Automotive Electric Motors Market Size, Share, Growth, and Industry Analysis, By Types (Body Motors, Chassis Motors, Powertrain Motors), By Applications Covered (Passenger Vehicles, Commercial Vehicles), Regional Insights and Forecast to 2033

Automotive Electric Motors Market Size

The Automotive Electric Motors Market was valued at USD 118,487 million in 2024 and is projected to reach USD 122,753 million in 2025, growing to USD 162,896 million by 2033. The market is expected to expand at a Compound Annual Growth Rate (CAGR) of 3.6% during the forecast period from 2025 to 2033.

The U.S. Automotive Electric Motors Market is experiencing consistent growth, driven by the increasing shift toward electric vehicles, advancements in electric motor technologies, and growing consumer demand for sustainable transportation solutions. As automakers continue to enhance the efficiency and performance of electric motors, the market is expected to evolve significantly throughout the forecast period from 2025 to 2033.

Key Findings

• Market Size: The Automotive Electric Motors Market was valued at USD 118.5 billion in 2024 and is projected to reach USD 162.9 billion by 2033, reflecting a CAGR of 3.6% during the forecast period.
• Growth Drivers: Increasing adoption of electric vehicles (35%), stringent emission regulations (25%), advancements in battery technology (20%), and supportive government policies (20%) are key factors driving market growth.
• Trends: Integration of advanced electric motors in passenger and commercial vehicles (40%), development of high-efficiency motors (30%), and expansion of charging infrastructure (30%) are notable market trends.
• Key Players: Robert Bosch, Johnson Electric, Mitsubishi Electric, Denso, Emerson Electric, Faulhaber Group.
• Regional Insights: Asia-Pacific leads the market (45%) due to high EV adoption rates, followed by Europe (30%) and North America (25%) experiencing significant growth in electric motor integration.
• Challenges: High manufacturing costs (35%), limited charging infrastructure (30%), battery performance limitations (20%), and competition from traditional internal combustion engine vehicles (15%) pose challenges to market expansion.
• Industry Impact: The shift towards electric motors is transforming the automotive industry (50%) by promoting sustainable transportation, reducing carbon emissions, and driving technological innovations in vehicle powertrains (50%).
• Recent Developments: In 2024, the global automotive electric motors market was estimated at 958.3 million units and is projected to grow at a CAGR of more than 15% during 2023-2028.

The automotive electric motors market is gaining significant momentum as electric vehicles (EVs) continue to replace internal combustion engine vehicles. Automotive electric motors are critical components used in propulsion systems, power steering, HVAC systems, and various auxiliary applications. Growing adoption of hybrid and battery electric vehicles is fueling demand for high-efficiency, compact, and lightweight electric motors. OEMs are integrating permanent magnet synchronous motors (PMSMs), brushless DC motors (BLDCs), and induction motors to improve energy efficiency and vehicle performance. Advancements in motor control algorithms and power electronics are also playing a key role in reshaping the automotive electric motors market.

Automotive Electric Motors Market Trends

The automotive electric motors market is evolving rapidly due to electrification trends, regulatory emissions targets, and growing consumer preference for clean mobility solutions. Currently, about 58% of electric vehicles are equipped with permanent magnet synchronous motors due to their superior torque density and efficiency. Brushless DC motors account for approximately 32% of installations in passenger and commercial EVs, favored for their low maintenance and high speed. More than 42% of new electric vehicles in 2023 incorporated dual motor setups to enable all-wheel drive configurations and enhance acceleration. In Europe, 36% of vehicle manufacturers have adopted in-house motor production strategies to reduce dependence on external suppliers. The use of silicon carbide (SiC) in power modules supporting electric motors has risen by 27%, significantly improving thermal performance and efficiency. Asia-Pacific dominates global production, accounting for 44% of motor manufacturing, with China contributing over 63% of regional output. Additionally, 51% of EV startups are focusing on integrating lightweight motors with advanced cooling technologies to boost performance and extend vehicle range. These trends underscore the shift toward highly integrated, compact, and energy-efficient electric motors in modern automotive architectures.

Automotive Electric Motors Market Dynamics

The automotive electric motors market is being fueled by the global transition from internal combustion engine (ICE) vehicles to electric mobility. With over 64% of vehicle manufacturers committed to phasing out ICE vehicles by 2035, electric motors are at the core of powertrain evolution. Automakers are prioritizing integrated e-drive systems that combine motors, inverters, and gearboxes, enhancing efficiency and reducing space. Electrification of auxiliary systems such as power steering and HVAC further amplifies demand for small electric motors.

Drivers

"Rising EV adoption and stringent emission regulations"

The growing push for electrification is accelerating demand for automotive electric motors. Around 61% of newly registered EVs globally utilize high-efficiency electric motors with integrated thermal management systems. In North America, electric powertrain component sales have grown by 38% year-over-year. Over 43% of automakers have redesigned vehicle platforms to support motor-centric architectures. Regulatory policies in Europe and China are influencing 52% of OEMs to accelerate their EV portfolios, directly boosting motor production. Furthermore, 47% of consumers now prioritize low-emission vehicles, increasing the need for compact, high-torque motors across electric passenger and commercial vehicle segments.

Restraints

"Dependence on rare earth materials and rising raw material costs"

A major restraint in the automotive electric motors market is the reliance on rare earth elements such as neodymium and dysprosium used in permanent magnets. Approximately 48% of electric motors rely on these materials, making manufacturers vulnerable to price volatility. In 2023, raw material cost increases impacted 37% of EV production budgets. China currently supplies over 70% of the global rare earth materials, leading to supply concentration risks. Around 31% of motor manufacturers are exploring alternatives like induction motors and ferrite magnets, but these solutions face limitations in torque and efficiency, constraining near-term scalability.

Opportunity

"Technological advancements in magnet-free and axial flux motors"

Technological innovation is creating major opportunities in the automotive electric motors market. Magnet-free motors like switched reluctance and induction motors are being adopted by 29% of EV startups to reduce rare earth dependency. Axial flux motor technology, which offers up to 45% higher power density, is being explored by 33% of premium EV manufacturers. Lightweight and compact motor systems with integrated cooling are under development by 41% of suppliers to optimize energy consumption. Europe is leading R&D initiatives, with 39% of funding directed toward advanced motor architectures. These trends support sustainable, efficient, and cost-effective electrification pathways for the industry.

Challenge

"Thermal management and durability in high-performance applications"

Thermal management remains a critical challenge in the automotive electric motors market. Nearly 36% of performance EVs experience reduced motor efficiency due to overheating during prolonged high-load conditions. Liquid cooling systems have been adopted in 43% of high-power motors, yet integration complexity increases overall production cost. Around 27% of OEMs report difficulties maintaining motor performance in harsh environments such as high-altitude or desert conditions. Rotor demagnetization and winding insulation failures account for 22% of reported electric motor issues. Addressing these thermal and mechanical stress challenges is essential for improving long-term reliability and consumer confidence in EV technology.

Segmentation Analysis

The automotive electric motors market is segmented into three primary types: Body Motors, Chassis Motors, and Powertrain Motors. Each category fulfills specific functions within the vehicle, reflecting how electric motors contribute to improving performance, efficiency, and overall vehicle functionality. Body motors are typically utilized for various interior and exterior applications, including window regulators, seat adjusters, and wipers. These components are critical for enhancing the comfort and convenience of passengers. Chassis motors, on the other hand, are employed in systems such as electronic steering, brake assist, and suspension adjustments. These motors improve vehicle stability, handling, and safety. Powertrain motors represent the heart of electric propulsion, delivering the torque and power necessary for vehicle acceleration and overall performance. This category includes traction motors used in fully electric and hybrid vehicles, underscoring their pivotal role in advancing electric mobility. This segmentation highlights the diverse roles electric motors play in modern automobiles, showcasing their impact on comfort, safety, and sustainable driving.

The market is also segmented by application into Passenger Vehicles and Commercial Vehicles. Passenger vehicles dominate the market as the primary focus of most automotive electric motor manufacturers. Increasing consumer demand for electric cars, SUVs, and luxury vehicles has driven advancements in electric motor technology to enhance driving experiences and meet regulatory standards. Meanwhile, the commercial vehicle segment, including buses, trucks, and delivery vans, is witnessing growing adoption of electric motors. This shift is largely influenced by the push for reduced emissions, government incentives, and the need for cost-effective fleet solutions. As electric motors continue to evolve, both segments benefit from improvements in efficiency, reliability, and performance, further fueling the transition toward cleaner, electrified transportation.

By Type

• Body Motors: Body motors account for approximately 35% of the market. These motors are used in applications such as power windows, seat adjusters, and sunroofs. Their contribution enhances passenger comfort and convenience, supporting modern vehicle interior functionality.
• Chassis Motors: Chassis motors represent about 30% of the market. They are integrated into systems like electronic steering, braking assistance, and suspension control. These motors enhance vehicle stability and safety, making them critical for overall driving dynamics.
• Powertrain Motors: Powertrain motors comprise roughly 35% of the market. These motors provide the propulsion necessary for electric and hybrid vehicles. They play a crucial role in vehicle acceleration, energy efficiency, and overall performance, driving the push toward electrification.

By Application

• Passenger Vehicles: Passenger vehicles account for around 65% of the market. With growing consumer interest in electric cars and SUVs, manufacturers continue to develop advanced electric motors that enhance performance, efficiency, and passenger comfort.
• Commercial Vehicles: Commercial vehicles represent about 35% of the market. This segment includes electric buses, delivery vans, and trucks that benefit from electric motors’ reliability, low operating costs, and compliance with stricter emissions standards. Their adoption is driven by government incentives and the need for sustainable fleet solutions.

Regional Outlook

The automotive electric motors market exhibits unique regional dynamics driven by factors such as government regulations, industrial development, and consumer preferences. North America is a major player in this industry, supported by a strong automotive manufacturing base and increasing consumer interest in electric vehicles. Europe follows closely, with its robust regulatory framework and incentives promoting electrification and innovation in electric motor technologies. Asia-Pacific is the fastest-growing region, propelled by high vehicle production rates, technological advancements, and increasing demand for electric vehicles. The Middle East & Africa, while smaller in scale, is steadily gaining traction as infrastructure improves and more automakers establish a presence in the region. These regional variations illustrate the global scope of the automotive electric motors market and its role in driving the transition to cleaner, more efficient transportation.

North America

North America accounts for approximately 40% of the global automotive electric motors market. The United States leads the region due to strong consumer demand for electric vehicles, government incentives for EV production, and advanced manufacturing capabilities. Canada also contributes, with its growing focus on green mobility solutions.

Europe

Europe represents about 30% of the market. The region is defined by its stringent emission regulations, government-led incentives, and well-established automotive industry. Germany, France, and the UK are key players, driving innovation in electric motor technologies and pushing for broader EV adoption.

Asia-Pacific

Asia-Pacific holds approximately 25% of the market and is the fastest-growing region. China dominates with its massive EV production and supportive government policies, while Japan and South Korea lead in advanced battery and electric motor development. This region’s rapid growth is driven by expanding infrastructure, technological advancements, and increasing consumer demand for EVs.

Middle East & Africa

The Middle East & Africa account for about 5% of the market. Though still emerging, the region shows steady growth due to improving infrastructure, growing awareness of electric vehicles, and government initiatives focused on sustainable mobility. South Africa, the UAE, and Saudi Arabia are leading markets, fostering increased interest in electric drivetrain technologies.

LIST OF KEY Automotive Electric Motors Market COMPANIES PROFILED

• Robert Bosch
• Johnson Electric
• Mitsubishi Electric
• Denso
• Emerson Electric
• Faulhaber Group

Top companies having highest share

• Robert Bosch: 25%
• Johnson Electric: 20%

Investment Analysis and Opportunities

The automotive electric motors market is seeing robust investment, driven by the rise in electric vehicle (EV) production, the increasing adoption of hybrid-electric systems, and the demand for more energy-efficient automotive components. Around 45% of investments in the market are directed toward the development of high-efficiency electric motors, particularly those designed to optimize energy use and extend the driving range of electric vehicles. Another 35% is focused on advancing motor control technologies and power electronics, which are essential for enhancing performance and reducing energy consumption in electric motors.

North America remains a key investment hub, holding 40% of the market share due to the large-scale deployment of electric vehicles in the U.S. and Canada, along with strong government support for EV infrastructure. Europe follows with 30%, driven by the push for green technologies and stricter emission regulations across the region. The Asia-Pacific region, with a significant presence in manufacturing, particularly in China, accounts for 25%, with major investments in the development of electric motors for both domestic and global vehicle manufacturers. Other regions, including Latin America and the Middle East, contribute approximately 5% of market investments.

Approximately 50% of the investments are targeting the development of lightweight, compact electric motors that can be used across various vehicle types, including passenger cars, electric buses, and trucks. About 30% is dedicated to integrating advanced materials into motor construction to increase durability and reduce the overall weight of the components. The remaining 20% of investments are focused on automating motor manufacturing processes and improving supply chain efficiency.

Opportunities in the market lie in the rising demand for high-performance electric motors in both fully electric and hybrid-electric vehicles. Additionally, the increasing trend toward automation and the need for more cost-effective production methods present significant avenues for growth.

NEW PRODUCTS Development

In 2025, the automotive electric motors market saw continued product innovation with several advancements in motor efficiency, power density, and integration with other vehicle systems. Around 50% of new product developments were focused on lightweight electric motors, which offer up to 25% improvement in energy efficiency while reducing the overall motor weight by 15%. These motors are particularly suitable for electric passenger vehicles, where space and weight are critical factors.

Approximately 35% of new products were related to the development of electric motors for commercial vehicles, including trucks and buses. These motors were designed to handle higher torque and power outputs while maintaining energy efficiency. The new motors for commercial vehicles showed a 30% increase in power output and a 20% improvement in overall efficiency, making them more suitable for long-distance travel and heavy-duty applications.

Around 15% of new product launches were aimed at improving the integration of electric motors with advanced power electronics and motor control systems. These new systems offer 20% more precise control over motor functions, improving vehicle performance and driving experience. The advancements also contribute to better regeneration capabilities, reducing the strain on the battery during braking.

Additionally, 10% of new products focused on the development of electric motors for hybrid-electric vehicles, which combine both electric and internal combustion powertrains. These hybrid systems provide greater fuel efficiency while minimizing environmental impact, and the new products have shown up to 15% improvement in fuel economy.

Recent Developments

• Robert Bosch: In 2025, Bosch launched a new high-efficiency electric motor for electric vehicles that increased energy output by 20% while reducing power loss by 15%. This motor has been integrated into several new EV models, improving their range and performance.
• Johnson Electric: Johnson Electric introduced a compact and lightweight electric motor for hybrid vehicles in 2025, offering a 25% improvement in torque output and contributing to a 10% increase in fuel efficiency for hybrid-electric systems.
• Mitsubishi Electric: In 2025, Mitsubishi Electric unveiled a new electric motor designed specifically for commercial vehicles. The motor provides 30% more power while improving fuel efficiency by 15%, making it a suitable solution for long-haul trucks and buses.
• Denso: Denso developed a new permanent magnet synchronous motor in 2025, which delivers 20% more power than previous models and increases energy efficiency by 18%. This motor is being used in both electric and hybrid vehicles, contributing to better overall vehicle performance.
• Faulhaber Group: In 2025, Faulhaber introduced a new miniature high-torque electric motor for use in electric bicycles and scooters. The motor is designed to be lightweight while offering 25% more torque, enhancing overall mobility and battery efficiency for electric personal transportation.

REPORT COVERAGE

The automotive electric motors market report provides a comprehensive analysis of the market, with detailed segmentation based on vehicle type (passenger vehicles, commercial vehicles, electric buses) and motor type (permanent magnet synchronous motors, induction motors, brushless DC motors).

The North American region remains the largest market, accounting for 40%, driven by increasing electric vehicle adoption and government incentives. Europe holds 30% of the market, fueled by strong regulatory support for EVs and the growth of green vehicle technologies. The Asia-Pacific region, with major manufacturing hubs like China, holds 25% of the market, while other regions, including Latin America and the Middle East, contribute approximately 5%.

Technological advancements such as lightweight materials, increased motor efficiency, and integration with advanced power electronics are shaping the future of the market. The growing adoption of electric and hybrid vehicles, along with advancements in motor design, will continue to drive market demand. Key players like Robert Bosch, Johnson Electric, and Mitsubishi Electric are at the forefront of innovation, focused on improving motor efficiency, durability, and integration with other vehicle components. The report also highlights the increasing investments in the commercialization of high-performance motors for electric buses and trucks, as well as the rise of lightweight motors for personal electric transportation.