Electric Traction Motor Market Set to Soar to $45.1 Billion by 2032, Driven by EV Boom and Railway Electrification

According to the latest market research study published by P&S Intelligence, the electric traction motor market was valued at USD 14.8 billion in 2024 and is projected to grow at a robust 15.1% CAGR from 2025 to 2032, reaching USD 45.1 billion by 2032.

Download free Report Sample Now

This remarkable growth is being fueled by a surge in electric vehicle (EV) adoption, backed by increasingly stringent emissions regulations, government incentives, and groundbreaking technological advancements in motor efficiency—notably the shift to permanent magnet synchronous motors (PMSMs). Moreover, the drive toward cleaner transportation alternatives—namely EVs and electrified rail systems—has elevated traction motors as essential components for achieving carbon reduction goals and energy independence. With Asia‑Pacific currently dominating the market at ~50% share, and Europe emerging as the fastest-growing region, the landscape is both geographically broad and dynamic.

Key Insights

• The AC motor segment captured 85% of the market in 2024 and is set to grow at a 15.3% CAGR, driven by their superior energy efficiency, torque control, and reliability—attributes vital for EV propulsion systems.
• In terms of power rating, motors under 200 kW dominated with a 40% share in 2024, catering primarily to passenger EVs, e-bikes, and light-duty buses. However, the 200–400 kW segment is the fastest-growing, expanding at 15.5%, with growing demand from mid-size SUVs and commercial EVs.
• The electric vehicle application represents the leading use case, accounting for 65% of market share in 2024, while the railway sector is expanding fastest at 15.2% CAGR amid global investments in railway electrification.
• Asia‑Pacific leads the regional market (~50%), anchored by major players in China, Japan, and South Korea, driven by both EV deployment and rail infrastructure expansion.
• Europe, notable for ambitious carbon reduction goals and increasing electrification of both private and public transport, is now the fastest-growing regional market, thanks to governmental policies and incentives.
• The market remains fragmented, with regional specialization in motor types and applications. Key global providers include ABB, Mitsubishi, Toshiba, GE, Siemens, Bosch, Nidec, and others.
• An industry-wide shift toward PMSMs—valued for their **compact size, light weight, high torque-to-weight ratio, and no need for excitation systems—is transforming EV motor architecture.
• Government intervention—in the form of subsidies, tax credits, and tougher emissions standards—continues to accelerate market expansion, lowering EV cost barriers and stimulating demand for traction motors.
• Battery price reductions and improvements in capacity and charging speeds are indirectly boosting traction motor uptake by rendering EVs more cost-effective and practical.
• The railway electrification trend, particularly in high-speed, metro, and freight sectors, is generating fresh commercial opportunities for higher-capacity traction motors.
• Long-term prospects point toward continued growth across motor segments, including AC/DC, power ranges, and applications, creating openings for innovation and strategic investments in design, supply chain, and servicing infrastructure.