Automotive Traction Motor Market

Global Automotive Traction Motor Market Size (2023 to 2028)

The global automotive traction motor market is expected to reach USD 28.69 billion by 2028 from USD 8.53 billion in 2023, growing at a compound annual growth rate (CAGR) of 22.68% from 2023 to 2028.

Global Automotive Traction Motor Market Share Insights:

• The alternating current (AC) type motor segment held the dominant share in the market and is likely to continue its dominion over the coming years.
• The European region is estimated to witness the highest growth in this market due to the increased adoption of electric vehicles in commercial fleets.

MARKET DRIVERS:

The automotive traction motor offers the required propulsion in vehicles and converts the electric energy to mechanical energy to support the movement of vehicles.

The ongoing demand for electric vehicles (EVs) around the world is acting as a primary catalyst for the growth of the global automotive traction motor market. The increasing consumer and government preference for fossil fuel alternatives and green energy is driving the demand for more electric and hybrid vehicles. Also, several national governments are offering special incentives, tax benefits, and discounts to encourage more people to purchase electric vehicles and follow clean energy principles.

In addition, the reduction in the prices of batteries used in EVs is also drawing more consumers towards them, which is supporting the automotive traction motor market. Companies in the automotive sector are largely funding research and development activities to improve the performance and reliability of traction motors. Besides, the increasing advancements in technology and robotics are improving the functionality of these motors in electric vehicles and reducing the costs of the vehicles.

The recent developments to expand the network of charging stations and infrastructure facilities for electric vehicles are propelling the sales of these vehicles. Moreover, continuous innovations through collaborations with original equipment manufacturers are likely to generate new growth opportunities for the global automotive traction motor market in the coming days.

MARKET RESTRAINTS:

High infrastructure set-up costs for manufacturing these motors, as they must be durable and strong enough to combat any extreme climatic conditions, is a major factor hindering the global market growth. Also, several geopolitical and economic factors lead to uncertainty or disruptions in the supply of the raw materials that are pivotal in the production of these traction motors. In addition, electric vehicles are not fully accepted by consumers who often travel long distances due to the restricted driving range, long charging hours, and incomplete charging infrastructure in most developing nations. Lack of standardization in the charging systems, along with the recent reductions in government incentives, which is leading to a lot of confusion among the customers, is further hampering the growth of the automotive traction motor market.

The issues surrounding the recycling and disposal of electric vehicle batteries are showing a negative impact on the growth of the global market. Furthermore, the intense competition in the automobile industry can compromise the overall quality and increase the costs of the vehicles, creating various constraints to the automotive traction motors market during the forecast period.

Impact of COVID-19 on the automotive traction motor market:

The COVID-19 pandemic had a huge impact on the automotive traction motor market due to disruptions to the supply chain and restricted movements across the globe. The lockdown situation globally changed consumer priorities towards essentials, restricting the purchase of vehicles. In addition, the temporary shutdown of industries led to the halt of several research and development activities in the automotive industry. The market instability, along with the uncertainty in the adoption of new processes, had limited most of the companies to slow down their investments in the innovations in the electric vehicles market, which affected the automotive traction motors market. In addition, several governments have shifted investments towards essentials during COVID-19, which impacted the additional investments and developments in the automobile sector. Moreover, the strict lockdown conditions and safety protocols resulted in a decrease in workers at the manufacturing units and a shortage of raw materials, leading to a negative impact on the entire traction motors business. However, the pandemic also highlighted the significance of clean energy and a pollution-free society, which in the long run will definitely benefit the EV and hybrid vehicles market, boosting the automotive traction motors market.

REPORT COVERAGE:

This market research report on the global automotive traction motor market is segmented and sub-segmented into the following categories.

Global Automotive Traction Motor Market – By Type:

• AC Motor
• DC Motor

The AC-type motors segment had the largest share of the global market in 2022 and is expected to showcase the same trend in the forecast period owing to their enhanced performance, functionality and torque output. Also, there is a spike in demand for these AC motors in various applications like industrial machines, rail engines, hybrid vehicles and others. In addition to these, AC motors have high levels of adhesion, low maintenance costs, superior slip control and load management functions, making them the most desired type in the global automotive traction motors market.

Global Automotive Traction Motor Market – By Vehicle Type:

• Passenger Cars
• Buses
• Trucks
• Vans

The bus segment is anticipated to account for the major share of the worldwide market during the forecast period. Buses are among the most used public transport options that also release huge amounts of carbon dioxide into the atmosphere. Therefore, governments across the world are slowly replacing the traditional fossil fuel-led buses with electric vehicles, which will create great potential for the automotive traction motor market. The ongoing developments in battery technology coupled with the increasing operational range of buses from the manufacturers are likely to offer huge growth in the traction motor business.

Global Automotive Traction Motor Market – By Motor Type:

• AC Induction
• Permanent Magnet Synchronous Motor (PMSM)

The PMSM segment is estimated to showcase domination in the worldwide market during the forecast period. The PMSM motor type is predicted to record more demand with the increasing awareness of the benefits offered by permanent magnets. Being an amalgam of brushless DC motors and induction motors, the PMSM motor offers extensive reliability, torque and enhanced performance. Although the PMSM comes with very expensive rare earth materials to support the rotor motion, the advantages are likely to outweigh the disadvantages in the following years.

Global Automotive Traction Motor Market – By Power Rating:

• <200 kW
• 200-400 kW
• >400 kW

The less than 200 kW segment accounted for the largest share of this market due to the increasing adoption of passenger electric vehicles worldwide. Most of these electric vehicles require an output range of 30 to 50 kW, which supports the market dominance of this segment. However, the 200-400 kW and more than 400 kW segments are also calculated to expand at a notable rate because of the changing trends of electrification in commercial vehicles, heavy-duty trucks, railways and metro lines.

Global Automotive Traction Motor Market – By EV Type:

• Battery Powered
• Hybrid
• Plug-in Hybrid

The plug-in hybrid segment is expected to hold the leading share of the global market during the forecast period. The plug-in hybrid vehicles that function using both batteries and fuel are expected to record the highest growth rate in the forecast period. The consumer preference for better driving experience at affordable maintenance and driving range is fuelling the demand for these vehicles.

Global Automotive Traction Motor Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Europe holds the dominant part of the global automotive traction motor market and is expected to continue a similar growth trend over the forecast period. The surge in government initiatives to reduce carbon emissions and encourage electric vehicles is supporting the regional business. Germany is the leading market in Europe, with the presence of some of the leading automobile industry giants and huge investments in innovations and the latest technologies. Also, the rising transition to electric vehicles in both passenger and commercial purposes is driving the automotive traction motor market in this region.

After Europe, the Asia Pacific region is predicted to witness a tremendous growth rate in the market with increasing investments from both government and private organizations towards electric and hybrid vehicles. The focus on controlling air pollution and the release of greenhouse gases is pushing toward more alternative solutions like EVs. Also, the increasing purchase power, population and urbanization are indirectly supporting the automotive traction motors market.

North America is also a prominent player in this market, with rapid movements of electrification in passenger vehicles and commercial vehicles. North America is also home to some of the leading players in the automotive sector that are funding heavily in the new innovations.

Latin American and Middle Eastern African nations hold a smaller share of the global automotive traction motor market. However, these areas are estimated to witness huge growth in the forecast period due to the spike in foreign investment and more stability in economies.

KEY MARKET PLAYERS:

Robert Bosch GmbH, ZF Friedrichshafen AG, Siemens AG, Magna International, ABB Ltd., Bombardier Inc., BorgWarner Inc., Schaeffler Group, Nidec Corporation, Toshiba Corporation, Caterpillar Inc., Delphi Automotive LLP, Hitachi Limited, General Electric Company, Kawasaki Heavy Industries, VEM Group, The Curtiss-Wright Corporation, Hyundai Rotem Company, Mitsubishi Electric Corporation, Samsung SDI Company Ltd, BYD Company, CALB USA, Saft, GlobTek, Inc., and Panasonic Corporation. are playing a dominant role in global automotive traction motor market.

RECENT HAPPENINGS IN THE MARKET:

• In April 2023, Magna International announced its INEOS Automotive electric off-road contract that allows the former to be involved in the complete engineering process of the vehicles.
• In May 2023, Denso Corporation and United Semiconductor Japan Company Limited joined hands to produce the new insulated gate bipolar transistors, increasing their footprints in the electric vehicle market.
• In September 2023, Mercedes-Benz introduced its Concept CLA Class electric vehicle that was developed on a new architecture and holds the ability to cover 400 kilometers with charging for just 15 minutes.