Automotive Electric Motor Market Outlook

The global automotive electric motor market is projected to reach approximately USD 65 billion by 2035, growing at a compound annual growth rate (CAGR) of around 8.2% during the forecast period from 2025 to 2035. This growth trajectory is driven by the increasing adoption of electric vehicles (EVs), spurred by stringent government regulations aimed at reducing carbon emissions, and growing consumer awareness regarding the benefits of electric mobility. Furthermore, advancements in battery technology and electric motor efficiency are enhancing the performance of electric vehicles, making them more appealing to consumers and manufacturers alike. The automotive industry's shift toward electrification is also catalyzing investments in R&D, which are further propelling the demand for electric motors in the sector. As a result, the automotive electric motor market is poised for significant expansion over the coming years.

Growth Factor of the Market

One of the primary growth factors driving the automotive electric motor market is the increasing focus on sustainable transportation solutions. Governments worldwide are implementing policies and incentives to promote the adoption of electric vehicles, which directly stimulates the demand for electric motors. Additionally, the advancement of technology in electric motors, including improvements in efficiency and durability, is making electric vehicles more competitive with traditional internal combustion engine vehicles. The investment in charging infrastructure is also a critical factor, as it alleviates concerns about range anxiety among consumers, further encouraging the shift toward electric mobility. Moreover, the rising environmental awareness among consumers is pushing automakers to innovate and produce cleaner, greener vehicles. This evolving landscape is not only benefiting manufacturers but also creating new opportunities for suppliers and service providers in the automotive electric motor market.

Key Highlights of the Market

• The market is expected to witness significant growth due to the increasing adoption of electric vehicles across various segments.
• Technological advancements in electric motors are enhancing their efficiency and performance, driving market demand.
• Government incentives and regulations favoring electric mobility are providing a substantial boost to the market.
• The rising trend of sustainable transportation is shifting consumer preferences towards electric vehicles.
• Investments in charging infrastructure are expected to further accelerate the adoption of electric vehicles and their accompanying electric motors.

By Product Type

DC Motor:

DC motors are widely used in automotive applications due to their simplicity and ease of control. These motors convert direct current electrical energy into mechanical energy, making them suitable for a variety of automotive functions such as driving auxiliary systems, starter motors, and windshield wipers. Their design allows for a straightforward speed control mechanism, which is advantageous in various applications. However, the main drawback of DC motors is their reliance on brushes for operation, which can lead to maintenance challenges and reduced operational life. Despite these limitations, the market for DC motors continues to thrive as manufacturers innovate to enhance their efficiency, making them a viable option in the automotive sector.

AC Motor:

AC motors, including synchronous and asynchronous motors, are gaining traction in the automotive electric motor market, particularly in electric vehicles. These motors are preferred for their robustness and efficiency, making them ideal for high-performance applications. AC motors are characterized by their ability to operate at higher speeds and provide better torque at various speeds, which is essential for modern electric drivetrains. The absence of brushes in AC motors results in lower maintenance costs, and their design allows for longer operational lifespans compared to their DC counterparts. As the demand for efficient and reliable electric vehicles continues to grow, AC motors are expected to play a pivotal role in shaping the automotive landscape.

Brushless DC Motor:

Brushless DC motors (BLDC) are increasingly favored in automotive applications due to their high efficiency, reliability, and low maintenance requirements. These motors utilize electronic commutation instead of brushes, which enhances their operational life and reduces noise and vibration. BLDC motors are particularly well-suited for electric vehicles where efficiency is paramount, as they offer high torque-to-weight ratios and can operate at varying speeds without sacrificing performance. The automotive sector's shift towards electrification is propelling the demand for BLDC motors, as automakers seek to improve the overall performance and efficiency of their electric vehicles. With continuous advancements in motor design and control systems, brushless DC motors are poised to capture a significant share of the automotive electric motor market in the coming years.

Universal Motor:

Universal motors are versatile motors that can operate on both alternating current (AC) and direct current (DC), making them suitable for a variety of automotive applications, including power tools and smaller electric vehicles. Their capability to run on various power sources gives them an edge in applications where flexibility is required. While universal motors can deliver high starting torque, they are less commonly used in electric vehicles compared to other motor types due to their maintenance requirements and shorter operational life. However, they find their niche in automotive applications where space and weight constraints are critical, and their robust design often meets the needs of specific automotive components.

Servo Motor:

Servo motors are crucial in automotive applications requiring precise control of angular or linear position, velocity, and acceleration. These motors are widely used in robotics, automated machinery, and electric vehicles for applications such as steering systems and autonomous navigation. Servo motors are characterized by their exceptional accuracy and responsiveness, making them ideal for high-performance automotive systems that demand precision. The growing trend towards automation and advanced driver-assistance systems (ADAS) in vehicles is significantly boosting the demand for servo motors. As vehicle technology advances, servo motors are expected to play an increasingly prominent role in the automotive electric motor market.

By Application

Electric Vehicles:

The electric vehicle segment represents one of the most significant applications for automotive electric motors. The rapid adoption of electric vehicles, driven by environmental concerns and government support, is creating substantial demand for electric motors capable of delivering high performance and efficiency. This sector encompasses a variety of vehicles, including fully electric vehicles (BEVs) and hybrid electric vehicles (HEVs), each requiring different types of motors to optimize performance. As automakers continue to innovate and enhance battery technology, electric motors are being developed to provide greater torque and power, which are critical for improving acceleration and overall driving experience. The electric vehicle market is set to grow exponentially, further bolstering the automotive electric motor market.

Electric Two-wheelers:

The electric two-wheeler market is experiencing rapid growth, driven by increasing urbanization and rising fuel prices. Electric motors designed for two-wheelers are typically smaller and more efficient, aimed at providing sufficient power while maintaining a lightweight design. This segment is particularly popular in regions where traffic congestion is prevalent, as electric two-wheelers offer a convenient and eco-friendly transportation option. The growing awareness of environmental sustainability among consumers is also contributing to the increased adoption of electric two-wheelers. As manufacturers continue to innovate and improve the efficiency of electric motors, the market for electric two-wheelers is expected to expand significantly over the coming years.

Electric Four-wheelers:

Electric four-wheelers, including electric cars and SUVs, are a major application area for automotive electric motors. The demand for electric four-wheelers is being propelled by advancements in battery technology, increased range, and improved charging infrastructure. Electric motors in this segment are designed to provide high torque and power, which are critical for performance and efficiency. As consumer preferences shift towards electric vehicles, automakers are increasingly investing in the development of electric four-wheelers, leading to a surge in demand for electric motors that meet performance and regulatory standards. The electric four-wheeler market is anticipated to grow substantially, further driving the overall automotive electric motor market.

Electric Aircraft:

The emergence of electric aircraft represents a new frontier for automotive electric motors, leveraging the technology developed for electric vehicles. Electric motors used in aviation applications require specialized designs to meet stringent safety and performance standards, emphasizing reliability and lightweight characteristics. The increasing focus on sustainable aviation is driving interest in electric and hybrid-electric aircraft, which promise to reduce emissions and fuel consumption. As research and development continue in this area, the adoption of electric motors for aviation purposes is expected to grow, creating new opportunities within the automotive electric motor market.

Electric Ships:

Electric ships are gaining traction as a viable alternative to traditional maritime propulsion systems, primarily driven by the need for cleaner and more efficient shipping methods. The use of electric motors in ships helps reduce greenhouse gas emissions and improves energy efficiency. As the shipping industry faces increasing regulatory pressures to lower emissions, electric motors are becoming an attractive option for both commercial and recreational vessels. The growing trend toward electrification in marine applications is expected to fuel demand in this segment, contributing to the overall growth of the automotive electric motor market.

By Distribution Channel

OEMs:

The original equipment manufacturers (OEMs) channel accounts for a significant share of the automotive electric motor market. OEMs are responsible for designing and manufacturing vehicles, and they require a consistent supply of high-quality electric motors that meet specific performance criteria. Partnerships between motor manufacturers and OEMs are essential, as they facilitate the integration of electric motors into new vehicle models. With the increasing focus on electrification, OEMs are investing in research and development to create innovative electric vehicles that utilize advanced electric motors. This collaboration is crucial for ensuring that the right technology is in place to meet the demands of the evolving automotive landscape.

Aftermarket:

The aftermarket segment of the automotive electric motor market refers to the sale of electric motors for replacement or upgrade purposes in existing vehicles. As electric vehicles gain popularity, the demand for aftermarket services is also increasing. This segment provides opportunities for motor manufacturers to offer their products to consumers looking to enhance the performance or extend the life of their electric vehicles. The aftermarket is becoming increasingly important as vehicle owners seek to replace aging or inefficient motors with newer, more efficient models. This trend is likely to contribute to the growth of the aftermarket segment in the automotive electric motor market, providing a range of options for vehicle owners.

By Power Rating

Less than 50 kW:

Motors with a power rating of less than 50 kW are commonly used in smaller electric vehicles, such as electric scooters and compact cars. These motors offer adequate performance for urban mobility, where lower speeds and shorter distances are the norm. The lightweight design of these motors enables manufacturers to create efficient and cost-effective solutions for consumers seeking affordable electric transportation options. As the demand for budget-friendly electric vehicles continues to rise, the segment of motors below 50 kW is expected to experience steady growth, making them a viable choice for entry-level electric vehicles.

50-150 kW:

The 50-150 kW power rating segment encompasses a wide range of electric motors used in mid-range electric vehicles, including sedans and SUVs. These motors offer a balance of performance and efficiency, providing sufficient power for both urban and highway driving. As consumers increasingly demand vehicles that deliver enhanced acceleration and longer ranges, motors in this power range are becoming increasingly popular. Manufacturers are focused on optimizing these motors to meet consumer expectations, which is expected to drive further growth in this segment. The competition among motor manufacturers to develop high-performance solutions is likely to contribute to innovations that enhance overall vehicle performance.

More than 150 kW:

Electric motors with power ratings exceeding 150 kW are utilized in high-performance electric vehicles, including luxury cars and sports models. The demand for these motors is driven by consumer preferences for vehicles that offer superior acceleration, handling, and overall performance. Motors in this power range are often paired with advanced battery systems to deliver exceptional torque and speed, making them essential for the development of high-end electric vehicles. As the automotive industry continues to innovate and push the boundaries of electric mobility, the segment of high-power electric motors is expected to witness significant growth, with manufacturers investing heavily in R&D to create state-of-the-art solutions.

By Region

The automotive electric motor market is witnessing growth across different regions, with North America leading the way. In 2023, North America accounted for approximately 30% of the global market share, driven primarily by the rapid adoption of electric vehicles and supportive government policies promoting clean energy solutions. The region is expected to maintain a CAGR of around 9% through 2035, fueled by the increasing investment in EV infrastructure and advancements in battery technology. The presence of major automotive manufacturers and the growing trend of electrification in the automotive sector further contribute to the robust growth of the market in North America.

Europe is another key market for automotive electric motors, with a market share of around 27% in 2023. The European automotive industry is undergoing a significant transformation as regulations aimed at reducing carbon emissions become stricter. The European Union's commitment to sustainability and electric mobility is driving investments in electric vehicle technologies and infrastructure, leading to an increase in demand for electric motors. By 2035, Europe is anticipated to grow at a CAGR of approximately 8.5%, propelling the automotive electric motor market forward. The combination of innovative designs and a supportive regulatory environment is expected to drive the shift towards electric mobility in the region.

Opportunities

One of the most promising opportunities in the automotive electric motor market lies in the continuous advancements in battery technology, which enhance the performance and efficiency of electric motors. As battery manufacturing processes improve, electric motors will be able to deliver higher power outputs and longer ranges, making electric vehicles even more attractive to consumers. Furthermore, the increasing investments from both public and private sectors into electric vehicle infrastructure, such as charging stations and maintenance facilities, are expected to bolster the demand for electric motors even further. The expansion of electric vehicle models into various segments, including commercial vehicles and public transportation, presents additional opportunities for market players to innovate and supply electric motors tailored to meet specialized needs.

Additionally, the trend toward autonomous vehicles is creating a burgeoning market for sophisticated electric motors that can enhance the performance of advanced driver-assistance systems (ADAS) and robotic features. As automakers innovate to develop fully autonomous vehicles, the need for high-precision electric motors that can operate seamlessly in these complex systems will continue to grow. This presents a unique opportunity for manufacturers specializing in servo motors and other precision-engineered electric motors. The convergence of electric mobility and autonomous technology offers vast potential for market expansion and innovation, setting the stage for a dynamic future in the automotive electric motor industry.

Threats

One of the primary threats to the automotive electric motor market stems from the supply chain challenges that many manufacturers face. The raw materials required for electric motor production, such as rare earth metals and lithium, are subjected to price volatility and geopolitical considerations that can impact availability. Any disruption in the supply chain can lead to increased production costs and delays in bringing products to market, hampering the growth of the automotive electric motor sector. Furthermore, competition from alternative technologies, such as hydrogen fuel cells and other forms of propulsion, poses a threat to the dominance of electric motors in the automotive domain. As these technologies evolve and develop, they may capture market share and change consumer preferences, necessitating that electric motor manufacturers remain agile and innovative to compete effectively.

A significant restraining factor for the automotive electric motor market is the initial cost associated with electric vehicles and their components, including electric motors. Despite the long-term cost benefits and environmental advantages of electric mobility, the upfront investment required for electric vehicles remains high compared to traditional gasoline and diesel vehicles. This presents a barrier to entry for many consumers, particularly in emerging markets where cost sensitivity is a significant factor. Moreover, the lack of widespread charging infrastructure can deter consumers from investing in electric vehicles, thereby decreasing the demand for electric motors. To address these challenges, stakeholders in the automotive electric motor market must work collaboratively to enhance affordability and infrastructure availability, ultimately facilitating widespread adoption of electric vehicles.

Competitor Outlook

• Siemens AG
• General Electric Company
• Bosch Limited
• ABB Ltd.
• Yaskawa Electric Corporation
• Valeo SA
• Continental AG
• Hitachi, Ltd.
• Schneider Electric SE
• Emerson Electric Co.
• Magna International Inc.
• Wabco Holdings, Inc.
• Allied Motion Technologies Inc.
• Johnson Electric Holdings Limited
• Nidec Corporation

The competitive landscape of the automotive electric motor market is characterized by a diverse range of key players, each vying for market share in this rapidly evolving sector. Major companies such as Siemens AG and General Electric are at the forefront, leveraging their technological expertise and extensive resources to innovate and produce high-quality electric motors. These companies are investing in research and development to enhance motor efficiency and performance, catering to the growing demands of the electric vehicle market. Furthermore, they are forming strategic partnerships with automotive manufacturers to integrate their electric motors into new vehicle models, thereby ensuring a firm foothold in the market.

Another notable player in the automotive electric motor market is Bosch Limited, which is recognized for its comprehensive portfolio of automotive components, including electric motors. The company is focused on developing cutting-edge technologies that enhance vehicle performance while reducing emissions. Bosch's commitment to sustainability and innovation aligns with the global shift toward electrification, giving it a competitive edge in the evolving automotive landscape. Additionally, companies like ABB Ltd. and Yaskawa Electric Corporation are also making significant strides in the market by providing advanced motor solutions that meet the diverse needs of automotive manufacturers.

As competition intensifies, companies are increasingly exploring mergers and acquisitions as a means to enhance their capabilities and expand their market presence. For instance, Valeo SA and Continental AG are actively pursuing collaborations to develop next-generation electric motors that can adapt to the changing dynamics of the automotive industry. These strategic moves are indicative of a broader trend where established players are seeking to enhance their technological prowess and gain a competitive advantage in the electric motor market. The ongoing investments in innovation and collaboration among key players are expected to shape the future of the automotive electric motor market.