The global electric traction motor market is projected to generate USD 34,891 million revenue by 2030, advancing at a CAGR of 13.5% during 2022–2030. This can be ascribed to the mounting demand for high-performance motors and the rising adoption of EVs, owing to the depletion of fossil fuels, surging concern for emission-free vehicles, and increasing government favorable policies and subsidies.
To encourage the use of EVs, the reduction in registration tax and other liabilities, including tax rebates and subsidies, has been offered by several governments. Subsidies have helped electric motorcycles and scooters more viable for customers. Thus, these factors drive the market growth.
Based on type, the market is bifurcated into AC and DC. Between the two, the AC category held a larger revenue share, of 86%, in 2022, and it is further expected to maintain its dominance during the forecast period. This is because such motors are extensively used in industrial machines, electric cars, and the railway industry. Additionally, such types of motors are easy to handle and efficient as compared to DC motors.
Based on application, the market is classified into railway, electric vehicle, and others. Of these, the electric vehicle category will register the highest CAGR during the predicted period. This can be attributed to the increasing need for an alternative to fossil fuel-based vehicles, the rising number of EV manufacturers, the surging investment by several industry players, and the growing government support schemes and policies.
Additionally, the railway category accounted for a significant revenue share in 2022, and it is expected to grow with a substantial CAGR in the future. This is because it is one of the major modes of public transportation, high investment by governments to upgrade the railway infrastructure, innovation of passenger railcars, and technological advancements in the sector.
The below 200 kW category, based on power rating, accounted for a significant revenue share in 2022, and it is expected to maintain its position in the coming years as well. This is due to the surging adoption of electric motors with below 200 kW in lightweight vehicles, favorable government and environment policies, and the increasing need for reliable motors with efficient torque.
Geographically, the APAC market is projected to register the fastest growth during the coming years. This growth can be ascribed to the burgeoning urbanization, the surging standard of living, the rising infrastructure for electric vehicles, and the increasing production as well as the adoption of electric scooters and motorcycles in emerging countries in the region. Moreover, the rising demand for transportation connectivity, the increasing investment in the railway sector to expand its infrastructure, and the growing population will further contribute to the growth in demand for electric traction motors in APAC.
Moreover, the European market accounted for a significant revenue share in 2022, and it is expected to maintain its position during the forecast period as well. This is because the region is home to automobile giants, a high rate of adoption of EVs and advanced technology, and a rising number of OEMs.
Furthermore, LATAM and MEA will significantly contribute to the market in the coming years. This can be attributed to the increasing per capita income associated with the rising standard of living, and the growing traction for EVs in these regions.
Some of the major industry players are ABB Ltd., Mitsubishi Motors Corporation, Toshiba Corporation, General Electric Company, Siemens AG, Kirloskar Electric Company Ltd., and CG Power & Industrial Solutions Ltd.