As per MRFR analysis, the US Electric Vehicle Motor Market Size was estimated at 8.85 (USD Billion) in 2023. The US Electric Vehicle Motor Market Industry is expected to grow from 10.8(USD Billion) in 2024 to 70 (USD Billion) by 2035. The US Electric Vehicle Motor Market CAGR (growth rate) is expected to be around 18.519% during the forecast period (2025 - 2035).
Key US Electric Vehicle Motor Market Trends Highlighted
The US Electric Vehicle Motor Market is increasingly driven by a shift towards sustainable transportation initiatives in response to climate change and environmental concerns. Government policies, such as federal tax credits for electric vehicle (EV) buyers and state mandates to reduce greenhouse gas emissions, are encouraging consumer adoption of electric vehicles. This push is creating a solid framework for the growth of electric vehicle motors as more automakers prioritize electric vehicle development.
Additionally, advancements in battery technology and electric motor design are improving efficiency and performance, making EVs more appealing to consumers. There are ample opportunities to be explored in this market, particularly in the area of manufacturing and infrastructure development. Companies can focus on enhancing the supply chain for electric motor components, as well as investing in local manufacturing to meet the increased demand for EVs and their associated motors. Collaboration between automakers and technology companies is also emerging, which could lead to innovative solutions in electric motor systems.
Recent trends indicate a significant rise in consumer interest in electric vehicles, supported by an increasing number of charging stations throughout the US. This rise is motivating traditional automakers to pivot their production strategies and expand their EV lineups.The growing awareness of the total cost of ownership benefits of EVs is transforming the automotive landscape, creating a favorable environment for the electric vehicle motor sector. As consumers increasingly consider environmental impact, the transition towards electric motors in vehicles signifies a major trend in the industry, aligning with national goals for a greener economy.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Electric Vehicle Motor Market Drivers
Increasing Government Initiatives and Support for Electric Vehicles
The growing support from the U.S. government for electric vehicles is a significant driver for the US Electric Vehicle Motor Market Industry. The Biden Administration has set ambitious goals to have 50% of all new vehicles sold in the U.S. to be electric by 2030, which aligns with the country’s commitment to reducing greenhouse gas emissions by 50-52% from 2005 levels by 2030. With incentives such as tax rebates and grants for both manufacturers and consumers, the electric vehicle market is being stimulated.
The U.S. Department of Energy has invested heavily in Research and Development (R&D) projects aimed at enhancing the efficiency of electric motors, which is crucial for electric vehicles. In addition to the federal level, numerous states like California are implementing their own initiatives. The California Air Resources Board has proposed regulations requiring all new vehicle sales to be zero-emission vehicles by 2035. Such regulations and support mechanisms not only promote electric vehicle utilization but also drive advancements in motor technology, thereby catalyzing growth in the US Electric Vehicle Motor Market.
Rising Consumer Demand for Sustainable Transportation
As environmental concerns grow among consumers, there is an increasing demand for sustainable transportation solutions in the U.S. A survey conducted by the Pew Research Center indicates that nearly 70% of American adults believe that climate change is a major threat to the country. This shift in consumer sentiment is leading to a stronger preference for electric vehicles, thus driving the US Electric Vehicle Motor Market Industry. The sale of electric vehicles continued to soar, with around 5% of overall U.S.vehicle sales being electric in 2022, reflecting a year-over-year growth. Increased awareness of the ecological footprint associated with traditional combustion engines is influencing buyers to opt for electric alternatives, creating a robust growth environment for the electric vehicle motor supply chain.
Technological Advancements in Electric Motor Design
Technological advancements in electric motor design and production techniques are stimulating innovation within the US Electric Vehicle Motor Market. The introduction of more efficient electric motors, such as Permanent Magnet Synchronous Motors (PMSMs) and Switched Reluctance Motors (SRMs), offers improved performance and reduced costs. According to the Electric Power Research Institute, improvements in electric motor efficiencyincluding better materials for windings and corescan lead to up to a 30% increase in performance.
Major automotive manufacturers in the U.S., like Tesla and General Motors, continue to invest heavily in Research and Development (R&D) to innovate and improve motor technologies, further contributing to market growth. With the growing emphasis on enhancing energy efficiency and reducing production costs, these developments are vital in transforming the US Electric Vehicle Motor Market.
US Electric Vehicle Motor Market Segment Insights:
Electric Vehicle Motor Market Power Rating Insights
The US Electric Vehicle Motor Market is characterized by significant demand and technological advancement, particularly in the Power Rating segment, which is crucial for the performance and efficiency of electric vehicles. As consumers continue to seek higher efficiency and longer ranges, the motor power ratings have gained increased attention. The distribution of motors into categories such as greater than 80 kW, between 40 kW and 80 kW, and under 40 kW reflects the diverse applications and needs within the electric vehicle segment.
Motors rated above 80 kW are often found in high-performance vehicles and are vital for those who prioritize speed and acceleration, serving the growing market for electric vehicles that require robust performance.Meanwhile, the 40 kW to 80 kW range is commonly adopted in mid-range electric vehicles that balance performance and efficiency. This segment is particularly appealing to consumers seeking practicality and affordability, reflecting a notable trend in the market towards more accessible electric transport options. The sub 40 kW tier generally caters to compact electric vehicles and urban transport solutions, highlighting its importance in promoting sustainable mobility in city environments.
Overall, the segmentation based on power ratings is indicative of the evolving landscape of the US Electric Vehicle Motor Market, addressing varied consumer demands and regulatory pressures aimed at reducing emissions and promoting the adoption of electric mobility.Market trends indicate a steady focus on innovation, particularly as manufacturers and suppliers work toward improving energy efficiency and motor technology, ensuring that all segments can effectively cater to the anticipated increase in electric vehicle adoption across the United States. The importance of these classifications is further bolstered by government incentives and policies aimed at supporting the transition to electric vehicles, reshaping the automotive landscape and contributing significantly to the US Electric Vehicle Motor Market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Vehicle Motor Market Motor Type Insights
The US Electric Vehicle Motor Market has shown significant expansion, particularly within the Motor Type segment. This segment encompasses a diverse range of motor types, including Brushless Motors, DC Brushed Motors, Induction (Asynchronous) Motors, Switched Reluctance Motors, and Synchronous Motors. Brushless Motors are recognized for their high efficiency and longevity, making them ideal for electric vehicles where performance and battery life are critical. DC Brushed Motors, while somewhat older technology, still find applications due to their simplicity and lower cost, especially in budget-friendly electric vehicles.
Induction Motors are favored for their robustness and reliability, particularly in commercial electric vehicles, contributing to their prevalent use in the market. Switched Reluctance Motors present a growing interest due to their simplistic design and potential for high torque, appealing to manufacturers seeking innovative solutions. Synchronous Motors, known for their precise control and efficiency, dominate in high-performance electric vehicle applications, driving significant advancements in power management technologies. The overall diversification in motor technologies reflects the industry's efforts to meet the growing demands for efficiency, cost-effectiveness, and improved performance in electric vehicles.
US Electric Vehicle Motor Market Key Players and Competitive Insights:
The US Electric Vehicle Motor Market is characterized by intense competition and rapidly evolving technologies as manufacturers and new entrants vie for leadership in this burgeoning sector. Market participants are increasingly focused on technological advancements, sustainability practices, and consumer preferences, all of which play pivotal roles in shaping competitive dynamics. Factors such as government regulations, incentives for electric vehicle adoption, and the demand for efficient and high-performance electric motors also heavily influence competition within the market. As automakers innovate and refine their electric drivetrains, they seek to differentiate their products in an effort to capture market share and align with the growing trend toward electrification in the automotive industry.
Lucid Motors has positioned itself as a significant player in the US Electric Vehicle Motor Market by emphasizing luxury electric vehicles that boast high performance and state-of-the-art technology. The company has garnered attention with its innovative approach to electric vehicle design, focusing on aerodynamics and efficiency while delivering a superior driving experience. Lucid Motors has built a solid reputation for producing electric motors that are not only powerful but also highly efficient, enabling longer ranges compared to many competitors. Its strong emphasis on research and development has resulted in advanced products that align with the high-end consumer market, allowing the company to capture a dedicated customer base. The brand’s commitment to sustainability and advanced manufacturing techniques further strengthens its position in the competitive landscape.
Fisker is another noteworthy competitor in the US Electric Vehicle Motor Market, known for its commitment to sustainability and innovative design approaches. With its focus on creating environmentally friendly electric vehicles, Fisker has carved out a niche that appeals to eco-conscious consumers. The company offers key products, including its flagship all-electric models that incorporate cutting-edge technology and high-performance motors designed for efficiency. Fisker’s market presence is characterized by its ability to attract interest through strategic marketing and partnerships aimed at enhancing its technological capabilities. Strengths such as its emphasis on sustainable materials and eco-friendly production processes position the brand favorably as consumer interest in sustainability continues to rise. Fisker is also actively exploring mergers and acquisitions to bolster its technological expertise and expand its electric vehicle offerings within the US market, indicating a proactive approach to maintaining competitiveness in this rapidly evolving sector.
Key Companies in the US Electric Vehicle Motor Market Include:
US Electric Vehicle Motor Market Industry Developments
The US Electric Vehicle Motor Market has seen significant developments in recent months, with companies like Tesla and General Motors increasing their market presence through innovative electric motor technologies. Lucid Motors is ramping up production of its Air sedan, contributing to the growing competition in the luxury electric vehicle segment. In September 2023, Ford Motor announced plans to invest heavily in electric vehicle production and expand its electric-powered lineup, showcasing its commitment to future mobility. Meanwhile, in October 2023, Rivian secured additional funding to enhance its electric delivery van production, signaling growth within commercial electric vehicle sectors.
Recent mergers are minimal, but in August 2023, Fisker and a notable technology partner entered a collaboration to accelerate battery technology innovation, indirectly influencing the electric motor landscape. As for market growth, the valuation of companies like Hyundai and Volkswagen has been positively impacted by the increasing demand for electric vehicles, amid government support through incentives for cleaner vehicles. Major shifts in regulations aim to promote electric vehicle adoption and infrastructure improvements throughout the US, shaping the future trajectory of the electric vehicle motor market. In addition, Audi and BMW have strengthened their portfolios by unveiling new electric models, receiving positive market reception.
US Electric Vehicle Motor Market Segmentation Insights
Electric Vehicle Motor Market Power Rating Outlook
Electric Vehicle Motor Market Motor Type Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 8.85 (USD Billion) |
| MARKET SIZE 2024 | 10.8 (USD Billion) |
| MARKET SIZE 2035 | 70.0 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 18.519% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Lucid Motors, Fisker, Nissan, Tesla, Hyundai, Proterra, Volkswagen, BMW, Audi, Rivian, Daimler AG, Lordstown Motors, General Motors, Porsche, Ford Motor |
| SEGMENTS COVERED | Power Rating, Motor Type |
| KEY MARKET OPPORTUNITIES | Increased EV adoption rates, Advancements in motor efficiency, Growing demand for lightweight materials, Government incentives for EV technologies, Expansion of charging infrastructure |
| KEY MARKET DYNAMICS | Government incentives and regulations, Increasing consumer demand for EVs, Advancements in motor technologies, Competitive landscape and partnerships, Rising environmental concerns and sustainability |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Electric Vehicle Motor Market is expected to be valued at 10.8 USD Billion in 2024.
By 2035, the US Electric Vehicle Motor Market is projected to reach a value of 70.0 USD Billion.
The expected CAGR for the US Electric Vehicle Motor Market from 2025 to 2035 is 18.519%.
The sub-segment of power rating greater than 80 kW is expected to hold the highest value at 4.5 USD Billion in 2024.
In 2035, the market value for the 40 kW - 80 kW segment is expected to reach 24.0 USD Billion.
The market is anticipated to be valued at 2.7 USD Billion for the less than 40 kW segment in 2024.
Major players in the market include Tesla, Nissan, Ford Motor, and BMW among others.
Key growth drivers include the increasing demand for electric vehicles and advancements in motor technology.
Challenges include supply chain disruptions and the need for greater infrastructure to support electric vehicles.
Emerging trends include the development of high-efficiency motors and a growing focus on sustainability.
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