ELECTRIC MOTORS FOR ELECTRIC VEHICLE MARKET ANALYSIS

The global electric motors for electric vehicle market size was valued at USD 5,676.45 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 20.3% from 2022 to 2028. The global Electric Motors for Electric Vehicle Market is expected to grow at a significant CAGR during the next several years. Growth will be driven by stringent emission regulations and improvements in charging infrastructure. Further, the market will benefit from the growing use of renewable energy. Developing economies in the Asia-Pacific region will drive the growth of this industry. Moreover, rapid industrialization in APAC is likely to create a conducive environment for electric vehicles.

Global Electric Motors for Electric Vehicle Market: Regional Insights

The global electric motors for electric vehicle market is geographically segmented into North America, Latin America, Europe, Asia Pacific and Middle East & Africa.

North America among regions is expected to dominate the global electric motors for electric vehicle market during the forecast period, owing to growing inclination towards adoption of electric transportation in the U.S. due to increasing number manufacturing companies of technological and electric vehicles such as General Motors, Tesla in the country. Thus, the region is likely to witness strong growth in the market.

Furthermore, Asia Pacific is anticipated to witness substantial growth in the global electric motors for electric vehicle market over the forecast period. This is due to high sales of electric vehicles in China. The presence of manufacturer and consumers of EVs is strong in China. Due to national sales target, municipal air-quality targets and supportive laws, the domestic demand is high in this region, which aids in growth of the market across the region.

Figure 1: Global Electric Motors for Electric Vehicle Market Share (%), By Region, 2021

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Global Electric Motors for Electric Vehicle Market Drivers:

Increasing rate of electric vehicles sales around the world is expected to augment growth of the global electric motors for electric vehicle market over the forecast period. Electric vehicles are an important part of the automotive industry, as they represent a sustainable transportation. Due to increasing environmental concerns, governments around the world are taking initiatives, which are leading to high adoption of EVs globally. Thus, the sales of electric motors is increasing worldwide. For instance, as per the Coherent Market Insights, the yearly electric passenger car sales volume is likely to cross the mark of 5 million by the end of 2025 and is anticipated to result into 15% of overall vehicle sales by end of the same year.

Rise in number of investments in electric vehicles across the globe is anticipated to augment growth of the global electric motors for electric vehicle market over the forecast period. The market for electric vehicle around the world is witnessing substantial growth. Several major manufacturers and related industries are focusing on investment in electric vehicles, as it is likely to present various growth opportunities. Thus, the demand for EVs and related components and parts such as batteries, vehicle electronics and electric motors is increasing worldwide, which is further driving growth of the global electric motors for electric vehicle market.

Global Electric Motors for Electric Vehicle Market Opportunities:

Growing advancements in motor technology are anticipated to create growth opportunities in the global electric motors for electric vehicle market during the forecast period. The increasing improvements in motor technology will have a significant impact on the electric vehicle performance in the near future. Even with the relatively uncomplicated models of these motors, a lot of improvements can be carried out in them. This is further expected boost technological developments in these motors, which is further likely to boost the market growth.

Furthermore, advent of novel technologies such as in-wheel motors (IWMs) and 3D printing in electric vehicles is also expected to offer various growth opportunities for key players in the global electric motors for electric vehicle market over the forecast period. With these novel technologies cars can spin on the spot, and with these technologies electric motors will be improved for EVs, as researchers around the globe are focusing on improvement of torque and cooling down ability of motors. Thus, the market is likely to witness various growth opportunities in the future.

Global Electric Motors for Electric Vehicle Market Trends:

Growing support from state government for various association is a growing trend in the global electric motors for electric vehicle market over the forecast period. Several organizations are involved in the ‘EV Everywhere Grand Challenge’ promoting the adoption of EVs around the world by 2025. Several state governments are supporting these associations, due to which the R&D activities are rising to enhance electric motors utilized in these EVs. This trend is expected to continue in the market during the forecast period.

Growing R&D in electric vehicle industry is expected to fuel growth of the global electric motors for electric vehicle market over the forecast period. Various organizations in the market are focused on research and development of propulsion materials for reducing adoption barriers for electric drive technologies about the problems related to use of specific materials in manufacturing processes. These research activities are also being conducted for integration of wide band gap (WBG) devices for power electronics in EVs. Hence, the rise in R&D activities is a growing trend in the market.

Global Electric Motors for Electric Vehicle Market Restraints:

Fluctuation in cost of raw materials from China is a retraining factor in the global electric motors for electric vehicle market. Manufacturers in China control the costs of raw materials such as steel bars, permanent magnets, precision thin metals, and copper wires. The differentiation in products is small and the cost of materials controls the share of suppliers present in the market. Thus, other manufacturers create fluctuation in the cost of raw materials, which hampers the market growth.

Unfavorable conditions resulting from COVID-19 pandemic is another factor expected to impede growth of the global electric motors for electric vehicle market over the forecast period. During the pandemic sales in automotive industry where significantly impacted. The manufacturing units were closed down temporarily during this period, which lead to decline in production and demand of electric vehicles and related components. Thus, the outbreak of COVID-19 acts as a challenging factor in the global electric motors for electric vehicle market hampering the market growth.           

Figure 2: Global Electric Motors for Electric Vehicle Market Share (%), By Application, 2021

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Global Electric Motors for Electric Vehicle Market Segmentation:

The global electric motors for electric vehicle market report is segmented into Application, Motor Type, Vehicle Type and Region.

Based on Application, the market is segmented into Passenger Cars, Commercial Vehicles. Out of which, Passenger Cars is expected to dominate the global market over the forecast period and this is attributed to the growing demand for SUV segment in passenger cars across several regions around the world, including Asia Pacific, Latin America and rest of the world. According to the Coherent Market Insights data, the share of SUV sales was highest with 37.8% in the global passenger car segment during the first of half of 2019.

Commercial Vehicle segment is also expected to witness significant growth in the near future and this is owing to the increase in demand for electric vehicles as well as growing efforts by OEMs and governments around the world leading to high demand of this segment.

Based on Motor Type, the market is segmented into AC Motor, DC Motor. Out of which, AC Motor segment is expected to dominate the global market over the forecast period and this is attributed to the growing adoption and various benefits offered by these motors. Compared to DC motors, AC motors are inexpensive and strong, due to which they are largely being adopted in EVs around the world.

DC motor segment is also expected to witness significant growth in the near future and this is owing to the several advantages offered by DC motors and increasing use of these motors as traction motors in EVs. These motors offer higher range of speed, faster dynamic response, better torque versus speed characteristics, and noiseless operation.

Based on Vehicle Type, the market is segmented into Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), and Pure Electric Vehicle (PEV). Out of which, Hybrid Electric Vehicle (HEV) is expected to dominate the global market over the forecast period and this is attributed to the shifting trend towards electric vehicles from traditional engine vehicles. The sales of HEVs is increasing around the world as compared to pure electric vehicles, which is driving the segment’s growth.

Plug-in Hybrid Electric Vehicle (PHEV) segment is also expected to witness significant growth in the near future and this is owing to the increasing focus of market players on boosting the production strategies towards hybrid electric vehicles leading to rise in demand for plug-in hybrid electric vehicles.

Global Electric Motors for Electric Vehicle Market: Key Developments

In March 2019, Mitsubishi Electric Corporation built a new production facility for manufacturing of motors and inverters for electric motor vehicles at Mitsubishi Electric Czech sro, which is the sales and automotive equipment subsidiary of the company in the Czech Republic.

Global Electric Motors for Electric Vehicle Market: Key Companies Insights

The global electric motors for electric vehicle market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global electric motors for electric vehicle market are BYD Co. Ltd, Aisin Seiki Co. Ltd., Toshiba Corporation, Toyota Motor Corporation, Tesla Inc., Hitachi Automotive Systems Ltd, Nissan Motor Co. Ltd, DENSO Corporation, BMW AG, Honda Motor Company Ltd, Robert Bosch GmbH, Mitsubishi Electric Corp., and Magna International Inc.

*Definition:

Electric motors are an important part of electric vehicles. They can provide the necessary power for both the front and rear wheels of an electric vehicle. They are found in many types of vehicles, including hybrids and battery-electric vehicles. Many electric vehicles use a dual motor setup, which allows for better traction control and efficient driving performance.