Automotive Traction Motor Market Analysis and Global Forecast 2023-2033

Automotive Traction Motor Market Overview

The Automotive Traction Motor Market Size is expected to reach USD 20.86 Billion by 2033. The Automotive Traction Motor Market industry size accounted for USD 6.54 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 22.78% from 2023 to 2033. The Automotive Traction Motor Market refers to the global market for traction motors specifically designed for use in automotive applications. These motors are critical components in electric vehicles (EVs) and hybrid electric vehicles (HEVs), as they convert electrical energy into mechanical energy to propel the vehicle. The market includes a variety of motor types, such as AC motors, DC motors, permanent magnet synchronous motors (PMSMs), and induction motors.

The Automotive Traction Motor Market is a critical component of the broader shift towards electrification in the automotive industry, reflecting growing environmental concerns and advancements in vehicle technology.

Global Automotive Traction Motor Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant impact on the Automotive Traction Motor Market. During the peak of the pandemic, many automotive manufacturing plants were temporarily closed to prevent the spread of the virus. This led to a halt in the production of electric vehicles (EVs) and hybrid electric vehicles (HEVs), directly affecting the demand for traction motors. The economic uncertainty and reduced consumer spending during the pandemic led to a significant decline in overall vehicle sales, including EVs and HEVs. This directly impacted the demand for traction motors. The pandemic highlighted the need for resilience and innovation. Companies have been focusing on developing more efficient, reliable, and cost-effective traction motors to cater to the growing demand for electric mobility. The adoption of digital technologies and automation in manufacturing processes has accelerated, helping companies to improve efficiency and reduce dependency on manual labor. Post-pandemic, there has been a renewed focus on electrification and sustainability. Governments and automakers are increasingly committing to reducing carbon emissions, which is expected to drive long-term growth in the demand for traction motors.

Automotive Traction Motor Market Dynamics

The major factors that have impacted the growth of Automotive Traction Motor Market are as follows:

Drivers:

Ø  Advancements in Motor Technology

Continuous advancements in traction motor technology lead to more efficient, compact, and lightweight motors, enhancing vehicle performance and range. Innovations in manufacturing processes and materials contribute to reducing the cost of traction motors, making electric vehicles more affordable. Modern traction motors are increasingly integrated with other vehicle systems, such as regenerative braking and advanced driver-assistance systems (ADAS), improving overall efficiency and functionality. Increasing urbanization and the development of smart cities promote the adoption of electric vehicles for urban mobility solutions. Electrification of public transportation systems, including buses and trams, requires advanced traction motors.

Restraint:

• Perception of Cost of Electric Vehicles and Battery Technology Limitations

Electric vehicles (EVs) generally have higher upfront costs compared to traditional internal combustion engine vehicles. This cost differential can deter price-sensitive consumers from opting for EVs, thereby limiting the immediate market size for traction motors. Despite advances, battery technology still faces challenges such as range limitations, charging time, and longevity. These factors influence the design and performance requirements of traction motors, affecting market growth.

Opportunity:

⮚     Expansion of Electric Vehicle (EV) Market

The increasing global demand for electric vehicles presents a substantial growth opportunity for traction motor manufacturers. As more countries and regions set ambitious targets for reducing carbon emissions and phasing out internal combustion engines, the demand for electric propulsion systems, including traction motors, is expected to surge. The proliferation of autonomous and connected vehicle technologies requires advanced traction motors capable of supporting sophisticated vehicle systems. Traction motors integrated with advanced driver-assistance systems (ADAS) and autonomous driving features represent a promising market opportunity for manufacturers.

Automotive Traction Motor Market Segment Overview

By Type

Based on Type, the market is segmented based on AC and DC. the A.C. induction motor segment dominant the market. The A.C. induction motor segment in the traction motor market refers to motors that operate on alternating current, commonly used in electric and hybrid vehicles for their simplicity and reliability. A significant trend in this segment is the continued enhancement of motor efficiency and control systems.

By Application

Based on Application, the market segment has been divided into the Railways, Electric Vehicle and Others. Electric vehicles have more advanced and effective traction motors because they need powerful motors for propulsion. By charging the battery pack, these motors improve the power supply to electric vehicles and boost their overall efficiency. Due to the increased adoption of electric vehicles worldwide, traction motors used in electric vehicles are anticipated to experience significant growth during the forecast period.

Global Automotive Traction Motor Market Regional Analysis

Based on region, the global Automotive Traction Motor Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Automotive Traction Motor Market followed by the Asia-Pacific and Europe regions.

Automotive Traction Motor North America Market

North America holds a dominant position in the Automotive Traction Motor Market. United States and Canada is leading regions for electric vehicle (EV) adoption driven by supportive government policies, consumer demand for sustainable transportation, and a well-established automotive industry. Strong presence of electric vehicle manufacturers and technology companies driving advancements in traction motor technology and integration with autonomous driving systems.

Automotive Traction Motor Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Automotive Traction Motor Market industry. China is largest electric vehicle market globally, driven by government initiatives to reduce air pollution and dependence on imported oil. Rapid expansion of charging infrastructure supported by government investments accelerates EV adoption and growing adoption of electric vehicles in countries like Japan, South Korea, and India, supported by urbanization, environmental concerns, and technological advancements.

Competitive Landscape

The global Automotive Traction Motor Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• ABB
• American Traction Systems
• Hitachi
• Hyundai Rotem
• CRRC
• Mitsubishi
• Siemens
• Skoda
• Toshiba
• Wabtec

Key Development

In July 2021, Mercedes-Benz announced its acquisition of YASA Motors Ltd., a leading innovator in next-gen electric drive technology. As part of the agreement, YASA will become a wholly owned subsidiary of Mercedes-Benz, dedicated to the development of high-performance electric motors. This strategic move underscores Mercedes-Benz’s commitment to advancing electric mobility and enhancing its electric vehicle offerings.

Scope of the Report

Global Automotive Traction Motor Market, by Type

• AC
• DC

Global Automotive Traction Motor Market, by Application

• Railways
• Electric Vehicle
• Others

Global Automotive Traction Motor Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 20.86 Billion
CAGR (2023-2033)	22.78%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	ABB, American Traction Systems, Hitachi, Hyundai Rotem, CRRC, Mitsubishi, Siemens, Skoda, Toshiba and Wabtec.
Key Market Opportunities	·       Expansion of Electric Vehicle (EV) Market ·       Integration with Autonomous and Connected Vehicles
Key Market Drivers	·       Advancements in Motor Technology ·       Urbanization and Smart Cities

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Automotive Traction Motor Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Automotive Traction Motor Market historical market size for the year 2021, and forecast from 2023 to 2033
• Automotive Traction Motor Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Automotive Traction Motor Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.