Electric Commercial Vehicle Traction Motor Market

[252 Pages Report] The global electric commercial vehicle traction motor market is projected to grow from USD 2.1 billion in 2024 to USD 9.8 billion by 2030, registering a CAGR of 28.8%. The traction motor market for Electric Commercial Vehicles (ECVs) has witnessed substantial growth in recent years, driven by several key factors. With the increasing focus on environmental sustainability and stringent emissions regulations, there has been a significant shift towards electrification in the transportation sector, particularly in commercial vehicles. This transition has fueled the demand for traction motors, which are integral components in electric vehicles, powering their propulsion systems. Moreover, advancements in battery technology and the expanding infrastructure for electric vehicle charging have bolstered the adoption of ECVs, further propelling the traction motor market's expansion. Additionally, governments worldwide are incentivizing the adoption of electric vehicles through subsidies, tax credits, and regulatory measures, which has accelerated the market growth. In February 2023, the European Union proposed ambitious CO2 standards for most new trucks and coaches (90% emissions reduction by 2040) and urban buses (100% zero-emission city bus sales by 2030).

Furthermore, the growing interest from automotive manufacturers and suppliers in developing innovative traction motor solutions, including high-efficiency motors with improved power density and thermal management capabilities, has contributed to the market's upward trajectory. For instance, in January 2024, American Axle & Manufacturing launched its next-generation 3-in-1 electric drive units (eDUs), fully integrated e-Beam axles at CES 2024, along with innovative component technologies that are helping define the future of mobility around the globe. Additionally, in October 2023, Allison Transmission, Inc. launched its new eGen Power 85S, a fully electric axle integrated into the Isuzu Novo VOLT electric bus. As a result, the ECV traction motor market is expected to continue its robust growth momentum in the foreseeable future, driven by ongoing technological advancements, supportive government policies, and increasing consumer acceptance of electric commercial vehicles. As a result, the ECV traction motor market is expected to continue its robust growth momentum in the foreseeable future, driven by ongoing technological advancements, supportive government policies, and increasing consumer acceptance of electric commercial vehicles.

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Market Dynamics:

Driver: Technical innovations in Motor Control and Power Electronics

The development of advanced motor control algorithms, generally based on artificial intelligence (AI), allows for more accurate control of the motor's magnetic field and torque delivery. This results in smoother operation, quicker acceleration, and more sustained power output, all of which increase the performance and drivability of electric commercial vehicles. Furthermore, advancements in power electronics components such as inverters and converters, particularly the adoption of silicon carbide (SiC) MOSFETs, contribute to higher power densities, faster switching speeds, and increased efficiency in electric drivetrains. This results in reduced energy losses during power conversion, ultimately extending the range and improving the overall efficiency of electric commercial vehicles. These technological innovations have significantly enhanced the efficiency, performance, and reliability of electric traction motors. Companies such as Evolito Ltd., EVR Motors, Passionchip, and Petalite are taking initiatives in the development of power electronics for EV traction motors. Modern motor control algorithms enable finer control over motor speed, torque, and efficiency, facilitating smoother acceleration, regenerative braking, and optimized energy management in electric commercial vehicles. The utilization of AI in motor control further enhances precision and adaptability, ensuring optimal performance across varying driving conditions.

Restraint: Limited range of electric commercial vehicle

Range anxiety, or the fear of running out of battery power before reaching a destination or charging station, is a primary concern for fleet operators and businesses considering the adoption of electric commercial vehicles. Unlike traditional gasoline or diesel vehicles that can be refueled quickly at numerous gas stations, electric commercial vehicles require charging infrastructure that may not be as widespread or convenient, especially for long-haul transportation or applications requiring heavy loads.

The restricted range of electric commercial vehicles not only impacts their adoption but also directly affects the demand for traction motors. Fleet operators might hesitate to invest in these vehicles if they anticipate operational disruptions or increased downtime due to the need for frequent recharging. This hesitation translates into lower demand for electric traction motors, hindering market growth and investment in motor technology. Moreover, the limited range of electric commercial vehicles influences the design and specifications of traction motors. Manufacturers must balance factors such as motor efficiency, energy density, and power output to optimize the range and performance of these vehicles. However, achieving an ideal balance between these factors requires compromises and trade-offs, which can result in higher costs or reduced competitiveness compared to traditional vehicles.

Opportunity: Developments in Fuel Cell technology

Fuel cell vehicles, powered by hydrogen fuel cells, offer an alternative zero-emission solution to battery electric vehicles, particularly for heavy-duty applications such as trucks and buses where long-range and rapid refueling are critical. Traction motors play a crucial role in fuel cell vehicles, powering electric drivetrains that propel the vehicles forward. As the demand for fuel cell commercial vehicles increases, traction motor manufacturers have the opportunity to supply high-performance motors tailored to the specific requirements of fuel cell drivetrains. By leveraging their expertise in electric motor technology and adapting their products to suit the unique characteristics of fuel cell vehicles, traction motor manufacturers can capture a growing share of the market for electric drivetrain components. Additionally, collaboration with fuel cell vehicle manufacturers and infrastructure providers can accelerate the adoption of fuel cell commercial vehicles, creating additional opportunities for traction motor suppliers to expand their presence in the evolving market for zero-emission transportation solutions. Various automakers are also showcasing their fuel cell tech-laden commercial vehicles. For instance, GM (US) announced in December 2023 that it had partnered with Autocar, LLC (US) to develop zero-emission commercial vehicles powered by GM’s fuel cell solution, HYDROTEC power cubes.

Challenge: Overheating of motor

The overheating of motor poses a significant challenge to the growth of the electric commercial vehicle traction motor market. Excessive heating can lead to motor failure by weakening the winding insulation in electric motors, resulting in insulation failure. Overheating leads to thermal stress on motor components, causing them to wear out faster and reducing overall efficiency. This results in decreased vehicle performance, slower acceleration, reduced towing capacity and compromised operational reliability. It also affects the vehicle's range, as the battery management system may limit power output to prevent further overheating. This can exacerbate range anxiety among consumers and fleet operators, making them hesitant to adopt electric commercial vehicles, especially for long-distance applications.

Overheating occurs due to various factors, including overload, poor power conditions, highly effective service factors, frequent turning on/off of the motor, lack of air circulation around the motor, and operation in high-temperature environments. Permanent magnet motors, commonly used in electric traction motors, are particularly susceptible to reliability issues caused by overheating. These motors can lose their magnetism if exposed to high temperatures, leading to demagnetization of the permanent magnets and decreased torque performance. Overheating poses safety risks to both the vehicle occupants and the surrounding environment. In extreme cases, overheating can lead to motor failure, electrical shorts, or even fires, presenting a significant liability for manufacturers and discouraging consumer confidence in ECV technology.

To mitigate these challenges and promote the market of electric commercial vehicle traction motors, manufacturers must invest in R&D to improve thermal management strategies, enhance motor efficiency, and optimize cooling systems. This includes implementing advanced thermal insulation materials, active cooling solutions, intelligent motor control algorithms, and predictive maintenance technologies to prevent overheating and ensure reliable performance in operating conditions. Additionally, robust testing and validation procedures are essential to identify and address potential thermal issues early in the development process, thereby building confidence among consumers and accelerating the adoption of traction motors in electric commercial vehicles.

Market Ecosystem

Improved acceleration and range to drive growth of multi-speed drive during the forecasted period.

A multi-speed drive in traction motors incorporates multiple gear ratios, allowing the motor to operate at different speeds or torque outputs. In this setup, the motor is coupled with a transmission mechanism that can shift between different gear ratios based on the vehicle's speed, load, or driver input. Adjusting the gear ratio allows the motor to operate at different speeds while maintaining optimal efficiency and performance. This enables the vehicle to achieve better acceleration, higher top speeds, improved hill-climbing capabilities, and enhanced energy efficiency compared to single-speed drive systems. Multi-speed drive motors are particularly beneficial in electric commercial vehicles operating in diverse environments, including urban, suburban, and highway driving conditions. By providing multiple gear ratios, these motors optimize power delivery and torque output across various speeds and load demands, resulting in improved overall driving dynamics, efficiency, and range. Additionally, multi-speed drive systems offer flexibility in adapting to different driving scenarios, ensuring optimal performance and drivability in various operating conditions.

OEMs such as AB Volvo (Sweden) offer a two-speed automated manual transmission in their Volvo 7900 electric bus with a power output of 200 kW. Multi-speed drive systems enable manufacturers to tailor the powertrain to specific vehicle applications, maximizing performance and efficiency. It also contributes to a smoother and more responsive driving experience, with seamless gear changes and improved control over vehicle speed. This advantage enhances driver comfort and satisfaction, leading to improved productivity and safety, particularly in demanding commercial vehicle applications.

The comprehensive offerings by motor manufacturers of 100–200 kW power output segment to drive growth of the electric commercial vehicles traction motor market over the forecast period.

The 100–200 kW power output is primarily found in delivery vans, medium-duty trucks, and pick-up trucks, offering versatile regional transport and urban logistics solutions. Some 100–200 kW motors can be designed to accept higher DC fast charging rates. This can significantly reduce charging times, making electric vehicles more convenient for long trips or everyday use. A 100–200 kW motor delivers better passing power and overall responsiveness when passing slower vehicles or maintaining speed on high-speed roads. This is crucial for safety and confidence while driving on highways.

Traction motor manufacturers such as ABB Ltd. (Switzerland) offer 163 kW EV traction motors for heavy electric vehicles with a peak power output of 163 kW and motor speed of 5000 rpm. Similarly, Dana Incorporated (US) offers 170 kW IP6K9K-rated EV traction motors/inverters for light, medium, and heavy electric vehicles with a peak power of 170 kW and speed of 3,250 rpm. Such comprehensive offerings by motor manufacturers support the market growth of the 100–200 kW segment in the electric commercial vehicle traction motor market.

Asia Pacific is the largest market for electric commercial vehicle traction motors during the forecast period.

The Asia Pacific region is projected to be the largest ECV traction motor market by 2030. The Asia Pacific market is dominated by China, which has large sales volumes for Electric Commercial Vehicle Traction Motors, especially electric buses. With favourable government regulations and the increasing adoption of electric buses in public transport fleets, India is expected to be a high potential market for Electric Commercial Vehicle Traction Motors in the future. Automotive manufacturers, technology companies, and startups in India are actively collaborating to develop and deploy electric commercial vehicles. This collaboration fosters innovation and accelerates the adoption of traction motors in the Indian market. In January 2023, American Axle and Manufacturing, Inc. and EKA mobility (India) have collaborated to supply eka e-beam axle for the 2.5 T battery electric commercial vehicle by EKA.  Asia Pacific is home to many traction motor manufacturers and suppliers, such as BYD (China), Shenzhen Inovance Technology (China), Zhejiang Founder Motor Co., Ltd. (China), Kirloskar Electric Company Limited (India), Mitsubishi Electric Corporation (Japan) and among others. The presence of all such manufacturers in the region will drive the market for Electric Commercial Vehicle Traction Motors during the forecast period.

In North America, governments at both the federal and state levels are offering incentives to promote the adoption of electric vehicles, including commercial vehicles. The region is home to renowned OEMs that specialize in producing high-quality and high-performance traction motor for commercial vehicle, driving the growth of the electric commercial vehicle traction motor market. These manufacturers, including BorgWarner (US), Dana Incorporated (US), American Axle & Manufacturing (US) and among others. Thus, having a headquarters in North America allows the traction motor manufacturer to establish local production facilities and supply chains. These aforementioned parameters support the traction motor market for electric commercial vehicles in the region during forecasted period.

Key Market Players

The Electric Commercial Vehicle Traction Motor market is dominated by established players such as ZF Friedrichshafen AG (Germany), Dana Limited (US), Robert Bosch GmbH (Germany), Magna International Inc. (Germany), Allison Transmission, Inc. (US) and others. These companies manufacture and develop new ECV traction motor as per the market requirement. These companies adopted strategies such as product developments, deals, and others to gain traction in the market.

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Scope of the Report

This research report categorizes the Electric Commercial Vehicle Traction Motor market based on Vehicle type, Power Output, Motor type, Design, Transmission, Axle Architecture and Region.

Based on Vehicle Type:

• Pickup Trucks
• Trucks (Medium-duty Trucks and Heavy-duty Trucks)
• Vans (Light Vans and Full-size Vans)
• Buses & Coaches

Based on Power Output:

• Less than 100 kW
• 100−200 kW
• 200-400 kW
• Above 400 kW

Based on Motor Type:

• Permanent Magnet Synchronous Motor (PMSM)
• AC Induction Motor
• DC Traction Motor

Based on Design:

• Radial Flux
• Axial Flux

Based on Transmission:

• Single Speed Drive
• Multi-speed Drive

Based on Axle Architecture:

• Integrated Axle
• Central Drive Unit

Based on the region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• North America
  • Canada
  • US
• Europe
  • Austria
  • France
  • Germany
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Italy
  • UK
  • Others

Recent Developments

• In January 2024, Magna International Inc. launched its next-generation 800V eDrive solution with new standards in efficiency, power-to-weight ratio, and torque density. The system delivers 250 kW of power and 5,000 Nm of axle torque, achieving up to 93% efficiency in real-world driving.
• In January 2024, American Axle & Manufacturing launched its next-generation 3-in-1 electric drive units (eDUs), fully integrated e-Beam axles at CES 2024, along with innovative component technologies that are helping define the future of mobility around the globe.
• In December 2023, BorgWarner Inc. acquired the Electric Hybrid Systems of the business segment of Eldor Corporation. The acquisition is an important complement to the propulsion portfolio as it is related to the expansion of high-voltage power electronics beyond the inverter.
• In September 2023, Schaeffler Group (China) announced that it opened a new research and development (R&D) building in Shanghai, China. There are advanced testing benches and equipment focusing on technical research and application testing of future-oriented technologies such as hydrogen energy, electric drives for New Energy Vehicles, innovative chassis, industrial bearings, robots, and products related to Industry 4.0.
• In September 2023, LG Magna e-Powertrain, the joint venture between LG Electronics (LG) and Magna International Inc., announced a new facility in Miskolc, Hungary. The facility is scheduled to be completed by 2025. It will start production with e-motors and plans to offer a suite of electrified powertrain solutions in the future, including inverters and onboard chargers.
• In February 2023, ZF Commercial Vehicle Technology (Jiaxing) Co., Ltd. (ZF) and Beiqi Foton Motor Co., Ltd. (Foton Motor) plan to jointly build an AMT (automated manual transmission) plant for mid-sized vehicles. The plant will be built in Nanhu District, Jiaxing City, Zhejiang Province. It will house assembly and testing lines for AMTs installed in mid-sized vehicles.

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