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US In-wheel Motors Market

ID: MRFR/AT/11456-HCR
100 Pages
Garvit Vyas
October 2025

US In-Wheel Motors Market Research Report By Propulsion Type (BEV, PHEV, FCEV, Cooling Type, Air Cooling, Liquid Cooling) - Forecast to 2035

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US In-wheel Motors Market Infographic
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US In-wheel Motors Market Summary

As per analysis, the US In Wheel Motors Market is projected to grow from USD 600.0 Million in 2024 to USD 996.11 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US In Wheel Motors Market is poised for substantial growth driven by technological advancements and increasing consumer demand for sustainable solutions.

  • Technological advancements in electric vehicles are reshaping the In Wheel Motors Market, particularly in the passenger vehicle segment, which remains the largest.
  • The electric vehicle segment is experiencing rapid growth, driven by a surge in consumer interest in sustainable mobility solutions.
  • Permanent magnet synchronous motors dominate the market, while switched reluctance motors are emerging as the fastest-growing technology.
  • Key market drivers include government incentives and policies that promote electric mobility and rising environmental awareness among consumers.

Market Size & Forecast

2024 Market Size 600.0 (USD Million)
2035 Market Size 996.11 (USD Million)
CAGR (2025 - 2035) 4.72%

Major Players

Protean Electric (US), Elaphe Propulsion Technologies (US), Inwheel (US), Zhejiang VIE Science and Technology (US), Brembo (US), Continental AG (DE), Nidec Corporation (JP), Yamaha Motor Co., Ltd. (JP)

US In-wheel Motors Market Trends

The US In Wheel Motors Market is currently experiencing a transformative phase, driven by advancements in electric vehicle technology and a growing emphasis on sustainable transportation solutions. As the automotive industry shifts towards electrification, in wheel motors are gaining traction due to their potential to enhance vehicle efficiency and performance. This technology allows for improved space utilization within vehicles, as it eliminates the need for traditional drivetrain components. Consequently, manufacturers are increasingly exploring in wheel motor designs to meet the rising demand for electric vehicles, which are becoming more prevalent in the US market. Moreover, the regulatory landscape in the United States is evolving, with stricter emissions standards and incentives for electric vehicle adoption. This regulatory push is likely to further stimulate interest in wheel motors, as they align with the goals of reducing carbon footprints and promoting energy efficiency. The integration of smart technologies, such as advanced control systems and connectivity features, is also anticipated to enhance the appeal of in wheel motors. As the market continues to mature, collaboration between automotive manufacturers and technology providers may lead to innovative solutions that address consumer needs and preferences, ultimately shaping the future of the US In Wheel Motors Market.

Technological Advancements in Electric Vehicles

The US In Wheel Motors Market is witnessing rapid technological advancements, particularly in electric vehicle design and performance. Innovations in battery technology and energy management systems are enhancing the efficiency of in wheel motors, making them more attractive to manufacturers. This trend suggests a shift towards more integrated and efficient vehicle architectures, which could redefine traditional automotive engineering.

Regulatory Support for Electric Mobility

The regulatory environment in the United States is increasingly supportive of electric mobility initiatives. Government policies aimed at reducing greenhouse gas emissions and promoting clean energy are likely to bolster the adoption of in wheel motors. This trend indicates a favorable landscape for manufacturers, as compliance with regulations may drive innovation and investment in this technology.

Consumer Demand for Sustainable Solutions

There is a growing consumer preference for sustainable transportation options in the US, which is influencing the In Wheel Motors Market. As awareness of environmental issues rises, consumers are more inclined to choose electric vehicles equipped with advanced technologies like in wheel motors. This trend highlights the potential for market growth as manufacturers respond to changing consumer expectations.

US In-wheel Motors Market Drivers

Rising Environmental Awareness

Growing environmental awareness among consumers is a key driver for the US In Wheel Motors Market. As concerns about climate change and air pollution intensify, more consumers are seeking sustainable transportation options. In wheel motors, which contribute to the overall efficiency of electric vehicles, are increasingly viewed as a viable solution to reduce carbon footprints. Market Research Future indicates that nearly 70% of consumers are willing to pay a premium for environmentally friendly vehicles. This shift in consumer preferences is prompting automakers to invest in wheel motor technology, thereby expanding the market. The increasing demand for sustainable solutions is likely to propel the growth of the in wheel motors market in the coming years.

Government Incentives and Policies

The US In Wheel Motors Market benefits significantly from government incentives and policies aimed at promoting electric mobility. Federal and state governments are increasingly offering tax credits, rebates, and grants to manufacturers and consumers who invest in electric vehicles equipped with in wheel motors. For example, the federal tax credit for electric vehicles can reach up to $7,500, encouraging consumers to opt for electric models. Additionally, various states have implemented their own incentives, further stimulating demand. This supportive regulatory environment is expected to bolster the market, as it not only reduces the initial cost barrier for consumers but also encourages manufacturers to innovate and expand their offerings in the in wheel motors segment.

Technological Innovations in Wheel Motors

The US In Wheel Motors Market is experiencing a surge in technological innovations that enhance the performance and efficiency of electric vehicles. Advances in battery technology, coupled with improvements in motor design, are leading to lighter and more compact in wheel motors. These innovations not only increase the range of electric vehicles but also improve their overall driving dynamics. For instance, the integration of regenerative braking systems within wheel motors allows for energy recovery during deceleration, which is particularly appealing to manufacturers aiming to meet stringent efficiency standards. As a result, the market is projected to grow at a compound annual growth rate (CAGR) of approximately 15% over the next five years, driven by these technological advancements.

Enhanced Vehicle Performance and Design Flexibility

The US In Wheel Motors Market is also driven by the enhanced vehicle performance and design flexibility that in wheel motors provide. By integrating the motor directly into the wheel, manufacturers can achieve a more compact design, allowing for greater interior space and improved aerodynamics. This design flexibility enables automakers to create lighter vehicles with better handling characteristics. Furthermore, in wheel motors facilitate independent wheel control, which can enhance traction and stability, particularly in adverse weather conditions. As performance becomes a critical factor for consumers, the demand for vehicles equipped with in wheel motors is expected to rise, contributing to the overall growth of the market.

Increased Investment in Electric Vehicle Infrastructure

Investment in electric vehicle infrastructure is a crucial driver for the US In Wheel Motors Market. The expansion of charging networks and support facilities is essential for the widespread adoption of electric vehicles. As more charging stations become available, consumer confidence in electric vehicles, including those with in wheel motors, is likely to increase. Recent reports indicate that the US government plans to invest over $7 billion in electric vehicle infrastructure over the next five years. This investment not only supports the growth of the electric vehicle market but also creates a favorable environment for in wheel motor technology to thrive. As infrastructure improves, the market for in wheel motors is expected to expand significantly.

Market Segment Insights

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

In the US In Wheel Motors Market, the application segments are characterized by Passenger Vehicles, Commercial Vehicles, Two-Wheelers, and Electric Vehicles. Among these, Passenger Vehicles hold the largest share, reflecting consumer preference for personal mobility solutions. Meanwhile, Electric Vehicles are rapidly gaining traction, driven by an increasing focus on sustainable transportation solutions. The growth drivers for this market segment include technological advancements in electric mobility, stringent environmental regulations, and rising fuel prices, encouraging manufacturers to innovate in in-wheel motor technology. The trend towards electrification of vehicles is leading to a surge in demand for in-wheel motors, creating a dynamic market environment for both established players and new entrants.

Passenger Vehicle: Dominant vs. Electric Vehicle: Emerging

Passenger Vehicles continue to dominate the US In Wheel Motors Market due to their established presence and consistent consumer demand. These vehicles leverage in-wheel motor technology for improved efficiency, performance, and space optimization, appealing significantly to consumers. On the other hand, Electric Vehicles represent an emerging segment, rapidly evolving with advancements in battery technology and driving range improvements. This segment is characterized by younger demographics and a strong push towards sustainability. Both segments highlight the shifting landscape of mobility, with traditional vehicles adapting to include electric solutions, and new entrants focusing on pure electric models to meet modern consumer demands.

By Type: Permanent Magnet Synchronous Motor (Largest) vs. Switched Reluctance Motor (Fastest-Growing)

The US In Wheel Motors Market is primarily driven by the adoption of Permanent Magnet Synchronous Motors (PMSMs), which dominate the market with their high efficiency and performance characteristics. PMSMs are preferred in electric vehicles due to their reliability and the growing demand for high-performance motors. Conversely, the Switched Reluctance Motor (SRM) is garnering attention as an emerging technology, presenting unique benefits that appeal to manufacturers looking for cost-effective solutions, though it currently holds a smaller market share compared to PMSMs.

Permanent Magnet Synchronous Motor (Dominant) vs. Switched Reluctance Motor (Emerging)

Permanent Magnet Synchronous Motors (PMSMs) are recognized for their superior efficiency, compact design, and ability to deliver high torque with minimal energy loss, making them ideal for electric vehicles and various applications in the US In Wheel Motors Market. As the dominant technology, PMSMs are favored for their performance in demanding environments. In contrast, Switched Reluctance Motors (SRMs) are emerging due to their simple design, lower manufacturing costs, and robustness, thus attracting interest for electric drivetrains. With ongoing advancements in SRM technology, the segment is projected to gain momentum as manufacturers seek versatile and economically viable alternatives that can cater to the evolving automotive landscape.

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

In the US In Wheel Motors Market, the power rating segment is primarily categorized into low, medium, and high power. The medium power segment holds the largest market share due to its balanced performance and efficiency, making it a preferred choice for various applications. On the other hand, the high power segment is gaining traction, attributed to advancements in technology and increasing demand for electric vehicles that require higher torque and power for performance. The growth trends in the power rating segment indicate a shift towards higher power solutions, driven by consumers' preferences for more efficient and powerful motors. Factors such as the rising adoption of electric and hybrid vehicles, along with government initiatives promoting sustainable transportation, contribute to the rapid expansion of the high power segment. Moreover, innovations in battery technology are enabling these high power systems to become more viable for real-world applications, driving further market penetration.

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

The medium power segment in the US In Wheel Motors Market is recognized for its versatility and reliability. It is predominantly used in a broad range of applications, particularly in urban mobility solutions where efficiency is essential. The dominant position of this segment is supported by its balanced capabilities that meet the needs of consumers seeking reliable performance without compromising on energy efficiency. In contrast, the high power segment is emerging as a vital player in the market, specifically appealing to high-performance electric vehicle manufacturers. Its characteristics include the ability to deliver high torque and power, catering to the needs of modern electric vehicles that prioritize performance. The increasing technological innovations and consumer shift towards electric vehicles are propelling the high power segment's growth.

By Vehicle Type: Electric Cars (Largest) vs. Motorcycles (Fastest-Growing)

In the US In Wheel Motors Market, Electric Cars hold a significant market share, benefiting from the growing consumer preference for environmentally friendly vehicles. The increasing regulatory support for electric vehicles (EVs) is also contributing to the dominance of electric cars in this segment. Buses and trucks are notable but take a smaller share compared to electric cars. Motorcycles, while smaller in volume, are gaining attention due to innovative designs and performance enhancements, positioning them as a rapidly growing segment.

Electric Cars (Dominant) vs. Motorcycles (Emerging)

Electric Cars dominate the US In Wheel Motors Market due to their established technology and widespread adoption. Consumers are increasingly drawn to electric cars for their reliability, efficiency, and minimal environmental impact. Major automakers are investing heavily in this segment, bringing a variety of models to market that cater to different consumer preferences. In contrast, Motorcycles represent an emerging segment with significant growth potential. Technological advancements in battery systems and electric drivetrains are enhancing their appeal. Motorcycles are becoming a choice for urban commuting, appealing to those seeking mobility and sustainability, reflecting a shift in consumer attitudes toward lightweight and agile transportation options.

By Technology: Direct Drive (Largest) vs. Regenerative Braking (Fastest-Growing)

In the US In Wheel Motors Market, the distribution of market share among the technology segments reveals that Direct Drive leads with the largest share, primarily due to its efficiency and robust performance in electric vehicles. Following this, Regenerative Braking is recognized as the fastest-growing segment, propelled by increasing environmental awareness and technological advancements that enhance energy efficiency. Wireless Charging, while innovative, currently holds a smaller share in comparison to the other two technologies. Growth trends indicate a robust landscape for the technology segment, driven by a surge in electric vehicle adoption and a shift towards sustainable transport solutions. The focus on reducing carbon footprints is influencing consumer preferences, with Direct Drive appealing for its reliability and overall performance. Meanwhile, Regenerative Braking's promise of energy recovery within electric and hybrid vehicles positions it strongly within industry innovation, contributing significantly to its rapid growth pace.

Technology: Direct Drive (Dominant) vs. Regenerative Braking (Emerging)

Direct Drive technology is currently the dominant force in the US In Wheel Motors Market, offering unparalleled efficiency and performance, which makes it a preferred choice among manufacturers and consumers alike. Its direct connection to the wheel provides better torque delivery and minimizes energy loss, leading to improved vehicle dynamics and handling. On the other hand, Regenerative Braking is an emerging technology that captures and reuses energy during braking, thus enhancing overall vehicle efficiency. This feature resonates with environmentally-conscious consumers and OEMs looking to maximize the sustainability of electric vehicles. As automakers increasingly integrate these technologies, both Direct Drive and Regenerative Braking are expected to play pivotal roles in shaping the future of electric mobility.

Get more detailed insights about US In-wheel Motors Market

Key Players and Competitive Insights

The In Wheel Motors Market is currently characterized by a dynamic competitive landscape, driven by technological advancements and increasing demand for electric vehicles (EVs). Key players such as Protean Electric (US), Elaphe Propulsion Technologies (US), and Continental AG (Germany) are at the forefront, each adopting distinct strategies to enhance their market positioning. Protean Electric (US) focuses on innovation in electric drive systems, emphasizing the integration of in-wheel motors to improve vehicle efficiency and performance. Meanwhile, Elaphe Propulsion Technologies (US) is leveraging partnerships with automotive manufacturers to expand its reach and enhance product offerings, indicating a trend towards collaborative development in the sector. Continental AG (Germany) is also investing heavily in R&D to develop advanced in-wheel motor technologies, which suggests a collective push towards enhancing vehicle performance and sustainability.

The business tactics employed by these companies reflect a concerted effort to localize manufacturing and optimize supply chains, which is crucial in a moderately fragmented market. This competitive structure allows for a diverse range of products and innovations, as companies strive to differentiate themselves through technological advancements and customer-centric solutions. The influence of these key players is significant, as they collectively shape market trends and consumer expectations.

In December 2025, Protean Electric (US) announced a strategic partnership with a leading automotive manufacturer to co-develop next-generation electric vehicles featuring their in-wheel motor technology. This collaboration is expected to enhance the performance and efficiency of EVs, positioning Protean Electric as a pivotal player in the transition to sustainable transportation. The strategic importance of this partnership lies in its potential to accelerate the adoption of in-wheel motors in mainstream automotive applications.

In November 2025, Elaphe Propulsion Technologies (US) unveiled a new in-wheel motor design that promises to reduce weight and increase torque output. This innovation is particularly relevant as it addresses the growing demand for lightweight components in EVs, which can significantly enhance overall vehicle efficiency. The introduction of this technology may provide Elaphe with a competitive edge, as manufacturers increasingly seek to optimize vehicle performance.

In October 2025, Continental AG (Germany) launched a new initiative aimed at integrating artificial intelligence (AI) into their in-wheel motor systems. This move is indicative of a broader trend towards digitalization within the automotive sector, as companies seek to enhance vehicle intelligence and connectivity. The strategic importance of this initiative lies in its potential to improve vehicle performance and user experience, thereby reinforcing Continental's position as a leader in automotive technology.

As of January 2026, the competitive trends in the In Wheel Motors Market are increasingly defined by digitalization, sustainability, and AI integration. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in driving innovation and market penetration. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on technological innovation, supply chain reliability, and sustainable practices. This shift underscores the importance of adaptability and forward-thinking strategies in navigating the complexities of the modern automotive landscape.

Key Companies in the US In-wheel Motors Market include

Industry Developments

Recent developments in the US In-Wheel Motors Market have been significant, driven by advancements in electric vehicle technology and a push for sustainable transportation solutions. Companies such as Bosch and Valeo are exploring innovative designs to improve vehicle efficiency, while Tesla continues to lead in electric vehicle production, demonstrating heightened demand for in-wheel motor technology. In September 2023, Protean Electric announced a collaboration with a prominent automotive manufacturer to integrate advanced in-wheel motors into upcoming models, signaling a growing trend of partnerships in the sector.

Ford Motor Company is also investing heavily in in-wheel motor technology to enhance its electric vehicle lineup. Notably, Nidec Corporation revealed a strategic acquisition of a small automotive component firm in July 2023 to bolster its capabilities in electric drivetrains. The market has experienced robust growth, with an increase in valuation largely due to the rising adoption of electric vehicles.

Over the past few years, advancements like modular in-wheel systems from Elaphe Propulsion Technologies and partnerships between Magna International and major car brands have solidified the role of in-wheel motors in transforming vehicle design and performance in the US automotive market.

Future Outlook

US In-wheel Motors Market Future Outlook

The US In Wheel Motors Market is projected to grow at a 4.72% CAGR from 2025 to 2035, driven by advancements in electric vehicle technology and increasing demand for efficient propulsion systems.

New opportunities lie in:

  • Development of modular in-wheel motor systems for electric vehicles.
  • Partnerships with automotive manufacturers for integrated in-wheel solutions.
  • Expansion into commercial vehicle markets with tailored in-wheel motor designs.

By 2035, the market is expected to solidify its position as a leader in innovative propulsion technologies.

Market Segmentation

US In-wheel Motors Market Type Outlook

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

US In-wheel Motors Market Technology Outlook

  • Direct Drive
  • Regenerative Braking
  • Wireless Charging

US In-wheel Motors Market Application Outlook

  • Passenger Vehicle
  • Commercial Vehicle
  • Two-Wheeler
  • Electric Vehicle

US In-wheel Motors Market Power Rating Outlook

  • Low Power
  • Medium Power
  • High Power

US In-wheel Motors Market Vehicle Type Outlook

  • Electric Cars
  • Buses
  • Trucks
  • Motorcycles

Report Scope

MARKET SIZE 2024600.0(USD Million)
MARKET SIZE 2025636.0(USD Million)
MARKET SIZE 2035996.11(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)4.72% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies ProfiledProtean Electric (US), Elaphe Propulsion Technologies (US), Inwheel (US), Zhejiang VIE Science and Technology (US), Brembo (US), Continental AG (DE), Nidec Corporation (JP), Yamaha Motor Co., Ltd. (JP)
Segments CoveredApplication, Type, Power Rating, Vehicle Type, Technology
Key Market OpportunitiesGrowing demand for electric vehicles drives innovation in the US In Wheel Motors Market.
Key Market DynamicsRising demand for electric vehicles drives innovation and competition in the US In Wheel Motors Market.
Countries CoveredUS
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