ELECTRIC MOTORS FOR ELECTRIC VEHICLE MARKET ANALYSIS

Electric Motors For Electric Vehicle Market Size and Trends

The electric motors for electric vehicle market is estimated to be valued at US$ 13.29 Bn in 2024 and is expected to reach US$ 49.70 Bn by 2031, growing at a compound annual growth rate (CAGR) of 20.7% from 2024 to 2031.

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The growth of the electric motors for electric vehicle market is driven by many factors. With rising environmental concerns and stringent emission norms, the adoption of electric vehicles is increasing globally. Many countries are offering subsidies and tax incentives on the purchase of electric vehicles to encourage consumers to switch from conventional automobiles. Major automotive players are increasingly investing in developing electric vehicle models and technologies to accelerate the rate of electrification of transport systems. As electric vehicles use electric motors instead of internal combustion engines, the demand for innovative and efficient electric motors is also growing steadily. Advancements in motor design and new types of magnets are expanding the applications of electric motors in hybrid and battery electric vehicles.

Government policies and initiatives for clean mobility

Many governments around the world are investing heavily into building the electric vehicle infrastructure and offering fiscal incentives to promote clean mobility. They are introducing subsidies, tax rebates, and non-financial incentives to make electric vehicles more affordable and accessible for consumers. Several nations have aimed to ban or restrict the sales of new petrol and diesel cars within the next decade to reduce emissions. This is prompting huge investments into building EV charging stations and battery manufacturing facilities. Many countries have also introduced quotas that require automakers to sell a minimum number or percentage of electric vehicles each year. Non-compliance results in heavy penalties, forcing them to rapidly ramp up EV production.

Such proactive policies are creating tremendous opportunities for EV adoption. As costs come down and options increase, more customers are willing to choose electric vehicles over conventional cars. Automakers are rushing to launch new EV models and expand their lineups to cater to the growing demand. Several large markets like China and Europe have already seen electric vehicles transition from a niche to a mainstream product category in recent years. Rising environmental consciousness among citizens and commitments from leading nations towards sustainable mobility goals are helping to firmly establish electric drivetrains as the future of the automotive industry.

With the looming threat of climate change and worsening air pollution in many urban centers, there is a noticeable rise in eco-consciousness among citizens worldwide. More people are actively seeking out sustainable solutions and pressing governments and businesses for climate-friendly options. Electric vehicles are increasingly being seen as a preferable alternative to combustible engines as they offer significantly lower emissions and carbon footprint over their lifecycle. Automakers promoting EVs as part of their 'green' brand image is also positively impacting buying decisions. With younger demographics especially placing a higher priority on environmentally responsible choices, Original Equipment Manufacturers (OEMs) are facing mounting pressures to electrify their lineups at a rapid pace.

At the same time, tightening emission standards and testing protocols in major economies are forcing automakers to optimize vehicle efficiency. This is accelerating research and development of electric car technologies. Electric motors are gaining widespread acceptance in business because they're much better at using energy compared to traditional engines like those that run on gasoline or diesel. They perform just as well, if not better, and this is encouraging more people to use them.