Electric Vehicle Traction Motor Market, By Transmission, By Design, By Power Rating, By Vehicle Type, By Motor Type, By Axle Architecture, By Application, By Region - Global Industry Analysis, Market Size, Market Share & Forecast from 2025-2032

Electric Vehicle Traction Motor Market size was valued at US$ 12,110.87 Million in 2024, expanding at a CAGR of 29.98% from 2025 to 2032.

The Electric Vehicle Traction Motor Market includes electric motors that convert electrical energy into mechanical power and drive battery electric, plug-in hybrid, and hybrid vehicles. Market growth is being driven primarily by increased EV adoption, which is being supported by government incentives and stricter emission standards around the world. A key trend is the adoption of high-efficiency motors, such as permanent magnet and axial flux designs, to improve driving range and performance. However, reliance on rare-earth materials and expensive motor production remains a significant constraints. Despite these challenges, rising investments in localized manufacturing, magnetic material recycling, and innovations in rare-earth-free motor technologies offer significant long-term market growth opportunities.

Electric Vehicle Traction Motor Market- Market Dynamics

Rising Adoption of Electric Vehicles Driving Growth in the Electric Traction Motor Market

The increasing adoption of electric vehicles is a key factor accelerating growth in the electric traction motor market. Although the economic impact of COVID-19 temporarily reduced demand for conventional petrol and diesel vehicles, sales of electric and hybrid vehicles have continued to rise. Heightened concerns over climate change and global net-zero emission targets are reinforcing the transition toward low- and zero-emission mobility solutions. This shift also supports economic efficiency by lowering fuel costs and reducing dependence on petroleum through greater use of domestically generated electricity. Expanding EV charging infrastructure, hydrogen fueling networks, and supportive government policies further encourage EV adoption. As a result, there has been an increase in demand for electric traction motors, which are valued for their clean operation, precise speed control, and high-power propulsion. For example, the U.S. Energy Information Administration reported in January 2024 that EVs and hybrids accounted for 16.3% of new light-duty vehicle sales in 2023, up from 12.9% in 2022, demonstrating strong market growth.

Electric Vehicle Traction Motor Market- Segmentation Analysis:

The Global Electric Vehicle Traction Motor Market is segmented on the basis of Transmission, Design, Power Rating, Vehicle Type, Motor Type, Axle Architecture, Application, and Region.

By Power Rating, the 200-400 kW power segment is anticipated to register strong growth during the forecast period, supported by increasing demand for high-performance electric drivetrains in medium- and heavy-duty vehicles. Commercial trucks and buses transporting substantial loads over extended distances require power outputs within this range to ensure reliable operation. Advances in battery energy density and power electronics have enabled these higher-capacity systems to deliver improved efficiency and extended driving range, enhancing their suitability for commercial applications. Additionally, growing investments in high-capacity charging infrastructure and enhanced power management technologies are accelerating adoption within this segment. For instance, in October 2024, Valeo and MAHLE introduced a magnet-free electric axle system for premium EVs, offering peak power between 220 kW and 350 kW. The iBEE system enhances efficiency and sustainability while reducing carbon emissions by over 40% compared to permanent magnet motors.

Based on the Axle Architecture: integrated e-axles segment held a significant market share, due to their compact design, increased energy efficiency, and lower vehicle weight. Companies are investing in next-generation e-axles, which combine motors, inverters, and transmissions in a single unit, making them ideal for electric trucks and vans. For example, in November 2024, Renesas and Nidec demonstrated an 8-in-1 E-Axle proof of concept that included a motor, inverter, DC/DC converter, onboard charger, power distribution unit, battery management system, and heating control-all controlled by a single microcontroller. This design reduces size, cost, and component count while reaching up to 99% efficiency.

Electric Vehicle Traction Motor Market- Geographical Insights

The North American EV traction motor market continues to rise due to increased customer awareness of green mobility and government incentives. For example, the base models of electric vehicles, such as the Tesla Cybertruck, are eligible for a $7,500 federal IRS tax credit in early 2025, in addition to the dealer's discount. In line with this, federal tax breaks, rebates, and improved CO2 emission standards are driving electric vehicle adoption in the region. Aside from that, the growing number of key players in the global market, as well as local investments in EV and component production, are helping to drive market growth.

United States Electric Vehicle Traction Motor Market- Country Insights

In 2024, the EV traction motor market in the United States is expected to grow significantly. The growing adoption of electric vehicles, government policies encouraging electrification, steadily increasing automaker investments in EV production, and advancements in motor technology have all contributed to a favorable market environment. Although not as strong as China, the country remains one of the largest markets for electric mobility, with new EV sales expected to reach 1.4 million units in 2023. More electric vehicle models are being introduced in various segments, such as sedans, SUVs, and trucks, necessitating traction motors with varying power capacities, efficiencies, and performance attributes. Furthermore, federal incentives, Zero-Emission Vehicle (ZEV) mandates, and the Bipartisan Infrastructure Law (2021) are expected to boost the country's EV traction motor production even further.

Electric Vehicle Traction Motor Market- Competitive Landscape:

The electric vehicle traction motor market is highly competitive, with rapid technological innovation, strategic partnerships, and ongoing capacity expansion. Leading players concentrate on increasing motor efficiency, power density, and thermal management to support longer driving ranges and vehicle performance. Companies are also investing in lightweight materials and rare-earth-free motor designs to cut costs and reduce supply chain risk. Vertical integration between motor manufacturers and EV OEMs is becoming a popular strategy for improving performance and cost control. Bosch, Nidec Corporation, Siemens, and ZF Friedrichshafen AG are among the key players actively shaping the competitive landscape. All of these companies use strong R&D capabilities and global manufacturing footprints to maintain their market positions.

Recent Developments:

In May 2024, ABB introduced an advanced package designed for electric buses, which included the HES580 inverter and the AMXE250 motor. The package, which includes a 3-level inverter, provides a longer lifespan, significant efficiency gains, and up to 12% reduction in motor losses on conventional drive cycles when compared to 2-level inverters. The motor has a high torque density, which leads to improved dynamic performance and quieter operations for increased passenger comfort.

In June 2024, Uno Minda Limited, a global manufacturer of proprietary automotive solutions and systems, announced that it has signed a Technical License Agreement (TLA) with Suzhou Inovance Automotive Co., Ltd., China, to produce and distribute specific high voltage category electric vehicle products for passenger and commercial vehicles in India.

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS

• AVID Technology Limited
• Delta
• Hitachi Automotive
• SERVAX
• Zytek Group
• ABB
• Equipmake Ltd
• Magnetic Systems Technology.
• ZF
• Robert Bosch GmbH
• BorgWarner
• Bosch
• Dana
• Magna
• Nidec
• Copper Rotor Induction Motor
• RETORQ Motors Ltd
• Others

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY TRANSMISSION- MARKET ANALYSIS, 2019 - 2032

• Multi-speed drive
• Single-speed drive

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY DESIGN- MARKET ANALYSIS, 2019 - 2032

• Axial Flux
• Radial Flux

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY POWER RATING- MARKET ANALYSIS, 2019 - 2032

• 100-200 kW
• Less than 100 kW
• Above 400 kW
• 200-400 kW

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY VEHICLE TYPE- MARKET ANALYSIS, 2019 - 2032

• Mild Hybrid Vehicles
• Plug-in Hybrid Electric Vehicle
• Full Hybrid Vehicles
• Battery Electric Vehicle

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY MOTOR TYPE- MARKET ANALYSIS, 2019 - 2032

• AC Induction Motors
• Asynchronous EV Traction Motors
• Permanent Magnet Synchronous EV Traction Motors
• Switched Reluctance Motor
• Induction Motor
• Wound Rotor Synchronous Motor
• DC Brushed Motor

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY AXLE ARCHITECTURE- MARKET ANALYSIS, 2019 - 2032

• Central Drive Unit
• Integrated

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY APPLICATION- MARKET ANALYSIS, 2019 - 2032

• Electric Vehicle
• Railway
• Elevators
• Industrial Machinery
• Conveyors

GLOBAL ELECTRIC VEHICLE TRACTION MOTOR MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032

• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• France
• Italy
• Spain
• The Netherlands
• Sweden
• Russia
• Poland
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Indonesia
• Thailand
• Philippines
• Rest of APAC
• Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of LATAM
• The Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Turkey
• Algeria
• Egypt
• Rest of MEA