Automotive Motor Market Size (2025 – 2030)

The Automotive Motor Market was valued at USD 25 billion in 2024. Over the forecast period of 2025-2030, it is projected to reach USD 32.56 billion by 2030, growing at a CAGR of 4.5%.

Motors play a crucial role in vehicles, ensuring smooth and uninterrupted operation. They are integral to any vehicle's functionality, particularly in systems requiring continuous rotational motion. These motors are utilized in multiple vehicle applications, such as power steering, seat cooling fans, battery cooling fans, power windows, engine cooling fans, wiper systems, and more. Their use extends to areas where enhancing passenger comfort is just as vital as ensuring the vehicle operates effectively and efficiently.

Key Market Insights:

• The growth of the market is being fueled by multiple factors, such as the rising global production of vehicles, a growing demand for safety and convenience features, and the increasing need for electric vehicles.

• However, it is expected that the higher weight and cost associated with the overall system may pose challenges to market growth.

• Furthermore, the widespread use of electric motors in various applications and the emergence of autonomous vehicle technology are expected to open up numerous opportunities for market expansion.

Automotive Motor Market Drivers:

The growing demand for features that emphasize convenience and safety is a key driver of market expansion.

The automotive industry has seen a rising demand for more advanced technological features, such as power steering systems, climate control systems, anti-lock braking systems, and other similar technologies. This growing demand has led to an increase in the number of motor applications within vehicles, driving the expansion of the market. Additionally, consumers in developed markets are increasingly seeking enhanced convenience, safety, and comfort in their vehicles. High-demand features include steering-mounted controls, heads-up displays, advanced infotainment systems, gesture control systems, telematics, and central controllers.

Automotive Motor Market Restraints and Challenges:

The rising popularity of shared mobility is expected to hinder the growth of the market.

Mobility services provide an accessible and stress-free travel experience for individuals who may not be able to afford their own vehicles. Car-sharing and ride-hailing platforms like Uber and Lyft help reduce transportation costs by optimizing vehicle usage. This, in turn, leads to less urban traffic and a reduction in vehicle emissions. Digitally-enabled car-sharing and ride-hailing services offer an efficient and environmentally friendly solution for managing travel needs. A

Automotive Motor Market Segmentation: By Vehicle Type

• Two-wheelers

• Electric Two-wheelers

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Heavy Commercial Vehicles (HCVs)

• Plug-in hybrid electric vehicle (PHEV)

• Hybrid electric vehicle (HEV)

The passenger cars segment is the largest contributor to the market and is expected to grow throughout the forecast period. Rising discretionary income levels in countries such as India and China are projected to boost the demand for passenger vehicles, subsequently increasing the need for automotive motors in these cars. Additionally, the automotive industry is incorporating aluminum to reduce vehicle weight and enhance fuel efficiency, further driving growth in this segment.

The two-wheelers segment is the second-largest and is also expected to experience growth during the forecast period. Two-wheelers generally have lower operating costs, making them a more economical option compared to other vehicles. Moreover, their versatility in serving various purposes—such as daily commuting, off-road riding, long-distance travel, and cruising—contributes significantly to the expansion of the market.

Automotive Motor Market Segmentation: By Function

• Performance

• Comfort & Convenience

• Safety & Security

The comfort and convenience segment is the largest contributor to the market and is expected to experience growth during the forecast period. The expansion of the automotive motors market in this segment is primarily driven by increasing disposable income and greater awareness of vehicle safety, security, and convenience features. Additionally, the growing population in developing countries presents significant opportunities for market growth.

The ECM (Electronically Commutated Motors) segment is the second-largest and is projected to grow throughout the forecast period. Electronically commutated motors offer superior energy efficiency, with energy consumption reduced by up to 90 percent. This allows EC fans to consume approximately 70 percent less energy compared to traditional fans. As a result, energy usage decreases, operating expenses are lowered, comfort is enhanced, noise is reduced, and the motor’s lifespan is extended, all contributing to market growth.

Automotive Motor Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

The Asia-Pacific region is the largest revenue contributor to the automotive motors market and is expected to continue growing during the forecast period. Government policies in the region promote environmentally responsible manufacturing and investment, further driving market expansion. Additionally, the rising number of vehicles and passenger cars being registered in Asia and the Pacific presents significant opportunities for the development of the automotive motors market.

The growth in the region is also fueled by increasing demand for technologically advanced vehicles among consumers, as well as the growing implementation of the Internet of Things (IoT) in the automotive industry. Numerous technological advancements in the sector, supported by government initiatives and investments in research and development related to automotive production, further contribute to the market’s expansion.

Europe is the second-largest contributor to the global automotive motors market and is projected to grow during the forecast period. The market's growth in Europe can be attributed to the development of new technologies and the continuous improvement of vehicle standards. Moreover, the increasing sales of premium cars in the region are driving the development of more advanced vehicles, which in turn boosts the growth of the automotive motors market in Europe.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic led to a slowdown in the automotive manufacturing process, primarily due to a reduced workforce, which may hinder the market's growth during the forecast period. The pandemic's impact was further compounded by firm government regulations aimed at curbing the spread of the virus, which significantly affected the global automobile industry. Manufacturing restrictions and strict regulations on workforce movement led to lower production rates in automotive factories, directly impacting the demand for automotive motors in 2020. Additionally, disruptions in the supply chain and distributor networks caused shortages of raw materials needed for automotive motor production.

However, as pandemic conditions improve and control measures are eased, the market is expected to recover and experience robust growth. The increasing demand for advanced vehicles, particularly in developing countries, is anticipated to provide strong growth opportunities for the global automotive motors market during the forecast period.

Latest Trends/ Developments:

In June 2024, Nidec Corporation announced the launch of a new air suspension motor developed by its Chinese subsidiary, Nidec Motor (Dalian) Limited. The motor is designed with a compact form, high power output, long lifespan, and fast start-up and response times.

In August 2023, MAHLE unveiled the development of an innovative "perfect motor" that combines the advantages of superior continuous torque (SCT) and a magnet-free contactless transmitter (MCT) electric motor. This new system is expected to deliver continuous high peak power, contactless power transmission, and other integrated benefits. The solution was showcased at the IAA Mobility event in Munich in September 2023 and is anticipated to contribute to the ongoing expansion of the market.