Electric Traction Motor Market Report 2026

The electric traction motor market size has grown rapidly in recent years. It will grow from $23.3 billion in 2025 to $27.61 billion in 2026 at a compound annual growth rate (CAGR) of 18.5%. The growth in the historic period can be attributed to rise in electrification of industrial machinery, increase in use in railway and conveyor systems, adoption in elevators and electric vehicles, expansion in automotive propulsion applications, integration in chemical, oil & gas, and power sectors.

The electric traction motor market size is expected to see rapid growth in the next few years. It will grow to $53.57 billion in 2030 at a compound annual growth rate (CAGR) of 18%. The growth in the forecast period can be attributed to increase in high-efficiency motor adoption, rising deployment in electric vehicle traction, growth in AC and DC motor production, expansion in predictive maintenance and monitoring, increasing use in industrial automation. Major trends in the forecast period include integration of AI-enabled traction motor systems, deployment of IoT-connected electric motors, adoption of smart manufacturing for motors, implementation of predictive maintenance and monitoring, expansion of high-efficiency ac and dc motors.

The growing demand for electric vehicles is expected to drive the expansion of the electric traction motor market. Although the economic impact of COVID-19 has reduced demand for petrol and diesel cars, the demand for EVs and hybrid vehicles has risen. Concerns over climate change and the pursuit of net-zero emissions are fueling the global transition to emission-free transportation. This shift toward EVs benefits the economy by lowering fuel costs and shifting energy consumption from petroleum-based products to locally generated electric power. The establishment of EV charging stations, hydrogen fueling stations, and government initiatives supporting EV adoption further promote the use of electric vehicles. These trends have boosted the demand for electric traction motors, which provide clean energy, ease of handling, speed control, and high-power propulsion for safe and reliable driving. For example, in January 2024, according to the U.S. Energy Information Administration, hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) collectively represented 16.3% of total new light-duty vehicle (LDV) sales in the U.S. in 2023, up from 12.9% in 2022.

Leading companies in the electric traction motor market are focusing on developing innovative solutions, such as next-generation electric axle platforms, to improve the efficiency and performance of electric vehicles (EVs) and other electric-powered applications. These next-generation electric axle platforms are advanced systems that integrate electric motors, transmissions, and other essential components into a single, modular unit for EVs and related applications. For example, in May 2023, ZF Friedrichshafen AG, a Germany-based manufacturing firm, introduced the AxTrax 2, a next-generation electric axle platform designed for commercial vehicles, with production set to begin in Europe in late 2024 and in the U.S. in 2025. This innovative, modular e-powertrain system optimizes battery space through its integrated design and is available in configurations with one or two e-drives, making it adaptable for light, medium, and heavy-duty vehicles. The AxTrax 2 enhances vehicle safety and efficiency by working in sync with braking systems and advanced driver-assistance systems (ADAS) while also featuring advanced digital and telematics capabilities.

In April 2023, 3BG Supply Co., a US-based manufacturing company, acquired Controls and Electric Motor Company (CEMCO) for an undisclosed amount. This acquisition is aimed at expanding 3BG Supply Co.'s service offerings and solidifying its market position within the industrial supply sector. By leveraging CEMCO's expertise, the company plans to drive growth and boost customer satisfaction. CEMCO, a US-based company specializing in electrical control panel design and fabrication, enhances electric propulsion systems by integrating advanced control technologies with traction motors to provide efficient transportation solutions.

Major companies operating in the electric traction motor market are ABB Ltd., Siemens AG, General Electric Company, CG Power and Industrial Solutions Ltd, CRRC Corporation Limited, Kirloskar Electric Company Ltd., Alstom SA, Traktionssysteme Austria GmbH, Skoda Transportation AS, Robert Bosch GmbH, Mitsubishi Electric Corporation, Toshiba Corporation, Nidec Corporation, Johnson Electric Holdings Limited, Ametek Inc., Regal Beloit Corporation, WEG SA, Brook Crompton UK Ltd., TECO Electric & Machinery Co. Ltd., Hitachi Ltd., Emerson Electric Co., Parker Hannifin Corporation, Marathon Electric Motors Limited., NORD Drivesystems Pvt. Ltd., Bonfiglioli Riduttori SpA, Sumitomo Heavy Industries Ltd., Yaskawa Electric Corporation, Fuji Electric Co. Ltd., HyundAI Rotem Company, VEM Group, Voith GmbH & Co. KGaA, KEB Automation KG.

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 significantly affecting the electric traction motor market by increasing the cost of imported high-performance motors, power electronics, and associated components. The railway, automotive, elevator, conveyor, and industrial machinery segments across North America, Europe, and Asia-Pacific are particularly impacted due to reliance on imported specialized motors and technologies. While tariffs have increased production costs and slowed procurement timelines, they have also driven positive outcomes, such as the acceleration of local manufacturing initiatives, regional sourcing strategies, and investment in advanced motor technologies, which enhance supply chain resilience, encourage innovation, and support the adoption of high-efficiency AC and DC motors.

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

An electric traction motor is an electric motor designed for propelling electrically powered systems such as elevators, trolleybuses, conveyors, locomotives, and other electric-controlled vehicles with electrical transmission systems. These motors generate power to turn the wheels, which is transmitted to the wheels via the driving gear unit and axle, converting electrical energy into mechanical energy.

The main types of electric traction motors include AC (alternating current) and DC (direct current). AC motors use alternating current to generate the required propelling power for the systems. The power rating for these electric traction motors is categorized into less than 200 kW, between 200 kW to 400 kW, and more than 400 kW. These motors find applications in various sectors, including railways, electric vehicles, elevators, conveyors, and industrial machinery. Electric traction motors are utilized across different industry verticals such as chemical and petrochemical, oil and gas, energy and power, automotive, food and beverages, healthcare, and others.Asia-Pacific was the largest region in the electric traction motor market in 2025. North America is expected to be the fastest-growing region in the electric traction motor market during the forecast period. The regions covered in the electric 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 traction motor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric traction motor market consists of sales of DC motors, Switch Reluctance motors, brushless DC motors, three-phase AC induction, and permanent magnet synchronous motor. 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 electric traction motor 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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