ELECTRIC TRACTION MOTOR MARKET Size and trends

Electric Traction Motor Market Size and Trends

Global electric traction motor market is estimated to be valued at USD 21.04 Billion in 2025 and is expected to reach USD 54.98 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.7% from 2025 to 2032.

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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.