Electric Vehicle Motor Market Size to Uplift USD 71.92 Bn by 2034 - GlobeNewswire

Ottawa, April 14, 2025 (GLOBE NEWSWIRE) — The global electric vehicle motor market size was valued at USD 20.20 billion in 2024 and is predicted to hit around USD 71.92 billion by 2034, a study published by Towards Automotive a sister firm of Precedence Research.

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Market Overview:

The electric vehicle motor market is growing rapidly due to the global shift toward sustainable transportation and stringent emission regulations. As electric vehicles become more prominent, the need for efficient and high-performance electric motors increases, resulting in greater investment in research and development as well as technological progress. These motors, which are essential for EV propulsion systems, significantly influence vehicle performance, energy efficiency, and driving range.

There are various types of motors available, such as AC induction motors, permanent magnet synchronous motors (PMSMs), and brushless DC motors, each designed for specific performance requirements. Automakers are increasingly concentrating on incorporating advanced motor technologies that provide higher torque density, lower weight, and enhanced power efficiency. The market is set for continuous growth in both developed and developing regions.

Major Trends in the Market:

Demand for Permanent Magnet Motors: The demand for permanent magnet synchronous motors is increasing due to their high torque density, enhanced efficiency, and compact structure, making them well-suited for electric vehicles.
Integration with Advanced Electronics: Electric vehicle motors are increasingly being combined with intelligent electronics and AI-driven control systems to boost energy efficiency, capabilities, and safety features.
Focus on Lightweight Materials: Manufacturers utilize lightweight and durable materials in motor design to lessen vehicle weight, enhance energy consumption, and extend overall driving range.

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Limitations & Challenges in the Electric Vehicle Motor Market:

High Costs of Advanced Motors: Electric vehicle motors, particularly those incorporating rare earth materials, significantly raise production costs, making EVs less accessible to many buyers.
Thermal Management Challenges: Addressing the heat generated by electric motors necessitates intricate cooling systems, increasing design complexity and total vehicle production costs.
Infrastructure and Compatibility Challenges: The limited availability of electric vehicle charging infrastructure and the absence of motor standardization across various regions present significant barriers to widespread electric vehicle adoption.

Unlocking the Potential of the Electric Vehicle Motor Market

The global transition toward clean and sustainable transportation creates lucrative growth opportunities for the market. With governments enforcing stricter emission standards and promoting EV adoption, there is a growing demand for efficient and high-performance electric motors. Furthermore, continuous advancements in motor technologies, including axial flux motors, integrated drive systems, automotive micro motors, and silicon carbide inverters, offer significant potential to improve vehicle range and performance.

As both consumers and industries seek alternatives to traditional combustion engines, electric vehicles are gaining more popularity, which directly elevates the need for efficient, high-performance motors. Innovations in technology, such as improved motor efficiency, compact designs, and integration with advanced power electronics, are also driving market expansion. The development of charging infrastructure and investments in e-mobility further enhance the growth prospects for electric vehicle motor manufacturers across the globe.

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Regional Analysis:

What to Expect from Asia Pacific Countries till 2030?

Asia Pacific dominated the electric vehicle motor market with the largest share in 2024. This is mainly due to the swift adoption of electric vehicles in prominent economies like China, Japan, and South Korea. This region enjoys significant government backing through subsidies, tax incentives, and strict emission regulations that facilitate the shift toward electric mobility. The region is home to a large number of leading EV motor manufacturers and battery suppliers. The rapid urbanization, surging fuel prices, and awareness about environmental sustainability further solidify the region’s position in the electric vehicle motor market.

Top Asia Pacific Countries for Electric Vehicle Motor Production

China: China is the leading player in the electric vehicle production within the region, driven by substantial EV adoption, robust government incentives, and the presence of domestic giants like BYD, NIO, and CATL that are fostering rapid development.
Japan: Japan continues to be an important contributor with established car manufacturers such as Toyota and Nissan, who are persistently investing in innovations for electric mobility and hybrid-electric technologies to enhance the country’s competitive stance in EV motor engineering.
South Korea: South Korea boasts a strong electric vehicle ecosystem, supported by global leaders like Hyundai and LG Energy Solution, which emphasizes exports and advanced battery integration, significantly bolstering the region’s market growth.

Europe to Boom Rapidly: Innovation in the Market to Support Growth

Europe is projected to witness the fastest growth during the forecast period. The growth of the European electric vehicle motor market can be attributed to the stringent emission regulations, financial support for EV purchases from the government, and commitments to carbon neutrality from key economies. The European Union’s Green Deal and various national initiatives are speeding up the transition from internal combustion engine vehicles to electric mobility.

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Major Factors for the Market’s Expansion in Europe:

European nations have enacted some of the strictest carbon emission standards, compelling automakers to shift from traditional internal combustion engines to electric vehicles. This regulatory pressure is significantly increasing the demand for EV motors.
Financial incentives, including purchase subsidies, tax reductions, and exemptions from tolls or urban access limitations, promote consumer adoption of electric vehicles. These policies are creating a supportive landscape for the expansion of the EV motor market throughout Europe.
Europe is home to leading automotive companies and state-of-the-art research institutions. Significant investments in EV technology, encompassing electric drivetrains and motor efficiency improvements, are propelling the development and adoption of electric vehicles, thereby driving motor demand.

Additionally, prominent automotive manufacturers from Germany, France, and the UK are investing heavily in EV development, generating strong demand for high-efficiency motors. Increasing charging infrastructure and heightened consumer awareness are further propelling the adoption of EV motors across the region.

Segment Outlook

Vehicle Type Insights

The passenger vehicle segment dominated the electric vehicle motor market with the largest share in 2024, primarily because urban consumers are increasingly opting for electric cars. The demand for electric cars has been driven by escalating fuel costs, heightened awareness of carbon emissions, and favorable government initiatives like subsidies and tax incentives. Significant investments by leading automakers in electric passenger vehicle models have further bolstered the segment’s growth.

The two-wheeler segment is projected to expand at a significant CAGR during the forecast period due to the rising need for cost-effective, efficient, and environmentally friendly transportation options. The surge in the development of electric scooters and motorcycles in developing regions is driving the segment’s growth. Low maintenance costs, government-supported incentives, and enhanced battery and motor efficiency are boosting the adoption of two-wheelers, supporting segment’s growth.

Component Insights

The rotor, shaft, and bearing segment led the market in 2024. This is mainly due to the increased demand for resilient and high-performing EV drivetrains. Innovations in materials and manufacturing techniques have enhanced the durability and efficiency of these components, boosting their adoption in electric vehicles. The growing complexity of electric drivetrains, coupled with a focus on high-speed and high-torque performance, renders these components essential, driving the segment’s growth.

The permanent magnet segment is expected to grow at a significant rate in the coming years because of its efficiency, compact structure, and excellent power density. Permanent magnet motors are commonly used in electric vehicles due to their capability to provide high torque with minimal energy loss. Automakers favor permanent magnet motors for their dependability and superior performance, especially in premium EVs, which has cemented their position in the overall electric vehicle motor component landscape.

Power Rating Insights

The 100 kW to 250 kW segment dominated the electric vehicle motor market with the largest share in 2024. This is mainly due to the high adoption of motors with 100 kW to 250 kW power rating, particularly in mid-sized and luxury electric vehicles that require superior performance. These motors strike a balance between speed, torque, and driving range, making them suitable for a diverse array of passenger and commercial electric vehicles. The rising preference for powerful electric vehicles with enhanced capabilities further sustains the segment’s growth.

The 20 kW to 100 kW segment is projected to grow at the fastest rate during the forecast period due to the increasing sales of electric two-wheelers, small passenger cars, and light commercial vehicles. These motors are particularly well-suited for urban transportation due to their efficiency and affordability. The escalating demand for compact and economically viable electric vehicles further propels the growth of this segment.

Recent Breakthroughs in the Global Electric Vehicle Motor Market:

In November 2023, Advanced Electric Machines, a leading manufacturer of sustainable motors for the automotive industry, reaffirmed its dedication to sustainability in EV motors by announcing a new investment of USD 25.22 million. This funding will aid in increasing production capacity at its facility in the Northeast, help achieve ambitious growth targets to establish a global sales presence and enhance research and development capabilities.
In June 2023, AISIN CORPORATION formed a partnership with Tohoku Magnet Institute (TMI) to create an ultrahigh-efficiency EV motor utilizing NANOMET. NANOMET is a nanocrystalline soft magnetic alloy that provides both high saturation magnetic flux density and ultralow iron loss.

Browse More Insights Towards Automotive:

Segments Covered in the Report

By Vehicle Type

Two-Wheeler
Three-Wheeler
Passenger Vehicle
BEV
Hybrid
Commercial Vehicle
BEV
Hybrid

By Component

Motor Stator
Permanent Magnet
Casing
Rotor, Shaft, and Bearing
Wiring & Connectors

By Power Rating

Up to 20 kW
20 kW to 100 kW
100 kW to 250 kW
Above 250 kW

By Region

North America
Latin America
Europe
Asia Pacific
Middle East and Africa

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