Electric Commercial Vehicle Traction Motor Market Report 2026

The electric commercial vehicle traction motor market size has grown exponentially in recent years. It will grow from $1.86 billion in 2025 to $2.26 billion in 2026 at a compound annual growth rate (CAGR) of 21.3%. The growth in the historic period can be attributed to commercial fleet electrification, advancements in motor design, demand for higher payload capacity, early electric truck deployments, drivetrain electrification.

The electric commercial vehicle traction motor market size is expected to see rapid growth in the next few years. It will grow to $4.55 billion in 2030 at a compound annual growth rate (CAGR) of 19.1%. The growth in the forecast period can be attributed to reduction in rare earth usage, next-generation motor materials, growth of electric logistics fleets, efficiency-focused vehicle platforms, power density improvements. Major trends in the forecast period include growing demand for high-torque motors, adoption of permanent magnet motors, integration of multi-speed drives, expansion of heavy-duty ev platforms, focus on motor efficiency optimization.

Rising demand for electric heavy commercial vehicles is expected to propel the growth of the electric commercial vehicle traction motor market going forward. Electric heavy commercial vehicles are large vehicles designed for commercial use, such as trucks and buses, that are powered by electric motors instead of traditional internal combustion engines. The rise of electric heavy commercial vehicles is driven by their environmental benefits, cost efficiency, and supportive government policies. Traction motors in electric heavy commercial vehicles supply the power and torque needed for efficient and reliable operation. For instance, in September 2023, according to the World Resources Institute, a US-based non-profit organization, the collective count of electric school buses reached 5,982 in June 2023, marking a notable increase of over 3,200 buses compared to June 2022. Therefore, rising demand for electric heavy commercial vehicles is driving the growth of the electric commercial vehicle traction motor market.

Major companies operating in the electric commercial vehicle traction motor market are focusing on compact, modular electric central drive systems, such as the fully integrated e-axle/central drive concept, to gain a competitive advantage. For instance, in September 2024, ZF Friedrichshafen AG, a Germany-based automotive company, introduced the CeTrax 2 dual electric central drive for heavy-duty trucks, featuring packaging within conventional transmission space, dual 800 V SiC inverters delivering 380 kW continuous power and 24,700 Nm peak torque, and support for 3-speed transmission with e-actuation for smooth acceleration. This trend enhances fleet electrification by enabling heavy commercial vehicles to adopt electric drivetrains without requiring significant chassis redesign and helps OEMs manage ICE-to-EV production transition more efficiently, though it demands rigorous thermal management and integration testing.

In December 2025, Uno Minda Limited, an India-based automotive component manufacturing company, acquired the remaining 49.9% stake in Uno Minda Buehler Motor Private Limited for an undisclosed amount. With this acquisition, Uno Minda aims to consolidate full ownership of its EV-traction-motor manufacturing operations, streamlining decision-making and accelerating its push into electric two- and three-wheelers. Uno Minda Buehler Motor Private Limited is an India-based company that specializes in manufacturing automotive traction motors, specifically for electric two-wheelers and three-wheelers.

Major companies operating in the electric commercial vehicle traction motor market report include Robert Bosch GmbH, Hitachi Ltd., Siemens AG, Posco International, BYD CO.LTD, Denso Corporation, ZF Friedrichshafen AG, Continental AG, Magna International Inc., Aisin Corporation, ASEA Brown Boveri ABB, Toshiba Group, Valeo SA, Nidec Corporation, Parker Hannifin Corporation, BorgWarner Inc., Dana Limited, American Axle & Manufacturing, Allison Transmission Inc., TECO Electric And Machinery Co., Zhongshan Broad-Ocean Motor Co. Ltd., Remy Group, MAHLE GmbH, Kollmorgen, Equipmake.

Asia-Pacific was the largest region in the electric commercial vehicle traction motor market in 2025. The regions covered in the electric commercial vehicle traction motor market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric commercial vehicle traction motor market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric commercial vehicle traction motor market consists of sales of power electronics, control systems, drivetrain integration solutions, and traction 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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