Electric Vehicle Motor Market Trends, Disruptors and Competitive Strategy

Electric Vehicle Motor Market Overview, Size and Growth Opportunities

The global electric vehicle motor market is anticipated to grow from USD 24.58 billion in 2025 to USD 143.85 billion by 2034, with a compound annual growth rate (CAGR) of 21.69% during the forecast period from 2025 to 2034. The market is driven by the rapid penetration of electric vehicles (EV), government policies to promote EVs, and growing investment by automotive brands.

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Introduction

The electric vehicle motor market is experiencing rapid growth due to the rising adoption of electric vehicles globally. As governments implement stringent emission regulations and promote sustainable transportation, the demand for efficient and reliable electric motors for EVs is surging at a rapid pace. The increasing focus on reducing greenhouse gas emissions is driving further innovation in electric motor designs. These innovations include improvements in efficiency, power density, and thermal management.

Additionally, the push for high driving range and faster acceleration has spurred the development of high-performance electric motors, particularly in the luxury and high-performance EV segments. Countries such as China, the U.S., and Germany are adopting electric vehicles, fostering a strong market for EV motors. Furthermore, the integration of cutting-edge technologies such as AI and machine learning in motor control systems is expected to enhance the overall performance and efficiency of electric vehicles.

Industry Highlights

• Asia Pacific held the highest share of the EV motor market.
• Europe is anticipated to show significant growth during the forecast period.
• By vehicle, the passenger vehicle segment led the industry.
• By vehicle, the two-wheeler vehicles segment is likely to grow with the fastest CAGR during the forecast period.
• By component, the permanent magnet segment led the industry.
• By component, the rotor, shaft and bearing segment held a significant market share.
• By power rating, the 100 kW to 250 kW segment held the largest portion of the industry.
• By power rating, the 20 kW to 100 kW segment is expected to grow with a significant CAGR during the forecast period.

Key Metrics and Overview

Industry Trends

Utilization of AI in the Electric Vehicle Motor

AI plays a crucial role in the electric vehicle motor market by enhancing motor performance, efficiency, and overall vehicle functionality. Advanced algorithms can help in managing torque, speed, and power output of EV motors that in turn ensures smooth and efficient operation across various driving conditions. AI-driven predictive maintenance systems can monitor motor health in real-time and enhances longevity of motors.

• In February 2024, Monumo launched an AI-based solution for electric motors. This AI platform helps in designing of electric motors at a rapid pace.

Increasing Demand for Electric Motorcycles

Electric motorcycles are emerging as a significant driver in the electric vehicle motor market, fueled by increasing consumer demand for eco-friendly and cost-efficient transportation alternatives. As urbanization accelerates and traffic congestion worsens, electric motorcycles offer a practical solution for personal mobility, particularly in densely populated cities across Asia Pacific and Europe. These two-wheeled vehicles rely on compact and powerful electric motors that provide quick acceleration, high efficiency, and a quieter, smoother ride as compared to traditional internal combustion engine (ICE) motorcycles.

The increasing popularity of electric motorcycles among urban commuters and environmentally-conscious consumers, is driving demand for efficient and durable electric motors. As electric motorcycles gain traction globally, they are contributing to the overall growth of the EV motor market.

• In September 2024, Revolt launched RV1. RV1 is an electric motorcycle that comes with 2.8kW mid-drive motor that delivers superior performance.

Government Incentives to Promote EVs

Governments across various regions are also playing a crucial role in promoting electric vehicles by offering subsidies, tax incentives, and implementing stricter emission regulations. The lower operating costs of EVs, further boost their appeal to consumers, particularly those looking for sustainable transportation solutions. Advancements in efficient motors have enabled electric vehicles to offer better range and performance.

In September 2024, the Ministry of Heavy Industry in India, launched PM Electric Drive Scheme, accelerating EV adoption. It aims to provide incentives for EV purchases, charging infrastructure development, and empowerment of the EV manufacturing sector.

Advancements in Axial Flux Motors

Axial flux motors offer significant improvements in power density, efficiency, and size compared to traditional radial flux motors. It has compact and lightweight design that makes them particularly attractive for light-weight electric vehicles. These motors are highly efficient and provides high torque at low speeds. Additionally, axial flux motors can be easily integrated into various EV architectures, including in-wheel and all-wheel-drive systems, offering more flexibility in vehicle design.

• In August 2023, Tresa Motors launched Flux 350. It is a flux motor designed for delivering superior performance in electric trucks.

Vehicle Type Insights

The passenger vehicle segment held the largest share of the market. As consumer demand for eco-friendly and cost-efficient transportation rises, the popularity of electric passenger vehicles is increasing rapidly. The shift from internal combustion engine (ICE) vehicles to electric alternatives is driven by factors such as environmental awareness, rising fuel prices, and government incentives aimed at reducing carbon emissions. Passenger EVs, including sedans, hatchbacks, and SUVs, are at the forefront of this transition, requiring efficient and high-performance electric motors to power their operations.

Automakers are focusing heavily on developing advanced EV motors that offer greater power efficiency, improved range, and better driving experiences to meet the growing demand of EV owners. Additionally, the rapid development of charging infrastructure is making electric passenger vehicles more convenient and accessible for everyday use, further boosting adoption. Countries such as China, the U.S., and European nations are witnessing a surge in electric passenger vehicle sales, driving significant growth in the EV motor market.

• In September 2024, Tata Motors launched Nexon EV. This car comes with 144PS motor that provides superior acceleration and enhanced driving range.

Two-wheeler segment is witnessing fastest growth segment throughout the forecast period. Urbanization has created a need of handy transportation options to navigate busy areas that results in the increasing production of electric two-wheelers. Bajaj, Ather Energy, Ola Electric, Hero, TVS are the key companies engaged in R&D and vehicle manufacturing. Generally, brushless DC (BLDC) motors are used in two-wheelers due to its efficiency, high torque, and durability.

• In January 2025, Ola electric launched S1 X Gen 3 in India. Mid Drive IPM (Internal Permanent Magnet) motor is used primarily in this scooter.

Component Insights

The permanent magnet segment dominated the electric vehicle motor market. These magnets are used in EV motors due to their ability to create a strong, self-sustaining magnetic field, which enhances motor efficiency, torque density, and overall performance. It also helps to simplify the motor design by eliminating field winding. Permanent magnet motors are known for its high efficiency and high torque density. Multiple automakers such as Tesla, Nissan, BMW, and others make use of permanent magnets in their EV motors.

• In March 2025, Kia launched EV6 in India. Permanent magnet synchronous motor is used in this vehicle.

The rotor, shaft, and bearing segment held a significant share of the market. The rotor is the heart of the motor that helps in converting electrical energy into mechanical energy. The shaft connects the rotor to the vehicle’s drivetrain, ensuring the smooth transfer of power. Bearings play a crucial role in reducing friction between moving parts that helps in enhancing the reliability and durability of the motor.

• In July 2024, BMW announced partnership with Deepdrive. This partnership aims at developing a dual rotor technology to provide maximum power to EVs.

Power Rating Insights

The 100 kW to 250 kW segment led the market. The 100 kW to 250 kW power range is a key driver of growth in the electric vehicle motor market, as it meets the performance and efficiency needs of a wide range of electric vehicles. Motors within this power range offer an optimal balance between energy efficiency, acceleration, and driving range, making them ideal for many EV models, including sedans, SUVs, and vans. The increasing demand for vehicles with higher power output to accommodate better performance, quicker acceleration, and smoother driving experiences has fueled the adoption of motors in the 100 kW to 250 kW range.

• In July 2023, Nidec launched a series of 250kW and 180kW motors. These motors are designed with advanced technologies to provide enhanced vehicle performance.

The 20 kW to 100 kW segment is the fastest-growing segment in the market that are usually used in passenger electric vehicles and LCEVs. Electric motors of this range are highly efficient and causes minimal losses occur while converting electrical energy to mechanical power. AC induction motors and permanent magnet synchronous motors are the basic types of 20 kW to 100 kW range motors.

Regional Insights

Asia Pacific dominated the electric vehicle motor market. Rapid urbanization, population growth, and government initiatives are key drivers of the electric vehicle motor market in the Asia Pacific region. As cities expand and populations increase, the demand for efficient, eco-friendly transportation solutions has intensified. Urban areas face rising concerns over air pollution and traffic congestion, making electric vehicles a crucial alternative to conventional internal combustion engine (ICE) vehicles. Governments of several countries such as China, Japan, and India, are implementing policies and regulations to encourage EV adoption. These include subsidies, tax incentives, and stringent emission norms aimed at reducing carbon footprints and combating air pollution.

• In January 2025, China renewed its car trade-in subsidy scheme for 2025. According to the scheme, if consumers scrap their older ICE vehicle and purchase a new EV, they will get a subsidy of up to USD 2,730.
• China is a largest manufacturer, consumer, and exporter of EV motor. China exports EV motors primarily to European countries such as Belgium, Spain, Netherlands, Austris, Greece, Denmark, and UK.
• The Indian and Japanese electric vehicle motor markets are experiencing significant growth due to presence of multiple key players, high EV production, and investments in EV sector by automotive companies.

Europe is expected to grow with a significant CAGR during the forecast period. Stringent emission regulations, increasing EV adoption, and the development of charging infrastructure are key drivers of the electric vehicle motor market in Europe. The European Union's strict carbon emission standards, aimed at reducing greenhouse gases, have pushed automakers to manufacture electric vehicles at a large scale. Regulations such as the EU's goal of reducing emissions by 55% by 2030 have accelerated the shift, encouraging manufacturers to invest in advanced EV motor technologies to meet these requirements.

European consumers are increasingly adopting electric vehicles due to rising environmental awareness and government incentives. Countries such as Norway, Germany, and the Netherlands offer substantial subsidies, tax breaks, and rebates for EV purchases, which are boosting demand for EV motors. Furthermore, the expansion of a comprehensive charging infrastructure across Europe is making electric vehicles more practical for everyday use, encouraging greater adoption. Public and private investments in fast-charging networks are addressing range anxiety, and helps in facilitating the widespread adoption of electric mobility. Volkswagen, BMW, Mercedes-Benz, Sono Motors, GO Mobile, Audi, Skoda, Seat, Volvo, Renault, and Fiat are some of the major EV players in the Europe.

• In August 2024, Audi launched Q8 e-tron facelift. It is an all-electric SUV with a range of up to 600 kms (WLTP cycle) and is based on a dual electric motor configuration.

Competitive Landscape

The global electric vehicle motor market is aggressively competitive, with both established automotive giants and new entrants. Some of the key companies are Tesla (U.S.), BYD (China), Siemens AG (Germany), LG Magna e-Powertrain Co., Ltd (South Korea), Robert Bosch GmbH (Germany), Allied Motion, Inc. (U.S.), TECO Corporation (Taiwan), Toshiba International Corporation (Japan), Siemens AG (Germany), ABB (Switzerland), AISIN CORPORATION (Japan), Johnson Electric Holdings Limited (Hong Kong), BorgWarner Inc. (U.S.), Nidec Industrial Solutions (Japan), Mitsubishi Electric Corporation (Japan), Tata, GKN Automotive (U.K.), and some others. Collaborations and partnerships are becoming increasingly common to build an EV friendly infrastructure.

• In March 2025, Tata Motors in partnership with allied motors have entered in Mauritius market to launch a range of EVs including Tiago.ev, Punch.ev, and Nexon.ev. Permanent Magnet Synchronous Motors are used in these vehicles.

Recent Developments

• In May 2024, ABB launched a new range of electric motors for EV buses. This new motor offers high torque density that provides enhanced performance and increased passenger comfort.
• In October 2023, GKN Automotive launched a new plug-and-play EV motor. This motor is designed for light and commercial vehicles.
• In August 2023, Bosch announced the launch of a new electric motor. These motors are manufactured using Silicon carbide chips to provide maximum efficiency.

Electric Vehicle Motor Market Segments

By Vehicle Type

• Two-Wheeler
• Three-Wheeler
• Passenger Vehicle
• BEV
• Hybrid
• Commercial Vehicle
• BEV
• Hybrid

By Component

• Motor Stator
• Rotor, Shaft, and Bearing
• Permanent Magnet
• Casing
• Wiring & Connectors

By Power Rating

• Up to 20 kW
• 20 kW to 100 kW
• 100 kW to 250 kW
• Above 250 kW

By Region

• Asia Pacific
• North America
• Europe
• Middle East & Africa
• Latin America