Automotive Electric Motors Market Outlook

The global automotive electric motors market is valued at approximately USD 25 billion in 2023 and is projected to reach around USD 62 billion by 2035, growing at a remarkable CAGR of 11.5% during the forecast period. Several growth factors are propelling this upward trajectory, including the increasing demand for electric vehicles (EVs) due to environmental concerns, government regulations promoting clean energy, and technological advancements in electric motor designs. The automotive industry is undergoing a significant transformation towards electrification, and electric motors are a crucial component of this shift. Furthermore, the expanding focus on automation and enhanced driving experiences offers fertile ground for innovative electric motor applications, facilitating growth in both passenger and commercial vehicle segments. The rise in disposable income and urbanization in emerging markets is also contributing to the demand for more advanced automotive technologies.

Growth Factor of the Market

The automotive electric motors market is experiencing robust growth fueled by a variety of factors. Firstly, the increasing regulatory measures aimed at reducing carbon emissions have placed a greater emphasis on the adoption of electric vehicles, thus driving demand for efficient electric motors. Secondly, the surge in consumer awareness regarding sustainability and energy-efficient options is encouraging manufacturers to invest in electric motor technologies. Additionally, advancements in battery technologies and electric drivetrains are enhancing the performance and efficiency of automotive electric motors. The ongoing transition towards automation in vehicles, including the rise of electric and autonomous vehicles, also presents ample opportunities for growth. Finally, strategic partnerships and collaborations among key industry players are expected to foster innovation, speeding up the development and deployment of advanced electric motor solutions.

Key Highlights of the Market

• The global automotive electric motors market is projected to grow at a CAGR of 11.5% from 2025 to 2035.
• Electric vehicles are anticipated to dominate the market due to the increasing adoption of EV technology.
• DC brushless motors are expected to witness significant growth owing to their high efficiency and performance.
• OEMs will remain the primary end-users, as they continue to incorporate advanced electric motor technologies in new vehicles.
• Asia Pacific is expected to lead the market due to the rapid growth of electric vehicle production in countries like China and Japan.

By Motor Type

DC Brushed Motors:

DC brushed motors have been a staple in the automotive electric motors market for decades due to their simplicity and cost-effectiveness. They operate using direct current and utilize brushes to transfer electric energy to the motor windings. Although they offer good torque characteristics and are relatively easy to control, their efficiency can be compromised by the friction and wear of the brushes. However, they remain popular in applications where lower costs are prioritized over longevity, such as in entry-level vehicles and ancillary automotive applications. The market for DC brushed motors is gradually being overshadowed by more advanced motor technologies, but they still maintain a significant share due to their established presence in the industry.

DC Brushless Motors:

DC brushless motors are gaining traction in the automotive electric motors market due to their high efficiency, reliability, and longevity. Unlike their brushed counterparts, these motors do not use brushes, which eliminates wear and maintenance concerns. This makes them particularly suitable for applications requiring high performance and durability, such as in hybrid and electric vehicles. With the rise of the EV market, DC brushless motors are becoming increasingly preferred by OEMs, as they can be integrated into various systems, including powertrains and electronic control units. Their efficiency translates into improved overall vehicle performance and lower energy consumption, aligning well with the growing consumer demand for sustainable transportation options.

AC Motors:

AC motors, particularly induction motors, are widely used in electric vehicles due to their robust design and high efficiency. These motors operate on alternating current and are well-regarded for their reliability and durability, making them ideal for high-performance applications. The automotive electric motors market has seen a shift towards the use of AC motors, especially in high-power electric and hybrid vehicles. Their ability to provide consistent performance across various speeds and conditions enhances vehicle handling and efficiency. Furthermore, advancements in variable frequency drive (VFD) technology are making it easier for manufacturers to integrate AC motors into modern automotive applications, further driving their adoption in the industry.

Stepper Motors:

Stepper motors are used in various automotive applications, particularly in systems requiring precise control, such as in vehicle positioning and control modules. They offer excellent torque at low speeds, making them suitable for applications like fuel injectors and throttle control. However, their complexity and need for sophisticated control systems can limit their use in conventional automotive applications. Despite this, the demand for stepper motors is expected to grow as the automotive industry increasingly focuses on advancements related to automation and electrification. As these technologies continue to evolve, stepper motors may find wider applications in future vehicle models, particularly those emphasizing precision and performance.

Servo Motors:

Servo motors represent a growing segment of the automotive electric motors market, engineered for high-performance applications requiring precise control of angular or linear position, velocity, and acceleration. They are commonly employed in advanced driver-assistance systems (ADAS), robotics, and automated manufacturing processes, making them crucial for modern automotive applications. Their ability to deliver rapid response times and consistent performance makes them ideal for applications in electric steering systems and advanced braking systems. The automotive industry's push towards automation and enhanced vehicle performance is driving the adoption of servo motors, positioning them as a key component in the next generation of vehicles.

By Vehicle Type

Passenger Cars:

Passenger cars are the largest segment in the automotive electric motors market, largely driven by the growing demand for electric and hybrid vehicles. With an increasing number of consumers seeking environmentally friendly transportation options, manufacturers are investing heavily in electric drivetrains and the integration of advanced electric motors. The trend towards electrification in the automotive industry is expected to continue, resulting in a robust demand for electric motors in new passenger car models. In addition, government policies and incentives promoting electric vehicle adoption are further fueling growth in this segment, allowing consumers to transition to more sustainable options while reducing their carbon footprint.

Commercial Vehicles:

The commercial vehicle segment is also witnessing a notable surge in the adoption of electric motors, driven by the need for fuel efficiency and compliance with stringent emissions regulations. With increasing urbanization and demand for logistics services, electric commercial vehicles are gaining traction as they offer lower operating costs and environmental benefits. Fleet operators are increasingly embracing electric technologies to reduce fuel expenses, leading to a growing focus on electric motors designed specifically for heavy-duty applications. As infrastructure for electric vehicle charging continues to expand and battery technologies improve, the commercial vehicle market is poised for significant growth, making it an essential component of the overall automotive electric motors market.

Electric Vehicles:

The electric vehicle (EV) segment is at the forefront of the automotive electric motors market, driven by the global shift towards sustainable mobility. With the increasing prevalence of EVs and hybrids, the demand for high-performance electric motors is surging. Manufacturers are focusing on developing specialized electric motors that can deliver optimal performance and efficiency in different driving conditions. The shift towards electrification in personal and commercial vehicles is supported by technological advancements in battery technologies, which enhance the range and efficiency of electric motors. This segment is expected to witness exceptional growth as both consumers and manufacturers embrace electric vehicles as the future of transportation.

By User

OEMs:

Original Equipment Manufacturers (OEMs) hold a significant share of the automotive electric motors market, as they are the primary producers of vehicles incorporating electric motors in their designs. With the increasing push for electrification, OEMs are investing heavily in electric motor technologies to enhance vehicle performance and improve energy efficiency. This trend is particularly pronounced as regulatory pressures mount to reduce emissions from traditional combustion engines. OEMs are also focusing on partnerships and collaborations with electric motor manufacturers to ensure they have access to the latest technologies and innovations, thereby maintaining their competitive edge in the rapidly evolving automotive landscape. This segment is expected to lead growth in the coming years as global vehicle production continues to shift towards electric and hybrid formats.

Aftermarket:

The aftermarket segment for automotive electric motors is experiencing growth, primarily fueled by the expanding vehicle population and the need for replacement or upgrade of electric motors over time. As electric and hybrid vehicles become more prevalent on the roads, the demand for electric motor components in the aftermarket is increasing. Consumers are increasingly seeking to enhance the performance of their vehicles through aftermarket modifications, and electric motors are a key area of focus. Additionally, with the growing popularity of electric vehicles, aftermarket service providers are adapting their offerings to include specialized services for electric motors. This shift presents significant opportunities for aftermarket players to capitalize on the growing demand for replacement and upgrade solutions in the automotive electric motors market.

By Sales Channel

OEMs:

The OEM sales channel remains the dominant avenue for automotive electric motor sales, as manufacturers integrate these components into their new vehicle models. OEMs are continuously seeking innovative electric motor technologies to meet evolving consumer demands for higher efficiency and performance. Collaborations between electric motor manufacturers and automakers are also on the rise, ensuring that the latest advancements are incorporated into mass-produced vehicles. The trend towards electrification is further driving OEMs to invest in electric motor technologies, as they aim to maintain competitiveness in the marketplace. The increasing focus on sustainability and reduction of carbon emissions is further propelling growth in this sales channel, making it a primary driver of the automotive electric motors market.

Aftermarket:

The aftermarket sales channel plays an essential role in the automotive electric motors market, catering to the needs of vehicle owners looking to replace or upgrade their electric motors. As the number of electric and hybrid vehicles on the road increases, the demand for aftermarket parts and services is expected to rise accordingly. This segment benefits from a growing consumer awareness of the importance of regular maintenance and performance enhancement for electric motor-powered vehicles. Additionally, numerous aftermarket suppliers are expanding their offerings to include high-performance electric motors, allowing consumers to customize their vehicles. Moreover, the increasing trend of DIY repairs and modifications is contributing to the growth of the aftermarket sector, presenting opportunities for suppliers to tap into an increasingly lucrative market.

By Region

In terms of regional analysis, North America holds a significant position in the automotive electric motors market, primarily driven by the strong presence of major automotive manufacturers and an increasing focus on electrification. The region is projected to witness substantial growth, with the market expected to reach approximately USD 15 billion by 2035, growing at a CAGR of 10.5%. The United States has been a leader in adopting electric vehicles, with numerous initiatives and incentives to promote cleaner transportation. The presence of established OEMs and a growing consumer base interested in sustainable mobility solutions further bolster the growth of the automotive electric motors market in North America.

Europe is also a key player in the automotive electric motors market, with a projected market value of around USD 18 billion by 2035, reflecting a robust CAGR of 12% during the forecast period. The European Union's stringent emissions regulations and commitment to carbon neutrality are pushing automakers to invest heavily in electric motor technologies. Countries like Germany, France, and the UK are leading the charge, as they increasingly shift their vehicle production towards electric and hybrid models. This region's commitment to sustainability and the rapid expansion of electric vehicle charging infrastructure are expected to bolster the automotive electric motors market significantly.

Opportunities

The automotive electric motors market is ripe with opportunities, particularly as the shift towards electrification continues to gain momentum across the globe. One of the most significant opportunities lies within the electric vehicle sector, which is expected to expand exponentially in the coming years. With governments worldwide prioritizing sustainable transportation and implementing regulations that favor electric vehicles over traditional combustion engines, manufacturers are encouraged to innovate and enhance electric motor technologies. The growth in electric vehicle adoption presents an excellent opportunity for electric motor suppliers to develop specialized products that cater to the unique requirements of electric and hybrid models. Additionally, the increasing demand for automation and smart features in vehicles, such as advanced driver-assistance systems (ADAS), provides further avenues for the integration of sophisticated electric motor solutions.

Moreover, advancements in technology present further opportunities for growth in the automotive electric motors market. Innovations in battery technology, such as higher energy densities and faster charging capabilities, directly influence the performance and efficiency of electric motors. As manufacturers continue to invest in research and development to create lighter, more efficient electric motors, they will also be able to produce solutions that cater to a wider range of applications, including commercial vehicles and public transportation systems. The growing trend of connectivity and the Internet of Things (IoT) in automotive technologies also opens new doors for electric motor applications, as vehicles become increasingly integrated into smart city infrastructures. Companies that capitalize on these advancements will likely gain a significant competitive advantage in the rapidly evolving automotive landscape.

Threats

Despite the promising growth trajectory of the automotive electric motors market, several threats could impact its development. One significant concern is the volatility of raw material prices, particularly for lithium and cobalt, which are essential components in electric batteries. Fluctuations in these prices could increase production costs for electric motors and ultimately affect the pricing of electric vehicles, potentially reducing consumer demand. Additionally, competition from alternative technologies, such as hydrogen fuel cells, may also present a challenge to the growth of electric motors. As these technologies continue to evolve, they could capture a share of the market that would otherwise have gone to electric motors, especially in heavy-duty applications. Moreover, the complexity of electric vehicle technologies may deter some consumers, leading to slower adoption rates and thereby affecting the overall market growth.

Another concerning factor is the regulatory landscape surrounding electric vehicles. While regulations generally promote the adoption of electric motors, varying policies and incentives across different countries can create a fragmented market environment. This disparity could complicate the planning and execution of manufacturing strategies for electric motor producers. In addition, any significant changes to government policies or incentives could impede the growth trajectory of the automotive electric motors market. Furthermore, the existing infrastructure for electric vehicles, including charging stations and support services, may not be adequately developed in some regions, hindering the adoption of electric vehicles and, consequently, the demand for electric motors. Companies must navigate these challenges and adapt to ongoing changes to sustain their growth in this dynamic market.

Competitor Outlook

• Siemens AG
• General Electric Company
• Bosch Mobility Solutions
• Continental AG
• ABB Ltd.
• Yaskawa Electric Corporation
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Electrocraft, Inc.
• Maxon Motor AG
• Dunkermotoren GmbH
• Nidec Corporation
• Rockwell Automation, Inc.
• Parker Hannifin Corporation
• Faulhaber Group

The competitive landscape of the automotive electric motors market is characterized by a mix of established industrial giants and emerging players. Major companies such as Siemens AG and General Electric Company have been at the forefront of developing innovative electric motor technologies, leveraging their extensive resources and expertise to stay ahead of the competition. These organizations have made significant investments in research and development, focusing on enhancing motor efficiency and performance. Their strategic collaborations with automotive manufacturers further strengthen their market positions, enabling them to offer integrated solutions that meet the evolving demands of the automotive sector. Additionally, companies like Bosch Mobility Solutions and Continental AG are also investing in electric motor technologies, positioning themselves as key players in the rapidly growing electric vehicle market.

Emerging players in the automotive electric motors market are increasingly adopting innovative strategies to carve out a niche within this competitive environment. Startups and smaller companies are often more agile, allowing them to innovate quickly and respond to market trends with tailored solutions. For instance, companies like Electrocraft, Inc. and Dunkermotoren GmbH focus on niche markets and specific applications, such as robotics and automotive specialties. Their agility complements the offerings of larger companies, creating a dynamic ecosystem that fosters innovation and competition. Furthermore, the industry is witnessing a trend towards vertical integration, with some manufacturers opting to develop their electric motors in-house to maintain control over quality and performance. This trend could lead to increased competition as companies strive to differentiate themselves through superior products and services.

Key players in the automotive electric motors market, such as ABB Ltd. and Nidec Corporation, are also expanding their reach through mergers and acquisitions. These strategic moves enable them to broaden their portfolios and enhance their technological capabilities. Additionally, companies engaged in software development for motor control systems are becoming increasingly important as the market evolves towards more intelligent and connected electric vehicles. As competition intensifies, companies will need to continue innovating and adapting to changes in consumer preferences and regulatory requirements to maintain their competitive edge in the automotive electric motors market.