Automotive Traction Motor Market to Grow with a CAGR of 15.21% through 2030

The global automotive traction motor market is driven by the increasing demand for electric vehicles, technological advancements in motor efficiency, and the shift towards sustainable transportation solutions. These factors are driving the market in the forecast period 2026-2030.

According to TechSci Research report, “Automotive Traction Motor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”, The Global Automotive Traction Motor Market was valued at USD 8.18 Billion in 2024 and is expected to reach USD 19.13 Billion by 2030 with a CAGR of 15.21% during the forecast period.

The global automotive traction motor market is experiencing rapid expansion, driven by the growing shift towards electrification in the automotive industry. As governments and organizations increasingly commit to sustainability goals, there is a heightened focus on reducing greenhouse gas emissions. Traction motors, as a core component of electric drivetrains, are seeing a surge in demand, driven by the need for high-efficiency, low-emission vehicles. This market shift is being further fueled by advancements in battery technology, which enhance energy storage capabilities, allowing for longer ranges and quicker charging times, making electric vehicles (EVs) more appealing to consumers. The automotive sector is increasingly focusing on refining traction motor technologies to boost vehicle performance while adhering to stringent environmental standards, which in turn accelerates the adoption of these motors.

Another significant driver for market growth is the rising adoption of autonomous and connected vehicle technologies, which often rely on electric drivetrains powered by advanced traction motors. As the automotive industry explores autonomous driving solutions, traction motors need to adapt to new driving dynamics, requiring innovations in motor design and power output to meet the specific needs of these next-generation vehicles. The push for higher energy efficiency, lower weight, and improved torque density is compelling manufacturers to invest in more compact, high-performance motors capable of supporting the new generation of electric and autonomous vehicles.

Despite the promising outlook, the market faces challenges related to the high cost and complexity of producing high-performance traction motors. The reliance on specialized materials, such as rare-earth metals and high-grade magnets, can drive up production costs, creating barriers for manufacturers. Supply chain disruptions, regulatory pressures, and the rising cost of raw materials continue to be a concern for market stakeholders. Furthermore, the integration of advanced motors into existing vehicle platforms remains a technical hurdle. As manufacturers navigate these challenges, ongoing advancements in motor design, coupled with increased investment in automation and production techniques, are expected to mitigate these issues, paving the way for substantial growth in the global automotive traction motor market.

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Automotive Traction Motor Market Is Segmented by Vehicle Type, EV Type, Power Output, Motor Type, and By Region.

In 2024, the passenger car segment, experiend the fastest growth. The rapid adoption of electric vehicles (EVs) is a key driver behind this surge, as consumers increasingly opt for electric models due to growing environmental awareness, government incentives, and advancements in battery technology. Electric passenger cars, which rely heavily on efficient and high-performance traction motors, are becoming more accessible as advancements in motor efficiency, energy density, and manufacturing processes lower production costs. These improvements are crucial for addressing the consumer demand for longer driving ranges, faster charging times, and overall vehicle performance. The expansion of charging infrastructure, alongside improved battery life, is making EVs more convenient and attractive for daily use. As a result, passenger cars equipped with cutting-edge traction motors are seeing rapid growth in market share, supported by the global transition towards sustainable mobility.

The increasing regulatory pressure to reduce carbon emissions is another key factor contributing to the accelerated growth of electric passenger cars. Governments around the world are introducing stricter emissions standards, further pushing the automotive industry towards electrification. In response, automakers are adopting traction motors that are more efficient and capable of delivering higher power outputs, which enhances the overall driving experience of electric passenger vehicles. The transition to electric passenger cars is expected to continue expanding as new models with advanced features and improved performance enter the market, propelling the growth of the motor segment.

In 2024, Europe & CIS emerged as the fastest-growing region for automotive traction motors, driven by aggressive policies and strong consumer demand for electric vehicles. European governments are among the most proactive in implementing stringent emissions regulations, which are encouraging consumers to adopt electric vehicles. The European Union’s Green Deal and carbon neutrality targets further push the demand for electric mobility solutions, boosting the demand for traction motors in electric passenger cars. Furthermore, Europe’s well-developed automotive manufacturing infrastructure, combined with strong investments in EV technology, makes it a prime market for electric vehicle production and innovation. The region’s shift towards electric mobility is reinforced by its growing charging infrastructure and government incentives, fostering the adoption of electric passenger cars and subsequently accelerating the growth of the automotive traction motor market.

Major Market Players Operating in Global Automotive Traction Motor Market Are:

• Borgwarner Inc.
• BYD Co., Ltd.
• Schaeffler Group
• Robert Bosch Gmbh
•  ZF Friedrichshafen AG
• Johnson Electric Holdings Ltd.
• Continental AG
•  Valeo S.A.
• Mahle Group
• Nidec Corporation

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The automotive traction motor market is evolving rapidly, driven by the increasing demand for electric vehicles. With more people choosing electric cars for their environmental benefits, we’re seeing a major shift in the industry. As the technology behind these motors gets better—becoming more efficient, lighter, and affordable it’s clear that traction motors will play a key role in the future of transportation. The push for cleaner, greener vehicles is only going to grow, and so will the need for high-performance traction motors to power them.”, according to Mr. Karan Chechi, Research Director of TechSci Research, a global research-based management consulting firm.

"Automotive Traction Motor Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Cars, Commercial Vehicle), By EV Type (BEV, HEV, PHEV), By Power Output (less than 200 KW, 200-400 KW, above 400 KW), By Motor Type (PMSM, AC Induction), By Region & Competition, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Global Automotive Traction Motor Market.

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