Electric Motors for Electric Vehicle Market - Growth, Trends, and Forecasts (2020 - 2025)
The electric motors for the electric vehicle market is expected to register a CAGR of over 28.63%, during the forecast period (2020 - 2025).
Some of the major factors driving the growth of the market studied are the enactment of stringent emission and fuel economy norms, government incentives, and improving charging infrastructure, which is leading to the increasing adoption of electric vehicles. This adoption of electric vehicles may propel the demand for electric motors during the forecast period.
The massive investments in electric vehicles by major automotive companies, such as Toyota, Honda, Tesla, General Motors, and Ford, are expected to drive the electric motor market in the near future. Additionally, the evolving partnerships between motor manufacturers and automotive companies are expected to expand the electric motor for the electric vehicle market, globally.
The electric motor market is expected to face challenges in the form of procurement of rare earth metals used in permanent magnets for synchronous motors, as the metals used in these motors are subject to export restrictions and supply risks.
The electric motor for the electric vehicle market is mainly dominated by some of the major automotive players, such as Tesla, BYD, Toyota, Nissan, and Honda.
Key Market Trends
Growing Sales of Electric Vehicles
The electric vehicle has become an integral part of the automotive industry, and it represents a pathway toward achieving energy efficiency, along with reduced emission of pollutants and other greenhouse gases. The increasing environmental concerns, coupled with favorable government initiatives, are the major factors driving this growth. The annual sales volume of the electric passenger cars is projected to cross the 5 million units mark by the end of 2025, and it is expected to account for 15% of the overall vehicle sales by the end of 2025.
Electric vehicle market has been witnessing a healthy growth rate in recent years, up to the third quarter of 2019 the overall electric vehicle sales reached about 1,614,048 units compared to 1,279,527 up to the third quarter of 2018. This spike in sales is the result of an increase in regulatory norms, by various organizations and governments, to control emission levels and to propagate zero-emissions vehicles.
The above-mentioned norms have derived the automakers to increase their expenditure on R&D of electric vehicles, which eventually allowed them to market electric vehicles in the future. This strategy had a strong impact on people, as there was a considerable change in the purchase pattern from conventional IC engine vehicles to electric vehicles. The change has not decreased the sales of IC engine vehicles but rather created a promising market for electric vehicles in the present as well as for the future. The growth of electric vehicles is anticipated to increase the demand for electric motors over the forecast period.
Asia-Pacific Continues to Dominate the Electric Motors for Electric Vehicle Market
Globally, Asia-Pacific has been capturing the largest share in the market studied, owing to high EV sales, majorly from China. China is the largest manufacturer and consumer of electric vehicles in the world. The domestic demand is being supported by national sales targets, favorable laws, and municipal air-quality targets. For instance, China imposed a quota on manufacturers of electric or hybrid vehicles, which must represent at least 10% of total new sales. Also, the city of Beijing only issues 10,000 permits for the registration of combustion engine vehicles per month to encourage its inhabitants to switch to electric vehicles.
As the market for electric vehicle steadily growing the for electric motors for electric is likely to grow over the forecast as the majority of the OEMs are launching, making partnerships with electric vehicle manufacture, Joint-Venture, etc., For instance, - in March 2020, Wolong Electric Group Co., Ltd (Wolong Electric) signed a joint venture agreement with ZF (China) Investment Co. Ltd (ZF China). Wolong Electric Group Co. Ltd (Wolong Electric) signed a joint venture agreement with ZF (China) Investment Co. Ltd (ZF China). The company will be based in the city of Shaoxing, Zhejiang Province, and will mainly engage in the design, production and sales of automotive traction motors for application in electric vehicles (EVs), plug-in hybrid vehicles (PHVs) and mild hybrid vehicles (HVs).
The market studied is highly fragmented due to the presence of many regional and international players. However, the market is dominated by some of the major automotive players, such as Toyota, Tesla, Nissan, Honda, BYD, BAIC, and BMW, of which, Toyota, Tesla, and BYD,
Toyota has a huge presence in the Japanese market and an in-house motor production facility, which covered a significant share of the market studied in 2019. Toyota Prius was the world's first mass-produced hybrid car, and the company sold 13 million hybrid cars since its introduction.
Most of the automakers such as Toyota, Nissan, Honda, and Subaru produce majority of their traction motors internally.
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