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Global Automotive Electric Motors Market Size, Growth, Industry Trends | Reports and Data

07-23-2025 01:19 PM CET | Logistics & Transport

Press release from: Reports And Data

Global Automotive Electric Motors Market Size, Growth,

The automotive electric motors market is a crucial and rapidly expanding segment in the global shift toward vehicle electrification. Electric motors serve as the heart of electric vehicles (EVs), converting electrical energy into mechanical power to drive the vehicle. Their role is central not only for BEVs (battery electric vehicles) but also for hybrid electric vehicles (HEVs), plug-in hybrids (PHEVs), electric buses, trucks, and other electrified mobility platforms. This market is driven by increasing environmental regulations, consumer demand for clean and efficient transportation, and continuous innovation in electric motor technology.

Market Size & Growth

The global automotive electric motors market was valued at around USD 18.1 billion in 2024 and is projected to reach approximately USD 90.34 billion by 2035, exhibiting a robust compound annual growth rate (CAGR) of 15.8% between 2025 and 2035.
Other forecasts indicate strong growth ranging between 7% and 16% CAGR depending on the segment and vehicle type, reflecting rising demand from BEVs, commercial electric vehicles, and micromobility segments.
Market dynamics are supported by strong government incentives, tightening emissions regulations worldwide, and growing investments in electric vehicle infrastructure.

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Key Growth Drivers

Surging Electric Vehicle Adoption: The global push toward electrification, especially in passenger vehicles, commercial trucks, and buses, is the primary engine of market growth. Electric motors are indispensable for these vehicles, representing the fundamental propulsion technology.
Technological Innovation: Progress in permanent magnet synchronous motors (PMSM), brushless DC motors (BLDC), axial flux motors, and other advanced motor types is increasing efficiency, power density, and thermal management, enabling better vehicle range and performance.
Government Policies and Incentives: Emission norms such as Euro 7, stringent fuel economy targets, and subsidies for electric vehicles accelerate the adoption of electric powertrains, directly boosting demand for electric motors.
Battery and Power Electronics Advancements: Improvements in battery energy density and power electronics complement electric motor capabilities, together enhancing overall vehicle efficiency.
OEM Strategies: Leading automakers are standardizing electric motor technologies across platforms, focusing on reducing dependency on rare earth materials and optimizing motor designs for cost and performance.

Market Segmentation Overview

By Motor Type: The market includes permanent magnet synchronous motors (PMSM), brushless DC motors (BLDC), induction motors, wound rotor synchronous motors, and reluctance motors. PMSM currently dominates due to high power density and efficiency, while reluctance and induction motors are chosen for cost advantages and robustness.
By Vehicle Type:
Passenger cars represent the largest segment, fueled by global BEV market expansion.
Light commercial vehicles (vans) and medium/heavy-duty trucks also show substantial growth due to electrification mandates.
Two-wheelers, three-wheelers, and micromobility electric motors form a niche but rapidly growing segment, especially in Asia-Pacific.
By Application: Electric motors are used in traction propulsion, auxiliary power units, HVAC systems, and steering systems, with traction motors holding the largest share.
By Region: Asia-Pacific is the largest and fastest-growing market, driven primarily by China, Japan, India, and South Korea. Europe and North America are mature markets with strong technology adoption and regulatory frameworks, while Latin America and Middle East/Africa show emerging growth.

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Regional Insights

Asia-Pacific: Dominates due to high EV production, extensive government support, and rapidly growing consumer adoption. The region is also home to many electric two- and three-wheeler manufacturers, expanding electric motor usage.
Europe: Characterized by strong regulatory pressures for emissions reduction, high investment in R&D, and a shift toward premium and performance EVs employing advanced motor technologies.
North America: Growth supported by established automotive OEMs investing heavily in electric platforms, alongside increasing infrastructure for EVs.
Latin America and Middle East/Africa: Emerging but gradually expanding markets with increasing electrification and improving infrastructure.

Competitive Landscape

The automotive electric motors market features major global suppliers and automotive technology companies prioritizing innovation, cost reduction, and ecosystem partnerships. Key players include:

Toyota Motor Corporation
DENSO Corporation
BorgWarner Inc.
Magneti Marelli
ZF Friedrichshafen AG
Nidec Corporation
Continental AG
Tesla, Inc.
Bosch Group
These companies are investing in next-generation materials, advanced motor designs such as axial flux motors, and rare-earth-free magnet solutions while expanding production capacity to meet soaring electric vehicle demand.

Market Trends & Opportunities

Shift Toward Axial and In-Wheel Motors: Innovations in axial flux motors offer higher power density and efficiency, while in-wheel motors enable modular and compact drivetrain designs for autonomous and connected vehicles.
Rare Earth Material Reduction: OEMs and suppliers are exploring alternative motor designs and materials to reduce dependence on expensive and geopolitically sensitive rare earth magnets.
Integration with E-Drive Systems: Electric motors increasingly integrate with inverters and power electronics into compact e-axle systems, streamlining powertrain assembly and improving efficiency.
Growth in Commercial Electric Vehicles: Electrification of buses, trucks, and last-mile delivery vehicles is creating significant demand for high-torque, durable motors adapted to heavy-duty applications.
Micromobility Expansion: Electric two- and three-wheelers, along with microcars, especially in Asia, are driving demand for smaller, efficient electric motors.

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Challenges

Supply Chain and Raw Material Constraints: Rare earth magnet material availability and price fluctuations impact manufacturing costs and supply reliability.
High Initial Cost of Advanced Motors: Complex motor designs and advanced materials can increase production costs, posing challenges for mass-market affordability.
Thermal Management: Maintaining optimal motor temperatures under various operating conditions requires sophisticated cooling solutions to ensure reliability and longevity.
Standardization and Compatibility: Diverse vehicle designs and powertrain architectures require adaptable motor designs, complicating supply chain and manufacturing.

Key Benefits of the Market Report

In-depth understanding of present and future market size, growth drivers, and challenges
Detailed segmentation providing clarity on motor types, vehicle categories, and regions
Competitive landscape with profiles of key global and regional players
Technological breakthroughs, material trends, and regulatory influences
Strategic insights to guide OEMs, Tier-1 suppliers, and investors in product development and market entry
The automotive electric motors market is on a trajectory of rapid expansion, propelled by electrification trends, technological innovation, and regulatory mandates for sustainable transportation. Continuous advancements in motor efficiency, compactness, and cost-effectiveness will shape the future of electrified mobility globally.

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About Reports and Data
Reports and Data is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target, and analyze consumer behaviour shifts across demographics, across industries, and help clients to make smarter business decisions. We offer market intelligence studies ensuring relevant and fact-based research across multiple industries, including Healthcare, Touch Points, Chemicals, Products, and Energy. We consistently update our research offerings to ensure our clients are aware of the latest trends existent in the market. Reports and Data has a strong base of experienced analysts from varied areas of expertise. Our industry experience and ability to develop a concrete solution to any research problems provides our clients with the ability to secure an edge over their respective competitors.

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John W, Head of Business Development
Reports And Data | Web: www.reportsanddata.com
Direct Line: +1-212-710-1370
E-mail: sales@reportsanddata.com
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