Automotive Traction Motor Market

Automotive Traction Motor: Powering the Future of Electric Vehicles

The global automotive industry is undergoing a significant transformation with the rise of electric vehicles (EVs). As the demand for sustainable transportation grows, automotive traction motors play a crucial role in powering these EVs. This essay aims to explore the concept of automotive traction motors, their importance in the electric vehicle industry, and the top impacting factors and government policies influencing their development.

Definition and Function of Automotive Traction Motor

An automotive traction motor is an electric motor specifically designed for propulsion in electric and hybrid vehicles. Its primary function is to convert electrical energy into mechanical energy, generating torque to propel the vehicle. These motors are critical components in EVs as they provide high efficiency, compact size, and improved performance compared to traditional internal combustion engines.

Importance of Automotive Traction Motors in Electric Vehicles

Automotive traction motors are vital for electric vehicles due to the following reasons:

Traction motors offer significantly higher energy efficiency compared to internal combustion engines, leading to reduced energy consumption and increased overall range of electric vehicles.

By eliminating tailpipe emissions, automotive traction motors help address the pressing environmental concerns associated with fossil fuel-powered vehicles, contributing to cleaner air and reduced carbon footprint.

Traction motors enable regenerative braking systems, which capture and convert kinetic energy during deceleration and braking, further improving energy efficiency and extending the vehicle's range.

Electric vehicles powered by traction motors produce minimal noise, providing a quieter and more comfortable driving experience for both passengers and pedestrians.

Top Impacting Factors on Automotive Traction Motor Development:

Several factors significantly impact the development and adoption of automotive traction motors. The key factors include:

Continuous advancements in electric motor technologies, such as improved power density, higher efficiency, and reduced weight, drive the development of automotive traction motors, making them more suitable for EV applications.

The performance and range of electric vehicles are closely tied to battery technology. Advancements in battery energy density, charging capabilities, and affordability directly influence the design and development of traction motors to optimize their performance.

The cost of automotive traction motors remains a significant barrier to widespread EV adoption. As technology advances and economies of scale are realized, the cost of manufacturing traction motors is expected to decrease, making EVs more affordable for consumers.

Government Policies and Regulations

Government policies play a crucial role in shaping the electric vehicle industry and promoting the development of automotive traction motors. Some notable policies include:

Incentives and Subsidies: Governments worldwide provide financial incentives, tax credits, and subsidies to encourage the adoption of electric vehicles. These incentives reduce the upfront cost for consumers, making EVs and traction motors more attractive.

Emission Standards: Governments impose stringent emission standards and regulations, which push automakers to transition to electric vehicles. These standards drive the demand for automotive traction motors that power the EVs.

Research and Development Funding: Governments invest in research and development programs to foster innovation in electric vehicle technologies, including automotive traction motors. These initiatives accelerate technological advancements and contribute to the overall growth of the industry.

Dynamics of Automotive Traction Motor Market

Drivers in Automotive Traction Motor Market

The rising concern regarding the environmental impact of traditional vehicles has led to a surge in demand for electric vehicles (EVs). Governments worldwide are actively promoting the adoption of alternative fuel vehicles, with EVs being a zero-emission option. To incentivize consumers, various national governments offer financial benefits such as tax exemptions, rebates, subsidies, reduced parking/toll fees, and free charging infrastructure.

There is a growing trend towards Smart Hybrid technology, which utilizes an integrated traction motor that also acts as a starter motor, providing additional torque during acceleration with the assistance of a dual battery setup. Stringent government regulations and increasing environmental awareness regarding carbon emissions have prompted a shift towards electric vehicles. The rising demand for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which heavily rely on traction motors, is expected to drive significant growth in the market. Leading manufacturers and key players in the industry are collaborating to develop traction motor packs that can operate effectively under high temperatures, creating lucrative opportunities in the market. The demand for 48 V traction motors is particularly high in developing countries like India, Mexico, and Brazil, where engines equipped with such technologies claim high mileage. Both commercial and passenger segments are witnessing a strong demand for all-wheel drive BEVs, PHEVs, and hybrid electric vehicles (HEVs), further bolstering the automotive traction motor market, especially in developing nations.

Restraints in Automotive Traction Motor Market

The limited availability of supporting infrastructure for EVs has posed a challenge to the growth of the automotive traction motor market. While traction motors are essential for the functioning of EVs, the frequent need for battery recharging requires a well-developed charging infrastructure.

To address this issue, some developing countries have focused on boosting EV demand by providing incentives for the installation and operation of charging stations. For example, the federal government of Mexico offers tax credits of up to USD 1,500 for the purchase and installation of EV charging stations in commercial buildings. Affordable housing buildings may receive a tax credit of up to USD 3,000 for such infrastructure, thereby encouraging EV infrastructure development and increasing EV adoption. Similarly, the New Mexico Environment Department (NMED) covers 90% of the cost of purchasing, installing, and maintaining qualified light-duty EV charging stations, further supporting the growth of EV infrastructure.

Opportunities in Automotive Traction Motor Market

The fluctuating prices of fossil fuels present an opportunity for alternative energy sources and technologies. Fossil fuels, such as coal, oil, and gas, have long been the driving force behind technological, social, and economic progress. However, the negative environmental impact, particularly the production of carbon dioxide (CO2) upon burning these fuels, has prompted the search for cleaner and more sustainable energy options.

The price of gasoline, which is derived from petroleum, is directly influenced by changes in crude oil prices. When the price of gasoline decreases, consumers have more disposable income for other purchases. The impact of lower fuel prices on vehicle consumption varies across different countries, depending on their fuel prices and tax structures. For instance, consumers in countries with high fuel taxes, like Norway, may experience a relatively smaller percentage change in the overall price compared to consumers in countries with lower fuel taxes, like the United States. This price sensitivity to fuel fluctuations creates opportunities for alternative fuels and technologies, including electric vehicles (EVs) powered by renewable energy sources.

Fossil fuel prices are also subject to volatility due to external factors such as trade barriers, sanctions, conflicts, and supply concentration in specific regions. These factors can lead to price manipulation and market uncertainties. In response, renewable fuel resources, such as biofuels and shale gas, are gaining traction as viable alternatives. The economics of road transportation are shifting in favor of renewable energy sources, and EVs are benefiting from this transition. Original Equipment Manufacturers (OEMs) and parts manufacturers are actively exploring partnerships to compete in the growing EV market. This presents a significant growth opportunity for manufacturers of traction motors, which are essential components in all types of EVs.

Challenges in Automotive Traction Motor Market

One of the significant challenges in the adoption of electric vehicles is the cost of automotive traction motors. EV manufacturers aim to reduce production costs to make electric vehicles more affordable and competitive with internal combustion engine (ICE) vehicles. While advancements in technology and economies of scale have contributed to cost reduction over time, further cost reduction is crucial for broader market penetration.

Another challenge is range anxiety, which refers to concerns about the limited driving range of EVs compared to ICE vehicles. Potential buyers may hesitate to switch to EVs due to worries about running out of battery power during long journeys. Addressing range anxiety requires advancements in battery technology, specifically improving energy density and charging speed. Manufacturers invest in research and development to enhance battery capabilities and reduce charging times to improve the range and performance of electric vehicles.

Furthermore, the availability and accessibility of charging infrastructure play a vital role in promoting widespread EV adoption. A robust and widespread charging network is necessary to alleviate range anxiety and provide convenient charging options for EV owners.

The automotive traction motor industry also faces challenges related to the secure and sustainable supply chain for critical components like rare earth metals and magnets. Ensuring a consistent supply of these materials at affordable prices can be challenging due to geopolitical factors, limited reserves, and environmental concerns associated with mining and extraction.

Efficient thermal management is another crucial challenge for traction motors. These motors generate heat during operation, and effective cooling systems are necessary to dissipate heat and prevent overheating. Optimal thermal management is essential for maximizing motor efficiency and longevity.

Lastly, the automotive industry operates within a complex regulatory framework. Meeting stringent emissions and efficiency standards set by governments worldwide poses challenges for the development and adoption of traction motors. Compliance with evolving regulations requires continuous innovation and investment in meeting environmental targets and improving overall sustainability.

Ecosystem of Automotive Traction Motor Market

The vehicle type segment experiencing the fastest growth in the automotive traction motor market is estimated to be Buses. Electric buses and coaches have seen an increasing adoption by public authorities, non-profit organizations, and private companies. Prominent electric bus manufacturers include BYD (China), Yutong (China), Proterra (US), VDL Group (Netherlands), Olectra Greentech (India), New Flyer (Canada), Foton Motors (China), and AB Volvo (Sweden). While some electric bus manufacturers such as BYD, BAIC, and Geely produce their own traction motors in-house, others rely on suppliers like Magna, Continental, BorgWarner, and Meritor. This rising demand for buses will drive the automotive traction motor market. Furthermore, advancements in battery technologies have increased the operating range of these buses, contributing to the demand for traction motors. The growing need for emission-free public transportation options in both developed and emerging countries is expected to fuel the electric buses segment, thereby driving the demand for traction motors.

During the forecast period, the AC motor will lead the automotive traction motor market in the "by type" segment. The dominance of the AC segment can be attributed to the widespread adoption of AC traction motors. These motors offer higher efficiency, improved speed performance, and superior acceleration compared to DC electric traction motors.

One of the notable advantages of electric vehicles is their quiet operation, providing up to 99% torque even at zero revolutions per minute (RPM). Electric vehicles can utilize either AC or DC motors, with the main distinction being the voltage at which the motor operates. Typically, DC motors operate within the 96-192 V range, while AC motors are usually three-phase motors running at 240 V. DC motors generally cover the 20 to 30 kW range.

The increasing demand for zero-emission vehicles with high fuel efficiency at a reasonable price is driving the demand for Battery Electric Vehicles (BEVs). The BEV segment is particularly suited for permanent magnet synchronous machines (PMSMs) due to their efficiency, compact size, and high density. This favorable combination of factors is expected to drive the growth of the BEV segment in the automotive traction motor market.

The Permanent Magnet Synchronous Motor (PMSM) is anticipated to dominate the market throughout the forecast period due to its exceptional reliability and efficiency. The utilization of rare earth magnets in PMSMs has enabled them to become smaller, lighter, and more cost-effective. These motors generate a rotating field that powers the vehicle, thereby positively impacting revenue growth in the foreseeable future.

Furthermore, the compact size, lightweight nature, and high torque characteristics of PMSMs make them ideal for innovative vehicle designs such as gauge-adjustable trains and low floor, light rail vehicles with gearless direct drive systems. This factor is expected to drive the growth of the market.

The segment of motors with a power rating of less than 200 kW holds the largest revenue share and is projected to experience substantial growth over the forecast period. This growth is primarily driven by the increasing demand for traction motors in electric vehicles, which typically require an average power output of less than 200 kW.

Additionally, the power output range of 30 to 50 kW is also in high demand for many passenger cars. This segment further contributes to the overall market growth.

The segment of motors with a power rating of 200 to 400 kW is expected to be the second-largest, leading the market. These motors find applications in various commercial vehicles such as metro trains, subway trains, and high-speed trains, thus contributing significantly to revenue growth.

Regional Insights

According to forecasts, Europe is projected to hold a significant share of 26.4% in the global automotive traction motor market by 2027, in terms of value. Germany is anticipated to be the largest market for automotive traction motors in Europe. This can be attributed to the increasing demand for electrification in both personal and public transport fleets, as well as the growing utilization of electric vans in the logistics industry. Germany boasts several prominent traction motor manufacturers, including Robert Bosch GmbH, Schaeffler Group, ZF Friedrichshafen AG, Continental AG, and MAHLE Group. These companies have been actively developing new products, establishing joint ventures, and securing supply contracts with key Original Equipment Manufacturers (OEMs). Their contributions have significantly contributed to the growth of the automotive traction motor market in Germany.

Asia Pacific, on the other hand, is the second-largest region for automotive traction motors and is expected to witness faster growth during the forecast period. This growth can be attributed to factors such as rising urbanization, advancements in electric vehicles, and developments in countries like China, Brazil, Mexico, and India. Government initiatives promoting electric mobility and the surge in demand for high-performance motors are expected to drive the demand for automotive traction motors in the region.

Overall, Europe and Asia Pacific present substantial opportunities for the automotive traction motor market, with Germany and China being key players in their respective regions. The increasing adoption of electric vehicles and the support of government initiatives are expected to contribute to the growth of the automotive traction motor market in these regions.

Dominating Companies in Automotive Traction Motor Market

• BORGWARNER INC.
• BYD CO., LTD.
• SCHAEFFLER GROUP
• ROBERT BOSCH GMBH
• ZF FRIEDRICHSHAFEN AG
• JOHNSON ELECTRIC HOLDINGS LTD.
• CONTINENTAL AG
• VALEO S.A.
• MAHLE GROUP
• NIDEC CORPORATION
• MITSUBA CORPORATION
• ZHEJIANG FOUNDER MOTOR CO., LTD.
• SHENZHEN INOVANCE TECHNOLOGY CO., LTD.
• DENSO CORPORATION
• JING-JIN ELECTRIC
• SHANGHAI EDRIVE CO., LTD.
• UNITED AUTOMOTIVE ELECTRONICS CO., LTD.
• ZHUHAI ENPOWER ELECTRIC CO., LTD.
• SHUANGLIN GROUP
• ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
• XPT DRIVE TECHNOLOGY
• AISIN CORPORATION
• GKN AUTOMOTIVE LIMITED
• ANAND MANDO EMOBILITY
• HYUNDAI TRANSYS INC
• ABB
• Alstom S.A.
• American Traction Systems
• Ansaldo Signalling
• Bombardier Inc.
• Caterpillar Inc.
• CG Power and Industrial Solutions Ltd.
• Delphi Automotive Llp
• General Electric Co.
• Hitachi
• Kawasaki Heavy Industries Ltd.
• Magna International
• Mitsubishi Electric Corporation
• Prodrive Technologies
• Siemens AG
• The Curtiss-Wright Corporation
• Toshiba Corporation
• VEM Group
• Voith Gmbh

Recent Developments in Automotive Traction Motor Market

• In May 2022, BYD Co., Ltd. introduced its intelligence Torque Adaption Control (iTAC) system, which was developed entirely by the company. The iTAC system demonstrates remarkable response speed by predicting changes in wheel speeds over 50 ms in advance. It offers various control strategies, including torque transfer, precise torque reduction, and negative torque output, enabled by the motor's rapid reaction speed and precise speed adjustment. This innovative system will be incorporated into BYD models built on the new e-platform 3.0, enhancing their performance.
• During the same month, ZF Friedrichshafen AG unveiled a range of new electric drive modules and systems. These include a modular and scalable silicon carbide (SiC) inverter architecture, a hairpin electric motor, an electric powertrain, and accessories known as eWorX. The SiC inverter architecture allows for maximum output flexibility, supporting e-motor operation from 400 V to 800 V. ZF's e-motor portfolio follows a modular approach with a common electromagnetic design for the stator, offering options of an asynchronous motor (ASM) or permanent-magnet synchronous motor (PSM) design for the rotor. With power classes ranging from 75 kW to 400 kW and topologies from 400 V to 800 V, ZF's electric drive solutions cater to diverse requirements. The newly developed eWorX product range simplifies the integration of electric systems by providing compact solutions with a standardized interface, facilitating the electrification of work equipment and accessories.
• In May 2022, BorgWarner Inc. secured a contract to supply high-voltage hairpin (HVH) eMotors to a leading EV brand in China. These eMotors will be integrated into the company's second-generation 800 V propulsion system platform and are scheduled for mass production in October 2023. BorgWarner's 800 V oil-cooled eMotors are available as complete motor assemblies or stator and rotor subassemblies. They incorporate built-in permanent magnet rotor technology and proprietary stator insulation enhancements, ensuring exceptional durability and reliability.
• Earlier in April 2022, BorgWarner Inc. successfully completed the acquisition of Santroll Automotive Components. This acquisition is expected to enhance BorgWarner's market responsiveness while strengthening its vertical integration, size, and portfolio breadth in the light vehicle e-motor segment. Santroll, a Chinese company based in Tianjin, specializes in the production of eMotors for light vehicles using concentrated-winding and hairpin technology. It also supplies its proprietary technology to the Chinese OEM market.
• In March 2022, ZF Commercial Vehicle Control Systems India Ltd., a subsidiary of ZF Friedrichshafen AG, announced a significant investment of USD 18.9 million in expanding its capacity through a greenfield venture in Chennai, India. The company plans to establish a new facility on a 44-acre plot of land in Chennai's manufacturing corridor, Oragadam. Production is set to commence in the first quarter of 2023. This expansion is driven by the global integration of Wabco and ZF, and it will enable the company to offer new products specifically tailored for the Indian market. Additionally, the investment will take advantage of the Production-Linked Incentive (PLI) scheme, enabling the localization of innovative technologies in the electric vehicle sector and other advanced fields.
• In September 2021, Robert Bosch GmbH unveiled its new 230 Electric Motor at Motor Bella 2021. Designed for commercial and medium-duty vehicles, this motor features an 800-volt rated voltage and is engineered for long service life. The motor's constant power density has been optimized to ensure a compact design and seamless integration into electric rigid axles.

Automotive traction motors are instrumental in propelling the shift towards electric vehicles, offering increased efficiency, zero emissions, and a smoother driving experience. As technological advancements continue and government policies further support the development and adoption of electric vehicles, automotive traction motors will play an increasingly vital role in shaping the future of transportation, contributing to a greener and more sustainable world.