Automotive Electric Motors Market Current Trends And Industry Overview, 2026

June 7, 2021

Increase in production and sales of electric vehicles, year-on-year, led by environmental norms and government incentives provided to the electric vehicle industry, is estimated to boost the automotive electric motors market during the forecast period
An electric motor is defined as a device that converts electrical energy into mechanical energy in the form of rotational motion. Electric motors are developed for the automotive industry and installed in automobiles and commercial vehicles as drives for wiping systems, engine cooling, and passenger compartment air-conditioning as well as for the adjustment of windows, sliding roofs, and seats.

Electric vehicles (EVs) use a different automotive technology as compared to the technology used by conventional vehicles. The performance of EVs depends entirely on the specifications of the electric motors. The performance of the motor is determined by the torque-speed and power-speed characteristic of the traction motor. The major advantage of using these motors is the reduced level of emission. Electric motors enable the vehicle to be 100% emission-free, thus greatly helping in keeping the environment green. Consistent rise in sales of electric vehicles is boosting the electric motor industry.
Witnessing the current growth story and future prospects in the automotive electric motor industry, Nidec Corporation plans to invest US$ 1.8 billion for the manufacture of electric motors used in vehicles. In total, the new facilities are expected to manufacture 8.4 million electric motors per year. On November 2, 2024, Volvo Cars opened a new electric motor laboratory in Shanghai, China, to design and develop motors in-house.

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Electric motors in EVs are powered by the battery pack and take longer to become operational. Moreover, the EV can’t be used when the battery is being recharged.
The recent outbreak of COVID-19 pandemic has affected national as well as international automotive supply chains, manufacturing and R&D operations and hampered the market. Post first wave of COVID-19 global economies have started opening up and automotive manufacturing operations have begun to normalize; however, increase in the COVID-19 cases again in several countries across Europe have prompted governments to implement a second round of lockdown restrictions and consequently, uncertainty in the automotive industry continues. A gradual recovery of demand and supply is anticipated in the next few months despite concerns around the risk of second wave of infection in numerous countries and other geopolitical risks.

Demand for EV electric motors is estimated to reach 30 million annually, by 2030, and vehicles are likely to be equipped with two to three electric motors. Manufacturers of electric motors are focusing on strategies to capture opportunities. For instance, Nidec Corporation expects to account for 35% share of the market, from 4% currently, by lowering the cost of electric powertrains by 30% to 50% as compared to its competitors.
Countries across the globe are offering incentives to EV and EV parts manufacturers to boost EV production and usage. In September 2024, the Government of India announced new tax incentives, slashing the tax from 21.55% to 17.16%. Likewise, six countries across Europe have introduced additional green recovery incentives to promote sales of EVs, starting in June and July months of 2024. Preliminary results for July give an indication for the effect on EV adoption in H2. These incentives are offering significant opportunity for manufacturers of automotive electric motors.

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