The electric motors for electric vehicle market is estimated to be valued at US$ 13.29 Bn in 2024, growing at a CAGR of 20.7% over the forecast period (2024-2031). The market is witnessing high growth owing to the increasing sales of electric vehicles around the world as well as strong government support through subsidies and incentives. Furthermore, the decreasing price of batteries and developing charging infrastructure are assisting the growth of electric vehicles and electric motors.
Market Dynamics:
One of the key drivers fueling the market growth is the increasing sales of electric vehicles globally. Various governments around the world are providing strong financial and non-financial incentives to promote electric mobility. This is encouraging more consumers to opt for electric vehicles. As a result, the demand for electric powertrains including electric motors is growing steadily. Another major factor driving the market growth is the ongoing technological advancements in electric motor design. Manufacturers are developing more efficient and lightweight electric motors with higher torque and power density. This is improving the performance of electric vehicles and expanding their driving range on a single charge. Advancements in materials and manufacturing technologies are reducing the cost of electric motors.
Market Driver: Growing Environmental Concerns are Increasing the Demand for Eco-friendly Electric Vehicles
With growing awareness about environmental issues like global warming, more consumers are looking to switch to electric vehicles that produce zero direct emissions. Electric vehicles can help reduce dependence on fossil fuels and cut down pollution in crowded cities. Many governments worldwide are offering purchase incentives and tax rebates to promote the electric vehicle adoption. Auto giants are heavily investing in electric vehicle development to cash in on this green mobility trend. As electric vehicles gain popularity, the demand for their core components like electric motors will steadily rise in the coming years.
Market Driver: Technological Advancements are Enhancing the Performance of Electric Vehicle Motors
Research and development in the field of electric motors has led to significant improvements in their power density, efficiency, reliability, and costs. New motor designs with less reliance on rare-earth materials are being developed. Technologies like sensorless control, advanced windings, and silicon steels are enhancing motor performance. Lighter yet powerful electric motors match or surpass the acceleration and torque delivery of internal combustion engines. Automakers can now offer long-range electric vehicles with spirited driving characteristics due to cutting-edge electric propulsion systems.
Market Restraint: High Production Costs of Electric Vehicle Components including Motors
Mass manufacturing of key Electric Vehicle (EV) technologies like batteries and motors at scale requires huge capital investments that take time to pay off. The use of expensive materials like lithium, cobalt, and neodymium in EV batteries and motors increases their per unit costs significantly compared to conventional vehicles.
Even though more electric vehicles are being made and sold, they still tend to cost more than cars that run on petrol or diesel in a lot of places. This high initial price tag prevents many buyers and holds back faster mass adoption of electric vehicles and demand for their core components.
Market Restraint: Limitations in Battery Technology Constrain the Electric Vehicle Range and Usability
While electric motors have improved rapidly, the energy density of lithium-ion batteries has not increased at the same rate. Vehicles still have a limited driving range, sometimes less than 250 km, before requiring recharging that can take 30 minutes or more. Fast charging infrastructure is also lacking in most parts of the world. These range anxiety issues undermine electric vehicle usability as the primary vehicle for many consumers. Until battery technology makes a breakthrough to offer much higher energy densities, range limitations will remain a challenge restraining faster electric motor for market growth.
Market Opportunity: Developing Markets are Primed for Electric Vehicle Breakthrough
Most developing economies are still in the early stages of motorization. Mass adoption of personal vehicles is expected in the coming decades as populations become more affluent. If electric vehicles can break into these emerging markets at scale before fossil-fuel cars get widespread, it will significantly expedite the energy transition. Developing countries could adopt EV technologies by bypassing established petrol vehicle infrastructures. Strong government incentives, improving charging infrastructure and attractive electric models tailored for developing world road conditions present a huge market opportunity. Electric vehicles and their core components stand to gain heavily if this transition is realized in top emerging markets of India, Indonesia, Brazil, Mexico, and Africa.
Market Opportunity: Expanding Role of Electric Motors in New Mobility Solutions
Electric motors are finding diverse applications beyond electric cars. Technologies like electric buses, delivery vans, e-scooters, e-bikes, and intra-city pod vehicles rely extensively on high-performance electric propulsion systems. Rapid growth is expected in urban micro-mobility markets globally. Electric aircraft and shipping vessels are also fields with untapped potential. Automakers are transitioning to electric fleets and delivery robots. These evolving mobility solutions will need advanced yet affordable electric motors tailored to their specific technical needs. Overall, the expanding role of electric propulsion across the transportation sector presents multi-fold growth prospects for electric motor manufacturers.
Key Developments:
- In August 2022, Brose Fahrzeugteile GmbH & Co. KG announced a $1.56 million (EUR 1.5 million) investment to increase the capacity for measuring electromagnetic compatibility (EMC) at its Wurzburg R&D center in Germany.
- In February 2022, Valeo SA acquired Siemens AG's stake in its joint venture, Valeo Siemens eAutomotive, which manufactures motors, axles, and powertrain electronics for electric vehicles
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, and Li Auto Inc