EV Traction Motor Market - Forecast(2023 - 2028)

EV Traction Motor Market Overview

The global EV Traction Motor Market size is forecast to reach $38.2 billion by 2027, growing at a CAGR of 10.1% from 2022 to 2027. Globally, growing demand for EV traction asynchronous motors for propulsion of a vehicle such as locomotives, hybrid electric vehicles, elevators or electric multiple unit is set to drive the EV Traction Motor Market. Furthermore, increasing use of switched reluctance motor (SRM) by many automotive companies around the world for the automotive traction applications in EV(Electric Vehicle) and HEV(Hybrid electric vehicle) can be another factor contributing to the market growth. Furthermore, development of permanent magnet synchronous motor (PMSM) for traction applications of electric vehicles (EVs) is another factor boosting the growth of the market. Increasing government initiatives and regulations towards the adoption of electric vehicles are anticipated to positively impact the market growth during the forecast period 2022-2027.

EV Traction Motor Market Report Coverage

The report: “EV Traction Motor Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the EV Traction Motor market.

Key Takeaways

• Battery Electric Vehicles segment is anticipated to witness significant market growth 12.8% during the forecast period 2022-2027, owing to factors such as government initiatives and programs that encourage the use of sustainable mobility solutions in order to lower pollution levels from vehicles.
• High voltage rating is anticipated to witness significant amount of growth with CAGR of 11.5% during the forecast period 2022-2027, owing to increasing demand for efficiency in hybrid electric vehicles.
• North America dominated held the major market share 36%.2 in 2021. This is mainly attributed to the widespread adoption of electric motors in commercial and passenger vehicles.
• The growing usage of EV Traction Motor in artificial intelligence-based applications for processing complicated algorithms is helping to propel the industry forward.
• Rising trend towards automation across different end user verticals benefits the market growth.

EV Traction Motor Market Value share, by Geography, 2021

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EV Traction Motor Market Segment Analysis- By Vehicle Type

By vehicle type, EV Traction Motor market is segmented into Battery Electric Vehicles, Plug-In Hybrid Vehicles, Others. Battery Electric Vehicles segment is anticipated to witness significant market growth 12.8% during the forecast period 2022-2027. The attributing factors for market growth includes government initiatives and programs that encourage the use of sustainable mobility solutions in order to lower pollution levels from vehicles. In April 2021, for instance, the French government launched a proposal to provide people with $3209.2 for e-bikes and $1925.5 for e-bicycles in return for old bikes and bicycles. The subsidy, which is part of the national auto scrap page program, is intended to cover electric bikes and cargo cycles in order to eliminate traditional polluting cars from the road. Rapid industry investment in R&D initiatives to create new battery solutions for BEVs will boost the market expansion. For instance, in October 2021, Tesla announced the usage of Lithium Iron Phosphate (LFP) based batteries in all its basic range of electric automobiles to boost its profit margin. Compared to nickel-cobalt aluminum battery packs, the new LFP batteries have a longer life expectancy, need minimal maintenance, are lightweight, improve discharge and charge efficiency, and are easier to recycle. Furthermore, advancements in electric powertrains, such as increased torque and power to operate in a variety of environments, will help the industry grow even faster. Such developments positively impact the growth of the market

EV Traction Motor Market Segment Analysis- By Voltage rating

Based on voltage rating, High voltage rating is anticipated to witness significant amount of growth with CAGR of 11.5% during the forecast period 2022-2027, owing to increasing demand for efficiency in hybrid electric vehicles. Hybrid electric vehicles (HEVs) and electric vehicles (EVs) are being produced by automotive manufacturers, and their electrification in vehicle powertrains is rising. For instance, multiple processors, high-current sensors and actuators, and other devices have been added to the advanced driver assistance systems (ADAS) presently found in most new automobiles. Processor power has also increased, resulting in increased heat losses in cables, connectors, and PCB connections. Higher voltages lower current for a given amount of power. As a result, smaller wire can be utilized, lowering the cost and weight. High-voltage battery systems, such as +400V for EVs and 48V for HEVs, are used to power these vehicles. To power the motor, all EVs require a high voltage. To power the vehicle, voltages of 400 to 800 V or more are required. High-voltage wire makes system wiring less complicated and lighter, in addition to improving energy efficiency. Hence, the aforementioned factors tends to drive the market growth during the forecast period 2022-2027.

EV Traction Motor Market Segment Analysis- By Geography

North America dominated the market by a market share of approximately 30% in 2021. And the region is estimated to witness significant market growth during the forecast period 2022-2027. The widespread adoption of electric motors in commercial and passenger vehicles will aid regional prosperity. A growing number of government measures, such as providing subsidies and incentives for the purchase of electric cars, will fuel the expansion of the EV traction motor market in North America. For instance, For instance, in 2019, Plug Power (USA) has introduced their 30kW hydrogen fuel cell engine. The dependable ProGen 30kW engine offers a cost-effective solution for electric vehicle use cases such as high usage, dependable performance in harsh environments, rapid fuelling, and zero emissions. Furthermore, due to the cheap cost of electric cars, the Department of Energy in the United States has been seen to guide and push manufacturing businesses to create EV traction motors. According to the International Energy Agency (IEA), the U.S. government intends to convert 50% of new passenger vehicles and light trucks sold in 2050 to electric, with individual states setting even higher goals. In 2019, domestic player Rockwell Automation opened an 8,000 square foot Electric Vehicle Innovation Center in San Jose, California, allowing automotive start-ups to successfully employ the technology and standards required to deliver EVs faster. Thus, with the growth of electric vehicles market, the market for EV traction motor also develops.

EV Traction Motor Market Drivers

Rise in demand for energy efficient motors tends to drive the market growth for EV Traction Motor:

The market for electric vehicle traction motors is being driven by increased demand for energy-efficient motors. Vehicles with high energy efficiency can save money and require fewer maintenance. The price of fossil fuels is continually changing. The growing cost of gasoline, on the other hand, is a major driver of the electric traction industry. As a result, electric traction motor-powered automobiles are becoming increasingly popular. In addition, the environmental standard to minimize carbon emissions is expected to rise in the coming years. In February 2020, Nidec Corporation, a Japanese manufacturer & distributor of electric motors, announced the launch of two new models of electric vehicle (EV) traction motor systems: a 200 kW and 50 kW model the D & E segments, and for the A segment respectively. The company aims to target the luxury EVs for the Chinese and European markets. In October 2021, BYD Auto co. ltd announced the raising of up to $ 1.8 billion in capital, which is projected to augment prospects for EV traction motors production.

Government initiatives and regulations towards the adoption of electric vehicles are anticipated to positively impact the market growth.

Increasing government initiatives and regulations towards the adoption of electric vehicles are anticipated to positively impact the market growth. These motors are advantageous since they save energy while also reducing pollutants. Governmental initiatives towards supporting green infrastructure projects with creating wider adoption of electric vehicles have been acting as a major factor boosting the growth of electric vehicle market. Recently, the government of Canada through Natural Resources Canada’s Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative announced of investing about $ 8 million for constructing 160 fast EV chargers across 73 locations in Ontario. This investment will help Hydro One and Ontario Power Generation to build one of the largest EV networks across the country along with helping government to reach 100% passenger zero emission vehicle sales target by 2040.

EV Traction Motor Market Challenges

Motor failure due to overheating act as hindrance to the market growth for EV Traction Motor

Motor failure due to overheating act as a major challenge restraining the growth of EV Traction Motor Market. Moreover, Electric traction technology also has a large frictional force. Unlike previous technologies, every traction system uses less oil or lubricants. It causes the motor to overheat and eventually fail. Any technology or equipment will be incomplete without a motor. Problems with the traction motor can significantly reduce overall demand. To address this problem, the market's major participants are increasing their R&D spending. In February 2021, Tesla Motors has announced the opening of a new research and development center in Shanghai, China, aimed at building a new $25,000 electric automobile for the Chinese market. By the middle of 2021, the R&D center was finished. The new electric vehicle reportedly have a range of more than 200 miles. Tesla also opened a new manufacturing site in Karnataka, India, by the end of 2021. Owing to the above mentioned factors, use of EV traction motors will be significantly impacted, thus hampering its market growth. 

EV Traction Motor Industry Outlook

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the EV Traction Motor market. In 2021, the market of EV Traction Motor industry outlook has been fragmented by several companies. The EV Traction Motor top 10 companies include:

• Magnetic Systems Technology
• Copper Rotor Induction Motor
• Robert Bosch GmbH
• RETORQ Motors Ltd.
• SERVAX
• AVID Technology Limited
• Hitachi Automotive Systems Americas, Inc.
• Zytek Group Limited
• Equipmake Ltd.
• ABB Limited
• CG Power & Industrial Solutions

Recent Developments

• In February 2020, Nidec Corporation, a Japanese manufacturer & distributor of electric motors, announced the launch of two new models of electric vehicle (EV) traction motor systems: a 200 kW and 50 kW model the D & E segments, and for the A segment respectively. The company aims to target the luxury EVs for the Chinese and European markets. It is designed to improve power, electricity consumption and noise & vibration performances and also to reduce the vehicle’s weight. Such launches will positively impact the market growth.
• In December 2020, CG Power and Industrial Solutions Limited inaugurated the state-of-the-art facility at Ahmednagar in Maharashtra to manufacture next generation electric Motors. The new facility will manufacture Smart Electric Motors from 75 kW to 1000 kW to meet the increased demand of domestic and global market and will help CG to gain greater market share for higher range of Electric LV Motors. Such inaugurations will positively impact the market growth.

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