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.
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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.
