Automotive Traction Motor Market Overview:
As per MRFR analysis, the automotive traction motor market Size was estimated at 15.34 (USD Billion) in 2022. The automotive traction motor market is expected to grow from 16.39 (USD Billion) in 2023 to 29.6 (USD Billion) by 2032. The automotive traction motor market CAGR (growth rate) is expected to be around 6.79% during the forecast period (2024 - 2032).
Key Automotive Traction Motor Market Trends Highlighted
The Automotive Traction Motor Market is projected to witness significant growth, driven by increasing demand for electric and hybrid vehicles.
Governments worldwide are implementing stringent emission regulations, incentivizing the adoption of eco-friendly transportation solutions. The rising cost of fossil fuels is also making electric vehicles more attractive to consumers.
Opportunities in the market include the development of new traction motor technologies, such as induction motors and permanent magnet motors. The growing popularity of electric buses and trucks is also creating new opportunities for traction motor manufacturers.
Recent trends in the market include the increasing use of artificial intelligence (AI) and machine learning (ML) in traction motor design and manufacturing. This allows manufacturers to optimize motor performance and efficiency.
Additionally, the trend toward autonomous driving is expected to drive demand for traction motors with higher torque and power density.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Traction Motor Market Drivers
Increasing Demand for Electric Vehicles
The automotive industry is undergoing a significant transformation, driven by the increasing demand for electric vehicles (EVs). EVs offer numerous advantages over traditional gasoline-powered vehicles, including lower operating costs, reduced emissions, and improved fuel efficiency.
As a result, governments worldwide are implementing policies and incentives to promote the adoption of EVs. This, in turn, is driving the demand for automotive traction motors, which are essential components of EVs.
The Automotive Traction Motor Market is expected to grow significantly in the coming years. According to a recent study, the market is projected to reach a value of USD 29.6 billion by 2032, growing at a CAGR of 6.79% from 2024 to 2032.
This growth is attributed to the increasing demand for EVs, as well as the growing popularity of hybrid electric vehicles (HEVs). HEVs combine a gasoline engine with an electric motor to improve fuel efficiency and reduce emissions.
The increasing demand for EVs is being driven by a number of factors, including rising fuel prices, growing environmental concerns, and government incentives.
In addition, the development of new battery technologies is making EVs more affordable and practical for consumers. As a result, the demand for automotive traction motors is expected to continue to grow in the coming years.
Government Regulations and Policies
Government regulations and policies are also a significant factor that is driving the growth of the automotive traction motor market. Governments across the world are implementing policies and incentives to drive the adoption of EVs.
These policies include tax breaks, rebates, and access to the high-occupancy vehicle lanes for EVs. In addition, some governments have set a target to reduce greenhouse gas emission. As a result, the demand for EVs and automotive traction motors are driven.
For instance, the European Union has a target to reduce greenhouse gas emission by 40% by 2030. As a result, the demand for EVs and automotive traction motors is increasing in the European Union. Similarly, the Chinese government has set the target to have 20% of all vehicles to be electric by 2025.
As a result, the demand for automotive traction motors will increase in China. Therefore, it is evident that the government regulations and policies are a major factor that is driving the growth of the automotive traction motor market.
The role of government regulations and policies will continue to play a major role in driving the growth of the automotive traction motor market in the future.
Technological Advancements
Technological advancements are one of the main driving forces behind the growth of the automotive traction motor market. First, these advancements include the development of new types of materials.
As a result, the motors are becoming more effective, energy-efficient, and compact in size because they can utilize previously unused areas inside the engines. Second, these advancements entail the use of new manufacturing processes to increase the production of beefier and more electrical components at a lower cost.
Automotive traction motors are becoming more efficient, powerful, and affordable as a result. For example, the development of new materials allows to make automotive traction motors out of lighter materials that occupy less space.
This is important for electric vehicles since a smaller engine means more space for the battery or other compartments. Also, the development of new design solutions is important for hybrid vehicles, making automotive traction motors more energy-efficient and powerful to ensure better performance and fuel efficiency.
In the future, it is safe to assume that the development of new technology solutions will continue to drive the growth of the automotive traction motor market.
Automotive Traction Motor Market Segment Insights:
Automotive Traction Motor Market Motor Type Insights
The Automotive Traction Motor Market is segmented based on motor type into AC Induction Motor, DC Motor, Permanent Magnet Synchronous Motor, and Switched Reluctance Motor.
Among these segments, the AC Induction Motor segment accounted for the largest market share in 2023 and is expected to remain dominant over the forecast period.
The growth of the segment can be ascribed to the low cost and high efficiency of the AC Induction Motor. The DC Motor segment is anticipated to exhibit an accelerated growth rate over the forecast period. This can be credited to the increasing penetration of electric vehicles that use DC Motors for its propulsion.
The Permanent Magnet Synchronous Motor segment is expected to grow at a substantial rate due to its high efficiency and power density, whereas the Switched Reluctance Motor segment is anticipated to grow at a sluggish rate owing to limited applications in the automotive industry.
In 2023, the Automotive Traction Motor Market was valued at 16.39 billion USD. The growth of the market is attributable to the increasing demand for electric vehicles that use traction motors for propulsion. Moreover, the government regulations favoring the use of electric vehicles are also contributing to the growth of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Traction Motor Market Voltage Insights
The Automotive Traction Motor Market is segmented by voltage level, which includes low voltage below 690V, medium voltage from 690V to 1 kV, and high voltage above 1 kV.
High voltage traction motors are expected to grow at a significant pace due to its superstitious features over medium and low voltage traction motors. These advantages include high efficiency, power density, and cost-effectiveness.
In 2023, the high-voltage traction motor generated a revenue of USD 4.5 billion and is expected to grow further at a CAGR of 7.2% to reach USD 6.9 billion by 2032.
The traction medium voltage motor is also expected to grow at a steady pace by driving the demand for electric vehicles in emerging countries.
Automotive Traction Motor Market Application Insights
The passenger cars segment held a dominant share in the Automotive Traction Motor Market in 2023 and is projected to continue its dominance during the forecast period. The growing demand for electric passenger cars, government initiatives to promote electric vehicles, and advancements in battery technology are key factors driving the growth of this segment.
The Commercial Vehicles segment is expected to witness significant growth during the forecast period, owing to the increasing adoption of electric buses and trucks in public transportation and logistics.
Off-Highway Vehicles segment is anticipated to grow at a steady pace, driven by the growing demand for electric construction and mining equipment. Industrial Machinery segment is also projected to grow steadily, due to the rising adoption of electric motors in industrial applications.
The Electric Scooters and Motorcycles segment is expected to witness significant growth, driven by the increasing popularity of electric two-wheelers in urban areas.
Automotive Traction Motor Market Cooling System Insights
The Cooling System segment of the Automotive Traction Motor Market is categorized into Liquid-Cooled, Air-Cooled, and Hybrid Cooling. Liquid-cooled systems dominate the market, accounting for over 60% of the revenue in 2023.
This dominance is attributed to their superior cooling efficiency and ability to maintain optimal operating temperatures, even under high-load conditions. Air-cooled systems, while less efficient, are more cost-effective and suitable for applications with space constraints.
Hybrid Cooling systems combine the advantages of both Liquid-Cooled and Air-Cooled systems, offering a balance of efficiency and cost-effectiveness.
The market segmentation provides valuable insights into the performance and growth potential of each cooling system type, enabling stakeholders to make informed decisions and develop targeted strategies.
Automotive Traction Motor Market Regional Insights
The regional segmentation of the Automotive Traction Motor Market provides valuable insights into the market's geographical distribution and growth potential.
North America is currently the largest regional market, accounting for a significant share of the Automotive Traction Motor Market revenue in 2023. The region's robust automotive industry, coupled with increasing government support for electric vehicles, is driving market growth. Europe is another key region, with a well-established automotive sector and a growing demand for electric vehicles.
The APAC region is expected to witness significant growth in the coming years, driven by the rising adoption of electric vehicles in countries like China and India.
South America and MEA are relatively smaller markets, but they offer promising growth opportunities due to the increasing awareness of electric vehicles and government initiatives promoting their adoption.
Overall, the regional segmentation highlights the diverse market dynamics and growth prospects across different regions, enabling stakeholders to tailor their strategies accordingly.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Traction Motor Market Key Players and Competitive Insights:
Major players in the automotive traction motor market are constantly innovating and developing new technologies to gain a competitive edge. To maintain their position in the market, they are focusing on strategic partnerships, acquisitions, and collaborations.
Leading automotive traction motor market players are also investing heavily in research and development to improve the efficiency and performance of their products.
The automotive traction motor market is witnessing a trend toward consolidation, with major players acquiring smaller companies to expand their market share. This consolidation is driven by the need to gain access to new technologies, capabilities, and markets.
Toyota is a Leading automotive traction motor market player with a strong focus on electric vehicles. The company has been investing heavily in the development of electric motors and powertrains, and it has a wide range of electric vehicles on the market. Toyota is also a leader in the development of fuel cell technology, and it is expected to launch its first fuel cell vehicle in 2023.
Another Leading automotive traction motor market player is Tesla. Tesla is a pioneer in the electric vehicle industry, and it has been responsible for driving the adoption of electric vehicles around the world. Tesla's vehicles are known for their performance, efficiency, and affordability.
The company is also a leader in the development of autonomous driving technology, and it launched its first fully autonomous vehicle in 2023.
Key Companies in the automotive traction motor market Include:
- BorgWarner Inc.
- GKN Automotive
- Hyundai Mobis
- Nidec
- Eaton Corporation
- Schaeffler Technologies AG Co. KG
- Hitachi Automotive Systems
- Mitsubishi Electric Corporation
- Tesla
- Valeo
- ZF Friedrichshafen AG
- LG Electronics
- Magna International Inc.
- Denso Corporation
- JTEKT
Automotive Traction Motor Market Developments
The increasing demand for electric vehicles, rising environmental concerns, and government initiatives promoting EV adoption are driving the growth of the market. Asia-Pacific is expected to hold the largest market share, driven by the increasing production of electric vehicles in China and India.
Key players in the market include Nidec Corporation, Denso Corporation, and Siemens AG. Recent developments include the launch of new traction motors with higher efficiency and power density, and strategic partnerships between automakers and traction motor manufacturers.
Automotive Traction Motor Market Segmentation Insights
- Automotive Traction Motor Market Motor Type Outlook
- AC Induction Motor
- DC Motor
- Permanent Magnet Synchronous Motor
- Switched Reluctance Motor
- Automotive Traction Motor Market Voltage Outlook
- Low Voltage (below 690V)
- Medium Voltage (690V to 1 kV)
- High Voltage (above 1 kV)
- Automotive Traction Motor Market Application Outlook
- Passenger Cars
- Commercial Vehicles (Buses, Trucks)
- Off-Highway Vehicles
- Industrial Machinery
- Electric Scooters and Motorcycles
- Automotive Traction Motor Market Cooling System Outlook
- Liquid-Cooled
- Air-Cooled
- Hybrid Cooling
- Automotive Traction Motor Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.34(USD Billion) |
| Market Size 2023 |
16.39(USD Billion) |
| Market Size 2032 |
29.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.79% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
BorgWarner Inc., GKN Automotive, Hyundai Mobis, Nidec, Eaton Corporation, Schaeffler Technologies AG Co. KG, Hitachi Automotive Systems, Mitsubishi Electric Corporation, Tesla, Valeo, ZF Friedrichshafen AG, LG Electronics, Magna International Inc., Denso Corporation, JTEKT |
| Segments Covered |
Motor Type, Voltage, Application, Cooling System, Regional |
| Key Market Opportunities |
Electric vehicle proliferation Technological advancements Government initiatives Growing demand for high-performance vehicles Increasing focus on sustainable transportation |
| Key Market Dynamics |
Rising electric vehicle adoption Technological advancements Growing government support |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The automotive traction motor market reached a valuation of 16.39 billion USD in 2023.
The market is expected to grow at a CAGR of 6.79% from 2024 to 2032.
Asia-Pacific dominated the market in 2023 due to increasing demand for electric vehicles in the region.
Automotive traction motors are primarily used to power electric and hybrid vehicles.
Some of the key players in the market include Denso, Nidec, and BorgWarner.
The market is projected to reach a valuation of 29.6 billion USD by 2032.
Factors such as increasing demand for electric vehicles and government regulations promoting their adoption are driving market growth.
Permanent magnet synchronous motors (PMSMs) are expected to experience the highest growth rate due to their high efficiency and power density.
Challenges include the high cost of production and the need for technological advancements to improve efficiency and durability.
The growing popularity of electric vehicles is creating a surge in demand for traction motors.
