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US Automotive Electric Motors Market

ID: MRFR/AT/12987-HCR
100 Pages
Sejal Akre
October 2025

US Electric Motors Market Research Report By Product Type (AC Motors, DC Motors, Hermetic Motors), By Application Type (Aerospace & Transportation, Industrial Machinery, Motor Vehicles, HVAC Equipment, Household Appliances, Others) and By Power Output (Integral HP Output, Fractional HP Output) - Forecast to 2035

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US Automotive Electric Motors Market Infographic
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US Automotive Electric Motors Market Summary

As per analysis, the US Automotive Electric Motors Market is projected to grow from USD 7.96 Billion in 2025 to USD 16.8 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.84% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US Automotive Electric Motors Market is poised for substantial growth driven by technological advancements and increasing demand for electric vehicles.

  • The Passenger Vehicle segment remains the largest contributor to the market, reflecting a robust consumer shift towards electric mobility.
  • The Commercial Vehicle segment is currently the fastest-growing, indicating a rising interest in electrification for logistics and transportation.
  • Permanent Magnet Motors dominate the market, while Induction Motors are emerging as the fastest-growing technology due to their efficiency and cost-effectiveness.
  • Key market drivers include the ongoing technological advancements in electric motors and the increasing consumer demand for sustainable transportation solutions.

Market Size & Forecast

2024 Market Size 7.32 (USD Billion)
2035 Market Size 16.8 (USD Billion)
CAGR (2025 - 2035) 7.84%

Major Players

Tesla Inc (US), General Motors Co (US), Ford Motor Co (US), Nissan North America Inc (US), BMW of North America LLC (US), Rivian Automotive Inc (US), Lucid Motors Inc (US), Stellantis NV (US)

US Automotive Electric Motors Market Trends

The US Automotive Electric Motors Market is currently experiencing a transformative phase, driven by a confluence of technological advancements and regulatory pressures. The increasing emphasis on sustainability and energy efficiency has prompted manufacturers to innovate and enhance electric motor designs. This shift is not merely a response to consumer demand but also aligns with federal initiatives aimed at reducing greenhouse gas emissions. As a result, the market is witnessing a surge in the adoption of electric vehicles, which rely heavily on advanced electric motor technologies. Furthermore, the integration of smart technologies into electric motors is becoming more prevalent, suggesting a future where connectivity and automation play pivotal roles in automotive design. In addition to technological advancements, the US Automotive Electric Motors Market is influenced by evolving consumer preferences. There appears to be a growing inclination towards electric vehicles, which are perceived as environmentally friendly alternatives to traditional combustion engines. This trend is further supported by state-level incentives and infrastructure development, which facilitate the transition to electric mobility. As manufacturers adapt to these changes, the market is likely to see increased competition, with companies striving to differentiate their offerings through innovation and performance enhancements. Overall, the landscape of the US Automotive Electric Motors Market is poised for significant evolution, reflecting broader shifts in the automotive industry.

Technological Advancements in Electric Motors

The US Automotive Electric Motors Market is witnessing rapid technological advancements, particularly in the development of more efficient and compact electric motors. Innovations such as improved materials and design methodologies are enhancing performance and reducing energy consumption. This trend is likely to continue as manufacturers seek to meet stringent efficiency standards and consumer expectations.

Shift Towards Electric Vehicles

There is a notable shift in consumer preferences towards electric vehicles within the US Automotive Electric Motors Market. This trend is driven by increasing awareness of environmental issues and the benefits of electric mobility. As more consumers opt for electric vehicles, manufacturers are compelled to invest in electric motor technologies that cater to this growing demand.

Regulatory Influence on Market Dynamics

Regulatory frameworks at both federal and state levels are significantly shaping the US Automotive Electric Motors Market. Policies aimed at reducing emissions and promoting electric vehicle adoption are creating a conducive environment for electric motor innovations. This regulatory influence is expected to drive market growth and encourage manufacturers to align their strategies with sustainability goals.

US Automotive Electric Motors Market Drivers

Shift Towards Electric Vehicles

The ongoing shift towards electric vehicles (EVs) is a primary driver of the US Automotive Electric Motors Market. With the increasing consumer demand for sustainable transportation solutions, automakers are investing heavily in electric motor technology. According to recent data, EV sales in the US have surged, with projections indicating that by 2025, electric vehicles could account for over 25% of new car sales. This transition is further supported by major automotive manufacturers committing to electrification strategies, with many pledging to phase out internal combustion engines in the coming years. The growing availability of charging infrastructure and advancements in battery technology are also facilitating this shift. Consequently, the US Automotive Electric Motors Market is poised for substantial growth as more consumers opt for electric vehicles, driving demand for high-performance electric motors.

Investment in Charging Infrastructure

The expansion of charging infrastructure is a vital driver for the US Automotive Electric Motors Market. As electric vehicle adoption increases, the need for accessible and efficient charging solutions becomes paramount. Government initiatives, such as the installation of public charging stations and incentives for private charging infrastructure, are facilitating this growth. Recent reports suggest that the number of public charging stations in the US has more than doubled in the past few years, significantly enhancing the convenience of owning an electric vehicle. This investment in infrastructure not only alleviates range anxiety among consumers but also encourages more individuals to consider electric vehicles as a viable option. Consequently, the US Automotive Electric Motors Market is expected to thrive as the charging network continues to expand, supporting the broader transition to electric mobility.

Regulatory Influence on Market Dynamics

Regulatory frameworks play a crucial role in shaping the US Automotive Electric Motors Market. The federal government has implemented various policies aimed at reducing greenhouse gas emissions and promoting electric vehicle adoption. For example, the Corporate Average Fuel Economy (CAFE) standards have been tightened, compelling manufacturers to enhance fuel efficiency, which indirectly boosts the demand for electric motors. Additionally, state-level incentives, such as tax credits for electric vehicle purchases, are encouraging consumers to choose electric options. The Biden administration's commitment to achieving net-zero emissions by 2050 further underscores the importance of electric vehicles in the national agenda. As regulations become more stringent, the US Automotive Electric Motors Market is likely to expand, with manufacturers focusing on compliance and innovation to meet these evolving standards.

Technological Advancements in Electric Motors

The US Automotive Electric Motors Market is experiencing rapid technological advancements that enhance motor efficiency and performance. Innovations such as improved battery management systems and advanced materials are contributing to the development of lighter and more efficient electric motors. For instance, the integration of silicon carbide technology is enabling higher voltage operation, which can lead to a 10-20% increase in efficiency. Furthermore, the adoption of smart motor technologies, which utilize IoT for real-time monitoring and diagnostics, is becoming more prevalent. These advancements not only improve the performance of electric vehicles but also reduce manufacturing costs, thereby making electric vehicles more accessible to consumers. As a result, the US Automotive Electric Motors Market is likely to see increased competition and growth as manufacturers strive to incorporate these cutting-edge technologies into their products.

Consumer Awareness and Demand for Sustainability

Consumer awareness regarding environmental issues is significantly influencing the US Automotive Electric Motors Market. As more individuals become conscious of their carbon footprint, there is a growing preference for sustainable transportation options. Surveys indicate that a substantial percentage of consumers are willing to pay a premium for electric vehicles due to their lower environmental impact. This shift in consumer behavior is prompting automakers to prioritize electric motor technology in their product offerings. Furthermore, educational campaigns and marketing efforts aimed at highlighting the benefits of electric vehicles are contributing to increased acceptance and demand. As a result, the US Automotive Electric Motors Market is likely to benefit from this heightened consumer interest, leading to greater investments in electric motor development and production.

Market Segment Insights

By Application: Passenger Vehicle (Largest) vs. Commercial Vehicle (Fastest-Growing)

In the US Automotive Electric Motors Market, the application segment is predominantly led by passenger vehicles, which capture the largest market share due to their widespread adoption and increasing consumer preference for electric vehicles (EVs). This category benefits from significant investments in technology and infrastructure, facilitating the transition towards more sustainable transportation options. On the other hand, commercial vehicles are witnessing a robust growth trajectory, driven by fleet electrification initiatives and increased focus on reducing operational costs and emissions by businesses.

Passenger Vehicle (Dominant) vs. Commercial Vehicle (Emerging)

Passenger vehicles represent the dominant sector within the US Automotive Electric Motors Market, characterized by a diverse range of models that cater to various consumer needs. These vehicles benefit from strong government incentives and a growing network of charging infrastructures, making them more appealing to buyers. Meanwhile, the commercial vehicle segment, though currently less dominant, is emerging rapidly as businesses seek to comply with stricter environmental regulations and lower their total cost of ownership. Both segments are reshaping the automotive landscape, with passenger vehicles leading in sales volume while commercial vehicles represent a significant opportunity for future growth.

By Motor Type: Permanent Magnet Motor (Largest) vs. Induction Motor (Fastest-Growing)

In the US Automotive Electric Motors Market, the Permanent Magnet Motor segment holds a significant share, largely due to its efficiency and compact design, which makes it a preferred choice for electric vehicles. The market distribution indicates a strong presence of Induction Motors as well, known for their robustness and lower cost, positioning them as a competitive alternative. This balance of share highlights the shifting dynamics in motor technology as manufacturers cater to diverse consumer needs across electric vehicle applications. The growth trends for these motor types are influenced by the increasing demand for electric vehicles (EVs) and the push towards a greener automotive industry. The Permanent Magnet Motor remains favored due to advancements in magnet technology, while Induction Motors are gaining traction thanks to their adaptability and decreasing manufacturing costs. The overall market is witnessing innovation across these segments, driven by technological advancements and government policies promoting sustainable transport options.

Permanent Magnet Motor (Dominant) vs. Induction Motor (Emerging)

The Permanent Magnet Motor dominates the US Automotive Electric Motors Market primarily due to its superior efficiency and power density, making it optimally suited for modern electric vehicles. This type of motor benefits from its design simplicity and enhanced performance characteristics, allowing for longer driving ranges. In contrast, the Induction Motor, while considered emerging in this sector, is gaining popularity for its robustness and cost-effectiveness. Its capability to operate in various environmental conditions and lower maintenance requirements make it attractive to manufacturers aiming for durability and performance. The ongoing developments in induction motor technology, including improved thermal management and efficiency advancements, are fostering its acceptance in the market, further narrowing the gap with Permanent Magnet Motors.

By Power Rating: High Power (Largest) vs. Medium Power (Fastest-Growing)

In the US Automotive Electric Motors Market, the distribution of power ratings reveals a clear preference for high power motors, which dominate the market due to their superior performance and efficiency in electric vehicles. Medium power motors are gaining traction, driven by their adaptability in hybrid models and their cost-effectiveness, making them highly sought after in the market. Low power motors, while present, typically serve niche applications and show limited growth in comparison to their higher-rated counterparts. The growth trends in the power rating segment are indicative of changing consumer preferences and technological advancements. The shift towards electric vehicles has spurred demand for high power motors, particularly in high-performance applications, emphasizing efficiency and range. Meanwhile, medium power motors are experiencing rapid growth, attributed to their incorporation in emerging vehicle models that balance cost and performance. This adaptability positions them as a potential leader moving forward as manufacturers strive for efficient, affordable solutions.

High Power (Dominant) vs. Medium Power (Emerging)

High power motors are recognized as the dominant force within the US Automotive Electric Motors Market, primarily utilized in full electric and performance-driven vehicles. Their ability to deliver substantial torque and power makes them essential in meeting the demands of a fast-evolving automotive landscape, where efficiency and acceleration are paramount. On the other hand, medium power motors are emerging rapidly as they strike a balance between performance and cost, catering to a broader range of hybrid and electric vehicles. These motors are increasingly being adopted in mid-range models that require sufficient power without escalating costs, thereby solidifying their place in the market as a practical choice for many manufacturers.

By Cooling Method: Liquid-Cooled (Largest) vs. Air-Cooled (Fastest-Growing)

In the US Automotive Electric Motors Market, the cooling method segment is crucial for optimizing performance and efficiency. Liquid-cooled systems dominate the market due to their superior thermal management capabilities, allowing electric motors to operate at higher efficiency levels. Air-cooled systems, while traditionally favored for their simplicity and lower cost, are witnessing a surge in interest due to advancements in technology and growing demand for lightweight solutions. Oil-cooled systems, although niche, have their unique advantages in specific applications, providing targeted performance benefits that cater to specialized electric motor designs. The growth trends in the cooling method segment are driven by increasing electric vehicle production and the need for efficient thermal management solutions. As automakers prioritize performance and battery life, the demand for liquid-cooled systems is expected to remain strong. Conversely, emerging technologies in air-cooling methods are predicted to capture market share rapidly, as innovation leads to more efficient and compact designs. Oil-cooled systems will continue to serve specialty markets, highlighting the dynamic nature of this segment where each method meets different performance metrics and application needs.

Liquid-Cooled (Dominant) vs. Air-Cooled (Emerging)

Liquid-cooled systems are the dominant force in the cooling method segment of the US Automotive Electric Motors Market due to their efficiency in maintaining optimal operating temperatures, which is critical for high-performance electric vehicles. These systems allow for better heat dissipation, thus prolonging motor life and enhancing reliability. Their complex design and increased costs are mitigated by the significant benefits they offer, particularly in high-demand applications. On the other hand, air-cooled systems are emerging as a viable alternative thanks to technological innovations that enhance their efficiency while reducing weight and simplifying installation. Their appeal lies in cost-effectiveness and lower maintenance requirements, making them a preferred choice for certain electric models, especially in urban environments where compactness and simplicity are key.

By Voltage Rating: Low Voltage (Largest) vs. High Voltage (Fastest-Growing)

In the US Automotive Electric Motors Market, the voltage rating segment is primarily divided into low voltage, medium voltage, and high voltage categories. Low voltage motors currently dominate the market due to their widespread application in electric vehicles, providing effective power for various functionalities. The medium voltage segment, while smaller, plays a critical role in specific automotive applications but has a relatively lower share compared to its lower voltage counterpart. In contrast, high voltage motors are gaining significant attention as automakers increasingly focus on high-performance electric vehicles, expanding their market presence.

Medium Voltage (Dominant) vs. Low Voltage (Emerging)

The medium voltage segment is recognized as a dominant player in the automotive electric motors market, particularly in niche applications that require higher power output while ensuring efficiency and performance. Meanwhile, the low voltage segment is rapidly emerging, propelled by advancements in battery technology and a growing demand for electric vehicles. Low voltage motors are typically more compact and cost-effective, making them ideal for mass-market models. As the shift towards electric mobility accelerates, both segments are expected to play pivotal roles in shaping the future of automotive electrification, with medium voltage catering to specialized needs and low voltage fitting into broader applications.

Get more detailed insights about US Automotive Electric Motors Market

Key Players and Competitive Insights

The Automotive Electric Motors Market is currently characterized by a dynamic competitive landscape, driven by technological advancements and a growing emphasis on sustainability. Major players such as Tesla Inc (US), General Motors Co (US), and Ford Motor Co (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Tesla Inc (US) continues to lead in innovation, focusing on expanding its battery technology and electric motor efficiency, while General Motors Co (US) is heavily investing in electric vehicle (EV) infrastructure and partnerships to bolster its market share. Ford Motor Co (US) is also making strides in electrification, emphasizing its commitment to producing a diverse range of electric models, which collectively shapes a competitive environment that is increasingly focused on technological prowess and sustainability initiatives.

Key business tactics within this market include localizing manufacturing and optimizing supply chains to enhance efficiency and reduce costs. The competitive structure appears moderately fragmented, with several key players exerting influence over market dynamics. This fragmentation allows for a variety of strategies to coexist, fostering innovation and competition among established manufacturers and new entrants alike.

In December 2025, Tesla Inc (US) announced a groundbreaking partnership with a leading battery manufacturer to develop next-generation electric motors that promise to increase efficiency by up to 20%. This strategic move is likely to solidify Tesla's position as a market leader, as it not only enhances their product offerings but also aligns with the growing consumer demand for more efficient and sustainable vehicles. The implications of this partnership could reverberate throughout the industry, potentially setting new benchmarks for performance.

In November 2025, General Motors Co (US) unveiled its ambitious plan to invest $10 billion in EV production facilities across the United States. This investment is expected to create thousands of jobs and significantly increase GM's production capacity for electric motors. Such a substantial commitment underscores GM's strategic focus on scaling up its electric vehicle offerings and responding to the increasing regulatory pressures for cleaner transportation solutions.

In October 2025, Ford Motor Co (US) launched a new initiative aimed at integrating artificial intelligence (AI) into its electric motor design process. This initiative is anticipated to enhance the efficiency and performance of their electric vehicles, reflecting a broader trend within the industry towards digital transformation. By leveraging AI, Ford aims to streamline its design processes and reduce time-to-market for new electric models, which could provide a competitive edge in an increasingly crowded marketplace.

As of January 2026, current trends in the Automotive Electric Motors Market indicate a strong shift towards digitalization, sustainability, and AI integration. Strategic alliances are becoming increasingly pivotal, as companies recognize the need to collaborate to enhance technological capabilities and market reach. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, advanced technology, and supply chain reliability. This shift suggests that companies that prioritize these aspects will be better positioned to thrive in the rapidly changing landscape.

Key Companies in the US Automotive Electric Motors Market include

Industry Developments

In recent months, the US Electric Motors Market has seen significant developments, particularly in the areas of growth and acquisitions. Companies like Emerson Electric and Regal Beloit are expanding their product lines and enhancing their manufacturing capabilities to meet the rising demand for energy-efficient electric motors, driven by increasing industrial automation. In September 2023, Parker Hannifin announced its acquisition of a niche motor manufacturer, aiming to strengthen its position in the electric drive systems sector. Companies like ABB and Siemens are also investing heavily in Research and Development to innovate in sustainable technologies, reflecting the broader trend towards greener solutions. 

Additionally, employment of electric motors across sectors such as automotive, HVAC, and renewable energy has surged, contributing to a favorable market valuation growth trajectory. Franklin Electric and Nidec Corporation are actively enhancing their market presence through strategic partnerships, further fueling competition. Recent reports highlight that the integration of smart technologies in electric motors is a key trend shaping the future, leading to improved efficiency and reduced operational costs for industries. The commitment to sustainable practices continues to define the landscape of the US Electric Motors Market as companies adapt to evolving consumer and regulatory demands.

Future Outlook

US Automotive Electric Motors Market Future Outlook

The US Automotive Electric Motors Market is projected to grow at a 7.84% CAGR from 2025 to 2035, driven by advancements in technology, increasing demand for electric vehicles, and regulatory support.

New opportunities lie in:

  • Development of high-efficiency electric motor systems for commercial vehicles.
  • Integration of AI-driven predictive maintenance solutions for electric motors.
  • Expansion of electric motor recycling programs to enhance sustainability.

By 2035, the market is expected to be robust, driven by innovation and sustainability initiatives.

Market Segmentation

US Automotive Electric Motors Market Motor Type Outlook

  • Permanent Magnet Motor
  • Induction Motor
  • Switched Reluctance Motor
  • Synchronous Motor

US Automotive Electric Motors Market Application Outlook

  • Passenger Vehicle
  • Commercial Vehicle
  • Two-Wheeler
  • Heavy-Duty Vehicle

US Automotive Electric Motors Market Power Rating Outlook

  • Low Power
  • Medium Power
  • High Power

US Automotive Electric Motors Market Cooling Method Outlook

  • Air-Cooled
  • Liquid-Cooled
  • Oil-Cooled

US Automotive Electric Motors Market Voltage Rating Outlook

  • Low Voltage
  • Medium Voltage
  • High Voltage

Report Scope

MARKET SIZE 20247.32(USD Billion)
MARKET SIZE 20257.96(USD Billion)
MARKET SIZE 203516.8(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.84% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledTesla Inc (US), General Motors Co (US), Ford Motor Co (US), Nissan North America Inc (US), BMW of North America LLC (US), Rivian Automotive Inc (US), Lucid Motors Inc (US), Stellantis NV (US)
Segments CoveredApplication, Motor Type, Power Rating, Cooling Method, Voltage Rating
Key Market OpportunitiesGrowing demand for electric vehicles drives innovation in the US Automotive Electric Motors Market.
Key Market DynamicsGrowing demand for electric vehicles drives innovation and competition in the US Automotive Electric Motors Market.
Countries CoveredUS
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FAQs

What is the projected market valuation of the US Automotive Electric Motors Market by 2035?

The market is projected to reach a valuation of 16.8 USD Billion by 2035.

What was the market valuation of the US Automotive Electric Motors Market in 2024?

In 2024, the market valuation stood at 7.32 USD Billion.

What is the expected CAGR for the US Automotive Electric Motors Market during the forecast period 2025 - 2035?

The expected CAGR for the market during this period is 7.84%.

Which companies are considered key players in the US Automotive Electric Motors Market?

Key players include Tesla Inc, General Motors Co, Ford Motor Co, and Nissan North America Inc.

What are the projected valuations for the Passenger Vehicle segment by 2035?

The Passenger Vehicle segment is projected to reach 8.4 USD Billion by 2035.

How does the Heavy-Duty Vehicle segment's valuation compare between 2024 and 2035?

The Heavy-Duty Vehicle segment's valuation is expected to grow from 1.1 USD Billion in 2024 to 2.5 USD Billion by 2035.

What is the projected valuation for Permanent Magnet Motors by 2035?

Permanent Magnet Motors are projected to reach a valuation of 5.8 USD Billion by 2035.

What is the expected growth for the Medium Power segment from 2024 to 2035?

The Medium Power segment is expected to grow from 2.5 USD Billion in 2024 to 6.0 USD Billion by 2035.

What are the projected valuations for different cooling methods by 2035?

By 2035, Air-Cooled is projected at 5.8 USD Billion, Liquid-Cooled at 7.0 USD Billion, and Oil-Cooled at 4.0 USD Billion.

What is the expected valuation for High Voltage motors by 2035?

High Voltage motors are expected to reach a valuation of 6.8 USD Billion by 2035.

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