EV Traction Motor Market

EV Traction Motor Market Outlook (2021-2031)

Sales of EV traction motors to be valued at US$ 6.4 Bn by 2021-end, riding on the back of a highly promising future for EVs and hybrid vehicles. By 2031, revenues are expected to reach US$ 60 Bn, with the industry scheduled to register a whopping 9x across the 2021-2031 assessment period.

Market Size (2021)	US$ 6.4 Bn
Value CAGR (2021-2031)	25%
Market Size (2031)	US$ 60 Bn
Fastest Growing Market	China (33% CAGR)

2016-2020 Global EV Traction Motor Market Analysis Compared to 2021-2031 Forecast

EV traction motors grew at a CAGR of more than 10% between 2016 and 2020. The industry is being pushed largely by severe and stringent emission-control laws that have been placed in place to ensure environmental sustainability. A flourishing EV market has also pushed expansion prospects in the historical period. Fact.MR expects the EV traction motor market to surge at a stellar pace, clocking a CAGR worth 25% from 2021 to 2031.  

Despite recessionary pressures encountered by the global automotive industry during the COVID-19 pandemic, prospects for electric vehicle sales have remained robust. It was estimated that EV sales registered a 41% increase in 2020 over 2019, with a record 3 million new vehicle registrations. This has majorly sustained demand for EV traction motors in the said period.

With governments across the world implementing stringent emission control standards, automotive manufacturers are transitioning towards producing heightened stocks of hybrid, plug-in hybrid and electric vehicles. Impetus is likely to be provided in terms of tax relaxations on the manufacturing process, heavy budgetary allocations to stimulate EV infrastructure and fiscal relaxations.

How is Rapid Adoption of Electric Vehicles Increasing Adoption of EV Traction Motors?

Globally, road transport is responsible for about 16% of man-made carbon dioxide emissions around the globe, as per the International Organization of Motor Vehicle Manufacturers (OICA). On the regional front, these statistic differ substantially. For instance, in the EU, 72% of these emission are from road transportation, while 29% of the same are emitted in the U.S. Naturally, automotive manufacturers and consumers are seeking out cleaner alternatives.

This has led to a massive expansion of the global market for electric vehicles. Data published by the International Energy Agency concludes that the electric car market surged by 40% in 2020, despite supply shocks encountered as a result of the COVID-19 pandemic. As per the report, a record 3 million new electric cars were registered. In contrast, the global conventional automotive industry contracted 16% in the same fiscal.

As of 2019, the global EV road fleet amounted to more than 10 million, with another roughly 1 million electric vans, heavy trucks and buses. These trends are only set to broaden in the future, which will generate high potential for the growth of the market for EV traction motors.

How are Government Support Programs Boosting EV Traction Motor Manufacturing Prospects?

With concerns over automobile emissions increasing at a rapid pace, governments across the world are implementing various programs to curb the same. Prominent manufacturers are receiving impetus from the imposition of stringent emission regulation standards, as well as monetary support in terms of budgetary allocations and stimuli measures.

For instance, the Indian government has chalked out a plan to phase out emission intensity by 33-35% as of 2030, in accordance with the COP21 Summit held at Paris. In 2013, the Department of Heavy Industry announced the National Electric Mobility Mission Plan 2020 (NEMMP), with an outlay of Rs. 14,000 crores (US$ 1.8 billion) for establishing EV infrastructure, supplemented by the 2015 Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme with an outlay of Rs. 795 crores (US$ 106 million).

Similarly, in April 2021, the U.S Department of Transportation held the 5th round of Alternative Fuel Corridors designations, created in 2015 by the Fixing America's Surface Transportation (FAST) Act. The round included nominations from 25 states for 51 interstates and 50 highways. Based on these initiatives, prospects for EV traction motors in the world is picking up significant pace.

Country Wise Analysis

Mounting Vehicular Emissions Concerns Encouraging EV Traction Motors Uptake in the U.S?

As per Fact.MR, the U.S. is predicted to grow at a CAGR of more than 30% over the 2021-2031 forecast period. The presence of established electric car manufacturers accounts for a larger percentage of the region. Rising demand for BEVs is likely to drive the market growth over the forecast period.

According to the U.S Environmental Protection Agency, a typical passenger car emits about 4.6 metric tons of carbon dioxide annually. This assumes that the average gasoline vehicle on the road today offers a fuel economy of 22 miles per gallon, driving around 11,500 miles per year. Every gallon of gasoline burnt produces 8,887 grams of CO2. Besides CO2, elevated concentrations of methane and nitrous oxides from tailpipe emissions are prompting automotive manufactures to transition towards producing more hybrid and electric vehicles.

The International Energy Agency (IEA) states that the U.S government aims to convert 50% of new passenger cars and light trucks sold in 2050 to become electric, while individual states have announced more ambitious targets. On the back of these aforementioned trends, EV traction motor sales are anticipated to rise impressive in forthcoming years. In 2019, domestic player Rockwell Automation inaugurated a new 8,000 square foot Electric Vehicle Innovation Center in San Jose, California, which enables automotive start-ups to effectively utilize technologies and standards required to deliver EVs faster.  

How is the Tremendous Manufacturing Potential of China Contributing to the Expansion of the EV Traction Motor Industry?

China was the largest market for EV traction motors in 2018 and is expected to expand the quickest during the forecast period. This is attributed to the establishment of industrial facilities by industry leaders.

Because of adequate availability of raw materials and manpower, China has been seen to begin operations of the largest industrial facilities. In the previous decade, the Chinese government spent more than US$ 50 billion to construct electric car and component manufacturing plants. In order to increase demand for EVs, the Chinese government has also decreased the number of licenses available for conventional vehicles.

Various regional level EV traction motor manufacturers have consolidated their position across the Chinese market. Amongst them, BYD Auto Co. Ltd. comprises of the maximum market share. In October 2021, the company announced the raising of up to US$ 1.8 billion in capital, which is expected to bolster prospects for EV traction motors production. As per Fact.MR, sales across China will likely augur at a CAGR of 33% from 2021 to 2031.

Category Wise Insights

EV Traction Motors for Plug-in Hybrid Vehicles to Exhibit Strongest Demand?

By vehicle type, Fact.MR expects plug-in hybrid vehicles to account for bulk of global EV traction motor demand, capturing nearly 45% of total market share through 2031. Increasing ownership of hybrid electric vehicles in recent years has increased uptake.

Ownership of plug-in hybrid electric vehicles has increased, attributed to their zero tailpipe emissions while driving on battery power and accruing of tax efficiency. Prominent manufacturer Siemens, for instance, offers the ELFA drive system for facilitating smooth operation, suitable for buses, coaches, trucks and special vehicles.

Why do EV Manufacturers Prefer High Voltage Traction Motors?

As energy efficiency concerns mount, prominent electric vehicles players are seeking out traction motors which high voltage ratings. High voltage traction motors are pivotal to ensuring reduced vehicular emission levels, as there is greater utilization of battery power.

Both electric and hybrid electric vehicles are based on high voltage battery systems. These motors are also lighter in weight, which reduced vehicular drag while driving, and also enable cost savings to automotive manufacturers. Based on aforementioned trends, sales high voltage EV traction motors are likely to be valued at over US$ 4 Bn by 2031.

Competitive Landscape

Prominent EV traction motor manufacturers are focusing on introducing new product lines for electric and hybrid electric motor vehicles, along with outright and partial acquisition of small and medium-scale players. Additionally, several players are forging stake purchase and collaboration agreements with prominent automotive companies to expand their global presence.

• In July 2021, YASA Motors Ltd., a pioneer in next-generation electric drive technology, was acquired by automotive giant Mercedes-Benz. Under the terms of this acquisition, YASA will operate a wholly-owned subsidiary of Mercedes-Benz, developing high performance e-motors
• ABB Limited, a multinational corporation that specializes in power, robotics, automation technologies, and heavy electrical equipment, purchased KEYMILE Group's mission-critical communication business unit in 2017. This acquisition aims to broaden ABB's range of communication networks. This will also aid in the expansion of ABB's revenue-generating prospects
• In December 2020, Parker-Hannifin introduced the GVM310 310 mm frame high-power, permanent magnet AC motor. This product launch is an addition to its existing Global Vehicle Motor (GVM) family for off-road and on-road commercial electric and hybrid electric vehicles

EV Traction Motor Market Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Europe East Asia South Asia Oceania Latin America Middle East and Africa
Key Countries Covered	U.S. Canada Brazil Mexico Argentina Germany U.K. France Spain Italy Russia China Japan South Korea India ASEAN Australia GCC South Africa
Key Segments Covered	Motor Type Voltage Rating Vehicle Type Region
Key Companies Profiled	Zytek Group Limited ZF TRW Automotive Holdings Corporation YASA Motors Ltd. Valeo SA SKF AB Parker-Hannifin Corp. Magnetic System Technology Bharat Heavy Electricals Ltd. ABB Limited

Key Segments Covered

• Motor Type

  • Permanent Magnet Synchronous EV Traction Motors (PSM)
  • Asynchronous EV Traction Motors (ASM)

• Voltage Ratings

  • High Voltage
  • Low Voltage 

• Vehicle Type

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