Automotive Electric Motors Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The automobile electric motor market is expected to be worth $ 38.5 billion in 2023 and to reach $ 81.29 billion by 2032, registering a CAGR of 8.66% from 2024 to 2032. This strong growth trend is attributed to the rising demand for electric vehicles (EVs) and the growing demand for energy-efficient solutions in the automobile industry. In addition, as governments worldwide impose stricter emissions regulations and consumers become more aware of the need to protect the environment, the shift toward electric mobility is accelerating, thereby driving the need for advanced electric motors. A number of key factors are driving this growth, such as advances in battery technology, improvements in the efficiency of electric motors, and the growing trend toward vehicle electrification. Moreover, the development of permanent magnet synchronous motors (PMSMs) and integrated motor drives is reducing the cost of EVs, thereby enhancing their market penetration. The leading players in the automobile electric motor market, such as Siemens, Bosch, and Tesla, are investing heavily in research and development, forming strategic alliances, and launching new products to take advantage of this growth trend. Tesla’s continuous drivetrain innovation and Bosch’s development of high-power electric motors are a few of the strategic initiatives that are driving the market.

Regional Market Size

Regional Deep Dive

The electric motor for the motor car is a motor that is used in cars and trucks. The electric motor for cars and trucks is a motor that is used in cars and trucks. The North American market is characterized by a strong presence of established car manufacturers and a growing number of start-ups focused on electric mobility. Europe is a pioneer in introducing legislation aimed at reducing carbon dioxide emissions, which is driving the introduction of electric motors in cars. Asia-Pacific, especially China, is experiencing rapid progress in electric motor technology and production, making it an important player in the world market. The Middle East and Africa are gradually embracing electric mobility, supported by government initiatives and investment in charging stations. Latin America is beginning to experiment with the introduction of electric vehicles, but at a slower pace than in other regions, influenced by economic factors and the availability of charging stations.

Europe

• The European Union's Green Deal aims to make Europe the first climate-neutral continent by 2050, which includes ambitious targets for electric vehicle sales, driving the demand for automotive electric motors.
• Companies like Volkswagen and BMW are leading the charge in electric vehicle production, with significant investments in electric motor technology and production facilities across Europe.

Asia Pacific

• China's aggressive policies to promote electric vehicles, including subsidies and incentives for manufacturers and consumers, have positioned it as a global leader in the automotive electric motors market.
• Companies such as BYD and NIO are innovating in electric motor technology, contributing to advancements in efficiency and performance, which are critical for the growing EV market in the region.

Latin America

• Brazil is starting to implement policies to encourage electric vehicle adoption, including tax incentives for electric cars, which is expected to gradually increase the demand for automotive electric motors.
• Local companies are beginning to collaborate with international firms to develop electric vehicle technologies, indicating a growing interest in the electric motors market.

North America

• The Biden administration's push for electric vehicle adoption, including incentives for EV purchases and investments in charging infrastructure, is significantly impacting the automotive electric motors market in the U.S.
• Major automotive manufacturers like General Motors and Ford are investing heavily in electric vehicle technology, with plans to transition their fleets to electric models, thereby increasing the demand for electric motors.

Middle East And Africa

• Countries like the UAE are investing in electric vehicle infrastructure, including charging stations, as part of their Vision 2021 initiative, which is expected to boost the automotive electric motors market.
• Local manufacturers are beginning to explore electric vehicle production, with companies like Al-Futtaim Group investing in electric mobility solutions to cater to the growing demand.

Did You Know?

“Did you know that electric motors are not only used in electric vehicles but also in hybrid vehicles, which combine traditional internal combustion engines with electric propulsion systems?” — International Energy Agency (IEA)

Segmental Market Size

The electrically driven automobile is a major part of the future of transport. The development of electric vehicles is a question of the future. It is being driven by technological advances in batteries which are increasing the performance and efficiency of electric motors, as well as by a worldwide drive towards the electrification of the car, for example through the Green Deal of the European Union and various national zero-emission vehicle initiatives. At present the use of electric motors in automobiles is at the stage of industrialization. The first automobiles to be built on a large scale were the TESLA and the NISSAN, both of which have been produced in large numbers. The first regions to have set up extensive charging points for electric vehicles are California and Europe. In addition to automobiles, the electric motor is being increasingly used in commercial vehicles and in public transport, where it contributes to energy efficiency and cost reduction. Moreover, the trend towards smart mobility solutions and the support given by governments are driving growth in the electric vehicle sector, while new developments such as regenerative braking and advanced motor control systems are influencing the evolution of the sector.

Future Outlook

The electric motor market is projected to grow at a CAGR of 8.66% between 2023 and 2032. The main reason for this growth is the increasing shift towards electric vehicles, which is a result of the stricter regulation of CO2 emissions and the incentives given by governments to the EV industry. By 2032, it is expected that electric motors will account for more than 30% of the total market, which will reflect the growing penetration of electric drivetrains in both passenger and commercial vehicles. The improvements in the performance and cost of electric vehicles resulting from technological developments in batteries and motors will further drive the growth of the market. Moreover, the development of smart mobility and the emergence of new applications for electric motors, especially in urban areas, will open up new opportunities for the market. As a result of the increased research and development activities of manufacturers to optimize and develop electric motors, the market will probably see the emergence of more efficient, lightweight and compact electric motors to meet the different requirements of the automobile industry. In general, the market for electric motors in the automobile industry will continue to grow, driven by the growing demand for electric vehicles, government support, technological innovation and changing consumer preferences.