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The global electric vehicle motor market size was USD 12.58 billion in 2022 and is projected to reach USD 59.69 billion by 2029, exhibiting a CAGR of 24.90% during the forecast period. Rising adoption of EV and advances in motor technology to boost the growth of electric vehicle motor market globally.
Based on our analysis, the global EV motor market exhibited a decline of 6.65% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with electric vehicle motor experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. According to IEA, the sale of electric vehicles increases yearly, and the rising adoption of EVs is expected to drive the market growth over the forecast period. In 2021, electric vehicle motor market was valued at USD 9.51 billion. The demand for electric motor is directly proportional to the sale and adoption of electric vehicles.
The function of an electric motor is to convert electricity into mechanical energy. It is used instead of an inter-combustion engine in an electric vehicle. The Electric Vehicle (EV) motor runs using power from the traction battery pack; this electric motor drives vehicle wheels. Various types of motors are used in vehicles, such as DC series motors, brushless DC motors, Permanent Magnet Synchronous Motors (PMSM), three phase AC induction motors, and Switched Reluctance Motors (SRM).
Demand for Electric Vehicles Witnessed Unprecedented Challenges Due to the Pandemic
The disruptions in production and difficulty in forecasting the demand for electric vehicles were challenging due to COVID-19 for the growth of the electric vehicle market. Supply constraints of specific components, mainly the semiconductor chips, had highly impacted the production of vehicles. Due to this, companies were lagging in vehicle production, influencing the sale and demand for electric motors. The electric vehicle market is booming after the COVID-19 pandemic. Moreover, government regulations on emission of conventional vehicles and further implementations of various schemes for the adoption of EVs are triggering the market of electric vehicles to grow in the near future, emphasizing the electric vehicle motor market growth. In addition, various startups and small & medium-sized enterprises have been introduced in the segment. They are focused on developing an efficient long-range, lightweight motor that will provide better performance for vehicle owners.
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Replacement and Minimal Use of Rare Earth Metals in Permanent Magnets to Drive the Market Growth
Rare earth metals are used to produce permanent magnets used in manufacturing PMSM (Permanent Magnet Synchronous Motor), such as cerium, lanthanum, neodymium, dysprosium, and terbium are expensive and produce much waste with certain mining concerns. Magnets should have high coercivity, which is the ability of a magnet to maintain magnetization even at high temperatures. For this purpose, about 30% of the magnet is made of rare earth metals.
Terbium and dysprosium are used in neodymium magnets for their use in high-temperature applications such as automotive. However, these are very expensive metals found in locations with geopolitical risks that can cause a shortage of these metals in the near future. The companies are focusing on reducing the use of these metals, and research and development activities are being conducted to find a replacement for these metals.
Strict Government Regulations and Policies to Drive the Market Growth
Various regulatory authorities have set up strict regulation policies regarding the emission due to vehicles affecting the environment and triggering the greenhouse gas effect. Vehicle pollution has become a serious concern due to which degradation in the air quality is increasing at a higher rate. The government has planned on banning or stopping the production of diesel and petrol cars. For instance, the U.S. State of California has planned to ban the sale of petrol cars by 2035. Further, the government aims to incorporate the use of electric or hybrid-electric vehicles on the roads. Due to this initiative, the number of electric vehicles on the roads will increase, thus, increasing demand for EV motors to be installed in the vehicle. This will drive the EV motor market growth during the forecast period. The government is focused on improving air quality. For instance, in Delhi, India, 12.4 million tons of C02 are emitted by vehicles on the road. The Delhi government is promoting the use of electric vehicles. It is also focused on providing the charging infrastructure by which ease of accessibility which will encourage the adoption of electric vehicles, which propels the market growth of electric motors.
High Manufacturing Costs for Electric Vehicles are Restraining the Market Growth
Electric vehicles are becoming more popular in developing countries, considering their benefits and supportive incentive activities from the different governments. Due to this, demand for vehicles is increasing drastically year-on-year. However, electric vehicles need high capital for manufacturing due to the procurement of rare earth metals used in permanent magnets for synchronous motors. In terms of pricing, the cost of an EV is equal to luxury car segments. However, the government is working on reducing the cost of e-vehicles. For instance, In June 2022, the Union Transport and Highways Minister announced that the cost of electric vehicles would be the same as the cost of petrol vehicles within one year. Companies are working on reusing earth metals. For instance, In March 2022, GKN Automotive announced that it would manufacture EV motors by reusing the rare earth metals required for manufacturing a motor under the Secure Critical Rare Earth Magnets (SCREAM) for the U.K., under which a team of engineers will manufacture the 800-volt electric motor for electric vehicles using recycled rare earth materials. Due to high manufacturing cost, the price of vehicles is much costlier than conventional vehicles. This restrains the adoption of electric vehicles in a few countries by major low-to-middle class income populace, which resists the growth of the EV motor market.
High Fuel Prices and Government Incentives to Drive the Passenger Vehicle Segment Growth
By vehicle type, the market is segmented into two wheeler, three wheeler, passenger vehicle, and commercial vehicle.
Passenger vehicle segment dominated the market with a significant market share in 2021. The segment covers battery and hybrid electric vehicle propulsion type. People shifting to electric mobility that provides an easy and quiet driving experience has increased significantly over the past few years. Moreover, the government is implementing stringent emission rules and providing subsidies for adopting electric vehicles. Along with this, high fossil fuel prices used in conventional vehicles push the populace to adopt electric vehicles, fueling the demand for electric motor.
Two wheeler was the fastest-growing segment in the market in 2021. Electric two wheelers are compact, lightweight, and easy to drive in congested cities. There is higher adoption of electric two wheelers incorporating in-wheel EV motor by consumers due to high rates of petrol, with the increasing availability of electric two wheeler from the manufacturers.
Three wheeler segment accounts for a significant market share in the year 2021. An electric three wheeler offers lower operating costs than a conventional three wheeler. The electric three wheeler can be used for various applications such as transporting passengers and goods. Rising demand of electric three wheelers for commercial purposes to drive the market growth.
Commercial vehicle segment accounted for a considerable market share in 2021. The segment covers battery electric vehicle propulsion type and hybrid electric vehicle propulsion type. High-power electric motors are introduced in the EV market, providing high torque and power. Due to this, commercial vehicles are used for light, medium, and heavy-duty applications, which are propelled by electric motors.
Development of Permanent Magnets to Drive the Component Segment Growth
Based on component, the market is divided into motor stator, rotor, shaft, and bearing, permanent magnet, casing, and wiring & connectors.
The rotor, shaft, and bearing segment held a significant market share in 2021. The rotor is the rotational part of the motor. The rotation of the rotor due to interaction between windings and magnetic fields produces torque around the rotor's axis. Development of the rotor is made to save energy, reducing losses. For instance, the copper rotor used in AC induction motors will save energy by reducing losses, and improving efficiency will fuel the market growth.
The permanent magnet segment dominated the market with the highest CAGR over the forecast period. Permanent magnets are manufactured with the help of rare earth metals. However, mining and utilization of rare earth metals are expensive and complicated. Therefore, companies are focused on developing electric motors which will utilize permanent magnets. For instance, Toyota has developed a magnet for electric vehicle motors that requires 50% less neodymium, and use of terbium and dysprosium is replaced by cerium and lanthanum. This has resulted in the price becoming 20 times less expensive.
The motor stator segment accounted for a considerable market share in 2021. The stator is basically a stationary part of the EV motor. It produces a magnetic field that drives the rotating armature. Due to this, stator plays a crucial role in the EV motor, thus driving the market.
The casing segment held a decent market share in 2021. The casing is the housing of the EV motor. A good casing helps in the efficient functioning of the motor. The steel used for the electric motor casing makes the EV motor heavy in weight. The adoption of aluminum for manufacturing casing that provides lightweight EV motors is driving the market.
The wiring & connectors segment held a substantial market share in 2021. Wiring and connectors are used to connect the electric motor with various parts of an electric vehicle. It is used to connect the electric motor with the electric battery, providing electricity to the motor to function and drive the electric vehicle. Less complicated wiring and connectors provide easy assembling and disassembling when servicing a vehicle.
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Increasing Demand for High Power and Efficient Electric Motor to Drive the Power Rating Segment
Based on power rating, the market is segmented into up to 20 kW, 20 kW to 100 kW, 100 kW to 250 kW, and above 250 kW.
The 100 kW to 250 kW segment held a major market share in 2021. The 100 kW to 250 kW motor is used in high-power passenger cars and medium-duty commercial vehicles due to high power output, high efficiency, low maintenance, and operating cost. The adoption of medium-duty commercial vehicles is increasing, which propels the growth of the market. For instance, leading OEMs such as Tesla, BYD, and others use EV motor, which gives power output in the range of 100 kW to 250 kW. Moreover, governments of several countries have adopted electric buses for the mass transit of the populace. The buses are incorporated with an electric motor giving a power output of 100 to 250 kW. Also, consumers are inclined to adopt electric medium-duty trucks, which fueled the EV motor market.
The 20 kW to 100 kW segment is the fastest-growing segment in the market. 20 kW to 100 kW motor is used in four wheelers such as passenger cars and lightweight commercial vehicles. Consumers are inclined toward adopting electric vehicles for day-to-day purposes due to high efficiency, low maintenance, and operating costs, thus fueling the market. Due to the increasing adoption of electric passenger vehicles and light-duty commercial vehicles, the demand for EV motors with the required power output has increased. Consumers are inclined toward using passenger cars, which propels the segment growth in the market.
The up to 20 kW segment held a significant market share in 2021. Up to 20 kW motors are used in electric two wheelers and three wheelers. The growth is attributed to the rising demand for electric two wheelers and three wheelers for various applications and the direct availability and accessibility of two wheelers, driving the market growth during the forecast period.
The above 250 kW segment held a considerable market share in 2021. Above 250 kW motors are used in heavy-duty commercial vehicles such as buses and trucks. Governments have implemented various schemes and increased the adoption of electric buses for mass transit of people and electric trucks, which produce less noise and have high torque and efficiency, which are used to transport heavy goods and prevent CO2 emission.
Asia Pacific Electric Vehicle Motor Market Size, 2021 (USD Billion)
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Asia Pacific dominated the electric vehicle motor market share (China representing majority of the share) and stood at USD 4.87 billion in 2021 due to rise in the sale and registration of electric vehicles (two, three wheelers, passenger, and commercial vehicles). For instance, in 2021, China displayed a significant growth from 2020 to 2021; China sold around 3.3 million EVs, which will fuel the market growth in the region. Moreover, most consumers prefer EVs in key countries such as Japan, China, and India. This will lead to increasing demand for EV motors.
Europe is anticipated to show significant growth in the market due to rise in demand for vehicles for reduced transportation & maintenance costs and zero-emission. In 2021, electric car sales continued to increase by more than 65% year-on-year to 2.3 million in Europe. Therefore, most electric vehicles are acquired for specific uses within fixed delivery areas and may not need an extended driving range. This is expected to lead to an exponential boost surge in demand for EV motors.
North America is expected to witness promising market growth. In the U.S., electric vehicle brands have consistently increased demand. In 2021, consumer and government spending increased in the U.S. Infrastructure investment in charging stations was also increased by the government. These factors will impact the market growth.
Focus on the Development of EV Motor Technologies to Drive the Competition
The market is vastly fragmented and is led by various global market players operating in this industry. These companies focus on expanding their product range to cover a more extensive EV customer base. Additionally, these leading players are targeting Europe to expand their business due to the increasing focus on green energy adoption in the regions ever since the pandemic. Besides, companies are also focused on technological developments to offer additional features through their EV motors, such as compact design, increased torque, and inverters, which drive the market competition.
Robert Bosch GmbH Company Ltd Dominates the Market due to Partnerships and Industry-leading Products
Robert Bosch GmbH Company Ltd is a leading player in the global market. Its business primarily involves the development and manufacturing of EV motors. These factors have enabled the leading company to capture a larger market share. In 2021, the company generated revenue of USD 89.11 billion. Whereas in 2020, the revenue was USD 87.80 billion. The company provides a wide range of electric mobility solutions and products, such as electric motors, powertrains, traction motors, and electric drive modules, for passenger and commercial vehicles.
An Infographic Representation of Electric Vehicle Motor Market
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The research report covers a detailed market analysis. It focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key automotive industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of several factors that have contributed to the market growth in recent years.
Value (USD Billion)
By Vehicle Type
By Power Rating
Fortune Business Insights says that the global market size was USD 9.51 billion in 2021 and is projected to reach USD 59.69 billion by 2029.
In 2021, the Asia Pacific market size stood at USD 4.87 billion.
The market will exhibit a promising growth rate of 24.90% CAGR during the forecast period (2022-2029).
The passenger vehicle segment held the largest share of the market in 2021.
Strict government regulations and policies drive the market growth.
Robert Bosch GmbH, BorgWarner Inc, and ABB are the major players in the global market.
Asia Pacific held the largest share of the market in 2021.
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