Electric Vehicle Traction Motor Market Size, Share & Trends Analysis grow at a CAGR of 30.2% from 2025 to 2030
The global electric vehicle traction motor market size was valued at USD 12.57 billion in 2024 and is projected to grow at a CAGR of 30.2% from 2025 to 2030. Rising investments in the manufacturing of electric vehicles (EVs) due to their widespread adoption, along with growing demand for motors with high energy efficiency, are major market drivers. Traction motors consume substantially lower amounts of power and offer high efficiency, which has made them a critical aspect of the electric mobility industry. Furthermore, stringent regulations and emission guidelines to ensure environmental sustainability have been driving the popularity of EVs, thus creating favorable conditions for expansion of the electric vehicle traction motor industry.
The demand for traction motors in the automotive industry corresponds directly to sales of electric vehicles. As per the Global EV Outlook 2024 report published by the International Energy Agency (IEA), around 14 million new electric cars were sold globally in 2023, with an increase of 3.5 million witnessed over 2022 sales figures. Moreover, EV sales accounted for approximately 18% of overall vehicle sales in the year, rising from 14% in 2022 and just 2% in 2018. As manufacturers face increasing demands for performance-efficient and economical vehicles, the choice of components such as traction motors has become very crucial, driving competition in the electric vehicle traction motor industry. Traction motors are designed to be highly efficient, meaning they can convert a greater portion of the electrical energy stored in the battery into mechanical energy to propel the vehicle. This results in better overall performance and a longer driving range.
Traction motors enable EVs to optimize their acceleration performance, as the ability to instantly access maximum torque from a standstill allows vehicles to accelerate smoothly and rapidly. These solutions tend to be more compact and lightweight when compared to internal combustion engines. The reduced weight helps improve the vehicle’s efficiency and range, as less energy is needed to move the vehicle. Automakers are launching vehicles that use multiple traction motors to allow torque vectoring, which is the ability to precisely control the distribution of torque between wheels. This improves vehicle stability, traction, and handling, particularly in adverse conditions such as slippery roads or sharp corners.
In recent years, the growing need to cater to diverse consumer requirements has encouraged EV manufacturers to invest in research & development initiatives to introduce more effective solutions. For instance, development of motors that reduce or eliminate the reliance on rare earth materials such as neodymium and dysprosium has gathered pace, enabling companies to address supply chain and environmental concerns. Axial flux designs have become increasingly common as they offer higher power density and reduced size compared to traditional radial flux motors. These solutions are being integrated into performance and luxury EVs due to their superior torque and efficiency. Other advancements such as permanent magnet synchronous motors (PMSMs), switched reluctance motors (SRMs), and integrated motor-drive systems are expected to further aid in positively shaping the global market during the forecast period.
Vehicle Insights
The BEV segment accounted for the largest revenue share of 62.8% in the global electric vehicle traction motor industry in 2024. The demand for traction motors in Battery Electric Vehicles has increased significantly in recent years, aided by the global push for clean energy, the rapid growth of the broader EV market, and advancements in motor technology. Increasing sales of BEVs have encouraged companies to develop traction motors on a larger scale, aiding market expansion. For instance, a report by EV VOLUMES published in January 2024 stated that 10 million battery EVs were sold in 2023, with major markets witnessing a substantial rise in the adoption of these vehicles. Traction motors are critical to BEVs’ efficiency, performance, and driving range. Technological innovations, such as the development of permanent magnet synchronous and induction motors, have helped improve motor efficiency, power density, and durability.
The PHEV segment in the electric vehicle traction motor industry is expected to advance at the fastest CAGR from 2025 to 2030. The PHEV market has been steadily growing, driven by government incentives, stricter emissions regulations, and consumers seeking a balance between the electric driving range and the convenience of an internal combustion engine (ICE) for longer journeys. PHEVs combine an ICE with an electric motor and a battery, indicating traction motors are essential to the vehicle’s operation, enabling electric-only driving and enhancing fuel efficiency in hybrid driving modes. Integrating high-performance power electronics and developing more efficient inverters and controllers are further driving the efficiency of traction motors in hybrid drivetrains. This helps PHEVs provide better fuel economy and reduce emissions.
