Favorable Government Regulations and Investments will Drive Sales in EV Traction by 9X Through 2031
NEW YORK, Nov. 22, 2021 -- As per latest Fact.MR analysis, sales in the EV traction motors market are estimated to be valued at US$ 6.4 Bn by the end of 2021. With rapid adoption of electric vehicles, the overall market is projected to register a CAGR of 25% between 2021 and 2031, reaching a valuation of around US$ 60 Bn by 2031.
With the world moving towards sustainable future, demand for eco-friendly transport options is on the rise. Automotive manufacturers are gradually expanding their portfolio to include electric and hybrid vehicles. This in turn is creating enormous demand for EV traction motors as they form an important component for electric vehicles.
Increasing production and sales of electric & hybrid vehicles is primarily driving the EV traction motor market. According to the International Energy Association (IEA), more than 10 million electric cars were on roads across the world in 2020, which is a 43% increase over 2019.
Governments and other organizations such as European Union are adopting various initiatives to boost the adoption of electric and hybrid vehicles. New carbon emission regulations are being implemented to minimize environmental damage due to vehicle pollution. For instance, on January 2020, Regulations (EU) 2019/631 entered into force, setting CO2 emission standards for new passenger cars and vans.
Similarly in July 2021, the European Commission adopted a series of legislative proposals for achieving climate neutrality in the EU by 2050, including the intermediate target of an at least 55% net reduction in greenhouse gas emission by 2030. This is positively impacting the EV traction motor market.
Leading EV traction motor manufacturers are investing heavily in research activities for developing better EV traction motors that will not only provide high performance but also reduce the overall weight of vehicles.
For instance, in May 2021, EVR Motors, an Israeli startup unveiled a new high-performance electric motor that it claims is half the size and lighter than typical electric motor design, which could lead to greater EV performance at lower production costs.
As per Fact.MR, the demand for traction motors in plug-in hybrid vehicles category will increase at fastest rate over the forecast period. This is attributable to the rising ownership of plug-in hybrid electric vehicles due to their zero tailpipe emissions while driving on battery power and accruing of tax efficiency.
China, which is the largest producer of automotive, will continue to dominate the EV traction motor market, expanding at a colossal CAGR of 33% between 2021 and 2031. Presence of leading automotive players, rising adoption of electric and hybrid vehicles, and increasing government support to reduce carbon emission are some of the factors driving the market in the country.
"Amid growing concerns over automotive emissions, governments across the world are implementing various programs to boost the adoption of electric vehicles and control carbon emission. Besides implementation of stringent emission control standards, key players are gaining impetus from monetary support in terms of budgetary allocations encouraging electric vehicle production. This will bode well for the EV traction motor market," says a Fact.MR analyst
Key Takeaways from EV Traction Motor Market Survey
- With increasing adoption of electric vehicles and strong presence of leading electric car manufacturers such as Tesla, the U.S. market is projected to grow at a CAGR of 30% over the forecast period.
- Sales of EV traction motors in China are projected to rise at the CAGR of 33% between 2021 and 2031.
- Countries like India, Japan, and South Korea are likely to exhibit strong growth on the back of increasing penetration of electric and hybrid vehicles.
- By vehicle type, plug-in hybrid vehicles category is anticipated to account for around 45% of total market share by 2031.
- Sales of high voltage EV traction motors are likely to be valued at over US$ 4 Bn by 2031.
- Implementation of stringent emission control regulations is augmenting the demand for EV traction motors.
- Rising penetration of electric and hybrid across emerging economies will continue to boost the sales of EV traction motors.
- Surge in the fuel prices is supporting the market growth.
- High cost of electric vehicles is restraining the growth of EV traction motor market.
Leading players operating in the EV traction motor market are focusing on introducing new product lines for different electric and hybrid electric vehicles. Besides this, they are adopting various strategies such as mergers, acquisitions, partnerships and collaborations to dominate ethe market.
- In October 2021, Nidec Corporation announced that Ni200Ex, the Company's 200kW, E-Axle traction motor system, has made its way into ZEEKR 001, an electric vehicle newly released by Chinese auto giant Geely Automobile Group, under its premium brand, Zeekr.
- Similarly in May 2020 Geely's new EV adopts Nidec's E-Axle traction Motor system. Geometry C, the new electric vehicle by Geely Automobile will be driven by Nidec's 150 kW E-Axle model Ni 150Ex.
- In December 2020, Parker Hannifin, the global leader in motion and control technologies, announced the latest addition to its Global Vehicle Motor (GVM) family of high-power, permanent magnet AC motors (PMACs). The GVM310 has a 310mm frame and provides a traction solution for on-road and off-road commercial electric vehicles (EVs) and hybrid electric vehicles (HEVs), which includes construction vehicles, city buses and mining vehicles.
Some of the prominent players operating in the EV traction motor market profiled by Fact.MR are:
- Zytek Group Limited
- ZF TRW Automotive Holdings Corporation
- YASA Motors Ltd.
- Valeo SA
- SKF AB
- Parker-Hannifin Corp.
- Magnetic System Technology
- Bharat Heavy Electricals Ltd.
- ABB Limited
More Insights on the Global EV Traction Motor Sales Outlook
Fact.MR provides an unbiased analysis of EV traction motor market, presenting historical demand data (2016-2020) and forecast statistics for the period from 2021-2031. The study divulges compelling insights on the global demand for EV traction motor with a detailed segmentation on the basis of:
- Permanent Magnet Synchronous EV Traction Motors (PSM)
- Asynchronous EV Traction Motors (ASM)
- High Voltage EV Traction Motors
- Low Voltage EV Traction Motors
- Traction Motors for Electric Vehicles
- Traction Motors Plug-in Hybrid Electric Vehicles
- Traction Motors Mild Hybrid Vehicles
- Traction Motors Full Hybrid Vehicles
Key Questions Covered in the EV Traction Motor Market Outlook Report
- The report offers insight into EV traction motor demand outlook for 2021-2031
- The market study also highlights projected sales growth for EV traction motor market between 2021 and 2031
- EV traction motor market survey identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
- EV traction motor market share analysis of the key companies within the industry and coverage of strategies such as mergers & acquisitions, joint ventures, collaborations or partnerships, and others
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