The global EV traction motors market is anticipated to reach US$ 6.4 Bn by 2021-end, as per a recently published Fact.MR report. Long-term prospects appear even more lucrative, registering an astounding 25% CAGR from 2021-2031. By the end of the forecast period, the market will likely be valued at US$ 60 Bn. Tightening emission standards for efficient pollution controls and promotion of e-mobility are key factors driving market demand. Historical analysis concludes that the market registered a CAGR of 10% from 2016 to 2020. Prospects remained bright, even amidst the novel coronavirus pandemic, given the increasing number of EV registrations throughout FY 2020-21. An increase of over 40% in registration was experienced compared to 2019.
Governmental programmes to incentivize and subsidize electric car usage are a critical factor driving the growth of the EV traction motor industry. Majority of these incentives and subsidies include tax exemptions, tax credits, concessions, and other perks, all of which play an important role in influencing client decision-making. According to the analysis, the EV traction motor industry is anticipated to profit from these incentives in terms of revenue creation.
Key Takeaways from the Market Study
- Global EV traction motor market to surge 9x from 2021 to 2031
- Plug-in hybrid vehicles to register maximum demand, contributing 45% of revenue
- EV traction motors with high voltage ratings to surpass US$ 4 Bn in revenue by 2031
- U.S. is predicted to grow at a CAGR of more than 30% over the projection period.
- China to be the fastest growing market, clocking a whopping 33% value CAGR
“As countries race towards achieving carbon neutrality targets by curbing automotive emissions, e-mobility is acquiring significant popularity, which is bound to broaden prospects for EV traction motor manufacturers,” says a Fact.MR analyst.
Prominent EV traction motor manufacturers are focusing on introducing new product lines for electric and hybrid electric motor vehicles, along with outright and partial acquisition of small and medium-scale players. Additionally, several players are forging stake purchase and collaboration agreements with prominent automotive companies to expand their global presence.
Here are some related developments:
In July 2021, YASA Motors Ltd., a pioneer in next-generation electric drive technology, was acquired by automotive giant Mercedes-Benz. Under the terms of this acquisition, YASA will operate a wholly-owned subsidiary of Mercedes-Benz, developing high performance e-motors
ABB Limited, a multinational corporation that specializes in power, robotics, automation technologies, and heavy electrical equipment, purchased KEYMILE Group’s mission-0critical communication business unit in 2017. This acquisition aims to broaden ABB’s range of communication networks. This will also aid in the expansion of ABB’s revenue-generating prospects