Automotive Traction Motors

Global Automotive Traction Motors Market to Reach US$31.0 Billion by 2030

The global market for Automotive Traction Motors estimated at US$9.5 Billion in the year 2024, is expected to reach US$31.0 Billion by 2030, growing at a CAGR of 21.8% over the analysis period 2024-2030. Battery Electric Vehicles, one of the segments analyzed in the report, is expected to record a 24.2% CAGR and reach US$18.6 Billion by the end of the analysis period. Growth in the Hybrid Electric Vehicles segment is estimated at 19.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.6 Billion While China is Forecast to Grow at 29.5% CAGR

The Automotive Traction Motors market in the U.S. is estimated at US$2.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.5 Billion by the year 2030 trailing a CAGR of 29.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.2% and 19.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 18.3% CAGR.

Global Automotive Traction Motors Market - Key Trends & Drivers Summarized

How Are Automotive Traction Motors Revolutionizing Electric Mobility?

Automotive traction motors are at the heart of the electric vehicle (EV) revolution, providing the necessary propulsion to replace traditional internal combustion engines. As automakers shift toward sustainability and electrification, traction motors are experiencing unprecedented demand. These motors convert electrical energy into mechanical power, driving vehicle efficiency and performance. Advances in motor technologies, such as high-efficiency permanent magnet synchronous motors (PMSMs) and induction motors, are helping automakers enhance range, reduce energy loss, and improve vehicle acceleration. Additionally, increasing investments in power electronics and thermal management systems are contributing to the advancement of high-power traction motors, making them more suitable for both passenger and commercial electric vehicles. The global emphasis on reducing carbon emissions and improving fuel efficiency is pushing automakers to accelerate the adoption of cutting-edge traction motor technologies.

What Role Do Innovations in Materials and Manufacturing Play?

Innovations in materials and manufacturing techniques are critical in shaping the future of automotive traction motors. The industry is witnessing a shift towards lightweight and high-performance materials such as rare-earth magnets, silicon carbide (SiC) semiconductors, and advanced copper winding technologies to enhance efficiency and reduce energy consumption. The development of cost-effective, rare-earth-free alternatives is also gaining traction due to supply chain constraints and fluctuating raw material costs. Meanwhile, advancements in additive manufacturing and automation are enabling the production of complex motor designs with higher precision and reduced waste. Leading automakers and technology providers are investing heavily in next-generation traction motor production lines that integrate smart manufacturing practices, ensuring consistent quality, scalability, and cost-effectiveness. The increasing adoption of axial flux motors, known for their compact size and high power density, is further pushing the boundaries of electric vehicle performance.

How Are Government Regulations and Policies Driving Market Growth?

Stringent government regulations and policies aimed at promoting electric mobility are playing a crucial role in accelerating the demand for automotive traction motors. Many countries are implementing ambitious emission reduction targets, leading to stringent mandates on automakers to phase out internal combustion engines in favor of electric powertrains. Incentives such as tax rebates, subsidies for EV manufacturers, and investments in charging infrastructure are boosting traction motor adoption. The push for localized battery production and electric motor manufacturing is also prompting automakers to establish regional supply chains to mitigate geopolitical risks and import dependencies. Additionally, advancements in recycling technologies are ensuring that rare-earth materials used in traction motors are sustainably managed, addressing environmental concerns related to resource extraction and disposal. With governments worldwide aggressively promoting zero-emission transportation, traction motors are poised to become the backbone of future mobility solutions.

What Factors Are Fueling Market Expansion?

The growth in the automotive traction motors market is driven by several factors, including the rising adoption of electric and hybrid vehicles, technological advancements in motor efficiency, and the expansion of EV charging infrastructure. Automakers are continuously innovating to develop high-performance motors that offer better energy conversion rates, longer lifespans, and reduced maintenance costs. The increasing penetration of commercial electric vehicles, including electric buses and trucks, is also contributing to market expansion, as these vehicles require high-power traction motors for optimal performance. Consumer demand for longer driving ranges and faster acceleration is pushing manufacturers to integrate advanced motor control algorithms and regenerative braking systems to enhance energy efficiency. Additionally, collaborations between automakers and semiconductor companies are leading to breakthroughs in silicon carbide and gallium nitride power electronics, enabling better performance at higher voltages. As the global transition toward electrification accelerates, traction motors will remain a cornerstone of sustainable mobility solutions.

SCOPE OF STUDY:

The report analyzes the Automotive Traction Motors market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
EV Type (Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles); Motor Type (Permanent Magnet Synchronous Motor, AC Induction Motor); Vehicle Type (Passenger Cars, Trucks, Buses, Pickup Trucks, Vans)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• ABB AB
• Bosch Mobility Solutions
• Delta Electronics, Inc.
• Electrodrive Powertrain Solutions Pvt Ltd. (Electra EV)
• Hitachi Industrial Products
• Nidec Corporation
• SEG Automotive Germany GmbH
• Siemens Mobility GmbH
• Toyo Denki Seizo K.K.(Toyo Electric Mfg. Co., Ltd.)
• Traktionssysteme Austria GmbH

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

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