Automotive Traction Motor Market Estimated to Surpass $18.4 Billion by 2027

Automotive Traction Motor Market

The global automotive traction motor market is projected to grow by CAGR 22.8% from USD 6.5 billion in 2022 to USD 18.4 billion by 2027. The base year for the report is 2022, and the forecast period is from 2022 to 2027.  

Asia Pacific is the largest market for automotive traction motor market. The region is home to some of the fastest-growing economies in the world. The rising population within the region has led to a significant increase in demand for transportation connectivity. An all-around effort by the governments of various countries within the region to reduce greenhouse gases and the strong emphasis on reducing carbon emissions have led to a tremendous focus on manufacturing electric vehicles in the region.

In China, more than 200 companies have announced plans to manufacture and sell electric cars with the help of government subsidies. According to Fitch, a leading rating agency, EV subsidies offered in China were the second best after Norway before 2022. Another initiative, known as the Preferential Vehicle Licensing System, is expected to help EV buyers in China get license plates free and without a waiting period. In Japan, PHEVs are fully exempt from automobile acquisition tax, i.e., tax on registration and tonnage tax, whereas HEVs are partially exempt from automobile acquisition tax. Japan has invested significantly in R&D for electric vehicles and infrastructure development. In 2022, the Japanese government doubled the maximum number of subsidies for buying EVs to USD 7,000.

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Europe has a large number of traction motor manufacturers, such as Robert Bosch GmbH (Germany), Schaeffler AG (Germany), Valeo S.A. (France), Continental AG (Germany), and ZF Friedrichshafen (Germany). It is also home to major OEMs such as BMW, Volkswagen, Renault, and Audi that have in-house traction motor manufacturing capability and provide traction motors for vehicle models such as Volkswagen e golf; ID 5; BMW i3, i4, ix; Audi e-tron; and many other models manufactured by the respective OEMs. Market players have also engaged in investments and contracts for the supply of traction motors. For instance, in November 2020, MAHLE Group commissioned a test bench for electric drives in Stuttgart, Germany, with an investment of around USD 3.5 million. This equipment is used to develop and test e-axles and e-drive units for a wide range of electric and hybrid vehicles. The test facility includes an e-axle unit that consists of two oppositely mounted load machines equipped with permanent magnet synchronous electric motors.

In the automotive traction motor industry, by motor type, the PMSM segment is projected to lead during the forecast period. Electrification of vehicles and projects to launch BEVs are the major drivers of the PMSM market. For instance, in September 2021, Ford announced its plan to have at least 40 electrified models, including 16 all-new BEVs, in showrooms by 2022. The company also expects 40% to 50% of its global vehicle volume to be fully electric by 2030. Similarly, Honda’s electrified vehicle projects will account for two-thirds of the company’s global sales by 2030. General Motors plans to introduce 20 electrified models globally by 2023, whereas Ferrari is also expected to join the list in March 2023. These developments will boost the market for automotive traction motors in the near future.

Key Market Players:

The major players in automotive traction motor companies includes BorgWarner Inc. (US), Schaeffler Group (Germany), Nidec Corporation (Japan), Robert Bosch GmbH (Germany), and ZF Friedrichshafen AG (Germany).

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