Global Electric Traction Motor Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

In this report, the Electric Traction Motor Market has been segmented by Vehicle Type, Type, Power Rating, Application, and Geography.

Electric Traction Motor Market, Segmentation by Vehicle Type

The Electric Traction Motor Market has been segmented by Vehicle Type into Plug-In Hybrid Electric Vehicles, Mild Hybrid Vehicles, and Full Hybrid Vehicles

Plug-In Hybrid Electric Vehicles (PHEVs)
The PHEV segment represents approximately 35% of the electric traction motor market, showing steady growth as consumers seek vehicles with extended electric-only range capabilities. These vehicles typically offer 15-50 miles of pure electric propulsion before switching to hybrid mode, appealing to eco-conscious drivers. Major automakers are investing heavily in this technology, with market share projected to grow by 8% annually through 2025.

Mild Hybrid Vehicles (MHEVs)
Accounting for nearly 40% of market revenue, MHEVs dominate the electric traction motor space due to their cost-effective implementation in existing vehicle platforms. Unlike full hybrids, mild hybrids primarily use their electric motors for assistance during acceleration and to enable start-stop functionality. This segment benefits from wider adoption across mass-market vehicles, with particularly strong penetration in European markets where they constitute about 45% of hybrid sales.

Full Hybrid Vehicles (FHEVs)
The FHEV segment captures roughly 25% of the electric traction motor market, offering the advantage of pure electric driving at low speeds without range anxiety. These systems typically deliver 20-30% better fuel efficiency compared to conventional vehicles, driving their popularity in urban environments. While growth has slowed slightly with the rise of PHEVs, FHEVs maintain a loyal customer base and continue to see 5-7% annual growth in emerging markets.

Electric Traction Motor Market, Segmentation by Type

The Electric Traction Motor Market has been segmented by Type into AC Electric Traction Motor and DC Electric Traction Motor

AC Electric Traction Motor
The AC motor segment dominates the electric traction motor market, holding over 60% of the total share due to its higher efficiency and lower maintenance requirements. These motors are widely adopted in modern electric and hybrid vehicles, offering superior performance in terms of torque control and regenerative braking. With advancements in power electronics, AC motors are expected to grow at a CAGR of 7-9% through 2030, driven by increasing demand for energy-efficient propulsion systems.

DC Electric Traction Motor
Though gradually being phased out in favor of AC systems, DC motors still account for nearly 30% of the market, primarily in legacy and cost-sensitive applications. Their simpler control mechanisms make them suitable for low-speed electric vehicles and industrial traction systems. However, declining by approximately 4% annually, this segment faces challenges due to higher maintenance needs and lower efficiency compared to AC alternatives.

Electric Traction Motor Market, Segmentation by Power Rating

The Electric Traction Motor Market has been segmented by Power Rating into Less Than 200 KW, 200-400 Kw, and More Than 400 Kw

Less Than 200 KW
The sub-200 KW segment holds around 45% of the electric traction motor market, primarily serving light-duty EVs and urban commuter vehicles. These compact motors are favored for their cost-effectiveness and suitability in smaller passenger cars, with adoption growing at 6-8% annually due to rising demand for affordable electric mobility. Their lower energy consumption aligns with city driving needs, making them a key focus for automakers in emerging markets.

200-400 KW
Mid-range motors (200-400 KW) capture nearly 35% of market share, powering commercial EVs like buses and medium-duty trucks. This segment thrives on balanced performance and efficiency, with growth propelled by global electrification of public transport. Projections indicate a 9-11% CAGR through 2028, driven by stricter emissions regulations and fleet electrification initiatives worldwide.

More Than 400 KW
High-power traction motors (400+ KW) represent the premium segment, accounting for 20% of the market but growing rapidly at 12-15% annually. These motors are critical for heavy-duty applications, including mining trucks, long-haul electric semis, and high-performance EVs. While niche, this segment benefits from advancing battery tech and infrastructure for large-scale electrification in logistics and industrial sectors.

Electric Traction Motor Market, Segmentation by Application

The Electric Traction Motor Market has been segmented by Application into Railways, Electric Vehicles, Elevators, Conveyors, Industrial Machinery, and Others

Railways
The railway segment accounts for approximately 25% of the electric traction motor market, driven by global investments in electrified rail infrastructure. These high-torque motors are essential for metro systems, high-speed trains, and freight locomotives, with demand growing at 7-9% annually as governments prioritize sustainable mass transit solutions.

Electric Vehicles
Dominating with over 40% market share, the EV segment is the fastest-growing application, expanding at 15-18% CAGR. Traction motors here range from 80KW for compact cars to 500+KW for performance models, with innovations in motor efficiency directly impacting vehicle range and adoption rates.

Elevators
Representing 12% of the market, elevator traction motors prioritize smooth acceleration and energy regeneration. The segment is growing steadily at 5-7% annually, fueled by urbanization and smart building construction requiring efficient vertical transportation solutions.

Conveyors
The conveyor systems segment holds 8% market share, utilizing traction motors for material handling in warehouses, airports, and manufacturing. Automation trends are driving 6-8% growth in this niche but essential application.

Industrial Machinery
Accounting for 10% of demand, these motors power heavy-duty equipment like cranes and extruders. The segment is evolving with IIoT integration, projecting 4-6% growth as factories modernize their operations.

Others
The remaining 5% covers diverse applications including marine propulsion and agricultural equipment. While smaller, these niches present opportunities for specialized motor designs in emerging electrification areas.

Electric Traction Motor Market, Segmentation by Geography

In this report, the Electric Traction Motor Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Electric Traction Motor Market Share (%), by Geographical Region

North America
The North American market holds approximately 22% of global electric traction motor demand, driven by EV adoption in the U.S. and Canada. With major automakers investing $50B+ in electrification, the region shows 12% YoY growth, particularly in commercial vehicle applications. Government incentives and charging infrastructure expansion are accelerating market penetration.

Europe
Europe accounts for 28% of the market, led by Germany's automotive industry and Scandinavia's EV adoption rates. Strict emission regulations (Euro 7 standards) and 35% CAGR in BEV sales are propelling demand. The region dominates railway electrification projects, representing 40% of global rail traction motor investments.

Asia Pacific
As the largest market (holding 38% share), Asia Pacific grows at 18% annually, fueled by China's EV dominance (70% regional market) and India's emerging electrification programs. The region manufactures 65% of global traction motors, with Japan and South Korea leading technical innovation in motor efficiency.

Middle East & Africa
This high-growth region (projected 20% CAGR) currently holds just 5% market share but shows rapid adoption in electric buses and mining equipment$7B+ in transport electrification, while Africa sees micro-mobility solutions driving initial traction motor demand.

Latin America
With 7% market share, Latin America grows at 15% annually, led by Brazil's electric bus fleets and Mexico's EV manufacturing hub development. Government initiatives aim to triple EV adoption by 2026, with Chile and Colombia emerging as key markets for urban electrification.

This report provides an in depth analysis of various factors that impact the dynamics of Global Electric Traction Motor Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers:

• Environmental Regulations
• Technological Advancements
• Cost Reduction Initiatives

• Growing Demand for Electric Vehicles- The growing demand for electric vehicles (EVs) is driven by several key factors, with environmental concerns being at the forefront. As climate change continues to threaten ecosystems and human health, there is increasing pressure on governments and industries to reduce greenhouse gas emissions. Electric vehicles are seen as a cleaner alternative to traditional internal combustion engine (ICE) vehicles, as they produce zero tailpipe emissions and contribute significantly to reducing air pollution. This shift aligns with global environmental goals, including carbon neutrality targets and the transition to renewable energy, thus driving demand for EVs.

  Additionally, technological advancements in EVs have played a significant role in their rising popularity. Innovations in battery technology, such as lithium-ion and solid-state batteries, have led to improvements in energy density, charging speed, and overall range, addressing some of the initial concerns about the practicality of electric vehicles. Reduced production costs, along with increased economies of scale, have also made EVs more affordable for consumers. As the technology behind EVs continues to evolve, the vehicles themselves are becoming more efficient, offering consumers better performance and value.

  Government incentives and regulatory frameworks are also accelerating the adoption of electric vehicles. Many governments around the world have implemented policies such as tax credits, rebates, and subsidies to encourage consumers to switch to EVs. In parallel, stringent emissions regulations are being enforced, requiring automakers to reduce the carbon footprint of their fleets. These measures make electric vehicles more attractive, as they often come with financial incentives and long-term savings on fuel and maintenance. As a result, the demand for electric vehicles is expected to continue growing in the coming years, supported by both market forces and public policy.

Restraints:

• High Initial Costs
• Infrastructure Limitations
• Supply Chain Disruptions

• Limited Range and Battery Technology: The global electric traction motor market is witnessing significant growth, driven by the increasing adoption of electric vehicles (EVs) across the globe. However, one of the key challenges faced by this market is the limited range offered by current battery technology. While electric traction motors provide efficient propulsion for EVs, the range they can cover on a single charge is limited by the energy density and capacity of the batteries they are paired with. This limitation poses a barrier to widespread adoption, particularly for consumers who rely on their vehicles for long-distance travel or require quick refueling times.

  Despite advancements in battery technology, such as the development of lithium-ion batteries with higher energy densities, the range of electric vehicles still falls short of that offered by traditional internal combustion engine vehicles. This limitation restricts the market potential of electric traction motors, particularly in segments where long-range capability is essential, such as commercial transportation and long-haul logistics. As a result, manufacturers and researchers are intensifying efforts to enhance battery performance and develop alternative energy storage solutions to address this challenge.

  The limited range of electric vehicles also impacts the infrastructure required to support widespread adoption. The availability of charging stations and the time required for recharging are critical factors influencing consumer confidence in EVs. Additionally, concerns about "range anxiety," or the fear of running out of power before reaching a charging station, remain prevalent among potential buyers. Overcoming these challenges requires a concerted effort from stakeholders across the automotive industry, including automakers, battery manufacturers, and policymakers, to invest in research and development and infrastructure deployment. Only by addressing the limitations of current battery technology can the electric traction motor market realize its full potential and facilitate the transition towards sustainable transportation.

Opportunities:

• Government Incentives and Subsidies
• Collaborations and Partnerships
• Expansion of EV Charging Infrastructure

• Electrification of Public Transport- The global electric traction motor market has witnessed remarkable growth in recent years, largely driven by the rapid electrification of public transport systems worldwide. As governments and municipalities strive to reduce carbon emissions and combat climate change, electrification has emerged as a key strategy in the transportation sector. Electric traction motors play a pivotal role in this transition, powering a wide range of vehicles such as buses, trams, trains, and even commercial trucks. Their efficiency, reliability, and environmental friendliness make them an attractive option for modernizing public transportation fleets.

  One of the primary drivers of the electrification trend is the push for cleaner and greener urban mobility solutions. With growing concerns over air pollution and greenhouse gas emissions, cities are increasingly turning to electric vehicles (EVs) for their public transportation needs. Electric traction motors offer significant advantages over traditional internal combustion engines, including lower operating costs, reduced noise pollution, and zero tailpipe emissions. This makes them particularly well-suited for densely populated urban areas where air quality and noise levels are major concerns.

  Advancements in battery technology and charging infrastructure have accelerated the adoption of electric traction motors in public transport. The development of high-capacity batteries and fast-charging solutions has helped overcome the range limitations associated with electric vehicles, enabling them to operate reliably over longer distances and throughout the day without lengthy downtime for recharging. As a result, public transit agencies and fleet operators are increasingly investing in electric buses and trains as viable alternatives to conventional diesel or gasoline-powered vehicles.

Key players in Global Electric Traction Motor Market include:

• Abb
• American Traction Systems
• Ametek
• Robert Bosch
• Cg Power And Industrial Solutions
• Hitachi
• Hyundai Rotem
• Johnson Electric
• Kawasaki
• Lynch
• Magna
• Mitsubishi
• Nidec
• Prodrive
• Siemens
• Skoda
• Toshiba
• Traktionssysteme Austria
• Wabtec
• Eaton

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis