ELECTRIC MOTORS FOR ELECTRIC VEHICLE MARKET ANALYSIS

Market Size and Trends

The electric motors for electric vehicle market is estimated to be valued at US$ 13.29 Bn in 2024 and is expected to reach US$ 49.70 Bn by 2031, growing at a compound annual growth rate (CAGR) of 20.7% from 2024 to 2031.

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The growth of the electric motors for electric vehicle market is driven by many factors. With rising environmental concerns and stringent emission norms, the adoption of electric vehicles is increasing globally. Many countries are offering subsidies and tax incentives on the purchase of electric vehicles to encourage consumers to switch from conventional automobiles. Major automotive players are increasingly investing in developing electric vehicle models and technologies to accelerate the rate of electrification of transport systems. As electric vehicles use electric motors instead of internal combustion engines, the demand for innovative and efficient electric motors is also growing steadily. Advancements in motor design and new types of magnets are expanding the applications of electric motors in hybrid and battery electric vehicles.

Government policies and initiatives for clean mobility

Many governments around the world are investing heavily into building the electric vehicle infrastructure and offering fiscal incentives to promote clean mobility. They are introducing subsidies, tax rebates, and non-financial incentives to make electric vehicles more affordable and accessible for consumers. Several nations have aimed to ban or restrict the sales of new petrol and diesel cars within the next decade to reduce emissions. This is prompting huge investments into building EV charging stations and battery manufacturing facilities. Many countries have also introduced quotas that require automakers to sell a minimum number or percentage of electric vehicles each year. Non-compliance results in heavy penalties, forcing them to rapidly ramp up EV production.

Such proactive policies are creating tremendous opportunities for EV adoption. As costs come down and options increase, more customers are willing to choose electric vehicles over conventional cars. Automakers are rushing to launch new EV models and expand their lineups to cater to the growing demand. Several large markets like China and Europe have already seen electric vehicles transition from a niche to a mainstream product category in recent years. Rising environmental consciousness among citizens and commitments from leading nations towards sustainable mobility goals are helping to firmly establish electric drivetrains as the future of the automotive industry.

Market Concentration and Competitive Landscape

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With the looming threat of climate change and worsening air pollution in many urban centers, there is a noticeable rise in eco-consciousness among citizens worldwide. More people are actively seeking out sustainable solutions and pressing governments and businesses for climate-friendly options. Electric vehicles are increasingly being seen as a preferable alternative to combustible engines as they offer significantly lower emissions and carbon footprint over their lifecycle. Automakers promoting EVs as part of their 'green' brand image is also positively impacting buying decisions. With younger demographics especially placing a higher priority on environmentally responsible choices, Original Equipment Manufacturers (OEMs) are facing mounting pressures to electrify their lineups at a rapid pace.

At the same time, tightening emission standards and testing protocols in major economies are forcing automakers to optimize vehicle efficiency. This is accelerating research and development of electric car technologies. Electric motors are gaining widespread acceptance in business because they're much better at using energy compared to traditional engines like those that run on gasoline or diesel. They perform just as well, if not better, and this is encouraging more people to use them.

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Battery capacity issues limit the driving range of EVs, hurting consumer adoption rates. High production costs also make EVs less affordable compared to gas vehicles. Developing rapid-charging infrastructure has also been difficult due to the huge investments required. Standardizing motor technologies across automakers is another challenge area that needs to be addressed.

Market Opportunities: Continuous battery improvements are extending vehicle ranges

Cost reductions from manufacturing scalability and raw material prices coming down will help price parity. Government support through regulations and subsidies are helping EV infrastructure growth. Rising environmental concerns are driving consumer sentiment for greener vehicles. New players and startups are bringing innovation that can further boost performance and power.

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In terms of type, AC motor contributes the highest share of the market owing 60.3% in 2024 to rapid developments in AC motor technologies in recent years. As electric vehicles require efficient propulsion to achieve longer driving ranges comparable to combustion engine vehicles, manufacturers have focused on developing more powerful yet lightweight AC motors. Recent innovations such as use of rare-earth permanent magnets and new winding designs have significantly boosted the torque and power density of AC motors. This has made AC motors perfectly suited for electric vehicles. Additionally, advantages such as robustness, reliability and ease of maintenance also make AC motors an attractive choice over DC motors. Automakers have greatly benefited from such technology advancements as AC motors help reduce production costs while meeting stringent performance standards. Going forward, continuous R&D in motor control techniques and new materials will continue expanding the capabilities of AC motors. This is expected to further strengthen their dominance in the electric vehicles market.

Insights By, Electric Vehicle Type - Widespread Adoption of Hybrid Technologies Augments Demand

In terms of electric vehicle type, hybrid vehicles contribute the highest share owing 48.3% in 2024 to widespread adoption driven by their unique value proposition. As hybrids pair a conventional combustion engine with an electric motor and battery, they provide the benefits of both systems. This allows hybrid vehicles to travel longer distances while emitting lesser emissions than combustion vehicles. The appealing combination of high fuel efficiency and lower operating costs has made hybrids a popular choice, especially in markets with growing environmental awareness. Automakers too have aggressively pushed hybrids as a step towards electrification. Considerable progress in hybrid systems, such as smaller yet powerful electric drivetrains, has also increased their accessibility. With consumers growing accustomed to their benefits and governments supporting their use through subsidies and preferential policies, the demand for hybrid vehicles is expected to remain robust in the foreseeable future.

Insights By, Application- Consumer Preference for Private Transport Boosts Passenger Vehicles

In terms of application, passenger vehicles account for the highest share owing 64.6% in 2024 as this segment accommodates strong consumer preference for private transportation. The growing affluence of populations even in relatively less developed markets has augmented demand for passenger electric vehicles intended for private use. While public transportation is reasonably well-developed in developed nations, it cannot meet varied private transport needs. The lure of features like spacious interiors, long driving range and flexibility of vehicular ownership tends to outweigh fiscal or environmental benefits of public transit. Additionally, major automakers have extensively marketed stylish passenger electric cars with cutting-edge technologies and driver assistance systems, especially targeting younger buyers. Individuals also see potential monetary savings using personal electric vehicles vis-à-vis overall costs of public transport. With consumers in both emerging and mature markets favoring private commuting, the passenger electric vehicle segment is expected to flourish over time.

Regional Insights

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North America has established itself as the dominant region owing 46.3% in 2024 in the electric motors for electric vehicles market. The U.S. is spearheading the transition to electric vehicles with strong governmental support through tax incentives and investments in charging infrastructure. Major automotive original equipment manufacturers (OEMs) like Tesla, GM, and Ford have significantly expanded their electric vehicle portfolio over the last few years. This is attracting more component manufacturers to set up localized production and boosting investments across the electric powertrain value chain. States like California have also introduced regulations to phase out combustion engines, thus driving automakers to accelerate electrification plans. Additionally, the presence of major technology giants and startups working on electric vehicle technologies make North America a key innovation hub. Several new battery giga factories are also coming up which will cater to the growing demand for electric motors and power electronics from the automotive industry.

China has emerged as the fastest growing regional market for electric motors used in electric vehicles. The Chinese government has proactively taken steps like introducing quotas for new energy vehicles sales and providing generous purchase subsidies to drive mass adoption of electric vehicles. As a result, China has become the largest electric vehicle market in recent years with sales growing exponentially each year. Chinese automakers like BYD and SGMW are increasingly focusing on developing affordable long range electric cars for domestic and international markets. Coupled with low manufacturing and labor costs, China also has a strong indigenous component supply chain involved in battery production, motors, and vehicle manufacturing which helps original equipment manufacturers (OEMs) reduce costs. The electric motoes for vehicle market is entering mainstream adoption in big cities and steadily expanding to lower-tier cities, further propelling demand.

Market Report Scope

Key Developments

• In December 2022, Indian automotive component manufacturer, Shriram Pistons Ltd. revealed that its subsidiary, SPR Engineous, has acquired a majority stake in EMF Innovations, a Singapore-based company specializing in designing and manufacturing electric motors for various types of electric vehicles. This acquisition marks Shriram Pistons Ltd.'s entry into the electric vehicle market, allowing them to serve all segments of the EV market.
• In November 2022, Nidec Corporation is a global company that specializes in manufacturing electric motors and related components. revealed plans to invest US$715 million in Mexico to build a facility for manufacturing electric motors and e-axle drives for electric vehicles. The plant is expected to start operating either in April 2023 or March 2024 and aims to produce 1 million units annually.
• In October 2022, Bosch Mobility Solutions in the automotive industry, specializing in providing cutting-edge technologies and solutions for vehicles announced a US$260 million investment to expand the production of electric vehicle motors for the Rivian R1T pickup truck at its Charleston plant in South Carolina, U.S.
• In October 2022, Brose Fahrzeugteile GmbH & Co. KG is a company specializing in automotive components and systems. initiated the construction of a second building at its Bamberg site, adding 13,000 square meters of space and doubling the number of workspaces from 600 to 1200. The company is investing US$62.4 million (EUR 60 million) in expanding its premises.

*Definition: Electric motors for electric vehicle market refers to the electric motors that are specially designed and manufactured for powering electric vehicles including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). These high-performance motors provide efficient propulsion in electric vehicles and are optimized for traction applications. They deliver high torque output at variable speeds with regenerative braking capability.

Market Segmentation

•  Type Insights (Revenue, US$ BN, 2019 - 2031)
  • AC Motor
  • DC Motor
•  Electric Vehicle Type Insights (Revenue, US$ BN, 2019 - 2031)
  • Battery Electric Vehicle
  • Hybrid Vehicles
  • Plug-in-Hybrid Vehicles
•  Application Insights (Revenue, US$ BN, 2019 - 2031)
  • Passenger Vehicles
  • Commercial Vehicles
• Regional Insights (Revenue, US$ BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players
  • Nidec Corporation
  • Denso Corporation
  • Bosch Rexroth AG
  • AMS Automotive Holding GmbH
  • Continental AG
  • Hitachi Automotive Systems, Ltd
  • YASKAWA Electric Corporation
  • Mitsubishi Electric Corporation
  • Toshiba Corporation
  • ZF Friedrichshafen AG
  • Hyundai Mobis
  • Sumitomo Heavy Industries, Ltd
  • Valeo SA
  • BorgWarner Inc
  • Johnson Electric Holdings Limited
  • UQM Technologies Inc
  • Tesla, Inc.
  • XPeng Inc
  • Li Auto Inc