Electric Motors for Electric Vehicle Market to Reach USD 125.2 Billion by 2035 Amid Surging EV Adoption and Technological Breakthroughs

The global electric motors for electric vehicle (EV) market is entering a phase of exponential growth, with its value projected to increase from USD 27.9 billion in 2025 to USD 125.2 billion by 2035, registering a remarkable CAGR of 16.1% during the forecast period.

This surge is largely attributed to rising EV adoption fueled by stringent emission regulations, advancements in e-mobility technologies, and extensive governmental incentives across major automotive markets.

Market Drivers

The rapid shift toward sustainable mobility has positioned electric motors as the backbone of the electric vehicle revolution. Governments across Europe, North America, and Asia-Pacific are enforcing strict emission control policies to accelerate the phase-out of internal combustion engine (ICE) vehicles. As a result, EV manufacturers are increasingly focusing on highly efficient and lightweight electric motor designs to extend driving range and lower costs.

Growing investments in charging infrastructure, coupled with continuous innovation in permanent magnet synchronous motors (PMSM), induction motors, and switched reluctance motors, are further boosting adoption. Additionally, supply chain localization efforts, particularly in Europe and Asia, are driving cost efficiencies, ensuring faster availability of EV motors, and reducing dependency on imports.

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Competitive Landscape

The global electric motors for EV market is highly competitive, with leading players intensifying R&D efforts to differentiate themselves through performance, efficiency, and sustainability. Prominent companies operating in this space include:

Nidec Corporation
BorgWarner Inc.
Robert Bosch GmbH
Continental AG
Siemens AG
ZF Friedrichshafen AG
Hitachi Astemo Ltd.
Mitsubishi Electric Corporation
Valeo SA
Yaskawa Electric Corporation
Dana Incorporated
Toshiba Corporation

These companies are leveraging advanced material science, modular architectures, and intelligent control systems to cater to the rising demand for compact, energy-efficient, and cost-effective electric drive solutions.

Recent Developments

The industry has witnessed a series of strategic moves and innovations in 2025, underscoring the market's momentum:

January 2025 - Nidec Corporation Expansion
Nidec Corporation announced the launch of a new manufacturing facility in Poland dedicated to next-generation electric motor production for European EV OEMs.

This initiative not only strengthens Nidec's European footprint but also improves supply chain resilience and minimizes lead times for regional customers.

March 2025 - Bosch's Breakthrough Motor Design
Bosch introduced a new permanent magnet motor design featuring a 10% reduction in rare-earth material usage and 15% higher energy efficiency. This aligns with the European Union's sustainability objectives, reducing environmental impact while delivering superior performance to EV manufacturers.

Such strategic initiatives highlight the industry's focus on sustainability, supply chain optimization, and continuous product innovation, all of which are critical in maintaining competitiveness in a fast-evolving market.

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Regional Insights

Europe remains a frontrunner due to stringent EU emission standards, robust EV adoption rates, and rising investments in localized EV motor production facilities.

Asia-Pacific is expected to dominate market share, led by China, Japan, and South Korea, as governments continue offering subsidies, infrastructure support, and long-term EV deployment targets.

North America is also witnessing accelerated adoption, driven by government-backed initiatives such as the U.S. Inflation Reduction Act and significant investments in domestic EV production capacity.

Outlook

The electric motors for electric vehicles market is poised for sustained expansion over the next decade, underpinned by rising EV penetration, evolving motor technologies, and collaborative efforts between OEMs and component manufacturers. Market leaders are expected to focus on developing rare-earth-free motor technologies, integrating digital motor control systems, and scaling up smart manufacturing capabilities.

With governments doubling down on electrification roadmaps and consumers increasingly embracing EVs, the demand for high-performance, cost-effective, and environmentally sustainable electric motors will remain robust.

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