Electric Vehicle (EV) Motor Market Size, Share & Industry Analysis, By Vehicle Type (Two Wheeler, Three Wheeler, Passenger Vehicle, and Commercial Vehicle), By Component (Motor Stator, Rotor, Shaft, and Bearing, Permanent Magnet, Casing, and Wiring & Connectors), By Power Rating (Up to 20 kW, 20 KW to 100 KW, 100 KW to 250 KW, and Above 250 KW), Regional Forecast, 2024-2032

The global electric vehicle (EV) motor market size was valued at USD 17.15 billion in 2023. The market is projected to grow from USD 23.75 billion in 2024 to USD 73.90 billion by 2032, exhibiting a CAGR of 15.2% during the forecast period.

An Electric Vehicle (EV) motor is an essential component of electric vehicles and is accountable for converting electrical energy into mechanical energy to propel the vehicle. Electric vehicles are powered by batteries, which supply electricity to the motor. There are several types of electric motors, such as Brushless DC motors (BLDC), Permanent Magnet Synchronous Motors (PMSM), induction motors, and Switched Reluctance Motors (SRM). Electric vehicle motors play a critical role in the operation and performance of electric vehicles, contributing to their efficiency, environmental friendliness, and increasingly widespread adoption as a sustainable transportation solution. The demand for electric motors is directly proportional to the sale and adoption of electric vehicles. According to IEA, the sale of electric vehicles increases yearly, and the rising adoption of EVs is expected to drive the market growth over the forecast period 2024-2032.

The disruptions in production and difficulty in forecasting the demand for electric vehicles were challenging due to the COVID-19 pandemic and the growth of the electric vehicle market. Supply constraints of specific components, mainly the semiconductor chips, had highly impacted the production of vehicles. Due to this, companies were lagging in vehicle production, influencing the sale and demand for electric motors. The electric vehicle market is booming after the COVID-19 pandemic.

Electric Vehicle (EV) Motor Market Trends

Replacement and Minimal Use of Rare Earth Metals in Permanent Magnets to Drive the Market Growth

Rare earth metals are used to produce permanent magnets used in manufacturing PMSM (Permanent Magnet Synchronous Motor), such as cerium, lanthanum, neodymium, dysprosium, and terbium are expensive and produce much waste with certain mining concerns. Magnets should have high coercivity, which is the ability of a magnet to maintain magnetization even at high temperatures. For this purpose, about 30% of the magnet is made of rare earth metals.

Terbium and dysprosium are used in neodymium magnets for their use in high-temperature applications such as automotive. However, these are very expensive metals found in locations with geopolitical risks that can cause a shortage of these metals in the near future. The companies are focusing on reducing the use of these metals, and research and development activities are being conducted to find a replacement for these metals.

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Electric Vehicle (EV) Motor Market Growth Factors

Strict Government Regulations and Policies to Drive the Market Growth  

Various regulatory authorities have set up strict regulation policies regarding the emission due to vehicles affecting the environment and triggering the greenhouse gas effect. Vehicle pollution has become a serious concern due to which degradation in the air quality is increasing at a higher rate. The government has planned on banning or stopping the production of diesel and petrol cars. For instance, the U.S. State of California has planned to ban the sale of petrol cars by 2035. Further, the government aims to incorporate the use of electric or hybrid-electric vehicles on the roads. Due to this initiative, the number of electric vehicles on the roads will increase, thus, increasing demand for EV motors to be installed in the vehicle. This will drive the EV motor market growth during the forecast period. The government is focused on improving air quality. For instance, in Delhi, India, 12.4 million tons of C0₂ are emitted by vehicles on the road. The Delhi government is promoting the use of electric vehicles. It is also focused on providing the charging infrastructure by which ease of accessibility which will encourage the adoption of electric vehicles, which propels the market growth of electric motors.

RESTRAINING FACTORS

High Manufacturing Costs for Electric Vehicles are Restraining the Market Growth

Electric vehicles are becoming more popular in developing countries, considering their benefits and supportive incentive activities from the different governments. Due to this, demand for vehicles is increasing drastically year-on-year. However, electric vehicles need high capital for manufacturing due to the procurement of rare earth metals used in permanent magnets for synchronous motors. In terms of pricing, the cost of an EV is equal to luxury car segments. However, the government is working on reducing the cost of e-vehicles. For instance, In June 2022, the Union Transport and Highways Minister announced that the cost of electric vehicles would be the same as the cost of petrol vehicles within one year. Companies are working on reusing earth metals. For instance, In March 2022, GKN Automotive announced that it would manufacture EV motors by reusing the rare earth metals required for manufacturing a motor under the Secure Critical Rare Earth Magnets (SCREAM) for the U.K., under which a team of engineers will manufacture the 800-volt electric motor for electric vehicles using recycled rare earth materials. Due to high manufacturing cost, the price of vehicles is much costlier than conventional vehicles. This restrains the adoption of electric vehicles in a few countries by major low-to-middle class income populace, which resists the growth of the EV motor market.

Electric Vehicle (EV) Motor Market Segmentation Analysis

By Vehicle Type Analysis

High Fuel Prices and Government Incentives to Drive the Passenger Vehicle Segment Growth

By vehicle type, the market is segmented into two wheeler, three wheeler, passenger vehicle, and commercial vehicle.

Passenger vehicle segment dominated the market with a significant market share in 2023. The segment covers battery and hybrid electric vehicle propulsion type. People shifting to electric mobility that provides an easy and quiet driving experience has increased significantly over the past few years. Moreover, the government is implementing stringent emission rules and providing subsidies for adopting electric vehicles. Along with this, high fossil fuel prices used in conventional vehicles push the populace to adopt electric vehicles, fueling the demand for electric motor.

Two wheeler was the fastest-growing segment in the market in 2023. Electric two wheelers are compact, lightweight, and easy to drive in congested cities. There is higher adoption of electric two wheelers incorporating in-wheel EV motor by consumers due to high rates of petrol, with the increasing availability of electric two wheeler from the manufacturers.

Three wheeler segment accounts for a significant market share in the year 2023. An electric three wheeler offers lower operating costs than a conventional three wheeler. The electric three wheeler can be used for various applications such as transporting passengers and goods. Rising demand of electric three wheelers for commercial purposes to drive the market growth.

Commercial vehicle segment accounted for a considerable market share in 2023. The segment covers battery electric vehicle propulsion type and hybrid electric vehicle propulsion type. High-power electric motors are introduced in the EV market, providing high torque and power. Due to this, commercial vehicles are used for light, medium, and heavy-duty applications, which are propelled by electric motors.

By Component Analysis

Development of Permanent Magnets to Drive the Component Segment Growth

Based on component, the market is divided into motor stator, rotor, shaft, and bearing, permanent magnet, casing, and wiring & connectors.

The rotor, shaft, and bearing segment held a significant market share in 2023. The rotor is the rotational part of the motor. The rotation of the rotor due to interaction between windings and magnetic fields produces torque around the rotor's axis. Development of the rotor is made to save energy, reducing losses. For instance, the copper rotor used in AC induction motors will save energy by reducing losses, and improving efficiency will fuel the market growth.

The permanent magnet segment dominated the market with the highest CAGR over the forecast period. Permanent magnets are manufactured with the help of rare earth metals. However, mining and utilization of rare earth metals are expensive and complicated. Therefore, companies are focused on developing electric motors which will utilize permanent magnets. For instance, Toyota has developed a magnet for electric vehicle motors that requires 50% less neodymium, and use of terbium and dysprosium is replaced by cerium and lanthanum. This has resulted in the price becoming 20 times less expensive.

The motor stator segment accounted for a considerable market share in 2023. The stator is basically a stationary part of the EV motor. It produces a magnetic field that drives the rotating armature. Due to this, stator plays a crucial role in the EV motor, thus driving the market.

The casing segment held a decent market share in 2023. The casing is the housing of the EV motor. A good casing helps in the efficient functioning of the motor. The steel used for the electric motor casing makes the EV motor heavy in weight. The adoption of aluminum for manufacturing casing that provides lightweight EV motors is driving the market.

The wiring & connectors segment held a substantial market share in 2023. Wiring and connectors are used to connect the electric motor with various parts of an electric vehicle. It is used to connect the electric motor with the electric battery, providing electricity to the motor to function and drive the electric vehicle. Less complicated wiring and connectors provide easy assembling and disassembling when servicing a vehicle.

By Power Rating Analysis

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Increasing Demand for High Power and Efficient Electric Motor to Drive the Power Rating Segment

Based on power rating, the market is segmented into up to 20 kW, 20 kW to 100 kW, 100 kW to 250 kW, and above 250 kW.

The 100 kW to 250 kW segment held a major market share in 2023. The 100 kW to 250 kW motor is used in high-power passenger cars and medium-duty commercial vehicles due to high power output, high efficiency, low maintenance, and operating cost. The adoption of medium-duty commercial vehicles is increasing, which propels the growth of the market. For instance, leading OEMs such as Tesla, BYD, and others use EV motor, which gives power output in the range of 100 kW to 250 kW. Moreover, governments of several countries have adopted electric buses for the mass transit of the populace. The buses are incorporated with an electric motor giving a power output of 100 to 250 kW. Also, consumers are inclined to adopt electric medium-duty trucks, which fueled the EV motor market.

The 20 kW to 100 kW segment is the fastest-growing segment in the market. 20 kW to 100 kW motor is used in four wheelers such as passenger cars and lightweight commercial vehicles. Consumers are inclined toward adopting electric vehicles for day-to-day purposes due to high efficiency, low maintenance, and operating costs, thus fueling the market. Due to the increasing adoption of electric passenger vehicles and light-duty commercial vehicles, the demand for EV motors with the required power output has increased. Consumers are inclined toward using passenger cars, which propels the segment growth in the market.

The up to 20 kW segment held a significant market share in 2023. Up to 20 kW motors are used in electric two wheelers and three wheelers. The growth is attributed to the rising demand for electric two wheelers and three wheelers for various applications and the direct availability and accessibility of two wheelers, driving the market growth during the forecast period.

The above 250 kW segment held a considerable market share in 2023. Above 250 kW motors are used in heavy-duty commercial vehicles such as buses and trucks. Governments have implemented various schemes and increased the adoption of electric buses for mass transit of people and electric trucks, which produce less noise and have high torque and efficiency, which are used to transport heavy goods and prevent CO2 emission.

REGIONAL INSIGHTS

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Asia Pacific dominated the electric vehicle motor market share (China representing majority of the share) and stood at USD 8.98 billion in 2023 due to rise in the sale and registration of electric vehicles (two, three wheelers, passenger, and commercial vehicles). For instance, in 2023, China displayed significant growth from 2022 to 2023; China sold around 9.49 million EVs, which will fuel the market growth in the region. Moreover, most consumers prefer EVs in key countries such as Japan, China, and India. This will lead to increasing demand for EV motors.

Europe is anticipated to show significant market growth due to rise demand for vehicles for reduced transportation & maintenance costs and zero-emission. According to the European Automobile Manufacturers Association, the sales of new electric cars grew 37 % year on year in the continent last year and accounted for 14.6 % of overall sales. Therefore, most electric vehicles are acquired for specific uses within fixed delivery areas and may not need an extended driving range. This is expected to lead to an exponential boost surge in demand for EV motors.

North America is expected to witness promising market growth. In the U.S., electric vehicle brands have consistently increased demand. In 2023, consumer and government spending increased in the U.S. Infrastructure investment in charging stations was also increased by the government. These factors will impact the market growth.

List of Key Companies in Electric Vehicle (EV) Motor Market

Focus on the Development of EV Motor Technologies to Drive the Competition

The market is vastly fragmented and is led by various global market players operating in this industry. These companies focus on expanding their product range to cover a more extensive EV customer base. Additionally, these leading players are targeting Europe to expand their business due to the increasing focus on green energy adoption in the regions ever since the pandemic. Besides, companies are also focused on technological developments to offer additional features through their EV motors, such as compact design, increased torque, and inverters, which drive the market competition.

Robert Bosch GmbH Company Ltd Dominates the Market due to Partnerships and Industry-leading Products

Robert Bosch GmbH Company Ltd is a leading player in the global market. Its business primarily involves the development and manufacturing of EV motors. These factors have enabled the leading company to capture a larger market share. The company provides a wide range of electric mobility solutions and products, such as electric motors, powertrains, traction motors, and electric drive modules, for passenger and commercial vehicles.

LIST OF KEY COMPANIES PROFILED:

•  Robert Bosch GmbH (Germany)


•  Siemens AG (Germany)


•  ABB (Switzerland)


•  AISIN CORPORATION (Japan)


•  LG Magna e-Powertrain Co., Ltd (South Korea)


•  Johnson Electric Holdings Limited (Hong Kong)


•  BorgWarner Inc. (U.S.)


•  Nidec Industrial Solutions (Japan)


•  Mitsubishi Electric Corporation (Japan)


•  Allied Motion, Inc. (U.S.)


•  TECO Corporation (Taiwan)


•  Toshiba International Corporation (Japan)


•  GKN Automotive (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 - GKN Automotive introduced a new plug-and-play eDrive concept designed to meet the growing demand for modular electric drive technology among niche electric vehicle players and EV conversion companies. The new e-drive concept utilizes GKN Automotive’s 20 years of eDrive experience to create a cost-effective modular electric drive system with optimal efficiency and performance and market-proven technology in an off-the-shelf format.


• May 2023 - Nidec Industrial Solutions announced that the company opened two new factories in Novi Sad, Republic of Serbia, in response to growing demand for electric vehicle (EVs) components in Europe. Nidec Electric Motor Serbia plans to mass-produce automotive motors, and Nidec Elesys Europe plans to mass-produce automotive inverters and ECUs.


• June 2022 – ABB and Integrated Power Services (IPS) signed a partnership to provide reliable, efficient solutions for customers in Western Ontario, Manitoba, and Saskatchewan. ABB will provide its products and services for all powertrain applications. IPS was dedicated to offering its electrical products in Canada, particularly motors and drives applicable to switch gears.


• April 2022 – AISIN CORPORATION, in collaboration with DENSO Corporation and BluE Nexus Corporation, developed a new powertrain unit, eAxle, for the newly launched BEV bZ4X from Toyota. BluE, Aisin, and Denso. It introduced two models of eAxle such as 150 kW specification (front) for FWD vehicles and 80 kW specification (front and rear) for 4WD vehicles. The eAxle is designed to be compact, incorporating an inverter, and a compact motor with a short distance between the shafts adapting an output shaft.


• April 2022 – LG Magna e-Powertrain celebrated the groundbreaking for initiating a new plant in Ramos Arizpe, Mexico. The plant construction will be completed in 2023 and will be available to manufacture inverters, motors, and on-board chargers compatible with General Motors electric vehicle platform. The plant will be 260,000 square feet, creating 400 new jobs in the North American region.

REPORT COVERAGE

The research report covers a detailed market analysis. It focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key automotive industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of several factors that have contributed to the market growth in recent years.

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