Electric Commercial Vehicle Traction Motor Market Size & Share 2026-2035

Electric Commercial Vehicle Traction Motor Market Size

In terms of units, the year 2025 is accounting for around 1.17 million traction motor units sold. It is projected that electric commercial vehicle traction motor units will surpass 8 million units by 2035 at a CAGR of around 21.4% between 2026 and 2035.

ECV traction motors turn electricity into power for electric trucks, vans, buses, and other heavy vehicles that makes it as one of the essential aspects for electric commercial vehicles. These electric traction motors save money for businesses using commercial vehicles. The International Energy Agency (IEA) says electric heavy-duty trucks can save about 70% on fuel costs compared to diesel trucks. This is because electricity is cheaper and the motors are more efficient. Also, electric vehicles need less maintenance since they have fewer parts that can break. This means lower repair costs and less time off the road.

Governments are helping people switch to electric vehicles by making stricter rules about pollution and giving benefits like tax credits and subsidies. For example, the European Union's Green Deal wants Europe to be climate-neutral by 2050. This plan focuses on using more electric buses and trucks. These rules and benefits are helping the market for electric motors and vehicles grow.

The demand for electric buses (eBuses) is growing fast. In FY25, MAN Trucks & Buses sold over 1,300 eBuses, which is a 118% increase. Cities around the world want to lower pollution and improve air quality, so they are buying more electric buses. This is also increasing the need for electric motors, which are very important for making these buses work well. As more charging stations and other infrastructure are built, the eBus market will grow even more.

The market for electric heavy-duty trucks is also growing quickly. By 2035, it is expected to be worth USD 152.95 billion. From 2026 to 2035, this market is expected to grow at a rate of 22.2% per year. More businesses are using electric trucks for deliveries and long-distance transport because they save money and are better for the environment. This is increasing the demand for better electric motors, which is leading to new designs and improvements.

New technology is making electric motors better. Companies are creating motors that use less energy, give more power, and handle heat better. For example, improvements in permanent magnet and induction motors are helping electric vehicles go faster, travel farther, and work better. These improvements are important for more businesses to start using electric vehicles, especially in industries where reliability is very important.

The global electric commercial vehicle traction motor market was valued at USD 3.4 billion in 2025. The market is expected to grow from USD 4 billion in 2026 to USD 16 billion in 2035 at a CAGR of 16.8%, according to latest report published by Global Market Insights Inc.

Electric Commercial Vehicle Traction Motor Market Trends

The Electric Commercial Vehicle (ECV) traction motor market is strongly influenced by government rules to cut emissions and support eco-friendly transportation. In Europe, the European Green Deal aims to make the region climate-neutral by 2050, with transportation playing a big role. The EU's "Fit for 55" plan wants to lower CO2 emissions from heavy-duty vehicles by 30% by 2030.

The "Made in China 2025" plan aims to make China a leader in electric vehicle production. By 2035, new energy vehicles (NEVs) are expected to make up 50% of all vehicle sales. China is also pushing for electric public transport, like buses and delivery vehicles, which is increasing the need for electric traction motors in commercial vehicles.

Also, the change from using diesel to electric vehicles saves a considerable amount of money, especially when it comes to fuel and maintenance. The International Energy Agency reports that the fuel expenses for battery electric heavy-duty trucks are 70% less compared to those using diesel. Therefore, electric heavy-duty trucks are becoming increasingly popular, especially for long-distance haulage, where the cost of fuel is considered high. As more companies realize these savings, the demand for electric motors with high power and torque is increasing.

Electric buses are also becoming more popular, which is another big trend in the ECV traction motor market. The global eBus market is growing fast, especially in cities where air quality is a concern. In FY25, MAN Trucks & Buses reported a 118% rise in eBus sales, reaching over 1,300 units. Such sales trend will increase the need for advanced electric motors that are reliable and long-lasting for city use.

The use of technology in electric traction motors is advancing rapidly. Companies are developing motors that consume less power and have more power for electric commercial vehicles. New designs in motor cooling systems, weight reduction, and integration of powertrains are making electric commercial vehicles more efficient and reliable. For example, permanent magnet synchronous motors are increasingly being used in electric commercial vehicles due to their better performance in terms of torque and efficiency.

Electric Commercial Vehicle Traction Motor Market Analysis

Based on power output, the electric commercial vehicle traction motor market is divided into Less than 100 kW, 100-200 kW, 200-400 kW and Above 400 kW. The 200-400 kW segment dominated the market with market share of around 37.6% and generating revenue of around USD 1.3 billion in 2025.

• Medium-duty and heavy-duty electric trucks and buses mostly use 200-400 kW traction motors. These motors are powerful enough to carry heavy loads and travel long distances. In the U.S., the number of zero-emission medium- and heavy-duty trucks and buses registered increased from 1,600 in 2023 to 2,810 in 2024. This shows that more people are buying electric trucks and buses, which is helping this segment grow.
  
• The 200-400 kW traction motors cost more than smaller motors. This is because they are made with advanced technology to handle tough jobs. Trucks and buses need strong motors for long trips or city use.
  
• Government rules to reduce pollution are also increasing the demand for these motors. In the U.S., there are programs like California's Clean Trucks Program and federal rules that support electric buses and trucks. These rules encourage cities to use more zero-emission vehicles. As this happens, the need for 200-400 kW motors will grow, helping this segment earn more money.

Based on motor design, the electric commercial vehicle traction motor market is divided into radial flux and axial flux. The radial flux segment accounts for 90.3% in 2025 and is expected to reach USD 14.2 billion by 2035.

• Radial flux motors have been employed in the traction of electric commercial vehicles for a long time. They are reliable and stable, making them a favorite among fleet owners and manufacturers. Radial flux motors are designed in a simple manner and are easy to manufacture, making them cheap and accessible. They are suitable for medium and heavy commercial vehicles that require the transportation of heavy loads over long distances.
  
• These vehicles need motors that provide high power and torque while saving energy to reduce costs. Radial flux motors are more efficient than axial flux motors when used in larger vehicles. This makes them a good choice for long-haul trucks and electric buses that need strong and reliable power. Their efficiency in large vehicles helps radial flux motors maintain a big share of the market and high revenue.
  
• Radial flux motors are cheaper than axial flux motors because they use less expensive materials and are easier to make. Since they have been used for a long time, the supply chain for their parts is well-developed, which lowers costs. This is important for commercial vehicle markets, where fleet operators focus on keeping costs low. Radial flux motors can also be used in many types of vehicles, from small trucks to large buses and freight vehicles.
  

Based on vehicle, the electric commercial vehicle traction motor market is divided into light commercial vehicles (LCV), medium commercial vehicles (MCV), and heavy commercial vehicles (HCV). The heavy commercial vehicles (HCV) segment is expected to grow at the fastest CAGR of 17.8% between 2026 and 2035.

• Governments are making stricter rules to cut emissions and are promoting zero-emission heavy vehicles. These rules are making fleet operators switch from diesel trucks and buses to electric ones. In the United States, about 2,810 zero-emission medium- and heavy-duty vehicles were registered in 2024, compared to 1,600 in 2023, according to the International Council on Clean Transportation. This push to reduce emissions, especially in freight and public transport, is increasing the demand for electric heavy commercial vehicles (HCVs). This demand is helping the traction motor market grow.
  
• At the same time, the rise of online shopping and delivery services is also increasing the need for electric heavy vehicles. Cities are making stricter rules about truck emissions, with some creating low-emission zones (LEZ) or banning diesel trucks in certain areas. This is making logistics companies use electric trucks that can carry heavy loads and travel long distances. Big logistics companies are also switching to electric HCVs to meet their environmental goals.
  

Based on powertrain, the electric commercial vehicle traction motor market is divided into BEV, PHEV and FCEV. The FCEV segment is expected to grow at the fastest CAGR of 18.3% between 2026 and 2035.

• FCEVs comprise two sustainable vehicle options in one platform. As hydrogen and battery propulsion both are helping in reducing carbon emissions, the segment is expected to grow at the fastest CAGR. These vehicles provide longer range and refuel faster than BEVs and PHEVs. As the demand grows for FCEVs, there will be a clear indication of the traction motors that will see the fastest deployment in these vehicles.
  
• Heavy-duty vehicles, such as trucks and buses, require these attributes since they cover long distances daily. BEVs have limitations in terms of their batteries, but FCEVs can travel much longer. FCEVs also refuel in under 10 minutes, while BEVs take hours to refuel. This is contributing to the increased adoption of FCEVs in the commercial vehicle industry. For instance, Tatra Trucks is developing the Tatra Force e-Drive FCEV 6x4, which is a hydrogen truck scheduled for 2028 and will be significant in this industry.
  
• The need for cleaner transportation is growing, especially for heavy-duty vehicles like trucks and buses, which cause a lot of pollution. FCEVs are a good solution to reduce emissions where BEVs are not practical because of range and charging time issues. Hydrogen-powered trucks and buses produce no emissions and help meet strict pollution rules in Europe, North America, and Asia. The FCEV market is meeting this need by offering a clean, long-range, and fast-refueling option.

The US electric commercial vehicle traction motor market reached USD 395.4 million in 2025, growing at a CAGR of 15.6% between 2026 and 2035.

• Government efforts are rectifying the EV trend in the country. The U.S. has 50 states in which all these states' policies are dynamic and specific to the transportation and automotive sectors. The traction motors specifically made for electric commercial vehicles are subject to these regulations, standards and government policies.
  
• Eventually, the government’s efforts are cutting down the level of carbon emissions and promoting the use of electric vehicles. The Biden administration’s infrastructure plan is providing significant support for electric vehicle infrastructure, including investing $7.5 billion in electric vehicle charging stations to expand the country’s charging infrastructure. Meanwhile, the Clean Energy Standard is helping in increasing the number of electric trucks and buses in the country.
  
• Tesla and Rivian and established automakers like Ford are leading the charge in electrifying their commercial vehicle portfolios, which include electric delivery trucks, vans, and semi-trucks. Furthermore, government initiatives such as tax incentives for EV buyers and electric fleet operators are also contributing to market expansion.
  

The North America region is valued at USD 464.1 million in 2025. In terms of volume, the electric commercial vehicle traction motor market is estimated to exceed 157.6 thousand units in the same year.

• In North America, many states have set strong zero-emission vehicle (ZEV) goals. For example, California plans for all new medium- and heavy-duty truck sales to be zero-emission by 2045. The U.S. Environmental Protection Agency (EPA) is also creating stricter emission rules, which will speed up the use of electric trucks and buses. These policies are making North America a key region for the growth of the ECV traction motor market, especially with the electrification of logistics and public transport fleets.
  
• In Canada, the government’s Zero-Emission Vehicle Infrastructure Program (ZEVIP) is assisting in the development of more charging points. This has made it easier for companies to adopt electric vehicles. Incentives for the purchase of electric trucks and the installation of charging points are also contributing to the development of the sector. Many companies in Canada, particularly in the delivery sector, are adopting electric vehicles.
  
• Despite all supportive benefits, the current landscape for EVs is still lacking with the high cost of electric commercial vehicles and charging station availability for commercial vehicles, especially in rural areas. But with more help from the government and private companies, the electric commercial vehicle market is expected to grow a lot in the next ten years.
  

The Europe region holds 23.3% of the electric commercial vehicle traction motor market in 2025 and is expected to grow at a CAGR of 16.9% between 2026 and 2035.

• Europe comes first in prioritizing EVs. The supportive EV policies and sustainable vehicle trend will support traction motor players in the region. As the region is promoting EVs to capture 90% of all vehicles by 2035, players who have their operations across the European countries will see potential growth opportunities.
  
• The European Union's Green Deal and its efforts to reduce emissions for the transportation sector. The EU has launched its Fit for 55 plan, which includes proposals to set stricter CO2 emission norms for trucks and buses. This has provided a major boost to the electric commercial vehicle market. The zero-emission vehicle mandate for several European Union countries has encouraged the growth of electric commercial vehicles.
  
• EU countries such as Germany, France, the UK, and the Netherlands are leading in the adoption of EVs with robust policy frameworks to encourage the adoption of electric commercial vehicles. France offers financial incentives to businesses that acquire electric commercial vehicles such as delivery vans and trucks. In the UK, there is a target to stop the production of new petrol or diesel-powered trucks by 2040. In the Netherlands, there has been a successful adoption of electric buses in the country’s public transportation system.
  

Germany's electric commercial vehicle traction motor market is growing quickly in Europe, with a CAGR of 16.4% between 2026 and 2035.

• Germany, being a leader in the automotive as well as electric vehicle industry, plays a vital role in the European electric commercial vehicle market. The Federal Climate Change Act in Germany and the National Climate Protection Program in the country strive to bring about a drastic reduction in emissions in the transport sector by the end of 2030.
  
• The country has also pledged to raise the percentage of zero-emission electric commercial vehicles in the commercial sector. The specific targets in this regard have been set in the German Mobility and Fuels Strategy (MFS). The government is also encouraging the use of electric commercial vehicles by offering various subsidies.
  
• Automotive companies like Man Truck & Bus, Volkswagen, Daimler, and BMW Group are making tremendous progress in the development of electric trucks and buses. For instance, in FY25, MAN Trucks & Buses sold over 1,300 eBuses, which is a 118% increase. The integration of advanced traction motors is vital for enhancing the performance and efficiency of electric trucks and buses. Initiatives related to electromobility are picking up speed in the public transportation segment, with Berlin and Munich being the frontrunners for electric buses.
  

The Asia Pacific region is expected to grow at the fastest CAGR of 17.6% between 2026 and 2035 in the electric commercial vehicle traction motor market.

• The Asia Pacific region has been witnessing the adoption of electric commercial vehicles, and this has been driven by a series of factors including government incentives and regulations. Countries like China, India (mainly light and medium commercial vehicles), Japan, and South Korea are leading the adoption of electric commercial vehicles.
  
• In India, the government has launched the FAME II scheme that encourages the use of electric vehicles, including electric buses and trucks. Japan has set very aggressive goals for zero-emission commercial vehicles, with a focus on the development of hydrogen fuel cell electric vehicles in addition to battery electric vehicles. South Korea is investing in electric trucks and buses, with a large segment of public transportation being electric.
  
• Some of the challenges faced by the region are the relatively higher prices of EVs and limited infrastructure for charging these vehicles in some countries’ urban and rural areas. The government’s commitment to electric mobility policies and the rising demand for electric vehicles in the urban areas of the region are expected to drive the electric vehicle market.
  

China is estimated to grow with a CAGR of 17.3% in the projected period between 2026 and 2035, in the Asia Pacific electric commercial vehicle traction motor market.

• China is the world leader in the electric vehicle (EV) market, as well as in electric commercial vehicle traction motors. The country is moving quickly to use more electric commercial vehicles because of government rules, better infrastructure, and demand for cleaner options. The Chinese government had previously targeted achieving 25% of all vehicles on the road to be electric by 2025, including commercial vehicles. China’s goal to reduce carbon emissions by 2060 is also pushing this change.
  
• The reason for the development of the electric vehicle industry in China is the encouragement of the government through subsidies, tax reductions, and rapid development of the infrastructure of electric vehicles. The government is paying attention to the development of electric buses, trucks, and delivery vehicles. This has led to an increased demand for electric commercial vehicles and improved traction motors. Large enterprises, such as BYD, Geely, and SAIC, are investing a lot of money in the development of electric commercial vehicles, which has improved traction motors.
  
• China also has one of the largest EV charging networks in the world, which supports the use of electric commercial vehicles. Challenges are seen in the total cost of ownership of commercial vehicles. Electric vehicles are expensive, which makes it hard for small and medium businesses to use them. But new improvements in battery and motor technology, along with government help, are expected to grow the market further.
  

Mexico is estimated to grow with a CAGR of 8.4% between 2026 and 2035, in the Latin America electric commercial vehicle traction motor market.

• Mexico's market for electric commercial vehicle traction motors is growing fast. This growth is due to the push for zero-emission vehicles (ZEVs), climate goals, new projects, and early investments in infrastructure. In November 2025, at COP30 in Brazil, Mexico signed an agreement called the Global Memorandum of Understanding on Zero-Emission Medium- and Heavy-Duty Vehicles (Global MoU). This agreement aims for 30% of new trucks and buses to be zero-emission by 2030 and 100% by 2040. It also focuses on building charging stations and supporting new technologies to reduce emissions in transport.
  
• The government and companies are working together to increase the use of electric vehicles in cities and on highways. Through the Zero Emission Vehicles Emerging Markets Initiative (ZEV-EMI) Mexico Partnership, they plan to put about 17,000 zero-emission vehicles on the road by 2030. This includes testing electric trucks on routes like Nuevo Laredo to Monterrey. The goal is to increase demand, lower costs, and encourage investments in electric vehicles and charging stations, which are important for traction motor growth.
  
• Local companies are also starting to support electric vehicles. For example, Mexican company MegaFlux is working with Forsee Power to use advanced batteries in heavy-duty electric buses and trucks. This shows that local partnerships are forming to make electric vehicles and traction motors, which will help build a strong supply chain in the future.
  

UAE to experience substantial growth in the Middle East and Africa electric commercial vehicle traction motor market in 2025.

• The government aims to rely less on oil and more on clean energy and green technology. As part of the UAE Vision 2021, the government aims to rely more on electric and hybrid vehicles, including commercial ones. In 2019, Dubai launched the Green Mobility Initiative, which targets making 10% of the city’s vehicles electric by 2030.
  
• As a result of government encouragement, businesses are starting to adopt commercial electric vehicles, which is also pushed because of smart city projects and the focus on clean transportation. More online shopping and delivery services are also increasing the need for electric delivery vehicles, which is helping the market grow.
  
• There are some problems, like the high cost of electric vehicles and not enough charging stations in some areas. To fix this, the government is spending money to build more charging stations and is giving rewards to make electric vehicles cheaper for businesses.
  

Electric Commercial Vehicle Traction Motor Market Share

The top 7 companies in the electric commercial vehicle traction motor industry are ABB, BorgWarner, Bosch, BYD, Magna, Nidec and ZF contributing 73.2% of the market in 2025.

• ABB develops heavy-duty electric traction motors and integrated drive solutions tailored for commercial vehicles such as buses and trucks, suited to demanding urban and regional transport applications.
  
• BorgWarner supplies electric propulsion components including modular electric traction motors and e-drive systems for commercial vehicles, engineered to deliver continuous high torque and efficiency within battery-electric truck and bus powertrains.
  
• Bosch’s commercial vehicle traction motors provide compact, scalable electric propulsion with up to ~240 kW continuous power and high torque density, designed for integration into battery-electric trucks, vans and buses within complete e-drive systems.
  
• BYD manufactures electric traction motors as part of its battery-electric commercial vehicle powertrains, engineered for durable, high-efficiency propulsion across its range of electric buses and trucks to meet diverse urban and regional transport requirements.
  
• Magna’s electric drive units and eDrive systems include high-voltage traction motors for commercial electric vehicles, offering scalable power and torque density as part of its electrified powertrain product portfolio used by multiple OEMs.
  
• Nidec produces electric traction motors and integrated e-axle drive systems for commercial vehicles and buses, engineered to deliver continuous power with reliable torque and energy efficiency for demanding urban and long-distance EV operations.
  
• ZF offers electric traction motors and fully integrated e-drive systems including central and axle drives for light to heavy commercial vehicles, enabling efficient, emission-free propulsion across vocational buses, trucks and delivery fleets.
  

Electric Commercial Vehicle Traction Motor Market Companies

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

• ABB
• Allison
• BorgWarner
• BYD
• Dana
• Magna
• Nidec
• Robert Bosch
• Valeo
• ZF Friedrichshafen
  

• ABB offers reliable, high-performance traction motors with advanced thermal management and strong engineering expertise, ensuring robust torque, efficiency, and durability for heavy-duty electric commercial vehicles across demanding transport applications.
  
• BorgWarner provides modular, scalable traction motors integrated with power electronics, leveraging OEM partnerships and acquisitions to deliver flexible, high-performance electric propulsion solutions for commercial vehicles.
  
• Bosch combines electric motors, inverters, and transmissions into integrated e-drive systems with compact design and high efficiency, benefiting from global scale and advanced silicon carbide (SiC) electronics.
  
• BYD leverages large-scale manufacturing and vertical integration to produce efficient, durable, and cost-effective traction motors, backed by extensive electric commercial vehicle production experience.
• Magna develops scalable, high-efficiency traction motors and e-drive systems with modular designs, supporting diverse commercial vehicle applications and strong OEM collaboration across multiple regions.
  
• Nidec specializes in compact, lightweight traction motors and e-axle systems, using AI-enhanced control and mass production capabilities to deliver efficient, adaptable solutions for commercial electric vehicles.
  
• ZF delivers efficient, quality-engineered electric traction motors with flexible production volumes, strong integration expertise, and competitive price-performance, enabling reliable electrification for light to heavy commercial vehicles.
  

Electric Commercial Vehicle Traction Motor Industry News

• In May 2025, Garrett launched a new high-speed, high-power Electric Powertrain. It uses advanced motor technology to improve the performance and size of Electric Traction Drives, setting new industry standards. Garrett also got its first production order to work with HanDe, a leading axle maker in China, to create and produce advanced E-Axle systems for heavy-duty trucks.
  
• In April 2025, Nidec Traction expanded its motor production line at its Mexico plant. The new line can make 100,000 motors every year. The plant makes different types of motors, like low-voltage AC and permanent magnet DC motors, used in commercial and industrial vehicles.
  
• In February 2025, EKA Mobility partnered with KPIT Technologies to improve electric commercial vehicles. They are working together to develop better electric powertrains, smart vehicle designs, and advanced software to make EVs more efficient, connected, and high-performing.
  
• In October 2024, Nidec partnered with Ashok Leyland to speed up commercial vehicle electrification in India. Nidec will also help Ashok Leyland set up a Center of Excellence for E-Drives to stay ahead in the market.
  

The electric commercial vehicle traction motor market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (thousand units) from 2022 to 2035, for the following segments:

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Market, By Motor

• Permanent Magnet Synchronous Motor (PMSM)
• Switched Reluctance Motor (SRM)
• AC Induction Motor
• DC Traction Motor
• Electrically Excited Synchronous Motor

Market, By Power Output

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

Market, By Motor Design

• Radial Flux
• Axial Flux

Market, By Axle Architecture

• Integrated Axle
• Central Drive Unit

Market, By Transmission

• Single-Speed Drive
• Multi-Speed Drive

Market, By Vehicle

• Light commercial vehicles (LCV)
• Medium commercial vehicles (MCV)
• Heavy commercial vehicles (HCV)

Market, By Propulsion

• BEV
• PHEV
• FCEV

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

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Belgium
  • Sweden
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Malaysia
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• MEA
  • South Africa
  • Saudi Arabia
  • UAE