Electric Vehicle Motor Market Size, Companies & 21.69% CAGR

Electric Vehicle Motor Market Size to Increase $71.92 Bn by 2034

The global Electric Vehicle Motor market size is calculated at USD 25.17 billion in 2025 and is expected to be worth USD 50.03 billion by 2030. The electric vehicle motor market is currently dominated by the Asia Pacific region, with Europe expected to experience substantial growth in the coming years. In terms of vehicle types, passenger vehicles hold the largest market share. Among the components, the rotor, shaft, and bearing segments play a significant role. When looking at power ratings, motors with a range of 100 kW to 250 kW lead the market.

Electric Vehicle Motor Market Size, Companies Growth

The global electric vehicle motor market size is calculated at USD 20.20 billion in 2024 and is expected to be worth USD 71.92 billion by 2034, expanding at a CAGR of 21.69% from 2024 to 2034.

Electric Vehicle Motor Market Revenue 2023 - 2034

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Key Takeaways

  • Asia Pacific dominated the electric vehicle motor market.
  • Europe is expected to grow with a significant CAGR during the forecast period.
  • By vehicle type, the passenger vehicle segment held the largest share of the market.
  • By component, the rotor, shaft, and bearing segment held a significant share of the market.
  • By power rating, the 100 kW to 250 kW segment led the market.

Introduction

The electric vehicle motor market is experiencing rapid growth due to the rising adoption of electric vehicles globally. As governments implement stringent emission regulations and promote sustainable transportation, the demand for efficient and reliable electric motors is surging. EV motors are essential for converting electrical energy into mechanical energy, powering vehicles without the need for internal combustion engines. The increasing focus on reducing greenhouse gas emissions, coupled with advancements in battery technology, is driving further innovation in electric motor designs. These innovations include improvements in efficiency, power density, and thermal management. Additionally, the push for higher driving ranges and faster acceleration has spurred the development of high-performance motors, particularly in the luxury and high-performance EV segments. Countries like China, the U.S., and Germany are leading the adoption of electric vehicles, fostering a strong market for EV motors. Furthermore, the integration of cutting-edge technologies such as AI and machine learning in motor control systems is expected to enhance the overall performance and efficiency of electric vehicles, further propelling the market. As EVs continue to become more mainstream, the electric vehicle motor market is poised for significant expansion over the coming years.

What is the role of AI in the Electric Vehicle Motor Market?

AI plays a crucial role in the electric vehicle motor market by enhancing motor performance, efficiency, and overall vehicle functionality. One key area where AI is applied is in optimizing motor control systems. Advanced algorithms help manage the torque, speed, and power output of EV motors, ensuring smooth and efficient operation across various driving conditions. AI-driven predictive maintenance systems can monitor motor health in real-time, identifying potential issues before they cause failures, which improves the reliability and longevity of motors.

Additionally, AI contributes to energy management in EVs. By analyzing driving patterns, traffic conditions, and battery usage, AI systems can optimize power distribution between the motor and other vehicle systems. This not only maximizes driving range but also minimizes energy consumption, making the vehicle more efficient. AI also enhances regenerative braking systems, which recover energy during braking and feed it back into the battery, further improving overall efficiency.

In the context of autonomous electric vehicles, AI plays an integral role in integrating motor control with other vehicle systems, such as navigation and obstacle detection, ensuring smooth and responsive vehicle operation. As AI technology advances, its impact on the electric vehicle motor market is expected to grow, driving innovation and improving the performance of electric vehicles.

  • In February 2024, Monumo launched an AI technology. This AI technology is designed to develop an energy efficient electric vehicle motor.

Increasing Demand for Electric Motorcycles Propels the Market Growth

Electric motorcycles are emerging as a significant driver of growth in the electric vehicle motor market, fueled by increasing consumer demand for eco-friendly and cost-efficient transportation alternatives. As urbanization accelerates and traffic congestion worsens, electric motorcycles offer a practical solution for personal mobility, particularly in densely populated cities across Asia Pacific and Europe. These two-wheeled vehicles rely on compact yet powerful electric motors that provide quick acceleration, high efficiency, and a quieter, smoother ride compared to traditional internal combustion engine (ICE) motorcycles.

Governments across various regions are also playing a crucial role in promoting electric motorcycles by offering subsidies, tax incentives, and implementing stricter emission regulations. The lower operating costs of electric motorcycles, including reduced fuel and maintenance expenses, further boost their appeal to consumers, particularly those looking for sustainable transportation solutions. Advances in battery technology, combined with improvements in motor efficiency, have enabled electric motorcycles to offer better range and performance, making them competitive with their gasoline-powered counterparts.

The increasing popularity of electric motorcycles, particularly among urban commuters and environmentally-conscious consumers, is driving demand for efficient and durable electric motors. As electric motorcycles gain traction globally, they are contributing to the overall growth of the EV motor market.

  • In September 2024, Revolt launched RV1. RV1 is an electric motorcycle that comes with 2.2kWh or a 3.24kWh battery pack that provides a driving range of around 100 kms.

Technical Issues along with High Production Cost Hinders the Market Growth

The electric vehicle motor market faces several restraints that could hinder its growth. High production costs, driven by expensive raw materials like rare earth metals, contribute to the overall price of electric vehicles, making them less affordable for some consumers. Limited charging infrastructure in certain regions also deters potential buyers, as range anxiety remains a concern. Additionally, the complexity of electric motor designs and manufacturing processes can lead to technical challenges, affecting scalability. Lastly, competition from hybrid and internal combustion engine vehicles, particularly in emerging markets, further restrains the widespread adoption of EV motors.

Advancements in Axial Flux Motors to Shape the Future

Axial flux motors are creating new opportunities in the electric vehicle motor market by offering significant improvements in power density, efficiency, and size compared to traditional radial flux motors. Unlike radial motors, which generate magnetic flux in a cylindrical pattern, axial flux motors generate flux along the axis, allowing for a more compact and lightweight design. This makes them particularly attractive for electric vehicles, where space and weight are critical factors for enhancing range and performance. By being smaller and lighter, axial flux motors enable automakers to reduce vehicle weight, which directly translates into longer driving ranges and better energy efficiency.

These motors are also highly efficient, providing better torque at lower speeds, which is crucial for urban driving conditions and stop-and-go traffic. This efficiency not only improves vehicle performance but also reduces the energy required for operation, contributing to overall sustainability. Additionally, axial flux motors can be easily integrated into various EV architectures, including in-wheel and all-wheel-drive systems, offering more flexibility in vehicle design. As the demand for electric vehicles grows, axial flux motors present an opportunity for automakers to innovate, offering high-performance, energy-efficient solutions that cater to both consumer demands and regulatory requirements for cleaner transportation.

  • In August 2023, Tresa Motors launched Flux 350. It is a flux motor designed for providing superior performance in electric trucks.

Vehicle Type Insights

The passenger vehicle segment held the largest share of the market. Passenger vehicles play a significant role in driving the growth of the electric vehicle motor market. As consumer demand for eco-friendly, cost-efficient transportation rises, electric passenger vehicles are becoming increasingly popular. The shift from internal combustion engine (ICE) vehicles to electric alternatives is driven by factors such as environmental awareness, rising fuel prices, and government incentives aimed at reducing carbon emissions. Passenger EVs, including sedans, hatchbacks, and SUVs, are at the forefront of this transition, requiring efficient and high-performance electric motors to power their operations.

Automakers are focusing heavily on developing advanced EV motors that offer greater power efficiency, improved range, and better driving experiences to meet the growing demand. Additionally, the rapid development of charging infrastructure is making electric passenger vehicles more convenient and accessible for everyday use, further boosting adoption. Countries such as China, the U.S., and European nations are witnessing a surge in electric passenger vehicle sales, driving significant growth in the EV motor market. Furthermore, technological advancements in battery performance and regenerative braking systems, supported by electric motors, are enhancing the appeal of passenger EVs, accelerating the market’s expansion as consumers shift toward sustainable, electric mobility solutions.

  • In September 2024, Tata Motors launched Nexon EV. This car comes with 110 kW that provides superior power and enhanced driving range.

Component Insights

The rotor, shaft, and bearing segment held a significant share of the market. The rotor, shaft, and bearing are critical components driving the growth of the electric vehicle motor market by enhancing the performance and efficiency of electric motors. The rotor is the heart of the motor, converting electrical energy into mechanical energy, which powers the vehicle. Innovations in rotor designs, such as the use of permanent magnets and advanced materials, have significantly improved motor efficiency, reducing energy losses and increasing overall performance. This has allowed electric vehicles to achieve higher power output and longer driving ranges, boosting consumer demand and market growth.

The shaft connects the rotor to the vehicle’s drivetrain, ensuring the smooth transfer of power. Advancements in lightweight, high-strength materials for motor shafts are contributing to weight reduction in EVs, improving energy efficiency and vehicle performance. Similarly, bearings play a crucial role in reducing friction between moving parts, enhancing the reliability and durability of the motor. High-performance bearings designed for EV applications provide better load-carrying capacity, noise reduction, and increased lifespan, all of which are essential for long-term vehicle performance.

  • In July 2024, BMW announced partnership with Deepdrive. This partnership aims at developing a dual rotor technology to provide maximum power to EVs.

Power Rating Insights

The 100 kW to 250 kW segment led the market. The 100 kW to 250 kW power range is a key driver of growth in the electric vehicle motor market, as it meets the performance and efficiency needs of a wide range of electric vehicles, particularly in the passenger and light commercial vehicle segments. Motors within this power range offer an optimal balance between energy efficiency, acceleration, and driving range, making them ideal for many EV models, including sedans, SUVs, and vans. The increasing demand for vehicles with higher power output to accommodate better performance, quicker acceleration, and smoother driving experiences has fueled the adoption of motors in the 100 kW to 250 kW range.

This power range also supports electric vehicles’ ability to travel longer distances on a single charge, addressing consumer concerns about range anxiety. As more consumers seek electric vehicles that match or exceed the performance of traditional internal combustion engine (ICE) vehicles, the demand for motors in this power range continues to rise. Additionally, advancements in motor technology are making these power ratings more efficient, contributing to energy conservation and lower vehicle operating costs. As electric vehicles become more mainstream, motors in the 100 kW to 250 kW range are poised to play a crucial role in driving the expansion of the EV motor market.

  • In July 2023, Nidec launched a series of 250kW and 180kW motors. These motors are designed with advanced technologies to provide enhanced performance.

Regional Insights

Electric Vehicle Motor Market NA, EU, APAC, LA, MEA Share, 2023 (%)

Asia Pacific dominated the electric vehicle motor market. Rapid urbanization, population growth, and government initiatives are key drivers of the electric vehicle motor market in the Asia Pacific (APAC) region. As cities expand and populations increase, the demand for efficient, eco-friendly transportation solutions has intensified. Urban areas face rising concerns over air pollution and traffic congestion, making electric vehicles a crucial alternative to conventional internal combustion engine (ICE) vehicles. Governments in major APAC countries, such as China, Japan, and India, are implementing policies and regulations to encourage EV adoption. These include subsidies, tax incentives, and stringent emission norms aimed at reducing carbon footprints and combating air pollution.

In particular, China’s New Energy Vehicle (NEV) policy, which mandates a minimum production of electric vehicles by automakers, has significantly boosted the market. Population growth in APAC’s urban centers has also led to increased demand for affordable and sustainable transportation options, further driving the market. Additionally, the development of robust EV charging infrastructure and partnerships between automakers and technology firms have enhanced the appeal of EVs. As a result, the EV motor market in APAC is experiencing rapid expansion, driven by the combined forces of urbanization, population growth, and proactive government support for electric mobility.

Population of Indonesia (2023 - 24)

  • According to the worldometer.info, the population of Indonesia was 281190067 in 2023 that increased to 283487931 in 2024.

Europe is expected to grow with a significant CAGR during the forecast period. Stringent emission regulations, increasing EV adoption, and the development of charging infrastructure are key drivers of the electric vehicle motor market in Europe. The European Union's strict carbon emission standards, aimed at reducing greenhouse gases, have pushed automakers to transition away from internal combustion engines (ICE) towards electric vehicles. Regulations such as the EU's goal of reducing emissions by 55% by 2030 have accelerated the shift, encouraging manufacturers to invest in advanced EV motor technologies to meet these requirements.

In parallel, European consumers are increasingly adopting electric vehicles due to rising environmental awareness and government incentives. Countries like Norway, Germany, and the Netherlands offer substantial subsidies, tax breaks, and rebates for EV purchases, which are boosting demand for EV motors. Furthermore, the expansion of a comprehensive charging infrastructure across Europe is making electric vehicles more practical for everyday use, encouraging greater adoption. Public and private investments in fast-charging networks are addressing range anxiety, a key barrier to EV growth, and facilitating the widespread adoption of electric mobility. These combined factors are driving the growth of the EV motor market in Europe, as automakers strive to meet regulatory demands while capitalizing on the growing consumer preference for electric vehicles.

Norway EV Sale Share (2023)

  • According to the ourworldindata, around 93% cars sold in Norway in 2023 were EVs and 7% ICE vehicles were sold in the same year.

Recent Developments

  • In May 2024, ABB launched a new range of electric motors for EV buses. This new motor offers high torque density that provides enhanced performance and increased passenger comfort.
  • In October 2023, GKN Automotive launched a new plug-and-play EV motor. This motor is designed for light and commercial vehicles.
  • In August 2023, Bosch announced the launch of a new electric motor.  These motors are manufactured using Silicon carbide chips to provide maximum efficiency.

Top Comapanies in the Electric Vehicle Motor Market

  • Robert Bosch GmbH (Germany)
  • Allied Motion, Inc. (U.S.)
  • TECO Corporation (Taiwan)
  • Toshiba International Corporation (Japan)
  • Siemens AG (Germany)
  • ABB (Switzerland)
  • AISIN CORPORATION (Japan)
  • LG Magna e-Powertrain Co., Ltd (South Korea)
  • Johnson Electric Holdings Limited (Hong Kong)
  • BorgWarner Inc. (U.S.)
  • Nidec Industrial Solutions (Japan)
  • Mitsubishi Electric Corporation (Japan)
  • GKN Automotive (U.K.)

Maket Segments

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
  • The Middle East and Africa
  • Insight Code: 1021
  • No. of Pages: 150+
  • Format: PDF/PPT/Excel
  • Published: October 2024
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2022
  • Base Year: 2023
  • Estimated Years: 2024-2033

About The Author

Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.

FAQ's

The rising demand for EVs along with advancement in automotive industry drives the market growth.

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

The top players in the industry includes Robert Bosch GmbH, Allied Motion, Inc., TECO Corporation (Taiwan), Toshiba International Corporation and some others.

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