Automotive Traction Motor Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

The Global Automotive Traction Motor Market was valued at USD 12.15 billion in 2024 and is estimated to grow at a CAGR of 20.1% to reach USD 72.64 billion by 2034. The market growth is fueled by increasing EV adoption, stringent emission norms, and sustained innovation in electric drive technologies. Traction motors are pivotal to electric propulsion, converting electrical energy into mechanical torque for vehicle movement. Their efficiency, compactness, and power density are central to EV performance, and OEMs are rapidly shifting toward integrated electric drive units (EDUs) to enhance scalability and reduce vehicle complexity. Automotive manufacturers are integrating traction motors with gear systems and power electronics to create modular, scalable solutions. Companies such as Stellantis, GM, Bosch, and Magna are investing heavily in next-gen EDM platforms, further pushing the electrification curve.

By electric drivetrain, the battery electric vehicles (BEVs) segment generated USD 6.45 billion in 2024. The BEV segment continues to expand with robust government support, growing fast-charging networks, and zero-emission mandates across global markets. Public and private investments in charging infrastructure and EV affordability are propelling BEV penetration across all consumer classes. Meanwhile, Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) are witnessing strong growth as transitional technologies, especially in regions with inadequate charging infrastructure.

From a vehicle type perspective, the passenger cars segment generated USD 7.04 billion in 2024. The segment is benefiting from widespread consumer acceptance of electric sedans, hatchbacks, and SUVs, driven by rising environmental consciousness and EV affordability. Commercial vehicles followed as the second-largest contributor, at USD 2.95 billion, driven by the electrification of logistics fleets and e-commerce delivery vans. The two-wheeler and off-road vehicle segments also showed notable traction, particularly in Asia-Pacific and agricultural sectors, where efficiency, emissions, and cost-effectiveness are key motivators.

In terms of motor design, the permanent magnet synchronous motors (PMSMs) segment generated USD 8.45 billion in 2024, as their high-power density, efficiency, and precise control make them ideal for performance and long-range EVs. These motors are increasingly engineered with reduced rare earth content to manage material costs and geopolitical risks, while also advancing thermal and torque capabilities for high-performance EV applications.

By power output, the motors under 200 kW led the market with USD 7.1 billion in 2024, serving the needs of compact electric vehicles, city cars, and urban utility vehicles. Meanwhile, the 200–400 kW segment is rapidly growing due to increasing demand for high-performance electric sedans and SUVs, driven by dual-motor architectures and AWD applications. The >400 kW segment, targeting electric trucks and buses, is also gaining ground, aligned with fleet decarbonization and urban transit electrification goals.

Asia Pacific Automotive Traction Motor Market generated USD 5.9 billion in 2024, backed by strong EV manufacturing bases in China, Japan, and South Korea. The region is supported by favorable policies, rapid urbanization, and deep investments in EV infrastructure. Leading players such as Hyundai, BYD, and Nidec are developing innovative motor architectures for local and global markets. Meanwhile, North America and Europe are focusing on premium performance EVs and decarbonized public transportation.

Key players including Bosch, Continental, ZF Friedrichshafen, Nidec, Valeo, and Marelli are shaping the competitive landscape through product innovation, strategic partnerships, and vertical integration of electric drive components. The market is witnessing a shift toward software-defined powertrains, integrated control electronics, and AI-based predictive diagnostics, which are redefining performance benchmarks for future EV traction systems. Show more