Electric Vehicle Motor Market

Rising demand for energy-efficient motors to boost the market growth

As per the US Department of Energy (DOE), in March 2020, electric vehicle motor were responsible for half of the energy utilization in the US manufacturing sector. Electric vehicle motor used in industrial and infrastructure applications are responsible for 53% of the world's total electricity consumption. Thus, various regulations have been implemented to ensure efficient and effective energy utilization. The International Electrotechnical Commission (IEC), a European regulatory authority, has set energy efficiency norms. Various countries have started implementing such regulations to enhance the energy efficiency of electric vehicle motor.

IEC has created a set of motor effectiveness regulations, known as IE1, IE2, IE3, and IE4, for decreasing carbon emissions.

Further, Development in the electric vehicle motor and an enhancement in government regulations and guidelines concerning vehicular emanations are the major reasons driving the electric vehicle motor industry. Nonetheless, the high starting cost of an electric engine and the high support costs related to an electric vehicle motor limit the development of the market.

Additionally, the electric vehicle powertrain control frameworks significantly affect the electric vehicle's range. The utilization of strict administrative restrictions is another major factor in industry expansion. Various governments have established stringent discharge standards to decrease GHG emissions and mitigate the causes of unnatural weather change. It thus expected automakers to develop zero-discharge automobiles to abide by more difficult emission regulations. These regulations have resulted in a more effective focus on producing the more capable electric car, which will boost market for electric vehicle motor during the forecast period.

However, Speedy urbanization, which adds a premium for financial transportation mediums like electric vehicles, is a key driver impacting the market expansion. When standing out from IC vehicles, electric vehicles are all the more monetarily clever and have a lower environmental impact. Thus, speedy urbanization drives the growth of the electric vehicle motor market revenue.

The Global Electric Vehicle Motor Market Industry is on a trajectory of remarkable growth, with projections indicating a substantial increase in market size. By 2035, the market is expected to reach 430.3 USD Billion, reflecting a robust demand for electric vehicle motors. This growth is supported by various factors, including technological advancements, government incentives, and increasing consumer awareness of environmental issues. The anticipated compound annual growth rate (CAGR) of 18.77% from 2025 to 2035 further underscores the potential for expansion within the industry. Such projections highlight the dynamic nature of the market and the opportunities it presents for stakeholders.

The Global Electric Vehicle Motor Market Industry is experiencing a surge in demand driven by the increasing adoption of electric vehicles (EVs) worldwide. As consumers become more environmentally conscious, the shift towards EVs is evident. In 2024, the market is projected to reach 64.9 USD Billion, reflecting a growing preference for sustainable transportation solutions. Governments are also incentivizing EV purchases through subsidies and tax breaks, further propelling market growth. This trend is expected to continue, with the market anticipated to expand significantly as more manufacturers enter the EV space, enhancing the overall appeal of electric mobility.

The Global Electric Vehicle Motor Market Industry is significantly influenced by government regulations aimed at reducing carbon emissions and promoting sustainable transportation. Many countries are implementing stringent emission standards, which compel automotive manufacturers to invest in electric vehicle technologies. Incentives such as tax credits, rebates, and grants for EV purchases further stimulate consumer interest. This regulatory environment is expected to foster a robust growth trajectory for the market, with a projected compound annual growth rate (CAGR) of 18.77% from 2025 to 2035. Such policies not only support the transition to electric mobility but also enhance the overall market landscape.

Technological innovations in electric motor design are pivotal to the Global Electric Vehicle Motor Market Industry. Enhanced efficiency and performance are achieved through advancements such as the development of permanent magnet synchronous motors and improved battery integration. These innovations not only increase the range and performance of electric vehicles but also reduce manufacturing costs. As a result, the market is likely to witness a substantial transformation, with projections indicating a growth to 430.3 USD Billion by 2035. The continuous evolution of motor technology is essential for meeting the demands of modern consumers and ensuring the competitiveness of electric vehicles in the automotive sector.

The expansion of charging infrastructure is a critical driver for the Global Electric Vehicle Motor Market Industry. As more charging stations are established globally, consumer confidence in electric vehicles increases, alleviating range anxiety. This infrastructure development is supported by both public and private investments, which are essential for facilitating the widespread adoption of electric vehicles. The availability of fast-charging stations and home charging solutions enhances the practicality of owning an EV. Consequently, the market is poised for significant growth, as improved infrastructure is likely to attract more consumers to electric mobility, thereby contributing to the overall market expansion.

The Global Electric Vehicle Motor Market Industry is increasingly shaped by heightened environmental awareness among consumers. As climate change concerns grow, individuals are more inclined to choose electric vehicles over traditional combustion engines. This shift is not merely a trend but a fundamental change in consumer behavior, driven by the desire for sustainable living. The market is expected to benefit from this shift, as electric vehicles are perceived as a cleaner alternative. With the market projected to reach 64.9 USD Billion in 2024, it is evident that sustainability is becoming a core value in the automotive industry, influencing purchasing decisions and driving market growth.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific electric vehicle motor market accounted for USD 16.84 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Due to developing industrialization, Asia Pacific countries are moving toward web-based modern exercises in all areas. The GSM Association reports that Asia Pacific nations like Australia, Japan, and South Korea are progressively investigating the conceivable outcomes of recent administrations and related items. The district's car market is, in like manner, flourishing.

Asia Pacific is the globe's most noteworthy producer of cars. Moreover, China electric vehicle motor market held the largest market share, and India electric vehicle motor was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the  electric vehicle motor market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  Electric Vehicle Motor Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe electric vehicle motor market accounts for the second-largest market share due to the steps taken by the regional government to reduce carbon emissions have been the driving factor for the growth of the market in Europe. Further, the Germany electric vehicle motor market held the largest market share, and the UK electric vehicle motor market was the fastest-growing market in the European region.

The North America electric vehicle motor market is anticipated to grow at the fastest CAGR from 2022 to 2030. This is attributed to the presence of emerging players in these regions that are focused on developing electric vehicle motor technologies and increasing the efficiency of electric motors to increase the cruising range of electric vehicle motor. Moreover, US electric vehicle motor market held the largest market share, and the Canada electric vehicle motor market was the fastest-growing market in the North America region.

Major market players are spending a lot on R&D to increase their product lines, which will help to grow the electric vehicle motor market data. Market participants are also taking a range of strategic initiatives to grow their footprint ly, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, expand its investments, and collaboration with other organizations. Competitors in the electric vehicle motor industry must provide cost-effective items to expand and survive in an increasingly competitive and growing environment for electric vehicle motor market.

One of the primary business strategies manufacturers adopt in the  electric vehicle motor industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In the electric vehicle motor market, major players such as Continental AG (Germany), Hitachi Automotive Systems Ltd. (Japan), Tesla Inc. (US) and others are working on expanding the  electric vehicle motor market demand by investing in research and development activities and expanding the electric vehicle motor market revenue.

ABB Ltd is a technology leader in electrification and automation, allowing a more sustainable and resource-efficient future. The firm solutions connect engineering know-how and software to optimize how things are moved, manufactured, powered and operated. Building on more than 130 years of greatness, ABB's 105,000 employees are determined to drive innovations that fuel industrial transformation. In August 2022, ABB announced that it had signed an acquisition to purchase Siemen's low-voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this acquisition provides a well-regarded product portfolio, a longstanding North American customer base, and experienced operations, sales, and management team.

Also, WEG is a  electric-electronic equipment firm, operating majorly in the capital goods sector with solutions in electric machines, automation and paints for several sectors, including infrastructure, steel, pulp and paper, oil and gas, and mining, among many others. WEG stands out in innovation by constantly developing solutions to meet the major trends in energy efficiency, renewable energy and electric mobility. With manufacturing units in 12 countries and present in more than 135 countries, the company has more than 36,900 employees worldwide.

In July 2022, WEG launched the W12 electric vehicle motor, designed for high-performance industrial applications while offering versatility and efficiency.