Electric Traction Motor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The electric traction motor market is expected to grow at a CAGR of around 15% during the forecast period. Factors such as increasing demand for high-performance electric traction motors, favorable government policies and subsidies for electric vehicles, and an increase in railway electrification projects are likely to drive the drive. However, price volatility of raw materials such as copper and aluminum, and safety and reliability concerns are significant factors that are expected to hinder the market growth during the forecast period.

Key Highlights

• With supportive government initiatives and incentives, electric vehicles are expected to have significant demand for traction motors during the forecast period.
• On account of growing concerns regarding air pollution, governments across various nations have set targets to implement or to transform existing transportation modes from fossil fuel to electricity. Developing countries like India are planning to electrify 30% of its passenger vehicles by 2030, which is likely to provide ample opportunity for the electric traction motor companies in the near future.
• Asia-Pacific is expected to witness significant growth during the forecast period, with the majority of the demand coming from China, India, Japan, and South Korea.

Key Market Trends

Electric Vehicle to Witness Significant Growth

• During the last three years, the electric vehicle (EV) market has witnessed significant growth due to the need to address future energy requirements. The need to attain sustainable transportation plays a vital role in driving electric vehicle demand.
• The EV market is coming up as an integral part of the automotive industry. It represents a pathway toward achieving energy efficiency, along with reduced emission of pollutants and other greenhouse gases.
• Electric vehicles are expanding at a rapid pace. In 2018, the global electric vehicle population exceeded 5.1 million, up by nearly 2 million from the previous year. The primary factor behind the growth is the high price of fossil fuels and subsidies provided by various governments to buy an EV vehicle.
• Technology advancement delivers substantial cost cuts and is expected to reduce the cost of an electric vehicle in the coming years. As per industry experts, with battery technology advancement, the cost of electric vehicles can be reduced.
• Moreover, with the association of private entities and various research and development centers, the electric vehicles market and electric traction motor market are likely to increase during the upcoming year.

Asia-Pacific to Dominate the Market

• With its large fleet of electric vehicles, rail, and metro projects, Asia-Pacific is one of the significant regions that is estimated to have the highest demand for electric traction motor.
• China, India, Japan, and South Korea are the dominating countries in the region and are growing rapidly in electrification projects.
• With the rapid urbanization, China is planning to reduce pollution from its road transport vehicles. At the same time, it also intends to reduce the country’s dependence on hydrocarbon imports and support the development of the industrial sector.
• China is the largest electric vehicle market globally, with a sales unit of nearly 2.3 million until 2018. China leaped in 2018, with 1.1 million EV sales.
• Apart from EV, China is transforming its railway projects from conventional fossil fuel engines to electric engines. As of 2018, nearly 73% of the China passenger movement is done by high-speed or urban trains.
• India, on the other hand, is on a transition phase to electrify the entire railway sector. As per the government, by 2024, India is determined to transform the entire railway network to electricity.
• Moreover, with the rapid growth in the global EV sector, India, Japan, and South Korea are also planning to expand the electric vehicle market to control the growing carbon emission in the countries. Thus, with the aforementioned measures, the region is likely to dominate the electric traction motor market during the forecast period.

Competitive Landscape

The electric traction motor market is moderately fragmented. The key players in the market include ABB Ltd, Siemens AG, General Electric Company, Kirloskar Electric Company Ltd, CG Power and Industrial Solutions Ltd, CRRC Corporation Limited, Alstom SA, Traktionssysteme Austria (TSA) GmbH, Skoda Transportation AS, and Robert Bosch GmbH.

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