According to Future Market Insights (FMI), the automotive in-wheel motors market is to be worth roughly USD 2.93 billion by the end of 2023. At the end of 2022, automotive in-wheel motors to be worth around USD 2.127 billion. The automotive in-wheel motors market is expected to grow at a 19.5% CAGR by 2033, with a target of USD 17.457 billion.
The automotive in-wheel motors market is driven by enhanced performance, driving range, reliability, and improved electric vehicle performance comparable to Internal Combustion Engine (ICE) vehicles. Adding power electronics into the system reduces the number of vehicle parts, complexity, and cost. The technology can be paired with regenerative braking to improve performance and extend the distance covered per charge.
Market opportunities
Automotive In-Wheel Motors Business (From 2018 to 2022):
| Market CAGR (From 2018 to 2022) | 35.4% |
|---|---|
| Market Size - 2018 | USD 633 million |
| Market Size - 2022 | USD 2.127 billion |
Automotive In-Wheel Motors Business (From 2023 to 2033):
| Market CAGR (From 2023 to 2033) | 19.5% |
|---|---|
| Market Size - 2023 | USD 2.93 billion |
| Market Size - 2033 | USD 17.457 billion |
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The automotive in-wheel motors industry witnessed significant growth between 2018 and 2022, driven by increasing demand for electric vehicles (EVs) and advancements in technology. During this period, there was a surge in the adoption of in-wheel motor systems as they offer several advantages such as improved vehicle efficiency, enhanced maneuverability, and reduced carbon emissions. As a result, major automotive manufacturers and suppliers invested heavily in research and development to improve the performance and reliability of in-wheel motors.
Looking ahead, from 2023 to 2033, automotive in-wheel motors sales are expected to experience even more remarkable growth. This projection is attributed to the anticipated expansion of the global EV market, stricter emission regulations, and continuous technological advancements. The ongoing efforts to enhance the efficiency and reduce the weight and cost of in-wheel motor systems may boost their adoption.
The automotive in-wheel motors business is poised for substantial growth in the coming decade, driven by the electrification trend and the increasing need for eco-friendly transportation solutions. This presents lucrative opportunities for both established players and new entrants in the automotive industry.
Steadily increasing driving range, reliability, and improved vehicle performance are surging growth in automotive in-wheel motors sales. Incorporating power electronics into the system helps to reduce vehicle part count, complexity, and cost.
The system can be combined with regenerative braking to improve performance and increase distance coverage per charge. Factors such as high pricing and an increase in unsprung weight in the wheel may limit the market growth for automotive in-wheel motors.
The automotive in-wheel motors market grows in direct proportion to the sales of electric vehicles. The number of electric cars sold has increased significantly. Countries with favorable government policies, incentives, and infrastructure investment account for over 90% of global EV sales.
Increased research and development costs can provide lucrative opportunities for automotive in-wheel motors manufacturers to develop technologies that improve vehicle efficiency. Various component manufacturers are concentrating on creating an efficient system for future transportation.
The growing interest in self-driving cars is expected to accelerate the development of cutting-edge technologies, such as in-wheel motors, which may provide the best-in-class driving experience.
Principal Consultant
Elevated Unsprung Weight
The in-wheel motor technology progresses unsprung weight in a vehicle that mitigates the passengers' comfort. If the vehicle's brakes are mounted on a wheel directly subjected to unsprung weight, the stress on the wheel may increase. Increased unsprung weight may limit the use of in-wheel motor technology in vehicles, stifling the automotive in-wheel motors market.
Global Vehicle Production Reduction to Curtail Market Growth
The reduction in vehicle production due to events such as the global pandemic of Covid-19, which resulted in a decrease in vehicle utilization around the world, may impede the growth of the market for automotive in-wheel motors, as demand for in-wheel motors is dependent on vehicle usage. A lack of financing or expensive financing options for manufacturers in many countries is expected to deter market growth for automotive in-wheel motors.
New opportunities may emerge as charging infrastructure improves. The availability of quick and dependable charging stations is critical to the global expansion of electric vehicles.
Electric vehicles may account for approximately 4% of all cars sold globally by 2020. This is due to the greater refueling flexibility provided by conventional cars.
A conventional vehicle can be fully refueled in minutes, whereas an electric vehicle's batteries can take more than two hours to recharge for the same driving range. When using direct current to recharge the batteries, the charging time can be reduced to less than an hour.
Many electric vehicle charging stations use alternating current from the overhead grid lines network. As a result, direct current charging should be accessible in higher-power charging stations to reduce charging time.
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High-level officials have raised environmental concerns in several countries. One of the most pressing issues confronting many governments has been the decline in conventional car sales and the shift to encourage consumers to purchase automotive in-wheel motors.
As a result, governments in several countries, including the United States, Canada, and Germany, began offering incentives, subsidies, and tax breaks to electric vehicle buyers to boost sales. Other countries have used this strategy and found it successful, as evidenced by increased sales of automotive in-wheel motors in these countries.
Other countries, especially in the Asia Pacific, intend to provide consumer incentive schemes to diversify the automotive in-wheel motors market.
2023 Value share in Global Market:
| Country | Value |
|---|---|
| United States | 20.10% |
| Germany | 6.30% |
| Japan | 6.90% |
| Australia | 0.30% |
The United States is expected to account for 90% of the North American automotive in-wheel motors market 2023. Automobiles with improved convenience, safety, and comfort are becoming more popular in developed economies like the United States. Steering-mounted controls, modern infotainment systems, telematics, central controllers, and comfort, safety, luxury, and security benefits are in high demand.
As the country's vehicle fleet grows, Germany is expected to evolve at a CAGR of 43.9% in the global automotive in-wheel motors industry. Government-mandated safety standards require installing power windows, airbags, and anti-lock brake systems (ABS) in all vehicles to benefit the automotive industry. These restrictions have been observed to be more strictly enforced in Europe.
Separate motors are required for these safety systems to operate smoothly and communicate with other car components to ensure comprehensive passenger safety. Demand for vehicular engines is expected to rise due to the mandated inclusion of safety features, resulting in market growth for automotive in-wheel motors.
China may control nearly 92% of the Asia Pacific market in 2023. Given the rapid increase in EV sales, China is a speedy-growing market. Due to various China's vast EV industry, leading players such as Protean Electric and Elaphe are already attempting to strengthen their positions.
With rising sales of electric vehicles in the region and government schemes and incentives, Asia Pacific is expected to see significant market growth.
Value CAGR (From 2023 to 2033):
| Country | Value |
|---|---|
| China | 22.10% |
| India | 23.00% |
| United Kingdom | 15.80% |
| Segment | Product Type |
|---|---|
| Segment Name | Radial Flux Motor |
| Segment Share | 79.70% |
| Segment | Technology |
|---|---|
| Segment Name | BEV |
| Segment Share | 73.00% |
The liquid-cooled category is anticipated to expand at a CAGR of 40.2% between 2023 and 2033. By cooling, the liquid-cooled automotive in-wheel motors category is expected to monopolize both the global and regional automotive in-wheel motors business. This is due to their greater cooling capacity at high temperatures and loads.
The BEV (battery electric vehicle) category is expected to grow at a 40.5% CAGR among technology segments. The development of electric car charging infrastructure in key countries such as the United States, the United Kingdom, China, and Japan is expected to boost sales of automotive in-wheel motors for battery electric vehicles.
As electric vehicle penetration grows around the world, so does the demand for rising autonomous technology. During the forecast period, radial flux motors are expected to grow at a significant 32.1% CAGR.
Axial flux motors are growing at a slower rate than radial motors. The axial motor has a significant market share in the global market, creating an approximately of USD 2245.8 million incremental opportunity by 2033.
The passenger car segment is expected to account for 89% of the global market value. The development of the automotive in-wheel motors market for first-fit vehicles is inextricably linked to automobile production. The passenger car electric vehicle segment is expected to grow rapidly in the second half of the projection period in terms of yearly growth.
The enhanced adoption of automotive in-wheel motors in passenger cars can be blamed on factors such as efficiency improvements, high torque, potential power, and increased vehicle handling for both new and existing vehicles. Most EV manufacturers are focusing on increasing overall driving range, reducing weight, and optimizing vehicle design.
By using in- automotive in-wheel motors, EV manufacturers can ensure optimal space utilization as well as improved power efficiency. The passenger car segment would continue to be dominant. Due to the higher power requirements, commercial vehicles have a higher penetration of automotive in-wheel motors.
The market is cutthroat and highly fragmented. This landscape has formed due to the growing number of new companies entering the global automotive in-wheel motors industry. As a result of this scenario, new entrants into the global automotive in-wheel motors market may require assistance to enter throughout the forecast period.
To avoid this situation, new players rely on techniques such as partnerships, associations, affiliations, mergers, and collaborations. These strategies can help new businesses obtain the necessary automotive in-wheel motors industry exposure to better understand the worldwide dynamics of the automotive in-wheel motors business. This allows new enterprises gain financial viability in the worldwide automotive in-wheel motors industry throughout their stay.
How is the Startup Ecosystem in the Automotive In-wheel Motors Market?
Prominent Automotive In-Wheel Motors Manufacturers
| Company | Protean Electric |
|---|---|
| Strategy | Protean Electric Charges Ahead with USD 40 Million Funding and New Manufacturing Alliance |
| Details | Protean Electric, a company involved in electric vehicle technology, has obtained USD 40 million in new equity financing and has partnered with a new manufacturing licensee. This financing and partnership may have significant implications for the company's growth, innovation, and manufacturing capabilities. |
| Company | Protean Electric |
|---|---|
| Strategy | Bedeo Expands EV Portfolio through Acquisition of Protean from Evergrande |
| Details | Bedeo, a United Kingdom-based e-mobility company, announced on Thursday that it has acquired Protean Electric from China Evergrande Group's (3333.HK) automotive unit. Protean is being purchased by Bedeo from National Electric Vehicle Sweden, a subsidiary of Evergrande New Energy Vehicle Group. |
| Company | Elaphe |
|---|---|
| Strategy | Aptera and Elaphe Forge Strategic Partnership for Cutting-Edge In-Wheel Powertrains |
| Details | Aptera Motors has announced a multi-million euro deal with Elaphe to source distributed drive platform technologies. The agreement represents yet another step ahead in Aptera's quest to enter series production in record time. |
| Company | Elaphe |
|---|---|
| Strategy | HFM and Elaphe Propulsion Technologies Join Forces for Cutting-Edge Solutions |
| Details | HFM, the company that offers the only street-legal self-driving shuttle vehicle, is collaborating with Elaphe Propulsion Technologies Ltd., a leader in the field of electric in-wheel motors. HFM's breakthrough Motionboard® intelligent vehicle platform may be powered by Elaphe in-wheel motors. |
The automotive in-wheel motors market is worth USD 2.93 billion in 2023.
The market is expected to thrive at a 19.5% CAGR through 2033.
The liquid-cooled segment is leading the market with a 40.2% CAGR through 2033.
The BEV category may rise at a 40.5% CAGR through 2033.
India market is expected to rise at a 23% CAGR through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Axial Flux Motor 5.2. Radial Flux Motor 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology 6.1. BEV 6.2. HEV 6.3. PHEV 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 7.1. Passenger Car 7.2. Commercial Vehicle 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Cooling 8.1. Air 8.2. Liquid 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Protean Electric 19.2. Elaphe 19.3. ZIEHL-ABEGG 19.4. Printed Motor Works 19.5. NTN 19.6. TM4 19.7. HEINZMANN GmbH & Co. KG 19.8. YASA Limited 19.9. Ecomove GmbH 19.10. Lordstown Motors 20. Assumptions & Acronyms Used 21. Research Methodology
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Automotive In-Wheel Motors Market
