Passenger Cars 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 63.89 Million
CAGR (2026-2031)	5.88%
Fastest Growing Segment	HEV
Largest Market	Asia Pacific
Market Size (2031)	USD 90.02 Million

Market Overview

The Global Passenger Cars Axial Flux Motors Market will grow from USD 63.89 Million in 2025 to USD 90.02 Million by 2031 at a 5.88% CAGR. Axial flux motors are specialized electric propulsion units defined by magnetic flux that travels parallel to the axis of rotation, creating a compact and disc-shaped profile distinct from conventional radial flux designs. The market is primarily driven by the automotive industry's urgent requirement for high torque density and lightweight components to maximize electric vehicle range. Furthermore, the slim form factor of these motors supports the growth of the sector by allowing engineers to optimize battery packaging and interior cabin space, addressing the strict spatial constraints inherent in modern vehicle platform architectures.

According to the China Association of Automobile Manufacturers (CAAM), in 2024, the sales of new energy vehicles reached approximately 12.87 million units. This significant volume underscores the intensifying demand for efficient powertrain solutions that can handle the performance needs of next-generation transport. However, a major challenge impeding the broader expansion of the axial flux motor market is the complexity associated with mass manufacturing. The intricate assembly processes required to maintain precise air gaps and structural integrity create production bottlenecks and elevate costs compared to established radial flux alternatives, limiting rapid scalability.

Key Market Drivers

The increasing adoption of axial flux motors in high-performance and luxury electric vehicles is a primary factor driving market growth, as manufacturers prioritize power density to differentiate their flagship models. These motors offer a distinct advantage by delivering exceptional torque in a slim, lightweight package, allowing engineers to offset battery mass and improve vehicle dynamics without compromising chassis balance. This performance capability is compelling luxury OEMs to transition away from radial flux architectures for their top-tier platforms to achieve superior acceleration and handling. For instance, according to Road & Track, in October 2025, YASA revealed a next-generation axial flux prototype destined for Mercedes-AMG models that weighs only 12.7 kilograms yet generates an impressive 750 kW of power, setting a new benchmark for electric propulsion efficiency.

Additionally, the suitability of this topology for space-constrained hybrid and in-wheel applications is significantly expanding the market's scope beyond supercars. The disc-like form factor enables seamless integration between the internal combustion engine and transmission in plug-in hybrids, a critical requirement for maintaining compact drivetrain footprints while electrifying legacy platforms. This demand is evidenced by the surging volume of hybrid vehicles that benefit from such compact integration; according to Chery International, in January 2025, the company reported that its plug-in hybrid electric vehicle sales exceeded 100,000 units in December 2024 alone. To meet this intensifying component demand, suppliers are accelerating industrialization efforts. According to MercedesBlog, in July 2025, it was reported that YASA's manufacturing strategy now targets production scalability of up to 50,000 units annually to serve the premium automotive sector.

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Key Market Challenges

The complexity associated with mass manufacturing constitutes a substantial impediment to the expansion of the axial flux motor market. Unlike radial flux designs which utilize mature and automated production lines, axial flux architectures require intricate assembly procedures to maintain precise air gaps and ensure structural rigidity. These stringent precision requirements create production bottlenecks and significantly increase unit costs. Consequently, manufacturers struggle to achieve the economies of scale necessary to compete in the price-sensitive passenger vehicle segment, limiting the technology primarily to niche high-performance applications.

This inability to scale production directly hampers market growth by preventing widespread adoption in the broader electric vehicle sector. According to the European Automobile Manufacturers' Association (ACEA), in 2024, new car registrations in the European Union reached approximately 10.6 million units. While the demand for electrified powertrains within this massive volume is evident, the manufacturing constraints of axial flux motors prevent them from becoming the standard propulsion solution. The persistent difficulty in streamlining production processes to match the throughput of conventional motors ensures that axial flux technology remains unable to capture a significant share of this global mass market.

Key Market Trends

The adoption of Soft Magnetic Composite (SMC) materials for stator core manufacturing is emerging as a critical trend to overcome the production complexities of axial flux motors. Unlike traditional laminated steel sheets which restrict magnetic flux to two dimensions, SMCs consist of iron powder particles coated with an insulating layer, enabling three-dimensional magnetic flux paths that are essential for the compact disc topology. This material innovation facilitates the cost-effective mass production of complex stator geometries through net-shape pressing, significantly reducing material waste and assembly time compared to conventional methods. According to Höganäs AB, April 2025, in the 'Annual and Sustainability Report 2024', the company achieved a turnover of 11,826 MSEK, driven by securing its first major commercial business for soft magnetic materials in electric automotive drivetrains.

Simultaneously, the market is witnessing the advancement of yokeless and segmented armature topologies through strategic partnerships between motor specialists and powertrain suppliers. This trend focuses on eliminating the stator yoke to minimize weight and iron losses while integrating these specialized motors with high-voltage inverters for optimized system performance. Such collaborations are essential for validating the thermal and electrical compatibility of axial flux designs within complete electric drive units, accelerating their transition from prototypes to road-ready solutions. For instance, according to Traxial, July 2025, in the 'Joint High-Performance Axial Flux eDrive Testing' press release, the company successfully validated its yokeless axial flux motor integrated with Punch Powertrain’s 800V silicon carbide inverter, a system scalable up to 400 kW of power.

Segmental Insights

Based on recent industry intelligence, the Hybrid Electric Vehicle (HEV) segment represents the fastest-growing category in the Global Passenger Cars Axial Flux Motors Market. This accelerated adoption is primarily driven by the stringent packaging limitations inherent to hybrid architectures, where the electric motor must coexist with an internal combustion engine. Axial flux motors offer a decisive advantage due to their exceptionally short axial length and high torque density, allowing for efficient integration between the engine and transmission. Consequently, automakers are prioritizing this technology to optimize powertrain efficiency and meet rigorous global emission standards without compromising vehicle design.

Regional Insights

Asia Pacific commands the leading position in the Global Passenger Cars Axial Flux Motors Market, driven primarily by the extensive electric vehicle manufacturing ecosystem in China. The region benefits from a robust supply chain for rare earth magnets and specialized components essential for high-efficiency motor production. Furthermore, stringent electrification mandates and new energy vehicle quotas enforced by regulatory bodies such as China's Ministry of Industry and Information Technology accelerate the adoption of compact powertrain solutions. This combination of supportive industrial policy and large-scale automotive production capabilities solidifies Asia Pacific as the central hub for this technology.

Recent Developments

• In October 2025, YASA, a subsidiary of Mercedes-Benz known for its expertise in axial flux technology, announced that it had set a new unofficial world record for electric motor power density. The company revealed that its latest prototype motor, weighing just 12.7 kg, delivered a peak power output of 750 kW, achieving a power density of 59 kW/kg. The Chief Technology Officer of YASA highlighted that this engineering breakthrough validates the scalability of their axial flux design for future high-performance electric vehicles, significantly surpassing the performance benchmarks set by the company earlier in the year.
• In July 2025, Punch Powertrain and Traxial successfully completed a joint testing campaign for a new high-performance electric drive unit that integrates Traxial’s yokeless axial flux motor with Punch Powertrain’s 800V silicon carbide inverter. The companies reported that the validation tests confirmed the technical compatibility of the two systems, achieving a peak power output of 310 kW and a torque of 730 Nm. This collaboration demonstrated the potential of combining compact axial flux motors with advanced power electronics to create highly efficient and lightweight powertrain solutions suitable for next-generation electric passenger vehicles.
• In July 2024, MiddleGround Capital, a private equity firm specializing in industrial and manufacturing investments, completed the acquisition of a majority ownership stake in Helix, a UK-based manufacturer of high-performance electric motors and inverters. Helix, formerly known as Integral Powertrain, is recognized for its advanced axial flux and radial flux motor technologies used in hypercars and high-end automotive applications. The new owners stated that this investment would enable Helix to scale its manufacturing operations and expand its commercial reach to meet the increasing demand for high-power-density electric propulsion systems in the automotive and aerospace sectors.
• In April 2024, Exedy Corporation, a prominent Japanese automotive parts manufacturer, acquired the assets and intellectual property rights of Saietta Group, a UK-based developer of electric drive systems that had recently entered administration. This strategic acquisition specifically included Saietta’s Axial Flux Traction (AFT) motor technology, which had been developed for high-efficiency electric vehicle applications. Exedy announced that it intends to leverage these newly acquired capabilities to accelerate the development of its own electric product portfolio and establish mass production lines, aiming to strengthen its competitiveness in the rapidly evolving global electric vehicle powertrain market.

Key Market Players

• YASA Limited
• Magnax
• EMRAX
• Phi-Power
• PanGood
• Omni Powertrain Technologies
• Naxatra Labs
• Turntide Technologies
• EFLOW
• Beyond Motors

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 Passenger Cars Axial Flux Motors Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Passenger Cars Axial Flux Motors Market, By Propulsion:

• BEV
• HEV
• PHEV

• Passenger Cars Axial Flux Motors Market, By Demand Category:

• OEM
• Aftermarket

• Passenger Cars 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