Electric Traction Motor Market Size and Trends

Global electric traction motor market is estimated to be valued at USD 18.34 Billion in 2024 and is expected to reach USD 47.26 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 14.5% from 2024 to 2031.

Electric Traction Motor Market Key Factors

To learn more about this report, request sample copy

Electric traction motors play a critical role in electric vehicles, contributing to over 30% of the total cost of Electric traction motors. With global focus shifting towards emission reductions and leveraging renewable sources of energy for transportation, there has been huge demand for electric vehicles.

The market is witnessing positive trends with strong focus on developing advanced fast charging infrastructure and improving battery technologies. Additionally, supportive government policies and subsidies on electric vehicles along with increased partnerships between OEMs and battery manufacturers are helping drive the mass adoption of electric vehicles. With countries announcing plans to ban sale of conventional vehicles in the coming decades, demand for electric traction motors is expected to grow substantially during the forecast period.

Market Driver - Increasing demand for electric vehicles (EVs) and hybrid vehicles (HVs)

Global electric traction motor market growth is driven by rising demand for electric vehicles and hybrid vehicles across the world. With growing concerns about environmental pollution and need to reduce carbon footprint, major automobile manufacturers are increasingly focusing on developing efficient electric and hybrid vehicle models. Customer preference is also changing rapidly in favor of green vehicles due to increasing awareness about benefits of electric transportation.

There has increase in sales of electric vehicles especially in countries like China, the U.S., and some European nations in last few years. Major automakers like Tesla, BYD, BMW, Volkswagen, and others are expanding their EV lineups and production capacity rapidly. Their investments in developing affordable electric cars with longer battery ranges can boost demand for electric traction motors.

Both permanent magnet synchronous motors and induction motors find widespread application depending on the type and configuration of electric vehicle. Their compact size, high energy efficiency, low noise, and vibration makes them a suitable replacement for internal combustion engines in automobiles. Rising innovations to improve motor power density and reliability at lower costs can boost EV adoption globally. This ongoing electrification trend in transport sector has bright future prospects for manufacturers of electric traction motors worldwide.

For instance, In December 2020, Parker-Hannifin Corporation, a global leader in motion and control technologies, announced the release of the GVM310, a 310 mm frame high-power permanent magnet A.C. motor. This new product expands the company's Global Vehicle Motor (GVM) family, which serves both off-road and on-road commercial electric and hybrid electric vehicles.

Government initiatives and regulations to reduce carbon emissions

Stringent government regulations and policies pertaining to vehicular emissions can drive the electric traction motor market growth. With mounting environmental concerns, many countries China, U.S., Canada, etc. have introduced norms to curb greenhouse gas emissions from automobiles, which are major polluters.

Countries across Asia, Europe, North America and other regions provide direct income tax benefits, purchase subsidies and waiver on road taxes for electric vehicles. These are setting up public charging stations alongside conventional gas stations to catalyze widespread use of zero emission electric transport. Nations like India, China, France, Germany have rolled out ambitious plans of becoming carbon neutral in the future. This decisive policy push at international level encourages automotive industry R&D transitioning seamlessly to electric. In responding to regulatory directives, major global automakers are expanding electric vehicle product lines rapidly, and this boosts demand for electric traction motors used in these vehicles.