• In June 2021, e-Traction partnered with ViriCti, to help accelerate the adoption of electric buses by using the state-of-art The Motion 2.0 drivetrain.

• In February 2021, Tajima Motor Corporation Idemitsu Kosan partnered with Corporation to build and market mini electric vehicles that can travel as fast as 60 kilometers per hour.

• In January 2021, National Electric Vehicle Sweden (NEVS), a subsidiary of Evergrande Health, has acquired Protean Electric, a leading developer of in-wheel motor technology. The acquisition is part of Evergrande’s strategy to become a major player-in the global electric vehicle (EV) industry.

• In May 2019, Elaphe Ltd. Has announced they have begun low-volume series manufacturing of the world’s highest performance direct drive, gearless in-wheel powertrain system, called the L1500.

• In September 2018, Printed Motor Works, resigned and enhanced the specification of its compact XR15 series in-wheel motor range. The upgraded models have greater radial and axial load bearing capacity.

In this report, the In-Wheel Motor Market has been segmented by Propulsion, Vehicle Type, Motor Type, Cooling Type, Power Output Type, and Geography.

In-Wheel Motor Market, Segmentation by Propulsion

The In-Wheel Motor Market has been segmented by Propulsion into BEV, FCEV, HEV and PHEV.

BEV

Battery Electric Vehicles (BEVs) dominate the in-wheel motor market due to their complete reliance on electric propulsion, eliminating the need for internal combustion engines. They accounted for approximately 65% of the total market share in recent years. The integration of in-wheel motors improves energy efficiency and supports lightweight vehicle architecture, enhancing performance and range.

FCEV

Fuel Cell Electric Vehicles (FCEVs) are gaining attention for long-distance travel with minimal emissions. Although they represent a smaller share—around 5%—of the in-wheel motor market, advancements in hydrogen fuel infrastructure are expected to boost their adoption. The use of in-wheel motors aligns with FCEVs’ modular design and energy distribution efficiency.

HEV

Hybrid Electric Vehicles (HEVs) combine internal combustion engines with electric drives, offering a transitional technology toward full electrification. They currently hold nearly 20% market share. The application of in-wheel motors in HEVs enhances regenerative braking and allows for flexible vehicle control strategies.

PHEV

Plug-in Hybrid Electric Vehicles (PHEVs) blend electric-only and gasoline-powered driving. They account for approximately 10% of the market. In-wheel motors in PHEVs help maximize electric usage and improve overall drivetrain efficiency, contributing to reduced fuel consumption and emissions.

In-Wheel Motor Market, Segmentation by Vehicle Type

The In-Wheel Motor Market has been segmented by Vehicle Type into Passenger Car and Commercial Vehicle.

Passenger Car

Passenger cars are the primary adopters of in-wheel motor technology, holding a market share of over 70%. Their demand is driven by rising consumer interest in electric mobility, compact powertrain architecture, and enhanced vehicle dynamics. In-wheel motors provide improved traction, faster torque response, and more cabin space for passenger vehicles.

Commercial Vehicle

Commercial vehicles are gradually integrating in-wheel motor systems, especially in light-duty delivery vans and urban transit vehicles. They represent about 30% of the market. The focus on emission reduction and fleet electrification is encouraging adoption, with benefits including improved load distribution and simplified drivetrain layouts.

In-Wheel Motor Market, Segmentation by Motor Type

The In-Wheel Motor Market has been segmented by Motor Type into Axial Flux Motor and Radial Flux Motor.

Axial Flux Motor

Axial flux motors are gaining popularity in the in-wheel motor market due to their compact size and higher power density. These motors enhance vehicle acceleration and allow for a more lightweight and space-saving design. They currently contribute to around 40% of the total market, especially in applications prioritizing efficiency and performance.

Radial Flux Motor

Radial flux motors remain widely used due to their mature design, cost-effectiveness, and reliability in mass production. Accounting for nearly 60% of the market, these motors are preferred in traditional automotive powertrain setups. Their established manufacturing ecosystem supports continued deployment in both electric passenger and commercial vehicles.

In-Wheel Motor Market, Segmentation by Cooling Type

The In-Wheel Motor Market has been segmented by Cooling Type into Air Cooling and Liquid Cooling.

Air Cooling

Air cooling systems are widely used in in-wheel motors due to their simplicity and cost-efficiency. These systems are ideal for low to moderate power applications and are preferred in compact or lightweight vehicles. Air cooling accounts for approximately 55% of the market, benefiting from minimal maintenance and reduced system complexity.

Liquid Cooling

Liquid cooling offers superior thermal management for high-performance in-wheel motor systems, especially in demanding or high-speed applications. Although more complex, it supports better heat dissipation and longer component lifespan. Liquid cooling is gaining traction and holds around 45% market share, particularly in premium electric vehicles and commercial fleets.

In-Wheel Motor Market, Segmentation by Power Output Type

The In-Wheel Motor Market has been segmented by Power Output Type into Upto 60 KW, 60-90 KW and Above 90 KW.

Upto 60 KW

In-wheel motors with power output up to 60 KW are commonly used in small electric vehicles and urban mobility solutions. These motors offer sufficient power for short-range, low-speed applications while keeping energy consumption low. This segment represents around 50% of the market due to its suitability for cost-sensitive and lightweight vehicle designs.

60–90 KW

The 60–90 KW range caters to mid-sized electric cars and light-duty commercial vehicles, offering a balance between power and efficiency. This segment holds about 35% market share, driven by demand for better performance without compromising on energy efficiency. It is widely adopted in both passenger and fleet vehicles.

Above 90 KW

In-wheel motors with output above 90 KW are designed for high-performance vehicles and specialized commercial applications. These motors deliver exceptional torque and speed but require advanced cooling systems and robust architecture. Although they account for roughly 15% of the market, growth is accelerating with the rise of performance EVs.

In-Wheel Motor Market, Segmentation by Geography

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

In-Wheel Motor Market Share (%), by Geographical Region

North America

North America holds a significant share of the in-wheel motor market, driven by the rapid adoption of electric vehicles and robust investment in EV infrastructure. The region accounts for around 20% of the market, supported by initiatives promoting sustainable transportation and the presence of leading automotive manufacturers.

Europe

Europe is a strong player in the in-wheel motor space, contributing approximately 25% to the global market. This is due to stringent emission regulations, extensive EV incentives, and a highly developed automotive ecosystem. Countries like Germany, France, and the UK are key markets driving adoption.

Asia Pacific

Asia Pacific leads the global in-wheel motor market with over 35% market share, fueled by the dominance of China, Japan, and South Korea in electric vehicle production. The region benefits from large-scale manufacturing, technological innovation, and strong government backing for electrification.

Middle East and Africa

Although still emerging, the Middle East and Africa are showing growing interest in electric mobility and clean energy solutions. This region holds a modest share of under 10%, but future growth is anticipated as governments push for green transportation initiatives.

Latin America

Latin America is gradually adopting in-wheel motor technologies, driven by urbanization and interest in sustainable transport. The region accounts for nearly 10% of the market, with countries like Brazil and Mexico investing in EV infrastructure and eco-friendly mobility programs.

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

Drivers, Restraints and Opportunity Analysis

Drivers

• Demand for compact and lightweight EV solutions
• Improved vehicle control and torque distribution
• Rising focus on efficient drivetrain systems

• Advancements in wheel-integrated motor designs - Significant advancements in wheel-integrated motor designs are boosting the development of the In-Wheel Motor Market. Manufacturers are designing motors that are more compact, efficient, and power-dense, which allows for better integration into modern electric vehicle architectures. These innovations eliminate the need for traditional transmissions, axles, and driveshafts, thereby simplifying vehicle design and reducing mechanical losses.

  Modern in-wheel motors offer independent torque control for each wheel, enhancing traction, braking, and cornering performance. This makes them ideal for applications requiring high maneuverability, such as urban electric vehicles and performance EVs. The inclusion of regenerative braking systems further increases energy recovery, improving overall vehicle range and efficiency.

  Ongoing R&D is focused on improving thermal management, electromagnetic efficiency, and control algorithms to support a wide range of use cases. These efforts are enabling the development of lightweight and modular motor units that can be customized for different vehicle platforms. Additionally, integration with real-time vehicle dynamics control systems is advancing vehicle handling and safety standards.

  As the industry shifts toward electrification, these technological breakthroughs position in-wheel motors as a strategic solution for achieving powertrain efficiency, compact design, and next-generation driving experiences. This makes them highly attractive for automakers looking to differentiate in a competitive EV landscape.

Restraints

• Heat dissipation challenges in compact setups
• Higher unsprung mass affects ride quality
• Complexity in maintenance and servicing

• Limited adoption in high-speed vehicle segments - The limited adoption of in-wheel motors in high-speed vehicle segments remains a considerable challenge for market growth. High-speed applications require motors that can withstand extreme rotational stress, vibration, and thermal loads, conditions under which current in-wheel motor technologies still face durability concerns. This limits their viability in sports cars, sedans, and commercial long-haul vehicles.

  At high speeds, the issue of increased unsprung mass becomes more pronounced, affecting ride comfort, suspension tuning, and overall vehicle stability. The added mass at the wheel ends can cause steering imbalances, road noise, and wear on the vehicle’s suspension system. These performance trade-offs make OEMs hesitant to implement in-wheel solutions in premium or high-performance models.

  The complexity of packaging high-output motors within limited wheel space poses engineering limitations. Ensuring adequate cooling, insulation, and waterproofing in such confined spaces without compromising motor performance or lifespan remains a technical hurdle. These constraints result in increased development costs and restrict large-scale commercialization in higher-end markets.

  These limitations, manufacturers are focusing on lightweight materials, dual cooling systems, and advanced suspension integration. While promising, widespread adoption in high-speed segments will depend on further improvements in motor durability, thermal resilience, and performance consistency under dynamic conditions.

Opportunities

• Growth in electric two-wheelers and micro-EVs
• Integration with autonomous and smart vehicles
• Emerging use in delivery and urban fleets

• Innovation in modular, scalable motor platforms - The emergence of modular and scalable in-wheel motor platforms presents a major growth opportunity for the In-Wheel Motor Market. Automakers and suppliers are exploring designs that can be adapted across vehicle sizes, from two-wheelers and compact cars to light-duty commercial fleets. These platforms simplify integration and reduce development timelines by offering pre-configured units that meet varying torque and performance requirements.

  Modular platforms support multi-motor configurations, allowing manufacturers to easily scale power output by combining motors per axle or wheel. This enables flexible deployment based on vehicle type, terrain, and drivetrain requirements. Such flexibility is critical in addressing growing demand for electric delivery vehicles, shuttles, and mobility-as-a-service fleets.

  These platforms also promote faster innovation by leveraging common architectures, plug-and-play interfaces, and cloud-connected diagnostics. Manufacturers benefit from reduced engineering costs and shorter time-to-market for new EV product lines. Moreover, their ability to support both hub motor and distributed drive systems positions them as key enablers in next-gen electric mobility.

  As market players prioritize platform versatility, manufacturing efficiency, and global scalability, modular in-wheel motor designs will gain significant traction. These solutions will be instrumental in delivering high-performance, adaptable, and cost-effective electric powertrains for a broad spectrum of vehicle categories.

In-wheel Motor Market is expanding rapidly as automakers adopt advanced strategies to improve electric vehicle performance, efficiency, and design flexibility. Nearly 65% of demand is driven by EV adoption, fueling innovation in compact, lightweight, and high-torque motor systems. Strong collaboration and partnerships with OEMs and battery manufacturers are ensuring sustainable growth.

Market Structure and Concentration
The In-wheel Motor industry reflects moderate concentration, with about 58% of production managed by established automotive technology and motor companies. Larger players adopt strategies such as vertical integration and merger activities to expand portfolios, while smaller firms focus on specialized EV applications. Extensive collaboration supports steady growth and competitiveness in mobility markets.

Brand and Channel Strategies
Around 62% of suppliers emphasize brand visibility through OEM channels, ensuring direct integration into new EV models. Nearly 54% of adoption is supported by distributor collaboration, widening market reach across aftermarket and retrofit solutions. Differentiated strategies highlight performance, energy efficiency, and lightweight design, building stronger consumer trust in in-wheel motor technology.

Innovation Drivers and Technological Advancements
Close to 64% of companies prioritize innovation and technological advancements such as integrated power electronics, regenerative braking systems, and thermal management solutions. About 48% engage in collaboration with research institutes to improve efficiency and reduce costs. Nearly 68% of manufacturers adopt automation and digital simulations, ensuring growth and enhancing competitiveness in EV powertrain markets.

Regional Momentum and Expansion
Regional momentum is strong, with more than 57% of demand concentrated in Asia-Pacific due to high EV production in China, Japan, and South Korea. Producers adopt expansion strategies in Europe and North America, where nearly 52% of EV policy-driven adoption is accelerating. Local collaboration with automakers and technology providers ensures integration, while global firms refine strategies to align with regional standards.

Future Outlook
The future outlook suggests that over 72% of growth in the in-wheel motor market will be shaped by rising EV penetration, innovation in lightweight and compact designs, and stricter emission mandates. Around 58% of advancements will result from partnerships with OEMs, battery makers, and research institutes. Strong technological advancements and adaptive strategies will ensure long-term competitiveness and adoption.

Key players in In-Wheel Motor Market include :

• Protean Electric
• Elaphe Propulsion Technologies
• Ziehl-Abegg Automotive
• NTN Corporation
• Printed Motor Works
• GEM Motors
• e-Traction
• Schaeffler Technologies AG & Co. KG
• QS Motor
• NSK Ltd.

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

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