Automotive Traction Motor Market Report 2026

The automotive traction motor market size has grown rapidly in recent years. It will grow from $8.81 billion in 2025 to $10.47 billion in 2026 at a compound annual growth rate (CAGR) of 18.9%. The growth in the historic period can be attributed to electric vehicle commercialization, battery cost reduction, early hybrid vehicle adoption, advancements in motor control, automotive electrification investments.

The automotive traction motor market size is expected to see rapid growth in the next few years. It will grow to $19.58 billion in 2030 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to ev production scale-up, demand for high torque density motors, rare-earth optimization, efficiency regulations, expansion of charging infrastructure. Major trends in the forecast period include shift toward high-efficiency traction motors, rising adoption of pmsm motors, integration of motors with power electronics, demand for compact motor designs, growth of multi-motor ev platforms.

The rising demand for electric vehicles is expected to drive the growth of the automotive traction motor market in the coming years. Electric vehicles are powered by electric motors, using rechargeable batteries or other energy storage systems as their primary source of propulsion. This demand is being fueled by environmental concerns, government incentives, advancements in battery technology, increasing fuel costs, and improved charging infrastructure. Traction motors are critical for electric vehicles, converting electrical energy into mechanical motion with high efficiency, providing instant torque, enabling regenerative braking, and enhancing overall performance, reliability, and environmental benefits. For instance, in April 2024, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that new electric car registrations in China reached 8.1 million in 2023, representing a 35% increase compared to 2022. Therefore, the increasing adoption of electric vehicles is supporting the growth of the automotive traction motor market.

Key players in the automotive traction motor market are developing innovative solutions, such as magnet-free electric motors, to improve performance and extend vehicle range. Magnet-free electric motors operate without permanent magnets, typically using technologies like reluctance or induction to generate motion. For example, in September 2023, ZF Friedrichshafen AG, a Germany-based automotive technology company, introduced the I2SM (In-Rotor Inductive-Excited Synchronous Motor). In this design, the rotor’s magnetic field is generated through inductive excitation, delivering high torque and power density without the size and friction limitations of traditional brush or slip-ring systems. Unlike conventional SESM designs, the I2SM’s compact inductive transmitter is housed inside the rotor shaft, saving up to 90 mm of axial space. This motor enhances efficiency by reducing energy transmission losses by 15% and cuts CO2 emissions during production by up to 50% compared to conventional permanent-magnet synchronous motors.

In December 2025, Uno Minda Limited, an India-based automotive components manufacturer, acquired the remaining 49.9% stake in Uno Minda Buehler Motor Private Limited for an undisclosed amount. This acquisition allows Uno Minda to consolidate full ownership of its EV traction motor manufacturing operations, streamline decision-making, and accelerate its expansion into electric two- and three-wheelers. Uno Minda Buehler Motor Private Limited is an India-based company specializing in automotive traction motors for electric two-wheelers and three-wheelers.

Major companies operating in the automotive traction motor market report include Robert Bosch GmbH, Hitachi Ltd., Siemens AG, ZF Friedrichshafen AG, Continental AG, Magna International Inc., Mitsubishi Electric Corporation, ABB Ltd, Toshiba Corporation, Schaeffler Technologies AG & Co. KG, Nidec Corporation, Mahle Group, BorgWarner Inc., Dana Incorporated, Regal Beloit Corporation, Shenzhen Inovance Technology Co. Ltd, Mitsuba Corporation, CG Power and Industrial Solutions Ltd., American Traction Systems, Jing-Jin Electric Technologies Co Ltd.

Asia-Pacific was the largest region in the automotive traction motor market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive 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 automotive traction motor market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive traction motor market consists of sales of induction motors, interior permanent magnet synchronous motors, linear induction motors, and axial flux 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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