EV Motor Core Market Analysis | 2026-2031

Market Size & Opportunities

Global Demand Analysis & Sales Opportunities in EV Motor Core Market

• The annual demand for EV Motor cores was USD 5.6 billion in 2025 and is expected to reach USD 6.1 billion in 2026, up 8.2% from the value in 2025.

• During the forecast period (2026-2031), the market is expected to grow at a CAGR of 9.4%. The annual demand will reach USD 9.5 billion in 2031, nearly 2.4 times the 2025 level.

• Asia Pacific had a market share of >60% in 2025, generating the greatest demand across regions.

• HEVs currently dominate the market, while BEVs are expected to become/remain the leading growth and demand opportunity during the forecast period.

• Among the motor types, EESM (Electrically Excited Synchronous Motor) is anticipated to offer significant growth opportunities, supported by its efficiency and suitability for advanced EV powertrain applications.

• By vehicle type, LVs will continue to dominate the market.

• Among the manufacturing types, punching/stamping is expected to remain a key segment.

• 0.1–0.2 mm lamination thickness is expected to witness strong demand due to the increasing need for higher motor efficiency and reduced energy losses.

• By material type, electrical steel is expected to remain the dominant segment, owing to its favorable balance of cost, magnetic performance, and manufacturability across EV motor applications.

Market Statistics

Have a look at the sales opportunities presented by the EV motor core market in terms of growth and market forecast.

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Market Dynamics

The global EV motor core market is being driven by the rapid electrification of the automotive industry and the increasing demand for high-efficiency, high-performance electric drivetrains. EV motor cores are critical components of electric motors, forming the rotor and stator and directly influencing power density, energy efficiency, thermal management, and overall drivetrain performance. As automakers expand their EV portfolios and introduce higher-performance powertrains, demand is increasing for advanced motor cores manufactured with high-grade electrical steel, thinner laminations, and high-precision production technologies.

At the same time, the growing adoption of BEVs and HEVs, increasing use of multi-motor architectures, and continued development of advanced motor technologies are creating additional opportunities for motor core manufacturers. The market is also benefiting from government subsidies, tax incentives, emissions regulations, and electrification policies that are accelerating EV adoption across major markets

Market Drivers:

Growing EV Adoption and Rising Demand for High-Efficiency Drivetrains

The continued expansion of electric mobility is driving market growth for EV motor cores, as rising EV production directly increases the number of traction motors required across passenger and commercial vehicles. This impact is further amplified by the growing adoption of multi-motor architectures, particularly 2-motor, 3-motor, and 4-motor configurations, which increase motor core content per vehicle. At the same time, the focus on higher drivetrain efficiency is encouraging the use of advanced motor cores that can minimize electrical losses and support improved vehicle range and performance.

• According to the International Energy Agency (IEA), nearly 22 million electric cars were produced globally in 2025, while global electric car sales are expected to reach 23 million units in 2026, representing 28% of total car sales. The continued expansion of EV production and sales is increasing the number of electric traction motors required worldwide, directly supporting demand for the laminated motor cores used in these powertrains.

Government Regulations and Electrification Policies Accelerating EV Production

Government-led decarbonization targets, EV incentives, and electrification programs are strengthening market demand for EV motor cores by encouraging automakers and consumers to shift toward electric vehicles. As regulations tighten and governments support EV deployment through fiscal incentives and fleet-electrification programs, automakers are expanding EV production, increasing the requirement for traction motors and the motor cores used in these systems.

• China extended its vehicle trade-in program in 2025, offering subsidies of up to RMB 20,000 for consumers replacing eligible vehicles with new-energy vehicles. By lowering the effective purchase cost of EVs, the incentive encourages consumers to switch to electrified vehicles and supports higher NEV production, consequently increasing requirements for traction motors and the motor cores incorporated into them.

• The European Union’s CO₂ standards require new passenger cars to meet a fleet-wide target of 93.6 g CO₂/km from 2025 to 2029, while the target falls to 0 g CO₂/km from 2035. These regulatory requirements are pushing automakers toward greater zero-emission vehicle deployment, supporting the expansion of EV production and, consequently, demand for the motor cores integrated into electric powertrains.

Increasing Adoption of Multi-Motor Architectures and Advanced Motor Technologies

The growing adoption of multi-motor configurations is expanding the market size for EV motor cores, as 2-motor, 3-motor, and 4-motor architectures increase the number of cores required per vehicle compared with single-motor drivetrains. Meanwhile, advances in motor technologies are creating demand for specialized core designs as automakers adopt solutions such as EESM to improve efficiency and reduce dependence on permanent magnets.

• BMW’s 2026 BMW M eDrive architecture incorporates four electric motors, with one motor dedicated to each wheel, while the BMW iX3 50 xDrive uses two electric motors. Moving from a 2-motor to a 4-motor configuration doubles the number of electric motors required per vehicle, which also increases the number of motor-core assemblies needed and supports higher motor-core content per EV.

• Renault Group reported in 2025 that around 90% of electric cars use motors with permanent magnets, while its Alpine A390 uses a three-motor EESM-based setup with one front motor and two rear motors. The combination of multi-motor architectures and emerging magnet-free technologies is broadening the range of motor designs and core configurations required across the EV drivetrain landscape.

“As per an analyst at Stratview Research, the EV motor core industry is entering a phase where electrification, motor efficiency, advanced materials, and precision manufacturing are becoming the primary competitive differentiators. Future growth will be driven by accelerating EV adoption, increasing use of multi-motor architectures, advances in motor technologies, and continuous innovation in electrical steel, ultra-thin laminations, and high-precision manufacturing.”

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Market Challenges:

Raw Material Constraints and Rising Costs of High-Grade Electrical Steel

The increasing use of high-grade and thinner electrical steel is creating a challenge for market growth, as EV motor manufacturers require materials with tighter magnetic and dimensional specifications while production of these grades involves more specialized processing. The shift toward 0.1–0.2 mm laminations can improve motor efficiency by reducing core losses, but thinner gauges also require greater precision in rolling, slitting, stamping, and handling, adding pressure to material availability and manufacturing costs.

Manufacturing Complexity and Cost Pressures in High-Precision Motor Core Production

The production of EV motor cores requires sophisticated processes, including stamping, stacking, bonding or welding, and insulating coatings, to minimize energy losses and achieve optimal magnetic performance. As automakers demand higher efficiency, power density, and tighter tolerances, manufacturers must invest in increasingly precise production technologies.

At the same time, automakers are under pressure to reduce EV costs, creating intense pricing pressure throughout the motor core supply chain. Manufacturers must therefore balance high-precision production and advanced materials with cost-effective, scalable manufacturing. While punching/stamping remains the backbone of high-volume production because of its scalability and cost advantages, maintaining tight tolerances and high throughput with advanced electrical steel remains a key operational challenge.

Market Opportunity:

Development of High-Efficiency Motor Core Technologies

The increasing focus on reducing energy losses in electric drivetrains is creating a market opportunity for manufacturers developing advanced motor-core technologies. As EV motors operate at higher speeds and power densities, automakers are seeking core materials and designs that can reduce iron losses while maintaining manufacturability, creating opportunities for suppliers of high-performance electrical steel and precision laminations.

• In June 2026, POSCO launched a national R&D project with Hyundai Motor and eight other organizations to develop 6.5% silicon-content electrical steel and EV efficiency-enhancing core and drive-motor technologies. The higher silicon content is designed to reduce iron losses in high-speed motors, while the project’s focus on mass production and actual EV validation highlights the growing opportunity for advanced core technologies.

Segments' Analysis

By EV Type

“BEVs represent the strongest high-growth segment for motor cores because they rely entirely on electric propulsion. While HEV is dominant in today's market.”

The EV motor core market is segmented by EV type into BEVs and HEVs. HEVs dominate the market while still growing and present a more cost-sensitive and transitional opportunity. They typically use smaller electric motors alongside internal combustion engines, which reduces motor core size and complexity. However, their broader adoption in cost-conscious markets creates steady, volume-driven demand. For suppliers, this segment rewards manufacturing efficiency and scalability rather than cutting-edge performance.

Within this segment, BEVs represent the strongest high-growth segment for motor cores because they rely entirely on electric propulsion, often using one or more high-performance motors per vehicle. This directly translates into higher volume demand and stricter performance requirements for motor cores, especially in terms of efficiency, power density, and thermal stability. As OEMs push for longer range and faster acceleration, there is increasing emphasis on advanced electrical steel, thinner laminations, and precision manufacturing, making BEVs a premium, innovation-driven market for motor core suppliers.

By Vehicle Type

“LVs dominate the market and are the fastest-growing vehicle type because passenger EV adoption is accelerating globally, driven by regulations and urban mobility trends.”

The market is segmented by vehicle type into LV and M&HCV. LVs dominate the market and are the fastest-growing vehicle type because Passenger EV adoption is accelerating globally, driven by regulations, urban mobility trends, and OEM electrification targets. This creates massive, repeatable demand for motor cores, with a strong push toward cost optimization, high-speed manufacturing, and incremental efficiency gains. In this segment, even small improvements in core losses or material usage can scale into a significant competitive advantage because of the sheer production volumes.

M&HCVs, on the other hand, are a high-value, performance-driven opportunity. Electrification in trucks and buses is gaining momentum, especially in logistics and public transport, where total cost of ownership and emissions regulations are critical. These vehicles require much larger and more robust motor cores capable of handling high torque, heavy loads, and long duty cycles. This drives demand for thicker stacks, superior thermal management, and materials, making each unit of motor core significantly higher in value compared to LVs.

By Motor Type

“PMSM dominates the EV landscape and represents the largest and most mature opportunity. While others (EESM) are the fastest-growing, it removes dependence on permanent magnets while maintaining relatively high efficiency.”

PMSM (Permanent Magnet Synchronous Motors) dominate the current EV landscape and represent the largest and most mature opportunity. Their high efficiency, power density, and compact size make them the preferred choice for most passenger EVs. For motor core manufacturers, this segment demands precision engineering, high-grade electrical steel, and tight loss control to maximize efficiency. While volumes are high, competition is intense, so differentiation comes from material innovation and manufacturing accuracy.

EESM (Electrically Excited Synchronous Motors) is the fastest-growing motor type because other emerging designs are where the strategic shift is happening. These motors remove dependence on permanent magnets while maintaining relatively high efficiency, making them increasingly attractive as automakers look to reduce rare earth reliance. Although current volumes are low, this segment is gaining traction. Motor cores here require more complex designs and precise manufacturing due to rotor excitation systems, creating a high-value, innovation-driven opportunity.

By Manufacturing Technique Type

“Punching/Stamping is the backbone of the industry and dominates high-volume production. It’s the most cost-effective and scalable method as well as the fastest-growing manufacturing technique.”

Punching/Stamping dominates the market as well as being the fastest-growing manufacturing technique for high-volume production. It’s the most cost-effective and scalable method, making it the default choice for mass-market EVs, especially in the light vehicle segment. The real opportunity here isn’t just volume; it’s in high-speed, high-precision stamping using advanced dies and ultra-thin electrical steel to reduce core losses. Suppliers that can push tolerances tighter while maintaining throughput will capture the largest share of demand.

Laser cutting sits at the opposite end of the spectrum: low volume but high flexibility. It’s widely used for prototyping, small production runs, and complex geometries that are difficult to achieve with conventional stamping. While it cannot match stamping in terms of cost at scale, it plays a critical role in accelerating EV development cycles and supporting customized or premium applications.

By Material Type

“Electrical steel will remain dominant for the foreseeable future. While Soft magnetic composites (SMCs) have the fastest growth opportunity because it supports complex 3D geometries and reduce eddy current losses.”

Electrical steel is the undisputed foundation of the market. It dominates due to its balanced properties, established supply chain, and cost-effectiveness. Most EV motor cores today rely on high-grade silicon steel, with ongoing innovation focused on thinner gauges and lower core losses. This segment offers massive volume and steady growth, but competition is tight, so advantage comes from material quality, processing precision, and partnerships with steel suppliers.

Soft magnetic composites (SMCs) represent a more specialized and design-flexible opportunity. Their ability to support complex 3D geometries and reduce eddy current losses makes them attractive for next-generation motor designs, particularly in compact or high-speed applications. However, limitations in magnetic performance compared to electrical steel have restricted widespread adoption

By Lamination Thickness Type

“The 0.2–0.5 mm range is the industry’s sweet spot and accounts for the bulk of motor core demand, making it dominant. While the 0.1–0.2 mm range has high efficiency, making it the fastest-growing lamination type.”

The 0.2–0.5 mm range dominates the industry and accounts for motor core demand today. It offers a strong balance between magnetic performance, mechanical strength, and cost, making it ideal for mainstream EV applications. This segment is driven by scale, and the competitive edge lies in consistent quality, tight tolerances, and high-speed production capabilities.

The 0.1–0.2 mm segment is where high-efficiency innovation is happening. Thinner laminations significantly reduce core losses, especially at high frequencies, making them highly attractive for premium EVs and high-speed motors. However, they are more difficult to process and handle, which increases manufacturing complexity. This creates a high-value, technology-driven opportunity for suppliers capable of precision manufacturing.

Regional Analysis

“Asia-Pacific is the clear centre of gravity for both demand and production. Dominates EV manufacturing. While Europe represents a growing opportunity.”

Asia-Pacific is dominant for both demand and production. China, in particular, dominates EV manufacturing, supported by strong government policies, a mature supply chain, and large-scale domestic consumption. This makes the region the largest and most competitive market for motor cores, where success depends on cost efficiency, localization, and the ability to operate at a massive scale.

Europe represents a regulation-driven, high-value market, making it the fastest-growing region. Strict emission targets and aggressive electrification timelines are pushing automakers toward high-efficiency EV platforms. This increases demand for advanced motor cores with superior performance characteristics. While volumes are lower than in Asia-Pacific, the focus on premium vehicles and innovation creates strong margin opportunities for technologically advanced suppliers.

“The study indicates that over 80% of the global EV motor core market is concentrated within the top 10 countries, reflecting the industry’s strong alignment with leading electric vehicle production hubs and established automotive supply chains. These countries account for a significant share of global EV production, motor manufacturing, electrical steel consumption, and advanced motor core manufacturing activities.”

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Competitive Landscape

The market is consolidated, with over 20+ players. Leading players have strong market positions, supported by broad product portfolios, extensive distribution networks, and established industry experience.

The following are the key players in the EV motor core market.

• Tesla

• Mitsui High-Tec, Inc.

• EGLA- EuroGroup Laminations

• Yutaka Giken Co., Ltd

• Xinzhi Group Co., Ltd

• POSCO MOBILITY Solutions.

• TOYOTA BOSHOKU CORPORATION

• Ningbo Zhenyu Technology

• ElringKlinger AG

• Jiangsu Tongda Power Technology Co., Ltd.

• NHK SPRING Co.,Ltd (Nippatsu)

• Nantong Tongda Silicon Steel Stamping Technology Co., Ltd. 

Note: The above list is not an exhaustive list of the key players in the market. If your company is active in this market and would like to be considered for inclusion in future editions of this study, please contact us at [email protected].  

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Recent Developments / Mergers & Acquisitions

Recent mergers & acquisitions and other developments in the EV motor core market reflect evolving market trends and impact the market. Below are a few recent developments in the market –

• In March 2026, DENSO invested in Next Core Technologies (NCT) to jointly develop and mass-produce high-efficiency motor cores using iron-based amorphous alloys. The investment combines NCT’s amorphous-alloy material and processing technologies with DENSO’s motor-generator expertise, with the aim of improving next-generation motor efficiency and supporting longer EV driving ranges. 

• In January 2026, POSCO Mobility Solutions, POSCO DX, and Yaskawa Electric entered into a business agreement to expand robotic automation across drive motor core production facilities in South Korea, Poland, Mexico, and India. The collaboration will automate motor-core handling, inspection, and quality sorting processes, supporting higher productivity and greater manufacturing efficiency across POSCO’s global motor-core network. 

• In February 2026, FountainVest Capital and EMS terminated their planned acquisition of a controlling stake in EuroGroup Laminations after failing to obtain the required regulatory approval in India. The proposed transaction, originally announced in July 2025, would have given FountainVest control of the Italian motor-core manufacturer, with the deal valuing EuroGroup Laminations at approximately €626 million (about USD 730 million).

• In October 2025, POSCO International completed its drive motor core plant in Poland following an investment of KRW 94.1 billion (approximately USD 67 million). The facility has an annual capacity of 1.2 million drive motor cores and is designed to supply European EV manufacturers, strengthening POSCO’s localized production network across Asia, North America, and Europe.

Report Scope

Market Definition

EV motor cores are among the most important components that affect the effectiveness, efficiency, and reliability of electric drivetrains. Motor cores usually consist of high-quality laminated electrical steels and are used to construct both the rotor and the stator parts of electric motors. They are also very important for electromagnetic energy conversion and can affect many parameters, such as power density, energy efficiency, thermal management, and noise.

The production of EV motor cores entails highly sophisticated procedures that include stamping, stacking, bonding/welding, and insulating coatings to reduce energy losses and provide optimal magnetic performance. With the growing popularity of electric mobility around the world, there is an increasing demand for high-performance motor cores because of the requirements related to vehicle range, energy consumption, and durability.

Report Structure

This report provides the most comprehensive market intelligence. 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 and those looking 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.

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors

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Segmentation

The report provides detailed insights into market dynamics to enable informed business decision-making and the formulation of growth strategies based on market opportunities.

The EV motor core market is segmented into the following categories:

EV Motor Core Market, by EV Type

• BEV

• HEV

EV Motor Core Market, by Vehicle Type

• LV

• M&HCV

EV Motor Core Market, by Motor Type

• PMSM

• IM

• Others (EESM)

EV Motor Core Market, by Manufacturing Technique Type

• Punching/Stamping

• Laser Cutting

• Others (Rotary notching, EDM, Hybrid stamping)

EV Motor Core Market, by Material Type

• Electrical Steel

• Soft Magnetic Composites (SMCs)

• Cobalt-Based Alloys

• Others (Amorphous)

EV Motor Core Market, by Lamination Thickness Type

• 0.1-0.2mm

• 0.2-0.5mm composites

• 0.5-1mm

• >1mm

EV Motor Core Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)

• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)

• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)

• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

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Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s EV motor core market realities and future market possibilities for the forecast period

The report segments and analyzes the market in the most detailed manner to provide a panoramic view. The vital data/information provided in the report can play a crucial role for market participants and investors in identifying low-hanging fruit in the market and formulating growth strategies to expedite their growth

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data

We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions, as well as with industry experts, to obtain both qualitative and quantitative insights.

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