Global "Automotive Electric Motors for EV Market" is expected to grow at a CAGR of 22.5% during the forecast period (2022-2029).
An electric motor is an electrical machine that converts electrical energy into mechanical energy. Electric motors can be powered by direct current (DC) sources, such as batteries, motor vehicles, or rectifiers, or by alternating current (AC) sources, such as a power grid, inverters, or electrical generators.
The rising demand for Electric Vehicles worldwide will drive the future growth of the global automotive electric motor for the EV market. The rising demand for vehicles running on alternative fuels such as EVs coupled with regulation about reducing the carbon footprint will fuel growth in the global automotive electric motor for EV market during the forecast period. According to International Energy Agency (IEA), in 2019, more than one Billion EVs were sold globally.
The stringent government rules and regulations concerning vehicular emission will also boost the market worldwide as electric vehicles emit a lower quantity of harmful gases, which will further increase the market for electric motors for the production of Electric Vehicles. For Instance, Norway has become the world’s EV capital, thanks to generous purchase subsidies and other incentives. EVs are exempt from acquisition tax and the country’s 25 percent value-added tax. They also enjoy privileged status on the roads, with exemptions from tolls, free ferry rides, and free parking in some cities. Last year, pure electric cars accounted for over 20% of new registrations.
However, the shortage of EV charging stations has been hindering the adoption of these vehicles, which is expected to restrict electric motors' usage for electric vehicles.
COVID-19 Impact Analysis
The COVID-19 pandemic has disrupted the global economy and halted the key processes of almost all companies. Consequently, the global automotive electric motors for the electric vehicle market was also affected. The disturbances in supply chain management and transportation of goods and services had a negative impact on the growth of the market. Many manufacturing and production units were disrupted due to the government enforced lockdowns and curfews across the world which led to losses and wastage of many products. The automotive industry faced losses during the pandemic. Restrictions in traveling and lockdowns impacted the automotive industry. The pandemic also significantly changed consumer demand and behavior. Consumers refrained from purchasing non-essential products amid the pandemic thereby impacting the sales of electric vehicles. The pandemic significantly impacted the market and slowed its growth. However, the post-pandemic scene has improved and the global automotive electric motors for the EV market has recovered. The resumption of manufacturing operations and lifting of travel restrictions will play a major part to boost the production and sales of electric vehicles.
By Vehicle Type, the Global Automotive Electric Motors for EV Market is segmented into Pure Electric Vehicles (PEV), Hybrid Electric Vehicles (HEV), Plug-In Hybrid Electric Vehicles (PHEV)
In 2019, Plug-In Hybrid Electric Vehicles (PHEV) dominated the global Automotive Electric Motors for EV market and is expected to retain its dominance in the forecasted period, mainly due to major competitors in the market are launching PHEV with the environmental safety factors as well as features like external power source can be used for charging the cars’ battery. Unlike HEVs and PHEVs, BEVs does not have a petrol engine, fuel tank, or exhaust pipe and are fully electric vehicles with batteries that can be charged via charging stations and power outlet. For instance, in February 2019, Audi has announced that they will release a whole new range of PHEVs based on existing cars at the upcoming Geneva Motor Show.
By Motor, the Global Automotive Electric Motors for EV Market is segmented into AC Motor and DC Motor
DC Motor has the dominant position in the Automotive Electric Motors for the EV market due to higher speed ranges, noiseless operation, faster dynamic response, better speed versus torque characteristics, etc. However, the AC motor market will be rising with a double-digit growth rate because AC electric car motors generate favorable torque, thus helping the transmission to last longer and have low cost than DC motor with a permanent magnet.
By geography, the Global Automotive Electric Motors for EV Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA)
Europe holds the largest market share for Automotive Electric Motors for EVs due to Several laws and regulations that countries have enacted to monitor vehicular emission. Many countries have adopted previous versions of European or United Nations Economic Commission for Europe (UN-ECE) mobile source emission regulations. Some countries have adopted more advanced regulations based on the most recent version of the European regulations. Batteries primarily power BEVs and PHEVs. Various countries are taking initiatives in the direction of lowering global warming. And with a continuous rise in infrastructure for charging stations for EVs in Europe will also boost the forecast period.
North America is after Europe in terms of the market share of Automotive Electric Motors for EV due to the rise in awareness among the people in the region for the environmental safety and also the stringent regulation by the government will grow market for EVs, hence boosting the market for the Electric motors for EV.
Global Automotive Electric Motors for EV is a competitive market with various global and regional players in the market. Some of the key players include Denso, Mitsubishi Electric, Emerson Electric Company, Baldor Electric Company, and Hitachi Automotive Systems. Other major players in the market include Siemens Ag, Yasakawa Electric, Robert Bosch Gmbh, Toshiba Corporation, and Magna International.
Product diversification, revenue generation, and opportunities intensify the market competition. Key players are adopting strategies such as investing in R&D, new product launches, expansion in distribution channels to stand out as strong competitors in the market. Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For example, in April 2018, Toshiba announced the sale of Westinghouse's holding company to Brookfield Business Partners for $4.6 billion. In April 2020, Hitachi Automotive Systems, Ltd., announced the acquisition of all shares of Seniors GmbH. In April 2020, Mitsubishi Electric Acquired Swedish HVAC Distributor AQS. Through this acquisition, Mitsubishi Electric will strengthen its commercial business in Sweden and in Europe.
Overview: DENSO Corporation is a global automotive components manufacturer with its headquarters in Japan.
Product Portfolio: Its products and services include automotive service parts and accessories, repair service, air-conditioning system, power-train systems, safety and cockpit systems, etc.
Key Developments: In December 2020, Denso Corporation and Jeco Co., Ltd. announced a share exchange agreement to implement a share exchange wherein Denso will be the wholly-owning parent company and Jeco will be the wholly-owned subsidiary in the share exchange.
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