EV Traction Motor Market

EV Traction Motor Market Outlook 2025 to 2035

The global EV traction motor market is projected to increase from USD 16.2 billion in 2025 to USD 150.9 billion by 2035, with a CAGR of 25.0% during the forecast period. Growth is driven by rising demand for motors with high energy efficiency and the increased investments in the production of electric vehicles as a result of their widespread adoption. Traction motors are a crucial component of the electric mobility sector due to their high efficiency and significantly lower power consumption.

Additionally, the popularity of electric vehicles has been fueled by strict regulations and emission guidelines to ensure environmental sustainability, which has created favorable conditions for the growth of the electric vehicle traction motor industry.

What are the Drivers of the EV Traction Motor Market?

Sales of electric vehicles are directly correlated with the automotive industry's need for traction motors. Around 14 million new electric cars were sold worldwide in 2023, up 3.5 million from 2022 sales, according to the International Energy Agency's (IEA) Global EV Outlook 2024 report. Additionally, electric vehicles sales made up about 18% of all vehicle sales during the year, up from 14% in 2022 and only 2% in 2018.

Competition in the electric vehicle traction motor market is being driven by manufacturers' growing demands for economical and performance-efficient vehicles, which has made component selection, including traction motors, extremely important.

Traction motors' high efficiency allows them to convert a greater proportion of the electrical energy stored in the battery into mechanical energy that propels the car forward. This leads to better overall performance and a longer driving range. With the ability to instantly access maximum torque from a standstill, traction motors allow electric vehicles to accelerate as smoothly and quickly as possible.

Compared to internal combustion engines, these solutions are typically lighter and more compact. Because less energy is required to move the vehicle, the decreased weight contributes to increased efficiency and range. Automakers are introducing cars with multiple traction motorst to enable torque vectoring the ability to precisely control the torque distribution between wheels.

This enhances a car's handling, traction, and stability, especially on slick roads or around sharp turns. The increasing demand to meet a wide range of customer needs has pushed electric vehicles manufacturers to spend money on R&D projects in an effort to launch more potent solutions in recent years.

For example, the development of motors that lessen or do away with the need for rare earth elements like neodymium and dysprosium has accelerated, allowing businesses to address supply chain and environmental issues. Because they are smaller and have a higher power density than conventional radial flux motors, axial flux designs are becoming more and more popular.

These solutions are being integrated into luxury and performance electric vehicles due to their superior torque and efficiency. Other innovations, such as permanent magnet synchronous motors (PMSMs), switched reluctance motors (SRMs), and integrated motor-drive systems, are expected to further positively impact the global market during the forecast period.

Metric	Value
Industry Size (2025E)	USD 16.2 billion
Industry Size (2035F)	USD 150.9 billion
CAGR (2025-2035)	25.0%

What are the regional trends of the EV traction motor market?

The Asia Pacific electric vehicle traction motor market comprised the highest proportion of global sales in 2025. This was due to an increase in electric vehicles sales in the region and the introduction of positive measures to boost demand in the region. Asia Pacific is one of the biggest and fastest-growing markets for electric vehicles.

This trend is causing the demand for traction motors, which are important parts of electric vehicle powertrains, to rise. Global automakers including Volkswagen, BMW, Ford, and General Motors have had to make more electric vehicles in this area because these vehicles are becoming more popular. These companies are making their factories better and focusing on Asian markets with cheap electric vehicles., increasing the production of traction motors.

The EV traction motor market in North America is expected to grow at a very high CAGR during the forecast period, driven by the presence of major electric vehicle manufacturers such as Tesla, Ford, and General Motors in the U.S. and Canada, along with key suppliers like ABB, Robert Bosch, and Continental, making the region a crucial hub for electric vehicle production and innovation.

Motor and drivetrain technology are getting better, with a focus on making them more efficient, powerful, and lightweight while also managing heat better. More and more car companies in this area are using permanent magnet motors (PMSMs), induction motors, and axial flux motors, all of which are utilized in electric vehicles and plug-in hybrid electric vehicles (PHEVs) to make them work better and more efficiently.

The U.S. and Canada are interested in cutting down on carbon emissions in transportation and satisfying tighter emissions regulations. Because of this, the need for electric vehicle parts, such as traction motors, is expected to keep going up.

What are the Challenges and Restraining Factors of EV Traction Motor Market?

The market faces several significant challenges and restraining factors. One primary obstacle is the high initial and production costs, as these motors often require advanced materials such as rare earth elements and sophisticated manufacturing techniques.

This reliance also exposes manufacturers to raw material price volatility and supply chain complexities, particularly because many key components are obtained from a limited number of supplier nations, leading to risks of supply disruptions and geopolitical tensions.

Furthermore, the industry is hindered by insufficient charging infrastructure especially in developing regions which slows down electric vehicles adoption and the corresponding demand for traction motors. Technical issues, such as thermal management and the engineering complexity of balancing efficiency, size, and durability, remain persistent challenges.

The current limitations of battery technology also restrict the performance potential of traction motors, while high upfront costs make EVs less accessible to a broader consumer base, exacerbating range anxiety and limiting overall market growth.

On the operational side, a shortage of specialized workforce and the risk of rapid technological obsolescence add further complications for manufacturers striving to keep pace with industry advancements. Environmental factors, specifically battery recycling and end-of-life management, present additional restraints due to sustainability concerns.

Additionally, regulatory uncertainty in government policies can deter long-term investments. Overall, a combination of financial, technical, logistical, and institutional challenges continues to restrain the rapid expansion of the EV traction motor market.

Country-Wise Outlook

Countries	CAGR (2025-2035)
United States	24.1%
China	25.3%
Germany	24.7%

U.S. EV Traction Motor Market sees Growth Driven by Rapid Increase in EV Sales

North America's EV traction motor market revenue in 2025 was predominantly driven by the U.S., supported by steadily increasing investments from automakers in EV production, government policies promoting electrification, and ongoing advancements in motor technologies. The region benefits from a favorable growth environment fueled by surging electric vehicle adoption and concerted efforts to develop electric mobility infrastructure and innovation. This positions North America as a critical hub for expansion in the EV traction motor market.

Despite its relative weakness in comparison to China, the nation continues to be one of the largest markets for electric mobility, with 1.4 million new EV units sold in 2023. Additional electric vehicle models are being introduced in various segments, including sedans, SUVs, and trucks, necessitating traction motors with variable power capacities, efficiencies, and performance parameters.

Furthermore, the national production of electric vehicle traction motors is anticipated to be further bolstered by initiatives such as the Bipartisan Infrastructure Law (2021), federal incentives, and Zero-Emission Vehicle (ZEV) mandates.

China Witnesses Rapid Market Growth Backed by Favorable Government Policies and Incentives

The regional market is dominated by China, which is recognized as a global leader in the production and sale of electric vehicles. According to a report by the International Energy Agency, the country sold more than 8 million electric vehicles in 2023, which accounted for approximately 60% of global sales.

Additionally, it is anticipated that China will maintain its position as the global leader in the electric vehicle (EV) market, with estimates indicating that sales could surpass 10 million units annually by 2030.

The New Energy Vehicle mandate, which has required manufacturers to produce a specific percentage of electric or hybrid vehicles, has been a key factor in the Chinese government's contribution to this growth. Further promoting the adoption of electric vehicles (EVs), China also offers substantial subsidies and tax incentives to its consumers.

The substantial demand for traction motors has been generated by their extensive popularity. The demand for zero-emission vehicles (ZEVs) and, consequently, for traction motors, has been accelerated by the government's ambitious plan to achieve carbon neutrality by 2060, with peak emissions occurring by 2030.

Germany's EV Traction Motor Market is Experiencing Rapid Growth, Driven Primarily by Technological Advancements

The automobile industry in Germany is expanding, with renowned labels including Mercedes-Benz, BMW, and Volkswagen. Significant investments in electric vehicle technology and production have been made by these corporations, which have recognized the importance of electric vehicles.

The German automobile industry's commitment to electric mobility is conducive to the expansion of EV traction motor sales in the country. This extends to the electric vehicle industry, as Germany is renowned for its technical and technological expertise.

The development of innovative electric vehicle technologies, including high-performance propulsion motors, has been spearheaded by German companies. Additionally, to increase the number of electric vehicles, Germany has been expanding its charging infrastructure network.

The presence of a well-developed charging infrastructure improves consumer confidence in electric vehicles and alleviates range anxiety. The charging infrastructure is improving, which is resulting in an increase in the demand for electric vehicles, including EV traction motors.

Innovations such as permanent magnet synchronous motors (PMSM), which are preferred for their superior efficiency and compact designs, are becoming widely adopted. There is also development in magnet-free motors (e.g., ZF Friedrichshafen’s I2SM) to enhance performance and sustainability.

Category-wise Analysis

Permanent magnet to Exhibit Leading by Motor Type

Permanent Magnet Synchronous EV Traction Motors dominate the EV traction motor market, due to their high efficiency, compact size, and strong torque delivery. Widely used by leading EV manufacturers, these motors maximize battery output and improve driving performance. Their reliance on rare-earth magnets ensures consistent performance across speed ranges, making them essential for both urban and long-range EVs. The global electrification trend and consumer preference for high-performance EVs continue to bolster their demand across major automotive markets.

Asynchronous EV Traction Motors are the fastest-growing, due to their cost advantages and lack of rare earth material dependency. These motors are robust, easy to manufacture, and are increasingly used in budget electric vehicles and commercial fleets, especially in cost-sensitive regions. Improvements in control systems and energy efficiency have made them a viable option for EV OEMs looking to diversify their motor strategies while maintaining performance and scalability in growing markets like Asia-Pacific and Eastern Europe.

High Voltage to Exhibit Leading by Voltage Rating

High voltage traction motors dominate the EV traction motor market, as they are key to high-performance EVs and plug-in hybrids. These motors, typically operating above 400V, enable longer driving ranges, quicker acceleration, and fast-charging capabilities. Leading automotive brands use high-voltage platforms to power sedans, SUVs, and trucks, particularly in North America and Europe. Their compatibility with larger battery packs makes them ideal for premium EV segments and heavy-duty electric vehicles, driving their widespread adoption.

Low voltage traction motors are the fastest-growing segment, mainly due to their application in mild hybrids and support systems in standard vehicles. These 48V systems are easier and cheaper to integrate, offering fuel savings and emission reductions without the need for full electrification. Automakers are rapidly adopting them in response to tightening global emission norms. Low voltage motors are especially gaining traction in Asia and Europe where regulatory support and consumer demand for affordable hybrids are rising.

EVs to Exhibit Leading by Vehicle Type

Electric Vehicles (EVs) dominate the EV traction motor market, as they rely entirely on these motors for propulsion. Governments across the globe are offering incentives for EV purchases, while automakers are investing heavily in developing diverse all-electric fleets. As the EV charging infrastructure expands and battery costs decrease, EV adoption continues to rise across passenger and commercial vehicle segments, solidifying the traction motor’s central role in the growing electric mobility ecosystem.

Mild Hybrid Vehicles are the fastest-growing segment, driven by their lower cost of adoption and minimal changes required to existing vehicle platforms. These vehicles use small traction motors to assist in start-stop functions and regenerative braking, helping manufacturers meet fuel efficiency and emission standards. The popularity of 48V mild hybrid systems, especially in Europe and Asia, supports this growth. Consumers benefit from improved mileage without fully committing to electric driving, making it a practical, fast-adopting solution.

Competitive Analysis

The global EV traction motor market is increasingly competitive, with leading companies and regional players vying not only on price but also on quality, innovation, and sustainability. Key manufacturers like ABB, Robert Bosch GmbH, and Valeo specialize in automation and electrification technologies, offering a wide range of traction motors engineered specifically for electric vehicles and rail applications. ABB, for example, provides its AMXE series motors, widely used across industrial vehicles, buses, railroads, construction, mining, material handling, marine, and public transportation sectors, with a focus on sustainability, performance, and efficiency.

These companies serve industries that demand adherence to strict performance and environmental standards, gaining competitive advantages through strategic alliances with OEMs and vertical integration of supply chains. Regional manufacturers, particularly in Asia-Pacific and Europe, are strengthening their positions by addressing cost-sensitive applications and meeting custom demands, making them attractive to SMEs and regional distributors.

Innovation remains central, with advancements in motor efficiency, integration of AI for performance optimization, and developments supporting sustainability credentials influencing market dynamics. Mergers and acquisitions continue to reshape the landscape, allowing firms to expand geographically and diversify product portfolios.

Key players in the market include Zytek Group Limited, YASA Motors Ltd, Valeo SA, SKF AB, Parker-Hannifin Corp, Magnetic System Technology, ABB Limited, and other notable players.

Recent Development

• In October 2024, Nidec Motor Corporation and Ashok Leyland, an Indian manufacturer of commercial vehicles, announced a statregic partnership to expedite the electrification of commercial vehicles in India. This initiative entails the provision of Ashok Leyland with Nidec's E-Drive electric motor-controller system.
• In May 2024, ABB launched an advanced motor and inverter package specifically designed for electric buses, featuring the HES580 inverter and AMXE250 motor [1.1]. This integrated solution represents a significant step towards more efficient, reliable, and sustainable electric public transport.

Segmentation of EV Traction Motor Market

• By Motor Type :

  • Permanent Magnet Synchronous EV Traction Motors
  • Asynchronous EV Traction Motors

• By Voltage Rating :

  • High Voltage
  • Low Voltage

• By Vehicle Type :

  • Electric Vehicles
  • Plug-in Hybrid Electric Vehicles
  • Mild Hybrid Vehicles
  • Full Hybrid Vehicles

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa