Automotive Traction Motor Market - By Vehicle, By Electric Drivetrain, By Motor, and By Power Output, Growth Forecast, 2025 – 2034

Automotive Traction Motor Market Size

The global automotive traction motor market was valued at USD 12.2 billion in 2024 and is estimated to register a CAGR of 20.1% between 2025 and 2034. The surge in global Electric Vehicle (EV) production is driving market growth. A Statista report projects that EV sales will increase in volume from 13.68 million units in 2024 to around 18.5 million units by 2029. In addition, the rising consciousness regarding fuel conservation and sustainability is driving the transition towards EV. The growing shift towards EV increases the need for efficient traction motors, which impacts the market growth.
 

The increasing interest from the government to reduce carbon emissions through the decrease of diesel fleets as well as the rise of electrification is supporting the development of the market. As an example, to help the Bharat Urban Megabus Mission reduce pollution as well as congestion within large cities, India's government pledged in October 2024 that they will deploy 100,000 electric buses within five years.  The government is promoting the use of public transport and has set aside approximately USD 20 billion for electric buses and their required infrastructure like bus stops and terminals. As more commercial vehicles such as buses slowly get electrified, the demand for modern traction motors is likely to increase greatly during the forecast period.
 

With the advancement in power electronics and motor control technologies, the efficiency and performance of traction motors is improving. The use of silicon carbide (SiC) and gallium nitride (GaN) semiconductors greatly increases the efficiency of power, minimizes energy loss, and maximizes the output of the motor. Such progress enables car makers to design and manufacture compact and lightweight motors that are more efficient, therefore increasing the overall performance of the car.
 

Automotive Traction Motor Market Trends

• Growing interest in high-performance and luxury EV is driving the traction motor market. The luxury EV market was valued at USD 189.9 billion in 2022 and is expected to grow at a CAGR of over 8% by 2032.
   
• Companies such as Tesla, Porsche, and Lucid Motors are focused on improving traction motors technology for better acceleration, torque, and overall efficiency. The addition of dual motors together with full AWD system is further increasing the performance of EV and appealing to the more luxury oriented customers. The growing need and emphasis on high performance has resulted in increased investment in advanced traction motor which is helping in automotive traction motor market expansion.
   
• OEMs are establishing strategic alliances to create new motor technologies. For example, Ashok Leyland in October 2024 entered into a partnership with Nidec, a manufacturer of automotive traction motors, to supply the commercial vehicle markets. These two firms will establish a CoE for the electric drive units, focusing on motor technologies, power electronics systems for EV, and optimizing the gearing systems for more efficient shifting. This partnership has enabled Ashok Leyland to gain a competitive edge by providing much needed e-drive motors quickly to the Indian commercial vehicle market.
   
• Investment into R&D around traction motors is enhancing their performance, which makes EVs much more attractive. Thus, developments in motors, such as thermal management system, increased power density, and design of substitutes, allow manufacturers to create more reliable and efficient motors. As a result, EVs propulsion systems become more energy efficient, resulting in lowered power losses, and increased driving ranges for the vehicles.
   
• The traction motor market is dependent on ultratech materials, which are a constraint for so many sectors. Electric motors for electric vehicles would function reasonably well with neodymium and dysprosium, but these elements are very scarce and only a handful of nations, basically China, are found to have them. Such monopolization makes the supply chain vulnerable to issues in trade, war, and export bans, leading to price variations and shortages.
   

Automotive Traction Motor Market Analysis

 

• The shift towards electric passenger vehicles is further accelerated with the availability of electric mobility and ride-hailing services. A number of fleet operators are already shifting to EV fleets to reduce their operating costs and meet sustainability goals. Grab, a Southeast Asia super app, collaborated with BYD, a Chinese electric vehicle manufacturer, to deploy up to 50,000 BYD EVs over Grab’s network in Southeast Asia. This action is meant to accelerate EV uptake and enhance city mobility. Grab is assisting its drivers to transition to zero-emission cars.
   
• The increasing use of electric vehicles in ride-hailing and car-sharing services is boosting the need for durable, high-efficiency traction motors capable of handling extended daily usage.
   
• Rising awareness of sustainability and the cost benefits of EVsare boosting demand for electric passenger cars. Governments are encouraging its adoption with tax rebates, subsidies, and toll exemptions. Automakers are expanding their EV offerings, increasing the need for traction motors that deliver efficient performance.

 

• Governments and private companies want to mitigate range anxiety by investing in fast-charging stations, incentivizing consumers’ decision towards battery electric vehicles (BEVs) rather than hybrids or internal combustion engines (ICE). For example, Kazam, an Indian EV charging technology manufacturer, recently collaborated with QuickCharge, one of Malaysia’s largest Charging Point Operators (CPO), in February 2025 to expand the EV charging ecosystem in Malaysia. This partnership localizes the deployment of Kazam's Charging Management Solution (CMS) whereby management and scalability of QuickCharge‘s EV network is enhanced.
   
• As charging networks both public and private become widespread, BEVs are now more user-friendly. The wider adoption of BEVs also causes an increase in demand for powerful traction motors that are efficient and cost-effective.
   
• Additionally, as the price of lithium-ion batteries dropped and energy density increases, BEVs have become increasingly economically sensible and usable. Greater optimization on batteries means longer ranges and better overall performance alleviates consumer concerns over adopting EVs. With increased motivation to manufacture BEVs comes the greater requirement for efficient and powerful traction motors that operate on electric energy alone.
   

Based on motor, the automotive traction motor market is segmented into PMSM and AC induction. The PMSM segment dominated the market accounting for over USD 45 billion in 2024.
 

• In comparison to other engines, Permanent Magnet Synchronous Motors (PMSMs) are most suitable because of their lightweight structure, higher efficiency, improved torque, and overall performance. The goals of the modern EV market are increasing the adoption of PMSMs in traction systems as they require the most electric energy out of the different motor options compared to induction motors (IMs).
   
• PMSMs are used in Lucid Air and Tesla’s Model S Plaid for their efficient high speeds and torque. Operating vehicles and the driving experience requires new motor technology for performance EVs with superior driving experience that aids willing expenditure on advanced motors. With the increased relevance of performance, PMSMs are rapidly being integrated as the wheels and traction motors of the vehicle.
   
• In order to tackle rare earth material expenses and supply problems, manufacturers are developing rare-earth-free PMSMs that perform well without neodymium or dysprosium. Such developments stabilize the supply chain and enable PMSM use in EVs. As such designs continue to improve, increasing numbers of manufacturers will implement them, propelling market growth.
   

Based on power output, the automotive traction motor market is segmented into less than 200 KW, 200-400 KW, above 400 KW. The 200-400 KW segment is expected to grow at a CAGR of over 22% by 2034.
 

• 200-400 kW power-rated electric vehicles (EVs) are gaining traction, particularly among SUVs and sport cars. Buyers prefer the car to be powerful and to accelerate well, so manufacturers apply high-output traction motors. Products such as Tesla Model Y and Ford Mustang Mach-E indicate that buyers are seeking powerful and efficient motors.
   
• This range of power can often be observed on electric commercial vehicles such as trucks and buses. Volvo and Daimler are leading the way in developing high-power electric trucks that serve the purpose of sustainable logistics. Electrified freight transport has increased the demand for these vehicles along with powerful traction motors that possess a high torque.
   
• A large number of electric vehicles now come packaged with dual motors for all wheel drive (AWD) which increases the performance metrics along with improving overall vehicle stability and traction. Having one motor installed on each axle means that 200-400 kW power is frequently needed. This change in design is being adopted by OEMs to improve vehicle dynamics which in turn increases the demand for high power traction motors.

 

• The region’s electric vehicle production is accelerating due to government support and investment in EV technologies. China, Japan, South Korea, and India have all invested in EVs active infrastructure and manufacturing which has heightened the need for traction motors. The region has prominent EV manufacturers, including BYD, Hyundai, and Tata Motors, which are increasing their adoption of traction motors along with the expansion of their vehicle offerings.
   
• China is the largest EV market in the world and is also one of the major countries in the production of traction motors. According to Statista, EV sales in China are expected to grow from 6.09 million units in 2022 to 8.05 million units in 2024.. BYD, NIO, and XPeng are increasing their production capacities to take advantage of both the domestic and global markets.
   
• Moreover, China also maintains leadership in the supply chain of the most crucial components of EVs, especially rare earth magnets used in traction motors. This allows manufacturers to reduce costs and ensures a steady supply for production.
   
• The government of China has placed stringent restrictions on emissions and has also issued a tough mandate for New Energy Vehicles (NEV) which compels automakers to manufacture electric vehicles. Also, the subsidies and tax reductions on buyers of EVs are making these vehicles increasingly desirable whichs increase the demand of traction motors. The forceful New Energy Vehicle command for commercial and passenger cars alike is speeding the market’s expansion.
   

The automotive traction motor market Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• Germany is witnessing a growth in innovations in electric mobility due to a shift towards electric mobility. Business concerns such as Volkswagen, BMW and Mercedes Benz are focusing on the production of electric vehicles. This revolution has also created an advanced traction motor market. The observed trend is also supported by the supply side as consumers begin to show interest in expensive electric cars such as Porsche’s Taycan and BMW's i4.
   
• Germany provides considerable purchase and tax incentives in a bid to increase the uptake of EVs. The aim of the German government is to decrease carbon emissions while increasing the usage of electric automobiles. Furthermore, the investments made into local production of EVs and batteries bolsters the domestic traction motor supply chain.
   

The automotive traction motor market in U.S. is anticipated to witness lucrative growth between 2025 to 2034.
 

• To support domestic electric vehicle (EV) manufacturing, the U.S. government has implemented strategies like the Inflation Reduction Act (IRA). The funding for EV users and the subsidies given to manufacturers who make parts, such as traction motors, are advancing the growth of the market. Such policies enable profound investments in electric mobility.
   
• Car manufacturers, such as Tesla, Ford, and General Motors, are putting their resources into increasing the production of EVs. The new EV models, such as the Ford F-150 Lightning and Chevrolet Silverado EV, have high requirements for the traction motors, amplifying the needs for domestic motor production. Simultaneously, the investment strengthens the American supply chain by increasing the production of batteries and motors domestically.
   

The automotive traction motor market in Mexico is anticipated to witness lucrative growth between 2025 to 2034.
 

• The expansion of EV production is growing in prominence in different countries including Mexico as a manufacturing base for Tesla, Ford and Volkswagen. The inexpensive workforce, the USMCA and the closeness to the American market are all propelling investment in the production of EVs and traction motors.
   
• The government of Mexico is providing tax breaks and help to businesses willing to invest in the manufacturing of electric vehicles and their components. There is also a newfound focus on setting up production plants for electric motors which creates less reliance on imports and solidifies Mexico's pivotal role in the Latin America electric vehicle supply chain.
   
• Mexico's logistics and transportation industry is starting to move towards electric mobility to cut fuel expenses and emissions. Companies are buying electric vans for deliveries and electric buses, which increases the need for high efficiency traction motors. With more fleet operators switching to electric vehicles, the traction motor industry in Mexico will flourish.
   

Automotive Traction Motor Market Share

• The top 5 companies operating in the automotive traction motor industry include Bosch, General Motors, ZF Friedrichshafen, Valeo and Continental. They collectively hold a market share of around 25% in the market.
   
• Bosch has been working on the electrification of automobiles by developing electric drive units which include traction motors for electric cars and commercial vehicles. They want to become a frontrunner in the EV world by maintaining focus on eco-friendly and high-performance solutions which assist automakers in shifting to exclusively electric powertrains while minimizing emission levels.
   
• General Motors is working towards shifting their whole fleet to electric vehicles and plans the launch of multiple models of EVs in different markets. GM is taking advantage of the Ultium platform with electric drive units and traction motors to drive faster production of EVs and better the efficiency and effectiveness of vehicles as a whole.
   
• ZF is increasing the scope and breadth of the service offerings by incorporating motors to power the new electric ranges of vehicles with the intention of becoming a world leader in the EV domain. The company is ramping up spending towards advanced electric motors, inverters, and integrated e-mobility systems making it become an OEMs key resource for scalable and effective EV propulsion units.
   
• Continental is working towards the growth of its electric drivetrain systems by creating modular e-motors and integrated powertrain solutions for different types of electric vehicles. They aim to provide multi-platform flexible, high-efficiency drivetrains which speed up the adoption of electric mobility globally.
   

Automotive Traction Motor Market Companies

Major players operating in the automotive traction motor industry include:

• Bosch
• Continental
• General Motors
• Magna International
• Mitsubishi Electric
• Nidec
• Parker Hannifin
• Schaeffler
• Valeo
• ZF Friedrichshafen
   

The automotive traction motors market is becoming very competitive due to the activity of new automotive manufacturers, tier 1 suppliers and other budding startups which are fostering innovation and growth within the industry. Existing market players have a significant advantage due to their already established powertrain engineering capabilities, production volume capacity, and sophisticated vehicle system makeup. Companies are also working towards the development of more energy efficient traction motors with greater power capabilities for electric vehicles in response to competition from both new entrants and established firms.
 

Electric mobility adoption is further bolstered by government policies that endorse restrictions on new low emission vehicles as well as tax breaks and tight environmental compliance rules. Consequently, automotive companies are investing in eco-friendly production in the forms of motored parts and components made from smooth AI aided real-time fleet management as well as energy saving technologies. The initiatives are targeted to achieve emission regulation compliance, decrease operational expenditures, and enhance primary indicators of the vehicle, ensuring competitiveness in the evolving market for automotive traction motors.
 

Automotive Traction Motor Industry News

• In May 2024, ABB  unveiled a novel solution set for electric buses which includes an HES580 inverter and AMXE250 motor. The set, which consists of a 3-level inverter, has eliminated the tradeoff of added cost with increased durability since it results in improved lifespan and efficiency. In addition, the motor gain losses on conventional drive cycles are reduced by 12%, whereas 2-level inverters only enable a loss reduction of 12%.
   
• In September 2023, ZF highlighted progress on a new product called I2SM, In-Rotor Inductive-Excited Synchronous Motor, which is a magnet free electric motor for use in electric vehicles. This is a paradigm shift away from electric vehicle motors that are permanently magnet synchronous. Although it is the most widely adopted motor today for EV’s due to its tiny footprint while maximally dominating power and torque, the I2SM motor is expected to revolutionize the market. Aside from eliminating the conventional motors range of ultra low emission rare earth metals, the I2SM motor aims to increase sustainability within electric motor manufacturing and boost operational efficiency.
   
• In February 2024, Attron Automotive Corporation debuted its electric motors and controllers at the Bharat Mobility Expo 2024. Hosted in India, the company presented three alpha series motors along with one advanced controller that are designed to make EVs faster, more efficient, and higher performing. The company’s latest motors CTR072500 electric motor controller, RM14530 electric motor, RM16070 electric motor, and RM16045 electric motor series are now available.
   
• In July of 2023, Nidec Corporation new E-Axle model announcement, pronouncing that its AION Hyper GT model will be powered by their new model, for AION, the GAC Groups EV brand that commemorates the 20 millionth new energy vehicle. This announcement was made in a ceremony on July 3, 2023, in Guangzhou, China. One of the top EV brands in China, AION, unveiled their new Hyper GT model in June 2023 the latest addition to the premium Hyper series. The vehicle is built with the AEP 3.0 platform alongside advanced LiDAR, allowing it to perform under harsh conditions of rain and dust. The super model range is 710 kilometers and the car accelerates from 0 to 100 km/h in 4.9 seconds.
   

The automotive traction motor market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (Units) from 2021 to 2034, for the following segments:

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Market, By Vehicle

• Passenger vehicles
  • Hatchback
  • Sedan
  • SUV 
• Commercial vehicles
  • Light Commercial Vehicles (LCV)
  • Heavy Commercial Vehicles (HCV)
  • Two-wheelers
  • Off-road vehicles

Market, By Eletric Drivetrain

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

Market, By Motor

• PMSM
• AC Induction

Market, By Power Output

• Less than 200 KW
• 200-400 KW
• Above 400 KW

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia