Electric Vehicle Traction Motor Market Trends
The size of the global electric vehicle traction motor market was USD 12.57 billion in 2024 and is expected to expand at a CAGR of 30.2% during 2025-2030. Increasing investments in the production of electric vehicles (EVs) owing to their extensive use and increasing demand for energy-efficient motors are key drivers of the market. Traction motors utilize much lower power consumption and are highly efficient, and as a result, they have become a vital component of the electric mobility sector. Additionally, stringent regulatory policies and emissions standards to achieve environmental sustainability have been promoting the demand for EVs, hence facilitating favorable market conditions for the growth of the electric vehicle traction motor sector.
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Vehicle Insights
The BEV segment held the highest revenue share of 62.8% in the electric vehicle traction motor market globally in 2024. Battery Electric Vehicles traction motor demand has risen considerably in recent years, thanks in part to the global clean energy drive, swift expansion of the overall EV market, and emerging motor tech. Growing BEV sales have motivated businesses to produce traction motors on a bigger scale, facilitating market growth. For example, a January 2024 report by EV VOLUMES indicated that 10 million battery EVs were sold in 2023, with leading markets recording a significant increase in the uptake of these cars. Traction motors play a key role in BEVs’ efficiency, performance, and range. Technological advancements, including the innovation of permanent magnet synchronous and induction motors, have contributed to enhanced motor efficiency, power density, and longevity.
Regional Insights
The Asia Pacific electric vehicle traction motor market generated the highest revenue share of 54.6% in the world in 2024, supported by the steep rise in regional sales of EVs and the adoption of favorable policies to stimulate regional demand. Asia Pacific is the world’s largest and fastest-growing market for electric vehicles, and the trend is contributing to growing demand for traction motors, which are key parts of electric vehicle powertrains. The growing popularity of these vehicles has forced international automakers like Volkswagen, BMW, Ford, and General Motors to boost their EV production in this region. These firms are increasing their domestic manufacturing capacity and focusing on Asian markets with low-cost EVs, thereby increasing the production volume of traction motors.
North America Electric Vehicle Traction Motor Market Trends
The North American EV traction motor market is anticipated to grow at a high CAGR over the forecast period. The U.S. and Canada have emerged as key locations for EV production because of the localized presence of automakers like Tesla, Ford, and General Motors, and the presence of prominent solution providers like ABB, Robert Bosch, and Continental. Motor and drivetrain technologies are increasingly sophisticated, focusing on enhancing efficiency, power density, thermal management, and lightweight construction. Automakers in this region are increasingly using solutions like permanent magnet motors (PMSMs), induction motors, and axial flux motors, all of which are employed in EVs and PHEVs to enhance their efficiency and performance. With the U.S. and Canada working towards decarbonizing transportation and adhering to tighter emissions regulations, demand for electric vehicle components like traction motors is likely to keep growing.
The U.S. had a commanding revenue share in the North American market in 2024. Growing adoption of electric vehicles, electrification policies from governments, consistently increasing automaker investments in EV manufacturing, and technology advancements in motors have formed a favorable scenario for market expansion. Though not as robust as China, the nation is still among the biggest electric mobility markets, with 1.4 million new EV sales in 2023. Electric vehicle models are expanding in different segments like sedans, SUVs, and trucks, necessitating traction motors of differing power capacities, efficiencies, and performance capabilities. Moreover, programs like federal incentives, Zero-Emission Vehicle (ZEV) requirements, and the Bipartisan Infrastructure Law (2021) are anticipated to reinforce even more the manufacturing of EV traction motors within the nation.
Europe Electric Vehicle Traction Motor Market Trends
Europe held the second-largest share of revenue in the global EV traction motor market during 2024. Strong decarbonization targets by the European Union, having a robust regulatory environment supporting electrification, and a high level of consumer awareness for vehicle emissions have resulted in robust sales of EVs in regional economies. For example, in 2023, there were approximately 1.9 million units of electric vehicle sales in Europe covering battery electric vehicles (BEVs) and plug-in hybrid cars (PHEVs), amounting to about 15-20% of the total vehicles sold. In addition, Europe is expected to cover over 30% of worldwide EV sales by 2030, catapulting the component production of devices like traction motors required for moving vehicles exponentially. The fact that automakers like BMW, Mercedes-Benz, and Stellantis have invested heavily in fleet electrification has, in turn, caused a huge boost in the production of traction motors
Major Electric Vehicle Traction Motor Players:
The major players in the electric vehicle traction motor industry are listed below. These players have the largest market share and set industry trends.
ABB
PARKER HANNIFIN CORP
AB SKF
ZF Friedrichshafen AG
Robert Bosch GmbH
Valeo
CONTINENTAL ENGINEERING SERVICES
Hitachi, Ltd.
Turntide
YASA Limited
NIDEC CORPORATION
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Recent Developments
In October 2024, Nidec Motor Corporation and Ashok Leyland, a commercial vehicle manufacturer in India, signed a partnership agreement to hasten the electrification of Indian commercial vehicles. The program is to supply Nidec’s electric motor-controller system, E-Drive, to Ashok Leyland. It would also enable the firms to design next-generation E-Drives for commercial vehicle programs initiated by Ashok Leyland and its affiliates.
During May 2024, ABB unveiled a highly evolved package targeting electric buses as part of its HES580 inverter and AMXE250 motor. The package, encompassing a 3-level inverter, delivers extended lifespan along with significant improvements in efficiency along with up to 12% in motor loss reductions on typical drive cycles when compared to the performance of 2-level inverters. High torque density characterizes the motor to provide the maximum dynamic performance together with noise-less operations in an effort to maximize passenger comfort.
ZF declared in September 2023 that it had created a magnetless electric motor, the I2SM (In-Rotor Inductive-Excited Synchronous Motor), intended for use in electric vehicles. The technology provides a sound substitute alternative to existing permanent magnet synchronous motors that are currently the most widely applied design in EVs and is particularly characterized by compactness with highest power and torque density. Similarly, the absence of rare earths that are otherwise widely utilized within traditional motors also promises to facilitate greater sustainability throughout electric motor production, as well as enhance functionality efficiency.
