The Electric Vehicle Traction Motor Market is expected to reach $137.85 billion by 2030, at a CAGR of 25.5% from 2023 to 2030. By volume, this market is projected to reach 412.29 million Units by 2030, at a CAGR of 20.7% from 2023 to 2030. The growth of the global electric vehicle traction motor market is driven by factors such as stringent emission regulations driving the manufacture and sales of hybrid and electric vehicles, the increasing demand for high-performance motor, and favorable government policies and subsidies. Furthermore, the increasing demand for electric vehicles is expected to offer growth opportunities for the stakeholders in this market.
However, the high costs and scarcity of raw materials are expected to restrain the growth of this market. The higher prices of electric vehicles compared to ICE vehicles and motor failure due to overheating can hinder the growth of this market.
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Government Policies and Subsidies Promoting E-Mobility Ecosystem Expansion to Drive Market Growth
Favorable government policies and subsidies are supporting the growth of the EV traction motor market. Government support such as funding for research and development (R&D), expansion of EV charging infrastructure, tax credits, grants, and rebates for manufacturers investing in electric vehicle (EV) production and EV purchases are positively impacting the market’s growth. Some of the government policies and subsidies supporting market growth are as follows:
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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, including substantial investments in electric vehicle infrastructure (including charging stations) and EV manufacturing and research funding. This bill aimed to accelerate the transition to EVs and reduce 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 incentivize EV adoption.
- In June 2020, governments in the Netherlands and Greece announced offering incentives for purchasing and installing residential charging stations—a deduction of up to 36% and tax returns of up to 75% on the costs associated with purchasing and installing charging stations.
- In 2020, the Finnish government announced plans to invest USD 6.57 million in expanding charging infrastructure from 2020 to 2021.
Such government support encourages automakers to produce more EVs, driving the demand for EV traction motor. Furthermore, several countries and regions have implemented zero-emission vehicle (ZEV) mandates, requiring automakers to have a certain percentage of electric or hybrid vehicles in their total production and sales. Also, commitments to reducing greenhouse gas emissions and combating climate change compel vehicle manufacturers to develop electric options, boosting the demand for traction motor.
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Key Findings in the Electric Vehicle Traction Motor Market Study
The Induction Motor Segment to Become the Fastest-growing Segment by 2030
Based on type, the global electric vehicle traction motor market is segmented into permanent magnet synchronous motor, DC brushed motor, DC brushless motor, induction motor, switched reluctance motor, and wound rotor synchronous motor. The induction motor segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the high efficiency, effective speed regulation, and the absence of commutators. Induction motor do not rely on permanent magnets, which can be costly and subject to supply chain constraints. Moreover, their relatively straightforward construction, characterized by fewer moving components, reduces maintenance requirements and enhances durability.
The Less than 100kW Segment to Register Highest Growth Rate During the Forecast Period
Based on power output, the global electric vehicle traction motor market is segmented into less than 100 kW, 100 kW to 250 kW, and more than 250 kW. The less than 100 kW segment is expected to register the highest CAGR during the forecast period. Major players worldwide are launching light EVs, such as e-scooters and two-wheelers, and advancing their existing vehicles' capabilities to cater to consumers' changing demands. For instance, TVS Motor (India) launched the iQube electric scooter in India, equipped with a 4.4 kW electric motor. Such initiatives and developments by major market players are expected to support the growth of this segment.
The Battery Electric Vehicles Segment to Register the Highest Growth Rate During the Forecast Period
Based on propulsion type, the global electric vehicle traction motor market is segmented into hybrid electric vehicles and battery electric vehicles. The battery electric vehicles segment is expected to register the highest CAGR during the forecast period. The growth of this segment is driven by stringent emission standards, rising demand for increased fuel efficiency, growing demand for zero-emission vehicles, and increasing adoption of battery electric vehicles as private vehicles, autonomous delivery vehicles, industrial vehicles, and public transport.
The Passenger Vehicles Segment to Register the Highest Growth Rate During the Forecast Period
Based on application, the global electric vehicle traction motor market is segmented into passenger vehicles, e-scooters & bikes, heavy commercial vehicles, light commercial vehicles, and two-wheelers. The passenger vehicles segment is expected to register the highest CAGR during the forecast period. Electric passenger vehicles are gaining popularity among consumers. They offer safety, reliability, and comfort due to their low weight and spacious designs. Automobile manufacturers are pooling their R&D resources for designing and developing electric passenger vehicles to reduce emissions, improve design flexibility, achieve higher speed-to-weight ratios, and allow for longer travel ranges on a single charge. Several battery-cell manufacturers for electric vehicles are increasing their passenger vehicle production capacities. Major companies, including Tesla, Inc. (U.S.), MG Motor (U.K.), Tata Motor Limited (India), and Hyundai Motor Company (South Korea), have launched passenger vehicles in the market. Such initiatives have increased the demand for EV traction motor for passenger vehicles, supporting the growth of this segment.
Europe: The Fastest-growing Regional Market in the Global EV Traction Motor Market
Based on geography, the global electric vehicle traction motor market is segmented into Asia–Pacific, Europe, North America, Latin America, and the Middle East & Africa. The market in Europe is expected to register the highest growth rate between 2023 and 2030. Europe has been an early adopter of electric vehicles. According to the European Automobile Manufacturers Association (ACEA) report, in June, new registrations of battery-electric cars in the EU increased by 66.2%, reaching 158,252 units. Battery-electric cars have surged in popularity among new car buyers, surpassing diesel cars as the third most popular choice. Several EU markets have witnessed remarkable double- and even triple-digit percentage growth, with leading countries like the Netherlands (+90.1%), Germany (+64.4%), and France (+52.0%) demonstrating significant increases in adoption.
The European Union aims for a 100% reduction in greenhouse gas emissions by 2035, and the widespread adoption of EVs is seen as a key strategy to achieve this goal. In order to support the transition to electric mobility, governments across the region are offering various incentives and subsidies to encourage consumers, including tax breaks, grants, and free charging. Such initiatives are expected to drive the demand for EV traction motor in the region during the forecast period.
Key Players:
The key players operating in the global electric vehicle traction motor market are Zytek Group Limited (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 (Japan), WEG Equipamentos Elétricos S.A. (Brazil), and Hitachi Astemo Ltd. (Japan).
Scope of the Study:
Electric Vehicle Traction Motor Market Assessment, by Type
- Permanent Magnet Synchronous Motor
- DC Brushed Motor
- DC Brushless Motor
- Out-Runner BLDC Motor
- In-Runner BLDC Motor
- Induction Motor
- Switched Reluctance Motor
- Wound Rotor Synchronous Motor
Electric Vehicle Traction Motor Market Assessment, by Power Output
- Less Than 100 kW
- 100 kW To 250 kW
- More Than 250 kW
Electric Vehicle Traction Motor Market Assessment, by Propulsion Type
- Hybrid Electric Vehicles
- Pure Hybrid Electric Vehicles
- Plug-In Hybrid Electric Vehicles
- Battery Electric Vehicles
Electric Vehicle Traction Motor Market Assessment, by Application
- Passenger Vehicles
- E-Scooters & Bikes
- Heavy Commercial Vehicles
- Light Commercial Vehicles
- Two-Wheelers
Electric Vehicle Traction Motor Market Assessment, by Geography
- North America
- Europe
- Germany
- France
- U.K.
- Norway
- Sweden
- Netherlands
- Italy
- Spain
- Switzerland
- Denmark
- Rest Of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Singapore
- Thailand
- Rest Of Asia-Pacific
- Latin America
- Middle East & Africa
Key Questions Answered in the Report: