Automotive Traction Motor Market worth $17.3 billion by 2026 – Exclusive Report by MarketsandMarkets™


According to the new market research report Automotive Traction Motor Market by Motor Type (PMSM, DC Brushless, and AC Induction), Type (AC, DC), EV Type (BEV, HEV, PHEV), Power Output (less than 200 KW, 200-400 KW, and above 400 KW), Vehicle Type (PC and CV) & Region – Global Forecast to 2026″, published by MarketsandMarkets™, the global Automotive Traction Motor Market is projected to grow at a CAGR of 33.7% from USD 4.1 billion in 2021 to USD 17.3 billion by 2026.

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154 – Tables
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225 – Pages

The growth of the automotive market can be attributed to the increasing demand of electric vehicles, manufacturing of high-performance motors, and supporting government policies.

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Asia pacific is expected to be the largest Automotive Traction Motor Market in the forecast

Countries such as ChinaJapanIndia, and South Korea are considered under Asia Pacific for market analysis. China is likely to be the largest contributor to the market in Aisa Pacific, accounting for a share of more than 50% in 2021. The region is the largest market for automotive traction motors and home to some of the fastest-growing economies in the world. According to a 2018 report by World Economic and Financial Surveys, the growth momentum, particularly in major economies in Asia Pacific, including ChinaJapan, and India, remain strong, reflecting fiscal policy stimulus in China and Japan, which, in turn, is benefiting other economies in Asia. The rising population within the region has led to a significant increase in demand for transportation connectivity. An all-around effort by the governments of various countries within the region to reduce greenhouse gases and the strong emphasis on reducing carbon emissions has led to a tremendous focus on manufacturing electric vehicles in the region.

In 2019, BYD launched its K12A, the world’s first 27-meter pure electric bus. With a passenger capacity of 250 people, it is the longest pure electric bus in the world and can travel at a maximum speed of 70 km/h. K12A is also the world’s first electric bus equipped with a distributed 4 WD system, which can smoothly switch between 2 WD and 4 WD to meet the demands of different terrains while also lowering the vehicles overall energy consumption.

The Indian government has announced a zero-rated goods and services tax (GST) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme run by the Department of Heavy Industries to increase the adoption of electric vehicles. State authorities are rolling out contracts for electrifying the public transport fleet. For example, in 2018, BYD supplied 25 electric buses to the city of Pune and is expected to supply more in other cities.

South Korea and Japan started adopting EVs in the last few years, with the introduction of hybrid vehicles. Denso Corporation announced the opening of its Electrification Innovation Center (EIC) at the Anjo plant in Anjo, Aichi, Japan, in June 2020. The expansion supports the development and production of electrified automotive products, systems, and technologies. The EIC will consist of a product development building, a durability building for reliability testing, and a production plant for quickly ramping up a mass production line.

Europe is expected to be the fastest-growing market during the forecast

Countries such as GermanyFranceSpain, the UK, and Italy are considered under Europe for market analysis. The prominent presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) offers opportunities for the growth of the Automotive Traction Motor Market in the region. The intense focus of the government on imposing stringent environmental regulations encourages market players to develop advanced vehicles and set up facilities wherein various critical vehicle parts are tested, which will further propel the growth of the market for high-power-output traction motors. For example, in July 2019, ZF Friedrichshafen AG, to expand its expertise in E-Mobility research, inaugurated a new building for R&D, administration, and sales at its divisional headquarters in Schweinfurt, Germany. The new R&D center has 16 Test Benches and facilities wherein electric and hybrid drives, and their components are tested. Similarly, in November 2020, Mahle Group commissioned a test bench for electric drives in Stuttgart, Germany, with an investment of around USD 3.5 million. This equipment is used to develop and test e-axles and e-drive units for a wide range of electric and hybrid vehicles. The test facility includes an e-axle unit that consists of two oppositely mounted load machines equipped with permanent magnet synchronous electric motors.

Italy is expected to be the fastestgrowing market for automotive traction motors in Europe. Initiatives undertaken by the Italian government to promote electric vehicles are expected to accelerate the demand for automotive traction motors in the country. According to the EV outlook 2020, an annual publication that identifies and discusses recent developments in electric mobility across the world, Italy has plans to release/sell 6 million electrically powered vehicles by 2030; among these 4 million would be battery electric vehicles (BEVs), which are expected to be introduced by 2030.

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The less than 200 kW segment is expected to be the largest power output in the forecast

Automotive traction motors with a power output of less than 200 kW are used in application areas, such as electric vehicles, elevators, and electric buses. Plug-In Hybrid Vehicles (PHEVs), Hybrid Electric Vehicles (HEVs), Battery Electric Vehicles (BEVs), electric two-wheelers, and electric buses used these motors.

Electric cars usually use traction motors with power output below 100 kW, whereas electric buses generally use electric traction motors with power output between 100 and 200 kW. These power ratings differ as per the requirement of electric vehicle manufacturers. Kawasaki, Siemens, Toshiba, Voith, and WEG are some of the manufacturers of electric traction motors with a power rating of below 200 kW.

The rising investment in electric vehicles is one of the major factors driving this segment. In the coming years, the Asia Pacific and North American markets are expected to witness a high demand for traction motors with a power output of less than 200 kW. Europe is also expected to be a key market for these motors.

The global Automotive Traction Motor Market is dominated by major players BorgWarner Inc. (US), Schaeffler Group (Germany), Nidec Corporation (Japan), Robert Bosch GmbH (Germany), and ZF Friedrichshafen AG (Germany). The key strategies adopted by these companies to sustain their market position are new product developments, merges & acquistions, supply contracts, partnerships, expansions, collaborations, acquisitions, and contracts & agreements.


Pepperstone expanding their European presence,with license granted by German regulator


Award-winning online FX and CFD broker, Pepperstone, has started their operation under its German license granted by the local regulator BaFin. The new operation will strengthen the broker’s fintech offering to the German-speaking world in its 10th year of operation.

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“We’re entering the sophisticated markets of Germany and Austria to offer our clients what they are looking for: Best execution and pricing in combination with an outstanding service to help our clients to master their trade,” said Tobias Reichert, General Manager of Pepperstone GmbH. “We have a particularly experienced team here in Germany, and are united with the group’s genuine commitment to helping our clients on their trading journeys.”

“This year marks the 10th anniversary of Pepperstone and we are excited to celebrate it with the start of our operation in Germany.

As one of the largest global MetaTrader brokers, Pepperstone’s vision is a world of digitally-enabled trading for traders to embrace the challenge and opportunity of global markets.

Pepperstone was established in 2010 in Australia and has received multiple awards from the notable Investment Trends for customer service, spreads and support. In 2019, Pepperstone was rated number one for overall client satisfaction and platform features.

Disruptive and agile, the financial technology company has more than doubled in size over the past two years as well as expanded and tailored its product offering into hundreds of new markets. The broker will offer its German clients MetaTrader 4 and MetaTrader 5, which are two of the most popular trading platforms globally.

“Thanks to our team in Germany, Pepperstone can establish even closer ties with our clients in the German speaking world. Germany is one of the most exciting European countries and we look forward to bringing our expertise and technology to the local investors,” said Tamas Szabo, Group CEO of Pepperstone.


When it all slots together, Rabbit Entertainment is the first Virtual Slots Website to be certified as compliant with the new German regulations

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Gambling entertainment company Rabbit Entertainment and its brands and are the first and only independently certified entities to provide virtual slots in conformity with Germany’s forthcoming regulations, the first company to achieve this status via its platform provider United Remote.

As a result, the offering of Rabbit Entertainment on and, based on the platform provided by United Remote, is the first vertical offering Virtual Slots which has been certified by TÜV AUSTRIA Group as compliant with the new German regulation (Glückspielstaatsvertrag). This puts player protection front and forward, seriously emphasizing a commitment to Responsible Gaming, while creating a safe environment for players to enjoy the entertainment experience to the full.

Lapalingo’s partners cover some of the world’s biggest providers, to more experimental and boutique producers, giving Lapalingo a highly-differentiated gaming experience with a wide range of carefully curated titles from a roster of industry-leading game developers including NetEnt, Microgaming, Play’n GO, Merkur, Yggdrasil, Quickspin, Big Time Gaming, ELK Studios, NextGen, Endorphina and WMS, amongst others. In addition, Lapalingo is constantly working on expanding the portfolio by signing deals with more game suppliers; thrilling new titles are constantly appearing in Lapalingo’s lobby.

Rabbit Entertainment CEO Jeremy Fall said: “We have thoroughly enjoyed working with United Remote to achieve this industry-first status. I am confident this new vertical will enable Rabbit Entertainment to drive their slots business forward rapidly alongside other brands that see the value in this vertical platform. On the player side, customers can be reassured that the online site is fully aligned with the market regulation and enjoy a sense of security that they are playing with a responsible company.”

The Conformity Statement issued by TÜV TRUST IT GmbH certifies the vertical offering is already compliant with the requirements of the forthcoming Inter-State Treaty on Gambling in Germany, based on the currently established Tolerance Period. TÜV AUSTRIA Group is the neutral, objective and independent partner for consulting and certification services.