The latest buzz created by the electric and connected cars have taken the global electric motors market to brew a fresh storm in the worldwide automotive & transportation sector. With the sprawling concept of running electric cars on road, it wouldn’t be incorrect to say that electric motors are generating a rather substantial momentum in the transportation industry. Automotive biggies such as Volvo and Volkswagen’s pledging to go all electric and pivot away from the conventional petrol and diesel cars, have undoubtedly, elicited electric motors industry players to roll up their sleeves and enhance their production capabilities. As estimated by Global Market Insights, Inc., the overall electric motors market is likely to witness a demand surpassing 2 billion units by 2024. As electrification is paving the way for a new wave in the automotive history, analysts predict, electric motors market players to significantly place advanced and innovative electric motor models at the core of its business.
U.S. Electric Motors Market, By Motor, 2016 & 2024, (USD Million)
Given the significant role these electromechanical devices play during the conversion of electric energy into mechanical energy, electric motors industry players are distinctly emphasizing on developing products compatibility with microcontroller and microprocessors that are used in the steering, throttle, and braking technologies. Shifting focus toward achieving better stability and working, is further expected to leave a rendering impact on electric motors industry. Industry experts further anticipate DC motors to catapult remarkable proceeds, given the high usage of these motors in chassis and powertrain applications. The fact that the electric car models are significantly turning the prominent mechanical systems including engine cooling systems, power steering, and transmission actuation into electric drives will generate magnificent demand for electric motors market in the ensuing years. As per research, electric motors industry, from the small DC motors used in the automotive sectors, is likely to capitalize highest revenue share exceeding USD 26 billion by 2024.
The rising demand for electric vehicles across the globe have bestowed plethora of M&As, joint ventures, and R&D activities in the industry. Citing some noteworthy instances, in 2011, Bosch and Daimler collaborated as equals to establish a new venture EM-motive GMBH, that would enhance its production capabilities to manufacture electric motors. Reportedly, now the joint venture is a prime distributor of electric motors to OEMs manufacturing e-vehicles and also for the automotive aftermarket. Statistics claim the joint entity to manufacture more that 1 million electric motors by 2020, which not to mention, will have a remarkable impact on electric motors industry share. WEG’s acquisition of Katt Hessen GmbH, is another example bearing testimony to the growing M&A strategies that has helped the company to strengthen its position in progressing electric motors industry.
Analysts deem the stringent regulations toward curbing CO2 emissions to be a pivotal factor influencing the electric car makers to phase out conventional IC engines and embrace electrification. Reports claim that the emission generated by electric vehicles is less than half the CO2 released by fossil fuel vehicles of same weight and performance standards. One of the boldest commitment toward bringing forth zero-emission versions of vehicles has been taken by Volvo Cars. Reportedly, the company will go 100% electric from 2019. Volkswagen was another major in the electric motors industry, who plans to attain a sales target of 2 to 3 million electric cars by 2025. The company is offering around 80 new electric vehicles spanning all its sub-brands and groups which include Audi, Bugatti, Bentley and the home brand. Experts further predict the attractive governmental and promotional activities focusing on decarbonizing transportation to accelerate the adoption rate of these vehicles. For instance, the Indian government initiative to mandate vehicle electrification by 2030 is further compelling the automobile OEMs to gear up for the same. Estimates claim electric motors market from OEM to account for more than 80% of revenue share by 2024.
Considering the regional trends, the exponentially rising demand for plug-in vehicles across North America has positively impacted the regional electric motors industry outlook. Presence of several automobile manufacturing companies along with vast aftermarket is expected to open up a slew of opportunities for the regional business in the ensuing years. As per the estimates, North America is expected to generate a demand of over 378 million units over the coming seven years and attain a CAGR of 7.5% over 2017-2024. Moreover, in the coming seven years Asia Pacific is also anticipated to be one of the strong emerging grounds for electric motors market expansion. Growing automobile production facilities and favorable government initiatives are expected to be the prime drivers fueling regional electric motors market, which as per reports, is estimated to surpass USD 20 billion by 2024.
Characterized by vast regional expansion, growth in the application spectrum, presence of strong regulatory landscape, and an extensive competitive hierarchy, electric motors market, as per Global Market Insights, Inc., will exceed USD 36 billion by 2024.