Electric Motors For IC Engine Vehicles Market Size and Trends

The electric motors for IC engine vehicles market size is forecast to increase by USD 223.8 million, at a CAGR of 5.6% between 2023 and 2028.  The market is experiencing significant growth due to several key trends. One of the primary factors driving market growth is the increasing adoption of power window systems in vehicles, which require electric motors for operation. Additionally, automakers are increasingly producing in-house electric motors to reduce dependence on external suppliers and improve production efficiency. Stringent fuel emission and fuel efficiency regulations are also pushing the automotive industry towards the use of electric motors to meet regulatory requirements and offer more eco-friendly transportation options. These trends are expected to continue, leading to significant growth in the market.

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The market is experiencing significant growth due to the increasing adoption of new energy vehicles (NEVs) worldwide. According to recent registrations, electric vehicles (EVs), including battery electric vehicles (BEVs), are gaining popularity as part of the push for green mobility. Governments are offering subsidies and tax exemptions to incentivize the shift towards EVs, making them more affordable for consumers. Local manufacturing and charging infrastructure development are crucial factors driving the electrification of IC vehicles. However, the upfront retail price of EVs remains a barrier for some consumers, despite the potential for long-term cost savings. The availability of critical minerals for battery production and environmental impact are also concerns for the EV market. Co2 targets and tailpipe emissions regulations are pushing IC vehicle manufacturers to electrify their large models. Tax credits and energy efficiency incentives are further encouraging the transition. The international trade of batteries and critical minerals is a complex issue, with potential supply chain disruptions and geopolitical risks. The environmental impact of battery production and disposal must also be addressed. Overall, the market is poised for growth, but challenges remain in areas such as affordability, charging infrastructure, and battery supply chains.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Vehicle Type
  • PC
  • CV
  • Two-wheeler
• Geography
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
  • North America
    • US
  • South America
  • Middle East and Africa

By Vehicle Type Insights

The PC segment is estimated to witness significant growth during the forecast period. The market particularly in the new energy vehicle (NEV) sector, is experiencing significant growth driven by various factors. Subsidies and tax exemptions in several regions are encouraging the adoption of battery electric vehicles (BEVs) as part of the push towards green mobility. The expanding charging infrastructure, including public charging points and smart charging, is addressing affordability concerns by reducing the total cost of ownership.

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The PC segment was valued at USD 468.20 billion in 2018. The demand for electrification in heavy-duty vehicles, such as electric buses, light commercial vehicles, and heavy-duty electric vehicles, is increasing due to decarbonization efforts and zero-emission targets. The passenger car (PC) segment, which includes two-wheelers and used electric cars, is expected to grow rapidly, with the increasing sales of larger utility vehicles like SUVs, crossovers, and MPVs contributing significantly. The APAC region dominates the PC segment due to its large population and growing urban mobility needs. However, the market's growth is not without challenges. Critical minerals required for lithium-ion batteries and the environmental impact of their production and recycling are areas of concern. Emission standards and energy efficiency requirements continue to evolve, making the development of charging technology, including fast chargers, crucial to meet these demands. International trade and battery supply chains, including the availability and sustainability of critical minerals, are essential factors influencing the market's growth. The electrification strategies of automakers and the role of vehicle-to-grid technology in optimizing energy usage further add complexity to the market landscape. Overall, the market is poised for substantial growth, driven by a combination of government policies, consumer demand, and technological advancements.

Regional Analysis

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APAC is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.  The market which primarily comprises battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), is witnessing significant growth due to various factors such as subsidies, tax exemptions, and emission regulations. The shift towards green mobility is driving the demand for electric vehicles (EVs), leading to an expansion of charging infrastructure. Affordability remains a key challenge, with electrification targets pushing automakers to reduce upfront retail prices. Critical minerals required for battery production, such as lithium and cobalt, are subject to international trade regulations and environmental impact concerns. Decarbonisation efforts, including zero-emission targets, are leading to the electrification of large models, including heavy-duty electric vehicles, electric buses, and light commercial vehicles. The adoption of smart charging, vehicle-to-grid, and battery recycling are also crucial for optimizing energy efficiency and reducing urban mobility's carbon footprint. Emission standards for tailpipe emissions and CO2 targets are driving the demand for electric two-wheelers as well. The market is witnessing advancements in charging technology, including fast chargers, to address the challenges of battery supply chains and the need for critical minerals. Governments are offering tax credits and incentives to promote the adoption of EVs and decarbonise transportation. The market is expected to witness significant growth in the coming years, with automakers investing heavily in electrification and charging technology.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Electric Motors For IC Engine Vehicles Market Driver

The growing adoption of power window systems is notably driving market growth. The market, which includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), is witnessing significant growth due to subsidies, tax exemptions, and emission regulations. Governments worldwide are promoting Green Mobility by offering incentives to encourage the adoption of electric vehicles (EVs) to reduce tailpipe emissions and meet CO2 targets. Affordability remains a critical factor, with tax credits and upfront retail price reductions playing a significant role in the market's expansion. However, challenges such as battery supply chains, critical minerals availability, and environmental impact are areas of concern. The charging infrastructure, including public charging points and smart charging, is essential for the widespread adoption of EVs.

Decarbonisation targets and Zero-Emission Targets are driving automaker electrification, with a focus on large models, heavy-duty electric vehicles, electric buses, light commercial vehicles, two-wheelers, and even used electric cars. Charging technology advancements, including fast chargers, are crucial for the electrification of the transportation sector. Additionally, the focus on energy efficiency, urban mobility, and vehicle-to-grid technology is essential for the future growth of the market. Battery Production, particularly Lithium-Ion Batteries, is a critical aspect of the market, with emission standards and battery recycling playing a significant role in the industry's sustainability. Thus, such factors are driving the market's growth during the forecast period.

Electric Motors For IC Engine Vehicles Market Trends

Automakers involved in the production of in-house electric motors are the key trend in the market. In the evolving automotive industry, Original Equipment Manufacturers (OEMs) are expanding their business scope from internal combustion engines to New Energy Vehicles (NEVs) to reduce dependency and compatibility issues. Governments worldwide offer subsidies, tax exemptions, and tax credits to promote the adoption of Battery Electric Vehicles (BEVs) and other Green Mobility solutions. The affordability of electric vehicles is a critical factor in their mass adoption, with charging infrastructure, battery supply chains, critical minerals, and environmental impact being essential considerations.

Decarbonisation targets, Zero-Emission Targets, and emission standards drive the electrification of Heavy-Duty Electric Vehicles, Light Commercial Vehicles, Electric Buses, Two-Wheelers, and Used Electric Cars. Automakers are investing in battery production, Lithium-Ion Batteries, and charging technology, including Fast Chargers and Smart Charging, as well as Vehicle-to-Grid and Battery Recycling, to meet electrification targets. Thus, such trends will shape the market's growth during the forecast period.

Electric Motors For IC Engine Vehicles Market Challenge

Stringent fuel emission and fuel efficiency regulations are the major challenge that affects the growth of the market. The market including those with internal combustion engines (ICE) is witnessing significant growth due to increasing government initiatives and consumer preferences for green mobility. Governments worldwide are implementing stringent emission norms to reduce tailpipe emissions and decarbonize transportation. Affordability is a critical factor in the electrification of vehicles, and these incentives help lower the upfront retail price. However, the affordability of electric vehicles (EVs) is also influenced by battery supply chains, critical minerals, and international trade. The production of lithium-ion batteries requires large quantities of critical minerals, such as lithium, cobalt, and nickel. The environmental impact of extracting and producing these minerals is a concern, leading to efforts to recycle batteries and improve battery recycling technology. The charging infrastructure is another crucial factor in the adoption of electric vehicles. Public charging points and smart charging are becoming increasingly common, with vehicle-to-grid technology enabling EVs to sell excess energy back to the grid. Fast chargers are also being developed to reduce charging times, making long-distance travel more viable for EV owners. The automotive industry is responding to these trends by increasing their electrification targets, with some aiming for 100% electrification by 2030 or 2040.

In addition, the market is witnessing significant growth due to increasing government initiatives, consumer preferences for green mobility, and advancements in battery technology and charging infrastructure. The affordability of electric vehicles is a critical factor, and governments are offering subsidies, tax exemptions, and tax credits to reduce the upfront retail price. The production of Lithium-Ion Batteries and the environmental impact of extracting critical minerals are concerns, and efforts are being made to improve battery recycling technology. The shift towards electric mobility is impacting all types of vehicles, from passenger cars to heavy-duty trucks and buses, and two-wheelers. The electrification of transportation is a complex issue that requires a multi-faceted approach, involving advancements in battery technology, charging infrastructure, and government policies. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

BorgWarner Inc. - The company specializes in providing electric motors for internal combustion engine vehicles, including hybrid electric vehicles.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AMETEK Inc.
• Arc Systems Inc.
• Brook Crompton UK Ltd.
• Brose Fahrzeugteile SE and Co. KG
• Continental AG
• DENSO Corp.
• Emerson Electric Co.
• Hitachi Ltd.
• Ideanomics Inc.
• Johnson Electric Holdings Ltd.
• Marelli Holdings Co. Ltd.
• Mazda Motor Corp.
• Mitsuba Corp.
• Mitsubishi Electric Corp.
• Nidec Corp.
• Regal Rexnord Corp.
• Robert Bosch GmbH
• Valeo SA

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

Electric motors are increasingly becoming a popular choice for powering new energy vehicles (NEVs) in place of traditional internal combustion engines (ICEs). Governments worldwide are offering subsidies and tax exemptions to promote green mobility and decarbonization. Battery electric vehicles (BEVs) are leading the electrification trend, with charging infrastructure development being a critical factor. Affordability remains a concern for consumers, with upfront retail prices of electric vehicles (EVs) being a significant barrier. However, decarbonization targets and emission standards are driving automaker electrification efforts, particularly in large models. The electrification of heavy-duty electric vehicles, light commercial vehicles, electric buses, and two-wheelers is also gaining momentum. The environmental impact of EVs is a significant consideration, with battery supply chains and critical minerals being key areas of focus. International trade and energy efficiency are also essential factors in the electrification of urban mobility.

In addition, electric vehicles' affordability and environmental impact are influenced by factors such as vehicle weight, charging technology, and charging infrastructure. Fast chargers, smart charging, vehicle-to-grid, and battery production are critical areas of innovation. Lithium-ion batteries are currently the most widely used technology, but research is ongoing to improve energy density and reduce the environmental impact of battery production. Battery recycling is another crucial aspect of the EV market, with targets for electrification and zero-emission targets driving the need for a circular economy approach to battery production and disposal. Public charging points and emission standards are also essential considerations for the growth of the EV market.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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