Electric Traction Motor Market Outlook from 2024 to 2034
The global electric traction motor market is expected to rise from USD 18.5 billion in 2024 to USD 91.1 billion by 2034. From 2024 to 2034, the market is projected to surge at 17.3% CAGR.
| Attributes |
Key Insights |
| Estimated Global Electric Traction Motor Market Size (2024E) |
USD 18.5 billion |
| Projected Electric Traction Motor Market Value (2034F) |
USD 91.1 billion |
| Value-based CAGR (2024 to 2034) |
17.3% |
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Key Drivers in the Electric Traction Motor Market
- Rising need for high-performance electric traction motors, encouraging laws & subsidies for electric cars, and growth in railway electrification projects are expected to drive the market.
- Growing demand for sustainable transportation and electric vehicles is significantly propelling the electric traction motor market.
- The high cost of fossil fuels and subsidies offered by governments to purchase electric vehicles are the key factors fueling market expansion.
- Technological improvement achieves significant cost savings and is predicted to lower the price of electric vehicles during the forecast period, augmenting the electric traction motor market growth.
- The market for electric traction motors is anticipated to rise through 2034 due to the collaboration of private organizations and different research & development facilities.
Semi-annual Market Update
| Particular |
Value CAGR |
| H1 (2023 to 2033) |
17.8% |
| H2 (2023 to 2033) |
16.7% |
| H1 (2024 to 2034) |
17.9% |
| H2 (2024 to 2034) |
16.8% |
2019 to 2023 Electric Traction Motor Market Growth Outlook Vs. 2024 to 2034
The global electric traction motor sales grew at a CAGR of 20.9% from 2019 to 2023. The growth of electric traction motors from 2019 to 2023 can be attributed to a convergence of factors:
- Due to developments in electric motor technology, including efficiency, power output, and dependability, the electrification of trains, metros, and other mass transit systems became commonplace.
- Since electric traction motors perform better than mechanical or hydraulic propulsion systems, they have become vital parts of electric locomotives, subway trains, and streetcars.
- In several railway and transit applications, alternating current (AC) traction motors replaced direct current (DC) traction motors.
- Due to its several benefits, including improved torque and speed control, regenerative braking, and increased efficiency, AC motors were widely used in electrified transportation systems.
- Concerns over energy security, environmental pollution, and climate change propelled a resurgence of interest in electric cars (EVs).
- Electric traction motors have become essential parts of contemporary electric automobiles, buses, and commercial trucks, allowing them to outperform internal combustion engine vehicles in terms of performance, economy, and sustainability.
- Electric motor technology has continuously advanced, with manufacturing techniques, materials, control systems, and motor design improvements. As a result of these advancements, electric traction motors' power density, energy economy, and dependability have all grown, making them more appropriate for several uses in the industrial, renewable energy, and transportation sectors.
Key Electric Traction Motor Market Trends
- Innovation in the market is propelled by ongoing developments in electric motor technology, which is improving the efficiency, power density, and dependability of electric traction motors.
- Due to its sizable automotive & transportation industries, government incentives for the use of electric vehicles, and a robust manufacturing base for electric motors & components, the United States and China are emerging as leading players in the market.
- The commercial vehicle industry is adopting electric traction motors due to the growing interest in cutting carbon emissions and operating costs and complying with tightening regulations.
- The market for electric traction motors is significantly influenced by the growing use of electric cars, which includes hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs).
Restraining Factors in the Electric Traction Motor Market
- The upfront costs of electric vehicles (EVs) and electric traction motors are the key obstacles to their broad adoption compared to conventional internal combustion engine vehicles.
- The rising consumer hassle of finding charging points is set to impact the market for electric traction motors.
- Despite advancements in battery technology, electric vehicles still have range restrictions compared to traditional cars with internal combustion engines.
- Customers are concerned about range anxiety or the dread of running out of battery power before reaching a charging station, especially when traveling long distances or in areas with poor infrastructure.
Country-wise Insights
The table below shows the estimated growth rates of the top five countries. The United Kingdom, China, and Japan are set to record high CAGRs of 18.4%, 17.9%, and 19.0%, respectively, through 2034.
| Countries |
Projected CAGR ( 2024 to 2034) |
| United States |
17.6% |
| United Kingdom |
18.4% |
| China |
17.9% |
| South Korea |
15.0% |
| Japan |
19.0% |
The table below explains the size of the electric traction motor market in the five leading countries for 2034. Among them, the United States is anticipated to remain at the forefront by reaching a valuation of USD 16.2 billion. Japan is expected to reach around USD 10.1 billion by 2034, less than China's USD 14.8 billion.
| Countries |
Market Value (2034) |
| United States |
USD 16.2 billion |
| United Kingdom |
USD 3.8 billion |
| China |
USD 14.8 billion |
| South Korea |
USD 4.3 billion |
| Japan |
USD 10.1 billion |
Rising Research and Development Activities to Boost Demand in the United States
The United States electric traction motor industry is poised to exhibit a CAGR of 17.6% during the assessment period. The key factors supporting the market growth are:
- The federal and state governments of the United States are taking several measures to encourage the use of electric vehicles (EVs) and support the development of electric traction motors. These programs include electric car technology research & development support, tax breaks, grants, and rebates.
- With several significant automakers declaring intentions to boost the manufacturing of electric vehicles, the United States automobile sector is electrifying. This transition toward electric propulsion systems is increasing the demand for electric traction motors in the country.
Growing Awareness of Environmental Issues Propelling Demand in China
Electric traction motor demand in China is anticipated to rise at a steady CAGR of 17.9% during the forecast period. This is attributable to a combination of factors, including:
- Strict environmental rules that aim to lower greenhouse gas emissions and improve fuel efficiency are incentivizing automakers to invest in electric car technology. Electric traction motors make compliance with regulations and vehicle electrification possible.
- China is witnessing a surging demand for electric vehicles due to growing consumer awareness of environmental issues, rising fuel prices, and concerns about energy security.
- Electric traction motor sales are predicted to rise as consumers look for more environmentally friendly modes of transportation in China.
Growing Electrification of Public Transportation to Surge Sales in Japan
Japan's electric traction motor market is expected to reach a valuation of around USD 10.1 billion by 2034. Top factors supporting the market expansion in the country include:
- Electric traction motors are in high demand due to the electrification of public transportation, especially for electric trains and buses in Japan.
- Automakers, suppliers, and technology companies are collaborating to expedite the development and uptake of electric vehicles & electric traction motors in Japan.
Booming Automotive Industry in the United Kingdom Upscaling the Market
The demand for electric traction motors is increasing in the United Kingdom, with a projected CAGR of 18.4% through 2034. Emerging patterns in the United Kingdom market are as follows:
- Expanding charging networks is expected to reduce range anxiety and ease consumer shift to electric vehicles, further increasing the demand for electric traction motors in the United Kingdom.
Technological Innovations in South Traction Paving the Way for Market Success
The electric traction motor market is projected to increase in South Korea at a CAGR of 15.0% through 2034. The factors driving the market growth are as follows:
- Continuous developments in electric motor technology, including gains in cost-effectiveness, efficiency, and power density, are set to propel innovation in the electric traction motor market.
- Manufacturers are spending money on research & development to create next-generation electric traction motors that are expected to satisfy changing demands from the automobile sector in South Korea.
Category-wise Insights
The section below shows the AC segment dominating by type. It is predicted to surge at 17.0% CAGR through 2034. Based on the power rating, the below 200 KW segment is anticipated to generate a dominant share through 2024. It is set to expand at a CAGR of 16.7% through 2034.
| Segment |
CAGR (2024 to 2034) |
| AC (Type) |
17.0% |
| Below 200 KW (Power Rating) |
16.7% |
AC Segment Tops the Type Category in the Market
- Due to AC traction motors’ efficiency, rail transportation systems use less energy, and electric vehicles' driving range is increased.
- Where weight and space are important factors, AC traction motors are made to be lightweight and compact, which makes them ideal for incorporation into electric cars. Their small size makes it possible to build and package vehicles more flexibly.
- AC motors' efficiency and performance advantages frequently achieve long-term cost reductions in energy consumption and maintenance.
Below 200 kW Electric Traction Motors to Show a Surging Demand Through 2034
- Hybrid vehicles combine an internal combustion engine with an electric motor to increase fuel efficiency and lower emissions.
- With power outputs below 200 kW, the electric motor in hybrid cars helps the internal combustion engine during acceleration and low-speed driving.
- Light trucks, utility vehicles, and delivery vans are a few examples of small commercial vehicles that use electric traction motors below 200 kW.
- For short-distance and urban delivery, these vehicles need modest power outputs. Hence, traction motors in this power range work well with their propulsion systems.
- Outside the automobile industry, traction motors with a power output of below 200 kW are employed in several electric propulsion motors. These include uses where moderate power outputs are adequate for propulsion systems, such as electric propulsion for boats, ships, drones, industrial gear, and agricultural equipment.
Competitive Landscape
The electric traction motor market is highly competitive, with both well-established players and start-ups vying for market share. A wide range of sectors and applications are catered by the manufacturers' extensive product portfolio, which increases their market share and draws in a large client base looking for dependable and effective traction motors.
Electric traction motor manufacturers are focusing on several growth strategies, such as partnerships and collaborations.
For instance
- In 2024, WEG Africa announced the implementation of minimum energy performance standards (MEPS) in South Africa.
- In 2023, ABB launched the AMI 5800 NEMA modular induction motor, which is designed for demanding oil and gas industry applications.
Key Companies Profiled
- Schneider Electric SE
- The Curtiss-Wright Corporation
- Prodrive Technologies
- Toshiba Corporation
- General Electric Co.
- CG Power and Industrial Solutions Ltd.
- Aisin
- ABB, Ltd.
- Alstom SA.
- Siemens AG
Key Coverage in Electric Traction Motor Market Report
- Opportunity Analysis in Electric Traction Motor Market
- Potential of Electric Traction Motor Market in India
- Top 10 Companies in Electric Traction Motor Market
- Recent Developments in Automotive Traction Motor Market
- Electric Traction Motor Manufacturers in the United States
- Railway Traction Motor Market
- Different Types of Electric Traction Motors Available in the Market
Frequently Asked Questions
How big is the electric traction motor market?
The market is set to reach USD 18.5 billion in 2024.
What is the forecast for the electric traction motor market?
Demand for electric traction motors is slated to expand at a 17.3% CAGR by 2034.
What is the outlook for the electric traction motor market?
The market is set to reach USD 91.1 billion in 2034.
Who are the key players in the electric traction motor market?
Schneider Electric SE, The Curtiss-Wright Corporation, and Prodrive Technologies are the key players.
Which type would lead the electric traction motor market?
AC segment is estimated to hold a significant market share in 2024.
