Electric Vehicle Traction Motor Market Report 2026

The electric vehicle traction motor market size has grown exponentially in recent years. It will grow from $17.77 billion in 2025 to $24.83 billion in 2026 at a compound annual growth rate (CAGR) of 39.7%. The growth in the historic period can be attributed to early development of electric traction systems in rail, rising demand for hybrid and electric passenger vehicles, improvements in motor efficiency and power density, growth in renewable powered transportation, expansion of automotive electrification programs.

The electric vehicle traction motor market size is expected to see exponential growth in the next few years. It will grow to $92.26 billion in 2030 at a compound annual growth rate (CAGR) of 38.8%. The growth in the forecast period can be attributed to increasing production of battery electric vehicles, rising adoption of rare earth free motor technologies, expansion of high performance motors for commercial fleets, growth in connected and smart motor control systems, increasing focus on recyclable and modular motor designs. Major trends in the forecast period include advances in high efficiency permanent magnet motors, growing adoption of integrated motor and inverter systems, rising demand for lightweight and compact motor architectures, increasing focus on thermal management solutions for traction motors, expansion of high voltage motor applications in heavy vehicles.

Rising sales of hybrid electric vehicles are anticipated to drive the expansion of the electric vehicle traction motor market. A hybrid electric vehicle is a type of vehicle that integrates an internal combustion engine with an electric propulsion system. The accelerating sales of hybrid electric vehicles are expected to increase the use of traction motors, as they are critical components in both hybrid and electric vehicles. For example, in January 2024, the U.S. Department of Energy, a federal agency in the United States, reported that plug-in electric vehicle sales rose from 6.8% of all light-duty vehicle sales in 2022 to 9.1% in 2023, representing a 2.3 percentage point increase in market share. Consequently, the rising sales of hybrid electric vehicles are expected to drive demand for electric vehicle traction motors throughout the forecast period.

Leading companies in the electric vehicle traction motor market are concentrating on developing new technologies, such as innovative energy-efficient motor and inverter packages, to improve overall vehicle performance and efficiency. Energy-efficient motor and inverter packages are integrated systems designed for electric vehicles, combining a high-performance electric motor with a corresponding inverter that optimally manages electrical power conversion. For example, in May 2023, ABB Ltd., a Switzerland-based technology company specializing in electrification and automation, launched an innovative energy-efficient motor and inverter package specifically designed for electric buses, which includes the AMXE250 motor and the HES580 inverter. This new propulsion system features the first 3-level inverter created specifically for buses, resulting in up to 12% fewer motor losses and a significant reduction in harmonic losses by up to 75% compared to traditional 2-level inverters. The AMXE250 motor is noted for its high torque density and quieter operation, enhancing both dynamic performance and passenger comfort. This advanced technology not only improves energy efficiency but also extends the lifespan and reliability of the entire electric drivetrain.

In September 2024, WEG Industries, a Brazil-based company that produces and sells electric and electronic equipment, acquired Volt Electric Motors in an effort to diversify its product offerings in the industrial and commercial electric motor market. This acquisition will enable access to key regional markets, including Eastern Europe, the Middle East, Central Asia, and North Africa. Volt Electric Motors is a Turkey-based manufacturer of industrial and commercial electric motors.

Major companies operating in the electric vehicle traction motor market are Siemens AG, ABB Ltd., Hitachi, Ltd., CRRC Corporation Limited, Robert Bosch GmbH, Parker-Hannifin Corporation, Bharat Heavy Electricals Limited (BHEL), Nidec Corporation, Kawasaki Heavy Industries, Ltd., AMETEK, Inc., Mitsubishi Electric Corporation, CG Power and Industrial Solutions Limited, Toshiba Corporation, Alstom SA, Continental AG, WEG S.A., Eberle Motors, Voges Motores Elétricos, Nova Motores, Cestari Industrial, Tintori Motores Elétricos, Motomil, Taizhou Dongchun Motor Co., Ltd., General Electric Company.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the electric vehicle traction Motor market by increasing the cost of imported components such as permanent magnets, copper windings, electronic controllers and steel laminations, resulting in higher production expenses and longer lead times. These impacts are most evident across high voltage and permanent magnet motor segments and in regions that rely heavily on imported rare earth materials including Europe and North America. The increased cost burden is prompting manufacturers to explore alternative materials, diversify supply chains and expand localized production capacity. On the positive side tariffs are accelerating innovation in magnet free motor technologies and strengthening regional manufacturing ecosystems.

The electric vehicle traction motors market research report is one of a series of new reports that provides electric vehicle traction motors market statistics, including electric vehicle traction motors industry global market size, regional shares, competitors with an electric vehicle traction motors market share, detailed electric vehicle traction motors market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle traction motors industry. This electric vehicle traction motors market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An electric vehicle traction motor is responsible for driving the wheels of a vehicle, converting electrical energy into mechanical energy to propel the vehicle beyond aerodynamic drag, rolling resistance drag, and kinetic resistance.

The primary types of electric vehicle traction motors include permanent-magnet synchronous EV traction motors (PSM) and asynchronous EV traction motors (ASM). PSMs excel in torque-to-current ratios, power-to-weight ratios, efficiency, and robustness, making them widely used in modern variable-speed AC drives. Electric vehicle traction motors are categorized based on voltage ratings, including high-voltage EV traction motors and low-voltage EV traction motors. These traction motors find application in various vehicle types, such as hybrid vehicles, battery electric vehicles, and fuel-cell electric vehicles. They are utilized in diverse applications, including railways, passenger and commercial vehicles, and other automotive applications.Asia-Pacific was the largest region in the electric vehicle traction motor market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle traction motor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle traction motor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle traction motor market consists of sales of DC motors, brushless DC motors, permanent magnet synchronous motors, three-phase induction motors, and switched reluctance motors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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