Automotive Induction Motor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Single-Phase Induction Motor and Three-Phase Induction Motor), By Sales Channel (OEM, Aftermarket), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 23.26 Billion
CAGR (2026-2031)	6.72%
Fastest Growing Segment	Three-Phase Induction Motor
Largest Market	Asia Pacific
Market Size (2031)	USD 34.36 Billion

Market Overview

The Global Automotive Induction Motor Market will grow from USD 23.26 Billion in 2025 to USD 34.36 Billion by 2031 at a 6.72% CAGR. An automotive induction motor, also known as an asynchronous motor, is an electric propulsion system where the torque-producing current in the rotor is obtained through electromagnetic induction from the stator's magnetic field. The market is primarily supported by the motor's cost-effectiveness, as it eliminates the dependence on expensive rare-earth permanent magnets, and its inherent durability which suits rugged vehicle architectures. This demand is further amplified by the rapid electrification of the transport sector. According to the International Energy Agency, in 2024, global electric car sales surpassed 17 million units, significantly widening the addressable market for cost-efficient powertrain components.

However, the market faces a substantial challenge regarding performance efficiency compared to rival technologies. Automotive induction motors typically exhibit lower power density and reduced efficiency at low speeds when compared to permanent magnet synchronous motors. This technical limitation often restricts their application to secondary drive axles rather than primary traction units in range-critical electric vehicles, which can impede broader market expansion.

Key Market Drivers

The strategic mitigation of supply chain risks associated with permanent magnets serves as a critical driver for the deployment of automotive induction motors. Unlike synchronous motors that rely heavily on rare-earth elements like neodymium, induction technology utilizes copper or aluminum rotor cages, thereby insulating manufacturers from volatile material costs and geopolitical trade restrictions. This pressure to secure material access is intensifying; according to the Council of the European Union, March 2024, in the 'Critical Raw Materials Act', the legislative body formally adopted strict regulations to ensure the secure supply of strategic materials, explicitly categorizing rare earth elements as resources with high supply risk. Consequently, automotive OEMs are increasingly validating asynchronous motor architectures to ensure supply continuity and maintain vehicle affordability without depending on single-source mining regions.

Simultaneously, the increasing global adoption of electric and hybrid vehicle powertrains is accelerating the demand for these durable propulsion units. As automakers scale production to meet mass-market targets, the cost advantage and reliability of induction motors make them ideal for secondary drive axles in all-wheel-drive configurations. This surge in manufacturing volume is substantiated by recent industry outputs; according to the China Association of Automobile Manufacturers, September 2024, in the 'August 2024 Automotive Production and Sales' update, the monthly production of new energy vehicles in China reached approximately 1.09 million units. To support such expansive electrification goals, major entities are committing substantial capital, as according to Honda Motor Co., Ltd., in 2024, the company announced a projected investment of CAD 15 billion to construct a comprehensive electric vehicle value chain in Canada.

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Key Market Challenges

The lower power density and reduced efficiency of automotive induction motors at low speeds, when compared to permanent magnet synchronous motors (PMSM), constitute a significant barrier to market growth. Since induction motors require excitation current to generate a magnetic field, they consume more energy, which directly negatively impacts the driving range of electric vehicles. As automakers prioritize maximizing range per charge to alleviate consumer anxiety, they predominantly select higher-efficiency PMSM units for the primary traction role. This technical disadvantage frequently forces induction motors into a secondary position, typically utilized only as auxiliary boosters in all-wheel-drive configurations rather than as the main propulsion unit in high-volume models.

This restriction to secondary applications severely limits the total addressable market for induction technology within the expanding electric vehicle sector. The preference for efficiency is evident in sales trends for dedicated battery-electric vehicles, which rely heavily on optimized powertrains. According to the European Automobile Manufacturers' Association (ACEA), in 2024, battery-electric cars accounted for 13.6% of the total new car market in the European Union. As manufacturers compete aggressively in this range-critical segment, the inability of induction motors to match the efficiency of rival technologies continues to impede their adoption as a primary drive solution, thereby hampering broader market expansion.

Key Market Trends

The adoption of cast copper rotor technology is emerging to address efficiency deficits in induction motors. By utilizing copper's superior conductivity compared to aluminum, manufacturers reduce rotor resistance and Joule losses, enhancing efficiency. This technological shift allows asynchronous motors to compete more effectively with permanent magnet counterparts in range-critical applications. The material intensity required for such components is reflected in recent data; according to the Copper Development Association, November 2025, in the '2025 Annual Data Book', total U.S. copper usage in the transportation sector increased by 2% in 2024, a rise attributed to accelerating electric vehicle production.

Simultaneously, the industry is transitioning towards integrated E-Axle and 3-in-1 powertrain units. This trend involves housing the motor, inverter, and gearbox within a single module, significantly reducing weight and manufacturing complexity while optimizing thermal management. This modular approach allows OEMs to streamline assembly and lower costs for mass-market platforms. The financial commitment to this propulsion evolution is evident in supplier expenditures; according to Magna International, February 2025, in the '2024 Annual Report', the company invested $2.2 billion in fixed assets throughout the fiscal year, a capital deployment primarily directed toward supporting the launch of new vehicle programs.

Segmental Insights

The Three-Phase Induction Motor segment currently exhibits the fastest growth within the Global Automotive Induction Motor Market, propelled by the intensifying shift toward electric mobility. Automotive manufacturers prioritize these motors for powertrain applications due to their rugged construction and ability to deliver consistent high-power performance essential for vehicle traction. Furthermore, rigorous emission regulations enforced by authorities such as the European Commission necessitate a rapid transition to low-carbon vehicles, significantly increasing the requirement for durable electric propulsion systems. This alignment of regulatory mandates with the operational benefits of three-phase architecture underpins the segment's rapid expansion.

Regional Insights

Asia Pacific commands the leading position in the Global Automotive Induction Motor Market, sustained by its role as the primary hub for global vehicle production. This dominance is largely attributed to the accelerated manufacturing of electric vehicles in China and Japan, where induction motors are utilized for their robustness and cost-efficiency in powertrain systems. Additionally, regulatory push factors, including China’s stringent New Energy Vehicle policies and India’s FAME scheme, actively stimulate the demand for essential electrification components. The region's extensive industrial infrastructure and localized supply chains further reinforce its control over the market trajectory.

Recent Developments

• In June 2025, a major German automotive supplier officially commenced the mass production of its next-generation asynchronous electric motor (ASM) at its manufacturing facility in Hangzhou, China. This new motor was engineered to deliver high performance and enhanced efficiency while maintaining a competitive cost structure for the volume market. The company announced that leading automobile manufacturers were set to incorporate this induction-based E-motor into their upcoming electric vehicle models. The product was part of a broader modular platform designed to offer scalable manufacturing and agile adaptation, allowing the supplier to meet diverse customer requirements for both synchronous and asynchronous powertrain solutions in the global market.
• In August 2024, a leading German automaker detailed the advanced powertrain specifications for its new high-performance ID.7 GTX and ID.7 GTX Tourer models. The manufacturer revealed that these vehicles were equipped with an electric all-wheel-drive system featuring a permanent magnet synchronous motor on the rear axle and a separate asynchronous motor (ASM) on the front axle. The company explained that the front induction motor, designated as AKA150, produced a maximum output of 80 kW and was selected specifically for its efficiency as an auxiliary drive. This motor consumed almost no energy in standby mode and could be activated within fractions of a second to provide additional stability and power.
• In July 2024, a luxury automotive manufacturer announced the final technical specifications and delivery timeline for its all-new Q6 e-tron SUV in the United States market. The vehicle debuted the brand's new Premium Platform Electric (PPE), which utilized a dual-motor configuration comprising a compact permanent magnet motor on the rear axle and a newly designed asynchronous AC induction motor (ASM) on the front axle. The company emphasized that the front induction motor was engineered to rotate freely without significant drag losses when not in use, thereby maximizing the vehicle's overall range while ensuring that additional torque was instantly available for dynamic driving situations.
• In April 2024, a prominent American electric vehicle manufacturer launched the updated high-performance version of its popular Model 3 sedan. The vehicle's powertrain architecture integrated a next-generation permanent magnet motor at the rear with an induction motor on the front axle to create a potent all-wheel-drive system. This specific configuration allowed the front induction motor to be electrically disconnected during steady-state cruising to conserve battery energy, while still providing massive torque for acceleration. The launch demonstrated the continued strategic value of induction motors in achieving a balance between high-speed efficiency and track-ready performance in modern electric vehicles.

Key Market Players

• Rockwell Automation Inc.
• Nidec Corporation
• ABB Ltd
• Siemens AG
• WEG S.A.
• Regal Rexnord Corporation
• Emerson Electric Co.
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Johnson Electric Holdings Limited

By Type	By Sales Channel	By Region
Single-Phase Induction Motor and Three-Phase Induction Motor	OEM Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Induction Motor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Induction Motor Market, By Type:

• Single-Phase Induction Motor and Three-Phase Induction Motor

• Automotive Induction Motor Market, By Sales Channel:

• OEM
• Aftermarket

• Automotive Induction Motor Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE