Light Commercial Vehicles Axial Flux Motors Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Propulsion (BEV, HEV, PHEV), By Demand Category (OEM, Aftermarket) By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 43.15 Million
CAGR (2026-2031)	5.71%
Fastest Growing Segment	HEV
Largest Market	Europe
Market Size (2031)	USD 60.21 Million

Market Overview

The Global Light Commercial Vehicles Axial Flux Motors Market will grow from USD 43.15 Million in 2025 to USD 60.21 Million by 2031 at a 5.71% CAGR. Axial flux motors are electric traction units where magnetic flux flows parallel to the axis of rotation which results in a compact profile with superior torque density. The market growth is primarily driven by the logistics sector requirement for high efficiency powertrains that maximize payload capacity through weight reduction and spatial optimization. Additionally, stringent government mandates requiring zero emission delivery fleets are accelerating the integration of these advanced motors into modern commercial transport.

However, widespread expansion faces a significant challenge regarding the manufacturing complexity and higher production costs relative to conventional radial flux designs. Underscoring the strong demand environment for such electrified technologies, according to the International Energy Agency, in 2024, sales of electric light commercial vehicles increased by more than 40 percent to exceed 600,000 units globally.

Key Market Drivers

Superior torque density and high power-to-weight ratios inherent to axial flux topologies are critically influencing the market by directly addressing commercial vehicle payload constraints. Unlike radial flux counterparts, these motors offer a slim profile that can be mounted directly on the wheel hub or integrated into compact axles, thereby freeing up chassis space for larger battery packs or expanded cargo volume. This architectural efficiency is paramount for fleet operators who require extended range without compromising the total cost of ownership or load-carrying ability. The market responsiveness to such high-efficiency electric utility vehicles is evident in recent sales figures. According to Ford Motor Company, January 2025, in the 'U.S. Retail Sales Grow at Double the Industry Pace in 2024' report, sales of the E-Transit van surged by 64 percent to reach 12,610 units in 2024, underscoring the growing commercial appetite for efficient electric powertrains.

Rising demand for electrified last-mile delivery fleets further accelerates the adoption of axial flux technology, as major logistics providers aggressively decarbonize their operations to meet corporate sustainability goals. The unique stop-start nature of urban delivery routes necessitates powertrains that deliver instant torque and superior regenerative braking capabilities, attributes where axial flux designs excel. This shift is exemplified by massive fleet investments from global logistics giants. According to Amazon, June 2025, in an update titled 'Everything you need to know about Amazon's electric delivery vans from Rivian', the company has successfully deployed more than 25,000 custom electric delivery vans across the United States. Such large-scale procurement strategies are part of a broader expansion in the commercial transport sector. According to the European Automobile Manufacturers’ Association, January 2025, in the 'New commercial vehicle registrations 2024' report, new van sales in the European Union increased by 8.3 percent to reach nearly 1.6 million units in 2024, highlighting the vast addressable market for advanced motor integration.

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Key Market Challenges

The primary challenge hampering the growth of the Global Light Commercial Vehicles Axial Flux Motors Market is the inherent manufacturing complexity and resulting higher production costs compared to conventional radial flux designs. Axial flux topologies often require specialized materials, such as soft magnetic composites, and intricate assembly processes that are currently difficult to automate at a mass-production scale. This lack of standardized, high-volume manufacturing infrastructure keeps unit costs elevated, preventing these motors from achieving price parity with established propulsion technologies.

This cost disparity creates a substantial barrier in the cost-sensitive light commercial vehicle sector, where fleet operators heavily prioritize total cost of ownership and upfront capital expenditure. While axial flux motors offer superior torque and efficiency, the price premium limits their immediate integration into the large-scale logistics fleets necessary for substantial market volume. Illustrating this adoption hurdle in a key market, according to the Society of Motor Manufacturers and Traders, in 2024, the market share of battery electric vans in the UK remained static at 6.3%, reflecting the ongoing economic difficulty in displacing conventional powertrains with advanced electric alternatives.

Key Market Trends

Strategic vertical integration and acquisition by OEMs and Tier 1 suppliers has emerged as a dominant trend as companies seek to internalize the complex manufacturing of axial flux technologies for light commercial vehicles. Rather than relying on external vendors, automotive entities are purchasing intellectual property and production assets to secure proprietary motor designs that offer compact efficiency for delivery fleets. This consolidation ensures supply chain stability and accelerates the transition from niche prototyping to mass production for the commercial sector. Illustrating this shift towards asset acquisition, according to Exedy Corporation, April 2024, in the 'EXEDY has acquired the assets and intellectual property rights of Saietta Group PLC' announcement, the company purchased the core assets of the UK-based electric drive specialist to expedite the development and deployment of next-generation electric powertrain products.

Simultaneously, the market is witnessing the development of scalable modular rotor-stator stacks, which allow manufacturers to customize power and torque outputs for various vehicle chassis without incurring high retooling costs. By utilizing stackable motor modules, often incorporating advanced air-core or printed circuit board stators, producers can offer flexible propulsion solutions that meet the diverse load requirements of logistics vehicles while maintaining a standardized production line. This push for modular scalability is attracting significant capital support to expand manufacturing capabilities. According to Business Wire, July 2024, in the 'Infinitum Secures $35 Million Series E Extension Amid Rapid Growth' report, Infinitum raised substantial funding to scale the manufacturing of its modular air-core motor systems, which are increasingly targeted at decarbonizing logistics and industrial operations.

Segmental Insights

The Hybrid Electric Vehicle (HEV) segment is emerging as the fastest-growing category within the Global Light Commercial Vehicles Axial Flux Motors Market. This expansion is primarily driven by the high torque density and slim profile of axial flux motors, which facilitate seamless integration into space-constrained hybrid powertrains. This design advantage allows manufacturers to adapt existing vehicle platforms to meet strict emission standards set by authorities like the European Commission without compromising payload capacity. Consequently, commercial fleets are prioritizing hybrid models to balance regulatory compliance with operational efficiency.

Regional Insights

Europe holds the leading position in the Global Light Commercial Vehicles Axial Flux Motors Market, primarily driven by rigorous carbon emission standards enforced by the European Commission. These regulatory mandates compel automakers to prioritize lightweight and high-torque powertrain solutions that enhance vehicle range and payload efficiency. Major European original equipment manufacturers have responded by establishing strategic partnerships and acquiring domestic motor developers to secure local supply chains. This concentrated effort to integrate compact motor technology into electric commercial fleets substantiates the region's dominance in the global sector.

Recent Developments

• In December 2025, YASA, a wholly owned subsidiary of Mercedes-Benz, unveiled a new prototype in-wheel axial flux motor system designed to revolutionize electric vehicle packaging and efficiency. The company reported that the new system, which integrates the motor and inverter into the wheel hub, offers a significant reduction in weight and an increase in power density compared to traditional radial flux architectures. Industry commentary accompanying the launch highlighted the technology's potential for the light commercial vehicle market, particularly for converting light trucks and vans to electric propulsion, where space-saving and high-torque characteristics are critical for maintaining cargo capacity and payload.
• In July 2025, Punch Powertrain and Traxial successfully completed a joint high-performance test campaign to validate the compatibility of Traxial’s yokeless axial flux motors with Punch Powertrain’s silicon carbide inverter technology. The testing focused on high-demand operating conditions to demonstrate the efficiency and power density benefits of the integrated electric drive system. This collaboration aimed to deliver a compact and scalable propulsion solution suitable for a range of electric mobility applications, potentially including high-performance and light commercial vehicles, leveraging the specific advantages of axial flux motors in reducing powertrain weight and volume.
• In April 2024, Traxial, a subsidiary of Magnax, released details regarding its new "design-for-manufacture" methodology aimed at enabling mass production of yokeless axial flux motors for mainstream automotive applications, including commercial vehicles. The company highlighted that its updated motor design reduced part counts and optimized assembly processes to overcome historical manufacturing challenges associated with axial flux topology. This development was positioned as a critical step toward providing the high torque density and compact form factors required for next-generation electric vehicle powertrains, with the company projecting scalable production capacities to support automotive manufacturers' electrification targets.
• In March 2024, Saietta Group, a UK-based engineering company specializing in axial flux technology for lightweight electric vehicles, officially entered administration following a strategic review and an inability to secure a commercial sale of the business. The company had previously secured significant contracts, including an order for 3,000 electric drive units from a U.S.-based manufacturer for low-speed urban delivery vehicles, positioning its axial flux motors as a key solution for the light commercial vehicle sector. Administrators from a financial advisory firm were appointed to manage the company's affairs and explore options for the sale of its business and assets, marking a significant development in the supply chain for lightweight electric commercial vehicle powertrains.

Key Market Players

• YASA Limited
• Magnax
• EMRAX
• Turntide Technologies
• Traxial
• Evolito Ltd.
• Phi-Power AG
• PanGood
• Omni Powertrain Technologies
• Shenzhen SEMOTOR

By Propulsion	By Demand Category	By Region
BEV HEV PHEV	OEM Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Light Commercial Vehicles Axial Flux Motors Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Light Commercial Vehicles Axial Flux Motors Market, By Propulsion:

• BEV
• HEV
• PHEV

• Light Commercial Vehicles Axial Flux Motors Market, By Demand Category:

• OEM
• Aftermarket

• Light Commercial Vehicles Axial Flux Motors 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