Traction Motor Market Size To Reach USD 29.66 Billion By 2032

The global traction motor market size was estimated at USD 12.79 billion in 2023 and is projected to hit around USD 29.66 billion by 2032, registering a CAGR of 9.80% from 2023 to 2032.

Key Points

North America contributed more than 45% of revenue share in 2022.
Asia-Pacific is estimated to expand the fastest CAGR between 2023 and 2032.
By type, the A.C. induction motor segment has held the largest market share of 69% in 2022.
By type, the permanent magnet motor segment is anticipated to grow at a remarkable CAGR of 10.4% between 2023 and 2032.
By vehicle type, the passenger cars segment generated over 59% of revenue share in 2022.
By vehicle type, the commercial vehicles segment is expected to expand at the fastest CAGR over the projected period.
By end-user, the hybrid vehicles segment generated over 41% of revenue share in 2022.
By end-user, the escalators segment is expected to expand at the fastest CAGR over the projected period.

The traction motor market is witnessing significant growth owing to the increasing demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs) across the globe. Traction motors play a crucial role in powering the propulsion system of these vehicles, converting electrical energy into mechanical energy to drive the wheels. The market encompasses various types of traction motors, including AC induction motors, permanent magnet synchronous motors (PMSMs), and switched reluctance motors (SRMs), catering to diverse applications in automotive, railway, and industrial sectors.

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Growth Factors:

Several factors are driving the growth of the traction motor market. The rising adoption of electric vehicles due to stringent emission regulations and the growing preference for sustainable transportation solutions is a significant growth factor. Additionally, advancements in motor technology, such as the development of high-efficiency motors with lightweight and compact designs, are fueling market expansion. Moreover, increasing investments in infrastructure for electric and hybrid vehicles and the integration of traction motors in various applications are further propelling market growth.

Region Insights:
The traction motor market exhibits a global presence, with key regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific dominates the market, driven by the presence of prominent automotive manufacturers and increasing government initiatives to promote electric mobility in countries like China, Japan, and South Korea. North America and Europe are also significant regions, witnessing substantial growth due to stringent emission norms and the adoption of electric vehicles.

Traction Motor Market Scope

Report Coverage	Details
Growth Rate from 2023 to 2032	CAGR of 9.80%
Market Size in 2023	USD 12.79 Billion
Market Size by 2032	USD 29.66 Billion
Largest Market	North America
Base Year	2022
Forecast Period	2023 to 2032
Segments Covered	By Type, By Vehicle Type, and By End User
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Traction Motor Market Dynamics

Drivers:
Several drivers are boosting the traction motor market growth. The shift towards electrification of vehicles to reduce greenhouse gas emissions and dependence on fossil fuels is a primary driver. Additionally, government incentives and subsidies for electric vehicles, along with advancements in battery technology and charging infrastructure, are accelerating market growth. Furthermore, the integration of traction motors in various applications beyond automotive, such as railways, industrial machinery, and marine vessels, is driving market expansion.

Opportunities:
The traction motor market presents several opportunities for manufacturers and stakeholders. The increasing demand for electric buses, trucks, and two-wheelers presents a significant opportunity for market players to diversify their product offerings. Moreover, advancements in motor design and materials offer opportunities for innovation and differentiation. Furthermore, collaborations and partnerships between automotive OEMs and motor manufacturers for the development of customized traction motors present lucrative growth opportunities in the market.

Challenges:
Despite the promising growth prospects, the traction motor market faces certain challenges. One of the primary challenges is the high initial cost of electric vehicles compared to conventional internal combustion engine vehicles, which may hinder mass adoption. Additionally, concerns regarding the limited range and charging infrastructure for electric vehicles pose challenges to market growth. Furthermore, supply chain disruptions and raw material shortages could impact the production and availability of traction motors, thereby posing challenges to market players.

Recent Developments

In July 2021, Mercedes-Benz announced its acquisition of YASA Motors Ltd., a leading innovator in next-gen electric drive technology. As part of the agreement, YASA will become a wholly owned subsidiary of Mercedes-Benz, dedicated to the development of high-performance electric motors. This strategic move underscores Mercedes-Benz’s commitment to advancing electric mobility and enhancing its electric vehicle offerings.
In December 2020, Parker-Hannifin introduced the GVM310, a 310 mm frame high-power permanent magnet A.C. motor. This addition to the Global Vehicle Motor (GVM) family expands Parker-Hannifin’s portfolio of electric and hybrid electric motors for both on-road and off-road commercial vehicles. The release emphasizes the company’s focus on providing advanced motor solutions to meet the evolving demands of the electric and hybrid vehicle market.