Electric Motors for Vehicles Sales Market Outlook

The global market for electric motors in vehicles is projected to reach approximately USD 120 billion by 2035, growing at a compound annual growth rate (CAGR) of about 9.2% during the forecast period from 2025 to 2035. The increasing adoption of electric vehicles (EVs), driven by the need for sustainable transportation solutions and the growing focus on reducing carbon emissions, is a significant factor contributing to this growth. Additionally, advancements in battery technology, coupled with supportive government policies and incentives aimed at promoting EV usage, are propelling the electric motors market. The automotive industry's shift towards electrification is also influenced by stringent regulations on fuel efficiency and emissions, encouraging manufacturers to innovate and expand their electric motor offerings. These dynamics create an optimistic outlook for the electric motors for vehicles market, as consumer awareness regarding environmental concerns continues to rise.

Growth Factor of the Market

The electric motors for vehicles market is primarily driven by the escalating demand for electric vehicles as a clean and efficient alternative to traditional combustion engines. The transformation of the automotive sector towards electrification is an essential factor, as consumers and manufacturers alike embrace the benefits of reduced operating costs and enhanced energy efficiency. Moreover, the growing emphasis on sustainable transportation solutions is accompanied by advancements in electric motor technology, which are leading to more compact, lightweight, and powerful motors. The integration of electrification technologies in various vehicle types, including passenger cars and commercial vehicles, is fostering the growth of this market. Another key growth factor is the increasing investment in charging infrastructure, which is essential for supporting electric vehicle adoption. As governments and private entities invest in building extensive charging networks, consumer confidence in electric vehicles continues to grow, further propelling the demand for electric motors.

Key Highlights of the Market

• The market is projected to reach USD 120 billion by 2035, with a CAGR of 9.2% from 2025-2035.
• Electric vehicles are rapidly gaining traction as consumers prioritize sustainability and energy efficiency.
• Technological advancements are leading to the development of more efficient and compact electric motors.
• Government initiatives and subsidies aimed at encouraging electric vehicle adoption are boosting market growth.
• The commercial vehicle segment is expected to witness significant growth due to demand for electric buses and trucks.

By Type

DC Motors:

DC motors are widely utilized in various electric vehicles due to their simplicity and ease of control. They offer high starting torque and adjustability in speed, making them suitable for applications requiring precise speed control. The ability to operate efficiently at low and high speeds allows DC motors to be a favored choice for electric cars, bicycles, and scooters. However, they require more maintenance than other motor types due to the presence of brushes, which can wear out over time. Nevertheless, the increasing popularity of electric two-wheelers is driving the demand for DC motors, as they are cost-effective and deliver satisfactory performance in such applications.

AC Motors:

AC motors are known for their durability and efficiency, making them an ideal choice for electric vehicles. This type of motor is less complex than DC motors, as it does not require brushes, leading to reduced maintenance needs and longer lifespan. AC motors are often utilized in various applications, including passenger vehicles and commercial trucks, where reliability and efficiency are crucial. The market for AC motors is further supported by advancements in inverter technology, which allows for better control of motor speed and performance. As electric vehicles continue to expand in the automotive market, the demand for AC motors is expected to grow significantly due to their proven performance and efficiency.

Brushless DC Motors:

Brushless DC motors are gaining popularity in the electric vehicles market due to their high efficiency and low maintenance requirements. Unlike traditional DC motors, brushless DC motors utilize electronic commutation, eliminating the need for brushes and resulting in improved reliability and performance. They offer high power density and efficiency, making them suitable for applications requiring compact and lightweight designs. These motors are commonly used in electric bicycles and scooters, where performance and longevity are critical. As the market for electric two-wheelers continues to expand, the demand for brushless DC motors is anticipated to rise, driven by their advantages in efficiency and reliability.

Permanent Magnet Synchronous Motors:

Permanent Magnet Synchronous Motors (PMSMs) are increasingly being adopted in electric vehicles for their excellent efficiency and torque characteristics. The use of permanent magnets in the rotor allows PMSMs to deliver high torque at low speeds, making them ideal for vehicle propulsion. Their compact design and lightweight nature contribute to the overall efficiency of electric vehicles, leading to longer driving ranges and better performance. These motors are prevalent in passenger vehicles and high-performance electric cars, where speed and responsiveness are essential. As manufacturers focus on developing electric vehicles with superior performance metrics, the demand for PMSMs is expected to grow significantly in the coming years, solidifying their position in the electric motors market.

Induction Motors:

Induction motors are renowned for their robustness and reliability, making them a suitable choice for various applications in electric vehicles. They operate on the principle of electromagnetic induction and are typically used in larger electric vehicles such as buses and trucks, where durability and minimal maintenance are vital. Induction motors require less complex wiring and are less susceptible to wear and tear, offering a longer operational life. Additionally, the efficiency of induction motors can be optimized with modern inverter technology, allowing for better performance management. As the demand for electric buses and larger commercial vehicles rises, the adoption of induction motors is expected to gain traction, contributing to the overall growth of the electric motors market.

By Vehicle Type

Passenger Vehicles:

Passenger vehicles represent a significant segment of the electric motors market, driven primarily by the growing consumer demand for electric cars. With the increasing emphasis on environmental sustainability, many consumers are opting for electric passenger vehicles as a viable alternative to traditional gasoline-powered cars. This shift is being supported by advancements in battery technology, which have enhanced the range and performance of electric vehicles, making them more appealing to the average consumer. As automakers introduce a wider array of electric models, ranging from compact cars to luxury vehicles, the demand for electric motors specifically designed for passenger vehicles is expected to rise significantly, driving market growth in this segment.

Commercial Vehicles:

The commercial vehicle segment is witnessing rapid growth due to the rising demand for electric buses and trucks. These vehicles offer operational cost savings through reduced fuel consumption and lower maintenance needs, making them attractive options for fleet operators. Electric commercial vehicles are becoming increasingly viable due to government incentives promoting cleaner transportation solutions, particularly in urban areas where emissions regulations are stringent. As logistics companies and municipalities invest in electric fleets, the demand for electric motors tailored for commercial applications is anticipated to grow, contributing to the overall expansion of the electric motors for vehicles market.

Electric Bicycles:

Electric bicycles have emerged as a popular mode of transportation, especially in urban areas, due to their eco-friendly nature and cost-effectiveness. The rising awareness of environmental issues and the need for sustainable commuting options have fueled the growth of electric bicycles, driving demand for electric motors specifically designed for this application. These motors typically operate within a lightweight and compact framework, allowing for ease of use and portability. As cities continue to implement cycling-friendly infrastructure, the electric bicycle market is expected to grow, consequently boosting the demand for electric motors in this segment.

Electric Scooters:

Electric scooters are rapidly gaining traction as a flexible and convenient alternative for short-distance travel. The increased trend towards micro-mobility solutions, particularly in urban environments, is driving the demand for electric scooters equipped with efficient electric motors. These scooters provide an eco-friendly transportation option, aligning with global sustainability goals. The ease of use, lower cost of ownership, and growing availability of rental services are contributing to the booming electric scooter market. As urban areas continue to prioritize clean transportation solutions, the demand for electric motors tailored for electric scooters is expected to rise significantly.

Electric Motorcycles:

Electric motorcycles are carving a niche in the motorcycle segment, appealing to consumers looking for sustainability without compromising on performance. The electric motorcycle market is experiencing growth as manufacturers introduce innovative designs that offer high torque and speed capabilities. With advancements in battery technology leading to increased range and charging options, electric motorcycles are becoming more competitive against traditional internal combustion engine motorcycles. As consumer preferences shift towards eco-friendly transportation, the demand for electric motors suited for electric motorcycles is projected to grow, driven by a combination of performance and sustainability benefits.

By Sales Channel

OEMs:

Original Equipment Manufacturers (OEMs) play a crucial role in the electric motors for vehicles market by providing electric motors integrated into new electric vehicles. This segment is characterized by long-term partnerships between motor manufacturers and automotive companies, facilitating the development of tailored solutions that meet specific performance metrics. The increasing number of electric vehicle models being introduced by various OEMs is fueling demand for electric motors, as automakers seek to enhance vehicle efficiency and performance. As the market for electric vehicles continues to expand, OEMs are likely to invest further in research and development to optimize electric motor technology, contributing to market growth.

Aftermarket:

The aftermarket segment is witnessing growth as existing electric vehicle owners seek replacements or upgrades for their vehicle motors. As electric vehicles become more prevalent, the demand for aftermarket parts and services is expected to rise, creating opportunities for electric motor suppliers. This segment is characterized by a focus on enhancing vehicle performance and extending the lifespan of electric motors through various aftermarket solutions. With an increasing number of electric vehicles on the road, the aftermarket for electric motors is poised for significant growth, driven by the need for maintenance, repairs, and performance enhancements.

By Vehicle Propulsion Type

Battery Electric Vehicles:

Battery Electric Vehicles (BEVs) are fully electric vehicles powered entirely by an onboard battery, making them a key segment in the electric motors market. The increasing consumer preference for zero-emission vehicles has led to a surge in BEV sales, driven by advancements in battery technology that enhance range and charging times. The need for efficient electric motors in BEVs is critical, as they directly influence the vehicle's performance and driving experience. As more automakers introduce competitive BEV models, the demand for high-performance electric motors tailored for BEVs is expected to grow, further solidifying their presence in the electric motors for vehicles market.

Plug-in Hybrid Electric Vehicles:

Plug-in Hybrid Electric Vehicles (PHEVs) combine both electric and conventional fuel sources, allowing for versatile driving options. This hybrid approach appeals to consumers who are cautious about fully transitioning to electric vehicles, as PHEVs offer the benefits of electric driving while retaining the option of traditional fuel. The demand for electric motors in PHEVs is driven by the need for efficient power management between the electric and gasoline systems. As the adoption of PHEVs continues to grow, so too will the demand for advanced electric motors that can seamlessly integrate with traditional propulsion systems, catering to the evolving preferences of consumers.

Hybrid Electric Vehicles:

Hybrid Electric Vehicles (HEVs) utilize a combination of an internal combustion engine and an electric motor, providing improved fuel efficiency and lower emissions compared to conventional vehicles. The electric motor in HEVs plays a crucial role in enhancing fuel economy by assisting the gasoline engine during acceleration and allowing for regenerative braking. As consumers increasingly seek fuel-efficient alternatives, the market for HEVs is witnessing substantial growth, driving the demand for electric motors designed for hybrid applications. As regulations on vehicle emissions tighten, HEVs are expected to remain a popular choice, further bolstering the electric motors market.

By Region

The electric motors for vehicles market exhibits varying growth rates across different regions, largely influenced by local government policies, market maturity, and consumer adoption behaviors. North America occupies a significant share of the market, driven by the rapid adoption of electric vehicles and considerable investments in charging infrastructure. The United States, in particular, has been proactive in implementing initiatives to electrify transportation, resulting in a projected CAGR of 8.5% from 2025 to 2035 in this region. As consumer awareness regarding sustainability increases, the demand for electric motors for vehicles is expected to rise markedly in North America, propelling market growth.

Meanwhile, the Asia Pacific region is anticipated to witness the highest growth rate in the electric motors for vehicles market. Countries like China and Japan are leading the charge in electric vehicle adoption, with significant investments directed towards EV infrastructure and manufacturing capabilities. The electric motors market in Asia Pacific is expected to grow at a CAGR of 10.5% from 2025 to 2035, driven by government incentives aimed at promoting electric vehicles and the presence of numerous OEMs in the region. As Asian countries continue to prioritize electric mobility solutions, the demand for electric motors is expected to flourish, contributing to the overall growth of the market.

Opportunities

The electric motors for vehicles market presents numerous opportunities, particularly in developing regions where electric vehicle adoption is gaining momentum. Countries such as India and Brazil are beginning to recognize the importance of sustainable transportation solutions, and as such, governments are implementing initiatives to encourage the adoption of electric vehicles. This creates opportunities for electric motor manufacturers to enter these markets by establishing partnerships with local automotive companies and investing in production facilities. Furthermore, as consumer preferences shift toward eco-friendly alternatives, electric motorcycle and electric bicycle markets are emerging, providing additional avenues for growth. By capitalizing on these trends, manufacturers can enhance their market presence and profitability.

Another significant opportunity lies in the advancement of electric motor technologies, including the integration of smart technologies and IoT solutions. As the automotive industry moves towards connectivity and automation, electric motors equipped with smart features can provide enhanced performance monitoring, predictive maintenance capabilities, and improved energy efficiency. This creates an avenue for innovation and product differentiation, allowing companies that invest in research and development to gain a competitive edge. As electric vehicles continue to evolve, those manufacturers that embrace technological advancements will be well-positioned to seize market opportunities and meet the demands of modern consumers.

Threats

Despite the promising outlook for the electric motors for vehicles market, there are several threats that could hinder growth. One major concern is the volatility of raw material prices, particularly for components required in electric motors, such as magnets and copper. Fluctuations in prices can impact production costs and subsequently affect profit margins for manufacturers. Additionally, intense competition among electric motor suppliers could lead to price wars, further squeezing margins. Furthermore, the emergence of alternative propulsion technologies, such as hydrogen fuel cells, poses a potential threat to the dominance of electric motors in the automotive sector. As advancements are made in hydrogen technology, manufacturers must continually innovate to maintain relevance in a rapidly evolving market.

Another critical restraining factor is the limited charging infrastructure in many regions, which could deter consumers from adopting electric vehicles and subsequently impact the demand for electric motors. While investments are being made to enhance charging availability, gaps still exist, particularly in rural and less-developed areas. Additionally, the range anxiety associated with electric vehicles continues to be a concern for potential buyers, further hindering market growth. Manufacturers must collaborate with stakeholders to address these infrastructure challenges through strategic partnerships and investments, ensuring a robust charging network to support the electric motors market.

Competitor Outlook

• Siemens AG
• General Electric (GE) Co.
• ABB Ltd.
• Continental AG
• Bosch GmbH
• YASA Ltd.
• Panasonic Corporation
• Tongyu Technology Ltd.
• SAE International
• Zhejiang VIE Science and Technology Co., Ltd.
• ElectroCraft, Inc.
• Proterra Inc.
• Tesla, Inc.
• BYD Company Ltd.
• Cummins Inc.

The competitive landscape of the electric motors for vehicles market is characterized by a diverse range of manufacturers, each vying for a larger share of the growing market. Major players are increasingly focusing on research and development to introduce innovative products that cater to the evolving demands of electric vehicles. The presence of established automotive giants, along with specialized electric motor manufacturers, contributes to a competitive environment where companies must continuously improve their offerings. Partnerships and collaborations are becoming commonplace, as manufacturers seek to leverage each other's strengths to enhance technological capabilities and market reach. This trend is expected to intensify as the electric vehicle market expands, leading to increased competition and innovation among electric motor suppliers.

Siemens AG stands out as a leader in the electric motors sector, renowned for its advanced motor technology and commitment to sustainability. The company invests significantly in research and development, allowing them to create efficient, high-performance electric motors that meet the demands of various automotive applications. Siemens has also focused on collaborations with automakers to integrate their electric motors into new electric vehicle models, ensuring their solutions align with industry trends. Similarly, ABB Ltd. is heavily involved in the electric motors market, leveraging its expertise in automation and electrification to provide innovative and reliable motor solutions. ABB's strong global presence and extensive range of products enable them to cater to diverse customer needs while maintaining a competitive edge.

On the other hand, companies like Tesla, Inc. are setting benchmarks in the electric vehicle market, not only through their vehicles but also by developing cutting-edge electric motors tailored for optimal performance. Tesla's continuous advancements in battery technology and motor efficiency have positioned them as a formidable force in the electric motors market. Additionally, BYD Company Ltd. has established a strong foothold in the electric bus sector, focusing on integrating high-performance electric motors into their vehicles. Their extensive research and development capabilities ensure they remain at the forefront of electric motor innovation, catering to the growing demand for electric public transportation solutions. As competition intensifies, these major players will likely continue shaping the electric motors for vehicles market with their innovative approaches and commitment to sustainability.