resources Board (CARB) Low Emission Vehicle (LEV) Program, the European Union’s (EU) Euro Emissions Standards, International Organization for Standardization (ISO) 14950:2018 Emission Control Systems for Road Vehicles, the United Nations Economic Commission for Europe (UNECE) Regulation No. 49 (UN ECE R49), and China VI Emission Standards. These standards help ensure that vehicles meet the emission levels set by governments and regulatory bodies.

Automotive OEMs are focusing on the development of electric and hybrid vehicles to comply with regulatory requirements. Hybrid and electric vehicles rely on electric traction motors for propulsion, with significantly reduced emissions compared to ICE vehicles. Additionally, increasing awareness regarding climate change and environmental protection is driving the demand for cleaner, more sustainable transportation options, such as electric and hybrid vehicles, contributing to the growth of the EV traction motors market.

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Favorable Government Policies and Subsidies Aimed at Promoting the Adoption of EVs

Favorable government policies and subsidies aimed at promoting the adoption of electric vehicles (EVs) are driving the growth of the EV traction motors market. This support includes funding for research and development (R&D), expansion of EV charging infrastructure, tax credits, grants, and rebates for both manufacturers investing in EV production and consumers purchasing EVs.

Key government policies and subsidies include:

• In May 2024, the European Council adopted the regulation on CO₂ emission standards for heavy-duty vehicles, amending and strengthening the existing EU rules. The new rules introduce a 100% zero-emission target for new urban buses by 2035, with an intermediate target of 90% for this category by 2030.
• In July 2022, the Government of Chhattisgarh (India) announced an electric vehicle (EV) policy to help create robust EV charging infrastructure in the Indian state of Chhattisgarh, accelerate the transition from Internal Combustion Engine (ICE) vehicles to electric vehicles, and incentivize EV manufacturing.
• In August 2021, the U.S. Senate passed a USD 1 trillion infrastructure bill, which included substantial investments in electric vehicle infrastructure (including charging stations) and funding for EV manufacturing and research. The bill was aimed at accelerating the transition to EVs and reducing greenhouse gas emissions.
• In 2021, the U.S. federal government announced tax credits for the purchase of electric vehicles. Also, there were discussions about potentially expanding and extending these tax credits to further incentivize EV adoption.

Such government support encourages automakers to increase their production of electric vehicles (EVs), thereby driving the demand for EV traction motors. Additionally, various countries and regions have introduced zero-emission vehicle (ZEV) mandates, which require automakers to include a certain percentage of electric or hybrid vehicles in their total production and sales. Commitments to reducing greenhouse gas emissions and combating climate change further compel vehicle manufacturers to develop electric options, boosting the demand for traction motors.

Electric Vehicle Traction Motors Market Opportunity

Increasing Demand for Electric Vehicles

The increasing demand for electric vehicles is expected to create market growth opportunities. EV technologies are evolving with ongoing developments in the automotive sector. Consumers’ increasing preference for shared mobility, the growing adoption of Mobility-as-a-Service (MaaS) solutions, the declining costs of high-capacity batteries, and significant investments by EV manufacturers are driving the adoption of electric mobility in emerging countries. Several companies are focused on developing innovative solutions for electric mobility and charging infrastructure. • In July 2023, ABC Bus Companies, Inc. (U.S.), a leading provider of motorcoach, transit, and specialty passenger transport equipment, and Proterra Inc. (U.S.), a leading innovator in commercial vehicle electrification technology, launched the largest electric motorcoach charging facility in North America. Located on a 3.5-acre campus in Newark, California, the facility is equipped to charge up to 40 electric motorcoaches with 20 dual-cable EV charging dispensers. It can support up to 1.4 megawatts of EV charging power. Thus, the increasing access to charging infrastructure is encouraging more businesses to invest in EVs, boosting the demand for EVs and, consequently, the need for electric traction motors.

Traction motors are a key component of electric vehicles. EVs use these motors to convert electrical energy into mechanical energy. Electric traction motors are installed in electric vehicles to provide initial propulsion and rotational torque to the vehicle. Advancements in hybrid vehicle technologies have led to a considerable increase in the demand for traction motors. Electric traction motors, such as permanent magnet synchronous motors, are widely used in electric vehicles due to their more compact sizes and lower weight compared to induction motors. Rising awareness about the harmful effects of vehicular emissions is another major factor supporting the growth of the electric traction motors market.

According to the International Energy Agency, global electric car sales in 2023 were 3.5 million units higher than in 2022, marking a 35% year-on-year increase. Additionally, several countries, including Belgium, Norway, Switzerland, and China, achieved electric bus sales shares exceeding 50% compared to internal combustion engine (ICE) buses in 2023. Moreover, over one-fifth of bus sales in Canada, Chile, Finland, the Netherlands, Poland, Portugal, and Sweden were electric. Globally, nearly 50,000 electric buses were sold in 2023, bringing the total global electric bus stock to approximately 635,000, with China accounting for 90% of these sales. The growing demand for electric buses and vehicles drives the need for a large quantity of high-quality traction motors, thereby supporting the overall demand for electric traction motors.

Electric Vehicle Traction Motors Market Analysis: Key Findings

By Type: In 2024, the Permanent Magnet Synchronous Motor Segment to Dominate the Electric Vehicle Traction Motors Market

Based on type, the global electric vehicle traction motors market is segmented into DC brushed motor, DC brushless motor, induction motor, permanent magnet synchronous motor (PMSM), and switched reluctance motor (SRM). In 2024, the permanent magnet synchronous motor segment is expected to account for the largest share of over 78.0% of the global electric vehicle traction motors market. This segment’s large market share can be attributed to the growing adoption of permanent magnet synchronous motors in electric vehicles due to their benefits, such as high overload capability, efficiency, and compact size. Furthermore, these motors offer high torque even at low speeds, minimal electrical losses, efficient heat dissipation, and low maintenance costs while ensuring high durability and reliability, contributing to their increased adoption.

However, the induction motor segment is expected to register the highest CAGR of the global electric vehicle traction motors market. This segment’s growth is driven by increasing investments in R&D aimed at improving motor efficiency and performance. Additionally, induction motors have fewer moving parts, which reduces maintenance requirements and enhances durability. Additionally, there is a concerted focus on developing advanced motor control algorithms and integrated power electronics to ensure seamless and efficient operation of induction motors within EVs.

By Power Output: In 2024, the Less Than 100kW Segment to Dominate the Electric Vehicle Traction Motors Market

Based on power output, the global electric vehicle traction motors market is segmented into less than 100 kW, 100 kW to 250 kW, and more than 250 kW. In 2024, the less than 100 kW segment is expected to account for the largest share of over 65.0% of the global electric vehicle traction motors market. This segment’s large market share can be attributed to the rising adoption of electric scooters and mopeds, as well as favorable policies, incentives, and subsidies introduced by various governments to promote EV adoption. Moreover, the less than 100 kW segment is projected to register the highest CAGR during the forecast period.

By Propulsion Type: In 2024, the Battery Electric Vehicles Segment to Dominate the Electric Vehicle Traction Motors Market

Based on propulsion type, the global EV traction motors market is segmented into hybrid electric vehicles and battery electric vehicles. In 2024, the battery electric vehicles segment is expected to account for the largest share of over 64.0% of the global electric vehicle traction motors market. This segment’s large market share can be attributed to stringent emission standards, increasing demand for fuel efficiency, a rising preference for zero-emission vehicles, and the growing adoption of battery electric vehicles for personal use, autonomous delivery, industrial applications, and public transportation. Moreover, the battery electric vehicles segment is projected to register the highest CAGR during the forecast period.

By Vehicle Type: In 2024, the Passenger Vehicles Segment to Dominate the Electric Vehicle Traction Motors Market

Based on vehicle type, the global EV traction motors market is segmented into passenger vehicles, e-scooters & bikes, heavy commercial vehicles, light commercial vehicles, and two-wheelers. In 2024, the passenger vehicles segment is expected to account for the largest share of over 81.0% of the global EV traction motors market. The large market share of this segment is attributed to the increasing need to improve the performance, efficiency, and overall driving experience for passenger vehicles, favorable government policies & subsidies aimed at promoting the adoption of electric passenger cars, proactive participation by automotive OEMs in producing electric passenger vehicles, increasing fuel prices, and growing need to reduce greenhouse gas emissions and air pollution caused by traditional internal combustion engine vehicles. Moreover, the passenger vehicles segment is also expected to register the highest CAGR during the forecast period.

Geographical Analysis

In 2024, Asia-Pacific to Dominate the Electric Vehicle Traction Motors Market

In 2024, the Asia-Pacific region is expected to account for the largest share of over 41.0% of the global EV traction motor market. The increasing adoption of electric vehicles due to the declining cost of EV components, rising environmental concerns, and rapid technological advancements in developing countries propel the demand for EV traction motors in the region. China, Japan, and South Korea are providing subsidies and tax incentives and implementing regulations to support the development and adoption of EVs and reduce greenhouse gas emissions and air pollution.

However, the market in Europe is projected to register the highest CAGR of 27.3% during the forecast period. The growth of this regional market is attributed to stringent emission regulations by the European Union, government initiatives to expand charging infrastructure and support zero-emission vehicles (ZEVs), and investments by companies in electric vehicle charging stations across the region. Furthermore, the European Union aims for a 100% reduction in greenhouse gas emissions by 2035, with the widespread adoption of electric vehicles (EVs) being a key strategy to achieve this goal. In order to support the transition to electric mobility, governments across the region are providing various incentives and subsidies to encourage consumers, including tax breaks and grants. Such initiatives are anticipated to drive the demand for electric vehicle traction motors in Europe during the forecast period.

Electric Vehicle Traction Motors Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the electric vehicle traction motors market are Zytek Automotive Ltd (U.K.), ZF Friedrichshafen AG (Germany), YASA Limited (U.K.), Valeo (France), Jing-Jin Electric Technologies Co., Ltd. (China), Parker-Hannifin Corp (U.S.), ABB Ltd (Switzerland), Equipmake Holdings PLC (U.S.), Traktionssysteme Austria GmbH (Austria), Electrodrive Powertrain Solutions Pvt. Ltd. (India), Nidec Corporation (Japan), AMETEK Inc. (U.S.), Toshiba International Corporation (U.S.), WEG Equipamentos Elétricos S.A. (Brazil), Hitachi Astemo, Ltd. (Japan), Dana Limited (U.S.), Robert Bosch GmbH (Germany), BorgWarner Inc. (U.S.), and Shanghai Edrive Co. Ltd. (China).

Electric Vehicle Traction Motor Industry Overview: Latest Developments from Key Industry Players

• In May 2023, ZF Friedrichshafen AG (Germany) launched AxTrax 2, a next-generation e-powertrain system for commercial vehicles, to enable the electrification of all types of commercial vehicles.

• In June 2022, Valeo (France) signed an agreement with Honda Power Pack Energy India Private Limited (India), the swappable battery service provider, and Atul Green Automotive Private Limited (India), the electric three-wheeler manufacturer, to provide the electric powertrains and powertrain control unit for Atul's electric three-wheelers to work with Honda’s swappable battery solution.

Electric Vehicle Traction Motors Market Research Summary

Key questions answered in the electric vehicle traction motors market report: