Life size EV traction motor. Image: Renault Group
A recently published market intelligence report shows an upward trajectory in the global EV market because of a strong demand for EV traction motors. The global EV traction motors market is anticipated to reach $ 6.4 billion by the end of 2021.
Long-term prospects appear even more lucrative, registering an astounding 25% compound annual growth rate (CAGR) from 2021-2031. By the end of the forecast period, the market will likely be valued at $60bn. Tightening emission standards for efficient pollution controls and promotion of e-mobility are key factors driving market demand.
Historical analysis concludes that the market registered a CAGR of 10% from 2016 to 2020. Prospects remained bright, even amidst the novel coronavirus pandemic, given the increasing number of EV registrations throughout the financial year from 2020-21. An increase of over 40% in registration was experienced compared to 2019.
Incentive and subsidy programmes helping to grow EV traction motors market
Governmental programmes to incentivise and subsidise electric car usage are a critical factor driving the growth of the EV traction motor industry. The majority of these incentives and subsidies include tax exemptions, tax credits, concessions and other perks, all of which play an important role in influencing client decision-making. According to the analysis, the EV traction motor industry is anticipated to profit from these incentives in terms of revenue creation.
As countries race towards achieving carbon neutrality targets by curbing automotive emissions, e-mobility is acquiring significant popularity, which is bound to broaden prospects for EV traction motor manufacturers.The report gave insight into the following regions:
- North America
- East Asia
- South Asia
- Latin America
- Middle East and Africa
Amongst the regions sampled, China and the United States showed the highest potential in contributing towards the expansion of the EV traction motor industry. Other key learnings that came from the report:
- Global EV traction motor market to surge 9 times from 2021 to 2031;
- Plug-in hybrid vehicles to register maximum demand, contributing 45% of revenue;
- EV traction motors with high voltage ratings to surpass $4bn in revenue by 2031;
- U.S. is predicted to grow at a CAGR of more than 30% over the projection period; and
- China to be the fastest growing market, clocking a whopping 33% value CAGR.
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- Competitive landscape for EV motors
Prominent EV traction motor manufacturers are focusing on introducing new product lines for electric and hybrid electric motor vehicles, along with outright and partial acquisition of small and medium-scale players. Additionally, several players are forging stake purchase and collaboration agreements with prominent automotive companies to expand their global presence.
Some of the key players taking leadership in the EV motor space is YASA Motors Ltd, a pioneer in next-generation electric drive technology. Yasa Motors was acquired by automotive giant Mercedes-Benz in July 2021. Under the terms of this acquisition, YASA will operate a wholly-owned subsidiary of Mercedes-Benz, developing high performance e-motors.
Another major industry leader in this sector is ABB Limited, a multinational corporation that specialises in power, robotics, automation technologies and heavy electrical equipment. ABB also underwent an acquisition to purchase KEYMILE Group’s mission-critical communication business unit in 2017. This acquisition aims to broaden ABB’s range of communication networks. This will also aid in the expansion of ABB’s revenue-generating prospects.
The EV Traction Motor Market report is available online.