The growing adoption and sales of electric vehicles are accelerating industry growth, according to a recent research of the global EV traction motor market by Vantage Market Research
The growing adoption and sales of electric vehicles are accelerating industry growth, according to a recent research of the global EV traction motor market by Vantage Market Research. During the forecast period, it is also projected that expanding government initiatives and a rise in demand for high-performance motors would accelerate the growth of the global EV traction motor market. The revenue from the global EV traction motor market is anticipated to reach USD 23486.5 Million in 2028.
The Global Market revenue was valued at USD 6,127.4 Million in 2021 and is expected to grow to exhibit a Compound Annual Growth Rate (CAGR) of 25.1% during the forecast period; states Vantage Market Research, in a report, titled “EV Traction Motor Market Size, Share & Trends Analysis Report by Motor Type (Permanent Magnet Synchronous EV Traction Motors (PSM), Asynchronous EV Traction Motors (ASM), by Voltage Ratings (High Voltage EV Traction Motors, Low Voltage EV Traction Motors), by Vehicle Type (Traction Motors for Electric Vehicles, Traction Motors Plug-in Hybrid Electric Vehicles, Traction Motors Mild Hybrid Vehicles, Traction Motors Full Hybrid Vehicles), by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) – Global Industry Assessment (2016 – 2021) & Forecast (2022 – 2028)”.
Key Insights & Findings from the Report:
- According to our primary respondents’ research, the EV Traction Motor market is predicted to grow at a CAGR of roughly 25.1% during the forecast period.
- The EV Traction Motor market was estimated to be worth roughly USD 6,127.4 Million in 2021 and is expected to reach USD 23486.5 Million by 2028; based on primary research.
- Based on regions, Asia Pacific is projected to dominate the worldwide EV Traction Motor market.
Motor Market Dynamics of Drivers
Increasing Adoption of Electric Vehicles to Drive the Market Growth: The increasing adoption and sales of electric vehicles are anticipated to augment the growth of the EV Traction Motor Market during the forecast period. This is attributable to the increasing carbon emissions and global warming. According to International Energy Agency (IEA) estimates, electric vehicle (EV) sales doubled from the previous year in 2021, reaching a new high of 6.6 million. In 2021, nearly 10% of global car sales will be electric, almost four times the market share in 2019. This increased the total number of electric vehicles on the world’s roads to approximately 16.5 million, more than tripling the number in 2018.
Global electric car sales have continued to rise strongly in 2022, with 2 million sold in the first quarter, up by 75% from the same period in 2021. This shows the increasing adoption and sales of electric vehicles around the world. Further, the traction motor is required to have an excellent torque characteristic which influences the vehicle’s performance, be efficient to make the car run long, be compact, quiet, and light, along with superior reliability while the demand for the motors’ quality is also increasing rapidly. Thus, as electric vehicle (EVs) use grows, the need for traction motors increases.
Increasing Government Initiatives to Stimulate Market Growth: The increased government initiatives and environmental changes have increased the demand for EV Traction Motor Markets. As the concern about automobile emissions is on the rise, governments worldwide are implementing various programs to reduce them. The imposition of stringent emission regulation standards and monetary support in the form of budgetary allocations and stimuli measures are the impetus to prominent manufacturers.
For instance, Canada pushed the federal government’s target for 100% zero-emission Leyland DAF Vans (LDV) sales from 2040 to 2035 last year. Furthermore, government spending through purchase subsidies and tax breaks doubled to nearly USD 30 billion. The resulting government share of total spending on electric vehicles remained at 10%, down from around 20% five years ago. The Chinese government has reduced the number of conventional vehicle licenses available to increase EV demand. Also, several regional EV Traction Motor Market manufacturers have established themselves in the Chinese market. BYD Auto Co. Ltd. has the largest market share among them. In October 2021, the company announced a capital raise of up to $1.8 billion, which is expected to improve prospects for EV Traction Motor Market production.