Market Dynamics
Introduction
The electric motor acts as the primary power source for both battery electric vehicles and hybrid vehicles. Serving as a traction motor, it converts electrical energy into mechanical power to propel the vehicle, whether operating in fully electric mode or hybrid mode. Depending on its application, the motor delivers torque directly to the transmission gear for efficient power transfer. It can also operate in reverse, converting mechanical energy into electrical energy to recharge the vehicle's battery.
Advancements in motor efficiency, power density, and lightweight materials are driving eMotor development to enhance EV performance and range. Automakers and technology companies are constantly improving electric motors, making EVs more efficient, powerful, and sustainable for the future.
Market Drivers
Key factors driving the EV eMotors market are:
- Increasing global sales of electric vehicles directly impact the demand for electric motors, as each EV requires at least one motor, with some models featuring multiple motors.
- Improvements in motor efficiency, power density, and thermal management enhance EV performance and contribute to market growth.
- Lower battery prices make EVs more affordable, encouraging adoption and boosting demand for electric motors.
- Government policies & incentives, and mandates for EV adoption drive the demand for electric motors.
- Expanding EV infrastructure increases consumer confidence in EVs, which drives EV sales and, in turn, increases the demand for electric motors.
Recent Market JVs and Acquisitions:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In December 2020, LG Electronics teamed up with Magna International Inc. to establish a joint venture to manufacture e-motors, inverters, and onboard chargers, supporting the global shift toward vehicle electrification. The newly formed company, LG Magna e-Powertrain Co., Ltd., combines the strengths of both companies in electric powertrain systems and world-class automotive manufacturing, aiming to drive innovation and efficiency in the EV industry.
- In April 2022, BorgWarner acquired Santroll Automotive Components' light vehicle e-motor business. This acquisition strengthens BorgWarner's vertical integration, scalability, and product portfolio, reinforcing its competitive position in the rapidly growing electric vehicle market.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Vehicle-Type Analysis
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LV and M&HCV
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LV is expected to maintain its dominance during the forecasted period.
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Number of Motor Types Analysis
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1 Motor, 2 Motors, 3 Motors, and 4 Motors
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2 Motors are expected to be the demand generator for the EV eMotors market.
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Technology-Type Analysis
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PMSM, IM, and Other Technologies
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PMSM motors are expected to remain dominant throughout the forecast period.
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EV-Type Analysis
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BEV and HEV
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HEV is anticipated to contribute to a larger share of the EV eMotors market.
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Integration-Type Analysis
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Standalone and Integrated in eAxle
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Currently, standalone eMotors dominate the market, but integrated in eAxle eMotors are expected to see substantial growth in the coming years.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia-Pacific is expected to maintain its reign over the forecast period.
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By Vehicle Type
“LV is expected to remain the dominant vehicle of the EV eMotors market during the forecasted period.”
The market is segmented into LV &M&HCV. LVs, including passenger cars, compact SUVs, and small commercial vehicles, account for the largest share of global vehicle production due to their high sales and manufacturing volumes. The widespread use of passenger cars and light commercial vehicles (LCVs) for both personal and commercial transportation ensures a consistent demand for e-motors. The shift toward electrification is primarily led by passenger vehicles, where e-motors play a vital role in enhancing efficiency, performance, and sustainability while meeting regulatory targets and evolving consumer preferences. Technological advancements in battery systems, charging infrastructure, and cost reductions are making electric LVs more affordable and accessible. These developments are accelerating the adoption of electric vehicles, reinforcing their growing dominance in the market.
By Number of Motor Type
“The two motors EVs are expected to remain dominant in the market during the forecast period.”
The market is segmented into 1 motor, 2 motors, 3 motors, and 4 motors. The 2 motor vehicles will continue to dominate the market due to their ability to enhance performance, offering better acceleration and a more dynamic driving experience, particularly in high-performance electric vehicles. These systems also enhance energy efficiency by distributing power more evenly between the motors, optimizing energy use, extending driving range, and enhancing overall energy management for both city and highway driving.
Dual-motor systems also enable all-wheel drive functionality, enhancing traction, stability, and handling performance in challenging road conditions. This makes them well-suited for diverse driving situations, further solidifying their importance in the growing electric vehicle market.
By Technology Type
“PMSM is projected to continue as the leading technology category of the EV eMotors market throughout the forecasted period.”
The market is segmented into PMSM, IM, and other technologies. PMSMs (permanent magnet synchronous motors) offer high efficiency and increased power output, making them ideal for maximizing a vehicle’s performance and range. These motors provide precise torque control and consistent performance, enhancing the driving experience and stability in various conditions. PMSMs are the preferred choice for automakers due to their reliable technology, long-lasting durability, and capability to support the evolving demands of modern EVs.
By EV type
“HEV is the dominant category of the EV eMotors market, whereas BEVs are expected to experience faster growth during the forecast period.”
The market is segmented into BEV and HEV. eMotors in HEVs (hybrid electric vehicles) are not the primary source of power, resulting in lower power requirements and making them a more cost-effective solution. The reduced power demands help decrease manufacturing costs for eMotors used in HEVs, supporting their increasing market penetration.
Since eMotors in HEVs primarily serve an assisting role, manufacturers can maintain lower production costs while still enhancing vehicle efficiency. This cost advantage contributes to the growing adoption of HEVs, strengthening their market share in the evolving automotive landscape.
By integration type
“At present, standalone eMotors hold the dominant position, whereas integrated in eAxle eMotors are projected to experience significant growth in the coming years.”
The market is segmented into standalone and integrated in eAxle. Standalone eMotors dominate the market as the power for various hybrid and conventional EV designs while offering greater design flexibility. Their adaptability makes them a preferred choice for automakers seeking versatile and efficient power solutions across different vehicle types.
Meanwhile, the integration of eAxles into motors is expected to grow significantly due to their superior efficiency, reduced weight, and compact construction. These advantages align with the evolving requirements of future EV designs, further driving the expansion of the eAxle market.
Regional Analysis
“Asia-Pacific is expected to remain the largest and fastest-growing region for the EV eMotors market during the forecast period.”
Higher EV adoption in countries like China, Japan, and South Korea is driven by government subsidies and policies; the region is home to major EV and eMotor manufacturers, ensuring cost-effective production; rising consumer demand for electric vehicles, fueled by environmental concerns and fuel savings; technological advancements in motor efficiency, battery technology, and power electronics; and rapid expansion of EV charging infrastructure and government investments in green mobility are key factors solidifying the region’s dominance in the EV eMotor market.
Europe is estimated to remain the second-largest region for the EV eMotors market due to its strong commitment to sustainability, government incentives, and strict emissions regulations that promote EV adoption. The presence of major automakers and suppliers in the region further strengthens its market position by driving innovation and enhancing manufacturing capabilities.
Key Players
The market is moderately concentrated, with more than 50 players across the region. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the EV eMotors market. Some of the major players provide standalone eMotors as well as eAxles integrated with eMotors, inverters, and reducers.
Here is the list of the Top Players (Based on Dominance)
- Tesla, Inc.
- BYD Auto Co., Ltd.
- Volkswagen AG
- Valeo SA
- Nidec Corporation
- Dana Incorporated
- ZF Friedrichshafen AG
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The EV eMotors market is segmented into the following categories.
EV eMotors Market by Vehicle Type
- LV (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- M&HCV (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
EV eMotors Market, by Number of Motor Types
- 1 Motor (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- 2 Motors (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- 3 Motors (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- 4 Motors (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
EV eMotors Market, by Technology Type
- PMSM (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- IM (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Other Technologies (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
EV eMotors Market, by EV type
- BEV (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- HEV (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
EV eMotors Market, by Integration Type
- Standalone (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Integrated in eAxle (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
EV eMotors Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Italy, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, South Korea, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
