Electric Commercial Vehicle Traction Motor Market Size - By Motor, By Vehicle, By Power Rating, By Axle Architecture, By Transmission, By Design, Growth Forecast, 2025 – 2034

Electric Commercial Vehicle Traction Motor Market Size

The global electric commercial vehicle traction motor market was valued at USD 2 billion in 2024 and is estimated to register a CAGR of 12.7% between 2025 and 2034. The market is progressing at a rapid pace, increasing efficiency, performance, and longevity of the motor’s parts. New technologies such as permanent magnet synchronous motors (PMSM), lateral flux motors, and switched reluctance motors (SRM) are being developed that increase energy output and minimize energy waste.
 

The adoption of silicon carbide (SiC) inverters with new cooling systems also makes the motors more efficient, yielding a greater range while drawing less power from the battery. Use of modern materials and small size of the motors increase the torque density which makes them suitable for heavy duty commercial vehicles.
 

For instance, in July 2023, Nidec announced its second-generation E-Axle with 250kW peak output, featuring a silicon carbide (SiC) inverter optimized for 800V systems. This design enhances efficiency, power density, and performance, reducing energy loss and improving range. The unit weighs 91.6kg and incorporates advanced cooling and magnet layout for better thermal management and durability.
 

Developments in fast-charging stations and batteries are making electric commercial vehicles more practical for long distance and city driving. The growing number of charging stations is lessening the waiting time for electric trucks and buses.
 

For instance, in 2024, Hyundai is planning to significantly increase the number of E-Pit fast chargers in South Korea from 286 to 500 by 2025 and nearly double the number of services. Through an affiliate, KEVCS, the company also intends to deploy 3000 ultra-fast chargers and 20000 AC chargers across the country. Furthermore, Hyundai has broadened the E-Pit Pass to include 72000 chargers in South Korea with the aim of 260000 chargers by the end of 2024.
 

Meanwhile, advancements in battery energy density, solid-state batteries, and swappable battery technology are improving vehicle range and charging efficiency. Wireless charging and regenerative braking systems are being integrated into commercial electric vehicles, further enhancing the adoption of traction motors in the market.
 

Electric Commercial Vehicle Traction Motor Market Trends

• Commercial EV makers are focusing on improving the range and energy consumption of their vehicles, leading to increased demand for high-efficiency traction motors. Automakers are also switching to Permanent Magnet Synchronous Motors (PMSM) and axial flux motors because they have higher power density and energy losses are lower. Also, aluminum and carbon composite materials are being utilized to minimize the weight of the motors, which further increases vehicle efficiency and payload capacity.
   
• For instance, In December 2024, Daimler Truck began series production of the Mercedes-Benz eActros 600, a lightweight long-haul electric truck. With a range of up to 500 km and a 621-kWh battery, it balances efficiency and payload capacity. Assembled alongside diesel trucks, it features optimized weight distribution for better performance.
   
• Tier-1 suppliers and automakers are adopting integrated electric axles (e-axles) which incorporate a motor, inverter, and gearbox into a single compact unit. This integration is beneficial for the aspects of weight reduction, increased energy efficiency, and simplified vehicle assembly. Industry leaders are investing in advanced electric e-axle because of the increased demand for heavy duty applications. Companies like Bosch, Dana, and ZF are leading the charge for next generation compact and high-power e-axle.
   
• There is a focus on reducing supply chain risks and costs to produce traction motors, meaning both governments and automakers have decided to localize production.
   

Electric Commercial Vehicle Traction Motor Market Analysis

Based on motor, the electric commercial vehicle traction motor market is categorized into AC Induction Motors, Permanent Magnet Synchronous Motors (PMSM), Switched Reluctance Motors (SRM), and DC Motors. PMSM dominated the market in 2024, accounting for over 45% of total revenue.
 

• Permanent Magnet Synchronous Motors (PMSM) dominate the market due to their higher energy efficiency, compact size, and superior power output.  Major commercial EV manufacturers rely on PMSM for their higher torque density and superior regenerative braking functionality. Their growing use in long-haul electric trucks and buses is propelling the market further.
   
• For instance, In August 2024, Mahindra Last Mile Mobility Limited (MLMML) introduced the all-new e-Alfa Plus, featuring an advanced Permanent Magnet Synchronous Motor (PMSM) designed for enhanced efficiency and durability.
   
• The PMSM has a peak power of 1.95 kW with 26.9 Nm torque which converts energy extremely efficiently when compared to traditional motors. With this motor technology performance is enhanced, bringing the real range the e-Alfa Plus can cover fully charged to over 100 km.

Based on axle architecture, the electric commercial vehicle traction motor market is categorized into integrated and central drive units. Integrated e-axles led the market in 2024, accounting for over 54.5% of the total revenue, while central drive units remain relevant for high-torque applications.
 

• Integrated e-axles are rapidly gaining adoption due to their compact design, improved energy efficiency, and reduced vehicle weight. Companies are investing in next-generation e-axles that integrate motors, inverters, and transmissions into a single unit, making them ideal for electric trucks and vans.
   
• For instance, in November 2024, Renesas and Nidec introduced an 8-in-1 E-Axle proof of concept integrating a motor, inverter, DC/DC converter, onboard charger, power distribution unit, battery management system, and heating control—all controlled by a single microcontroller. This design reduces size, cost, and components while achieving up to 99% efficiency.
   
• Central drive units continue to play a critical role in high-power applications such as heavy-duty trucks and long-range buses. While integrated e-axles are becoming more prevalent, central drive units offer high torque and durability, making them essential for demanding commercial applications.
   

Based on vehicle, the electric commercial vehicle traction motor market is categorized into pickups, medium and heavy-duty trucks, vans, and buses. Medium and heavy-duty trucks dominated the market in 2024.
 

• Medium and heavy-duty trucks dominate the traction motor market due to strict emissions regulations and the push for fleet electrification. These vehicles require high-power, high-torque traction motors capable of sustaining long-haul transport while maintaining efficiency under heavy loads
   
• For instance, in March 2024, Nissan and Honda partnered to develop next-generation electric and software-defined vehicles (SDVs), with a strong focus on electrification for medium and heavy-duty trucks. Their collaboration includes standardizing e-Axles, optimizing battery technologies, and integrating advanced software to enhance efficiency and performance.
   
• Advanced thermal management systems are improving motor reliability and operational lifespan, addressing the intense demands of freight and logistics. Lightweight materials and modular motor designs further contribute to optimizing energy consumption, ensuring trucks can meet the increasing performance expectations while reducing total cost of ownership.
   
• As electric truck adoption grows, manufacturers are focusing on developing standardized, scalable motor platforms that can be adapted across different vehicle classes. These innovations are paving the way for more efficient, cost-effective, and sustainable transport solutions, reinforcing the role of electric propulsion in the future of medium and heavy-duty trucking.
   

Based on power rating, the electric commercial vehicle traction motor market is categorized into Less than 100 kW, 100-200 kW, 200-400 kW, and Above 400 kW. The 200-400 kW segment held the largest share in 2024, contributing over 35% of total revenue.
 

• 200-400 kW motors dominate the market, catering to heavy-duty electric trucks and buses. Vehicles that rely on motors within this power range support long-haul logistics and commercial freight transport.
   
• For instance, in October 2024, Valeo and MAHLE announced an advanced magnet-free electric axle system designed for upper-segment EVs, delivering peak power between 220 kW and 350 kW. The iBEE system (inner Brushless Electrical Excitation) enhances performance, efficiency, and sustainability, reducing carbon footprint by over 40% compared to permanent magnet motors
   
• Less than 100 kW motors are primarily used in compact electric vans, small pickups, and lightweight urban transport vehicles. Their growth is being fuelled by the increasing demand for last-mile delivery solutions in cities.
   
• 100-200 kW motors serve light and medium-duty trucks, as well as commercial delivery vans. Popular models like the Ford E-Transit and Mercedes-Benz eSprinter fall into this category, with demand rising due to urban emissions regulations and fleet electrification mandates.
   
• Above 400 kW motors are reserved for high-performance electric trucks, mining vehicles, and hydrogen fuel cell-powered commercial EVs. Advances in dual-motor and multi-motor systems are expected to drive further growth in this segment.

Asia Pacific held the largest share of the electric commercial vehicle traction motor market in 2024, accounting for over 35% of the global market. China held the largest share in the region, projected to reach USD 1.8 billion by 2034.
 

• China’s New Energy Vehicle (NEV) program has been a major catalyst, offering subsidies, tax benefits, and policy incentives to accelerate the adoption of electric trucks, buses, and delivery vans.
   
• Leading manufacturers like BYD, Yutong, and FAW are pioneering high-efficiency traction motors, ensuring cost-effective solutions for commercial EV fleets.
   
• The country’s dominance in battery production and rare-earth materials provides a competitive edge in the development of PMSM and SRM motors, reducing dependency on imports.
   
• State-owned and private logistics companies, including JD.com and SF Express, are rapidly electrifying their delivery fleets, boosting demand for traction motors in the 100-200 kW segment.
   
• China’s push for smart manufacturing and AI-integrated motor control systems is further optimizing performance, increasing efficiency, and enhancing vehicle range.
   

The electric commercial vehicle traction motor market in North America is expected to experience significant and promising growth from 2025 to 2034.
 

• The United States and Canada are at the forefront of commercial EV adoption, with companies like Tesla, Rivian, and Freightliner leading the development of high-performance traction motors.
   
• Government policies such as the Inflation Reduction Act (IRA) and California’s Advanced Clean Trucks (ACT) mandate are accelerating the transition to electric trucks and buses.
   
• Logistics and e-commerce giants like Amazon, FedEx, and UPS are deploying electric delivery vans, increasing demand for efficient traction motors in the 100-200 kW range.
   
• The U.S. is investing in domestic battery and motor production, reducing dependency on imported raw materials and strengthening the local supply chain.
   

The electric commercial vehicle traction motor market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• The European Green Deal and CO2 reduction targets are pushing fleet operators to adopt electric trucks and buses on scale.
   
• Companies like Daimler, Volvo, and Renault are focusing on high-efficiency PMSM motors for heavy-duty electric trucks.
   
• The expansion of low-emission zones (LEZs) in cities like London, Paris, and Amsterdam is driving demand for electric vans and medium-duty trucks, boosting the 100-200 kW traction motor segment.
   
• E-axle adoption is increasing, with suppliers like ZF and Bosch launching integrated electric drivetrains tailored for European commercial vehicle standards.
   

The electric commercial vehicle traction motor market in Mexico is expected to experience significant and promising growth from 2025 to 2034.
 

• Mexico is leading Latin America’s electric commercial vehicle transition, with incentives for electric buses and urban delivery fleets. Companies like BYD and Volvo are expanding production in the region.
   
• Mexico is emerging as a key hub for EV traction motor production, driven by growing investments from global automakers. With strong supply chains and proximity to the U.S. market, the country is attracting manufacturers focused on sustainable and high-efficiency electric drive systems. Companies are setting up facilities to support the rising demand for magnet-free and high-power traction motors in the region.
   

Electric Commercial Vehicle Traction Motor Market Share

• Top 7 companies of electric vehicle charging cable industry are Bosch, BorgWarner, ABB, Nidec, ZF, Delta and Hitachi. They collectively hold a market share of around 35% in the market.
   
• Bosch is advancing integrated e-axle solutions by combining motors, inverters, and transmissions while leveraging silicon carbide (SiC) power electronics for improved efficiency. BorgWarner is expanding its traction motor technology and acquiring companies to enhance its modular motor platforms. ZF is prioritizing magnet-free electric motors (EESM) for sustainability and developing high-voltage e-drives with superior cooling for continuous power output.
   
• Nidec is scaling up mass production of compact and lightweight e-axles, integrating AI-driven motor control for increased efficiency. In October 2024, Ashok Leyland partnered with Nidec Motor Corporation to develop electric drive motors for commercial vehicles in India. The collaboration focused on designing and manufacturing Electric Drive Units (EDUs), including e-drives, power electronics, and gear-shifting technologies, tailored for Indian road conditions.
   
• A Centre of Excellence (CoE) would be established to advance these developments while promoting local supply chain integration to reduce import dependency. The e-drive motors would power Ashok Leyland’s range of electric buses, trucks, and other commercial vehicles, enhancing efficiency and performance in the growing EV market.
   
• ABB specializes in high-power traction motors for industrial and commercial vehicles, focusing on advanced cooling systems for long-haul applications.
   
• Delta Electronics is developing integrated powertrain solutions with customized inverters and scalable, cost-effective motor designs. Hitachi Automotive is innovating high-speed traction motors with advanced thermal management, optimizing compact motor designs for next-generation EV platforms. These strategies reflect a shift towards high-efficiency, sustainable, and high-performance traction motor solutions to support global EV adoption.
   

Electric Commercial Vehicle Traction Motor Market Companies

Major players operating in the electric commercial vehicle traction motor industry include:

• ABB
• BorgWarner
• Bosch
• Dana
• Delta
• Hitachi Automotive
• Magna
• Nidec
• ZF
   

The electric commercial vehicle traction motor market is highly competitive, driven by advancements in motor efficiency, power density, and integration with next-generation vehicle architectures. Leading manufacturers dominate through a mix of AC induction, PMSM, and SRM motors, leveraging R&D investments, strategic collaborations, and supply chain optimization to strengthen their market position.
 

Major automotive OEMs and Tier-1 suppliers are focusing on high-efficiency motors, lightweight designs, and rare-earth material alternatives to improve vehicle range and cost-effectiveness. Meanwhile, emerging players are introducing next-generation integrated e-axles and AI-driven motor control systems to enhance performance and energy efficiency.
 

The market is also witnessing increased investment in automation, digital twin technology, and advanced thermal management solutions to optimize traction motor design and manufacturing. As governments worldwide push for electrification mandates and zero-emission regulations, competition is intensifying, with companies racing to deliver high-performance, cost-efficient traction motors for electric trucks, vans, and buses.
 

Electric Commercial Vehicle Traction Motor Industry News

• In February 2025, EKA Mobility partnered with KPIT Technologies to advance electric commercial vehicle innovation. The collaboration focused on integrating next-gen electric powertrains, smart vehicle architectures, and advanced software-driven solutions to enhance efficiency, connectivity, and performance in EVs.
   
• In September 2024, Volvo Trucks introduced the FH Electric long-distance version, featuring a high-performance traction motor system with up to 490 kW continuous power. The new model, designed for heavy-duty long-haul transport, integrates an advanced e-axle and high-energy-density batteries, extending its range to 373 miles. With faster charging and improved efficiency, Volvo aims to enhance fleet electrification while reducing emissions.
   
• In June 2024, Dana TM4 India adapted its strategy to navigate India's evolving automotive landscape, where ICE and EVs would coexist for the next decade. The company focused on electric powertrains, manufacturing traction motors, controllers, and vehicle control units for premium bikes, three-wheelers, buses, trucks, and off-highway vehicles.
   
• In July 2022, automotive supplier MAHLE introduced a groundbreaking electric traction motor featuring a unique integrated cooling system that enables continuous high performance without overheating. This innovation eliminates the need for rare earth magnets, reducing dependency on critical raw materials. The motor's design ensures durability and efficiency, making it suitable for a wide range of applications, including passenger cars, commercial vehicles, construction machinery, and tractors.
   

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

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Market, By Motor

• AC Induction Motors
• Permanent Magnet Synchronous Motors (PMSM)
• Switched Reluctance Motors (SRM)
• DC Motors

Market, By Vehicle

• Pickups trucks
• Medium and Heavy-Duty Trucks
• Vans
• Buses

Market, By Power Rating

• Less than 100 kW
• 100-200 kW
• 200-400 kW
• Above 400 kW

Market, By Axle Architecture

• Integrated
• Central Drive Unit

Market, By Transmission      

• Single-speed drive
• Multi-speed drive

Market, By Design

• Radial Flux
• Axial Flux

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