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The Europe Electric Motors for Electric Vehicle (EV) Market size is forecast to increase by USD 127.91 billion, at a CAGR of 13.78% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as growing demand for EVs in Europe, ongoing innovations in electric motor technology and increasing investments from automotive manufacturers and technology companies for EVs.
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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.
Growing demand for EVs in Europe is notably driving market development. The demand for EVs in Europe is on the rise, particularly in countries like Norway, the Netherlands, the UK, France, Sweden, and Germany. EV sales have surged, with notable growth in Germany, the leading market, selling approximately 5 million full-electric cars. The UK has also seen substantial growth, boasting around 1 million fully EVs and 600,000 plug-in hybrids on its roads by January 2024. Government support initiatives, enhanced EV offerings from OEMs, and increased consumer familiarity are contributing to the increasing demand for EVs. Some European countries, including France and the UK, have committed to phasing out conventional vehicles in favor of EVs.
Further, the EU's stringent carbon emission standards are pushing OEMs to introduce electrified powertrains, creating opportunities in the EV industry and driving the need for EV charging stations. EVs are becoming more affordable due to government subsidies, contributing to their growing popularity in Europe, where EV sales surpassed diesel in recent quarters. This surge in EV adoption is expected to propel its demand, fostering market growth during the forecast period.
The rise of SiC inverters to increase the efficiency of electric motors for EVs is an emerging trend shaping market growth. SiC, a semiconductor material, offers superior thermal conductivity and power-handling capabilities compared to traditional silicon-based semiconductors. SiC inverters contribute to the efficiency of these motors by minimizing power losses during energy conversion and allowing for higher temperature operation. This results in enhanced performance, increased energy density, and extended driving ranges for EVs, addressing crucial factors for consumer acceptance. SiC inverters also play a key role in fast-charging capabilities, facilitating faster charging speeds and aligning with the industry trend of accelerating charging infrastructure.
Notably, automotive manufacturers like Tesla Inc. are adopting SiC technology in their electric drivetrains, contributing to improved performance and efficiency. With European countries actively promoting EVs adoption, the deployment of SiC inverters aligns with sustainability goals and enhances the overall appeal and competitiveness of EVs in the European market. Thus, the integration of SiC inverters represents a significant technological advancement that will drive the market trends during the forecast period.
Raw material scarcity and price volatility associated with the manufacturing of electric motors for EVs is a significant challenge hindering market growth. The production of these motors relies heavily on key materials such as rare-earth elements (REEs), copper, and aluminum, making the industry susceptible to supply chain disruptions and price fluctuations. The Russia-Ukraine war has added complexity to these challenges. Russia is a major supplier of critical raw materials, including REEs, which are essential for electric motor components. Geopolitical tensions and sanctions imposed on Russia have disrupted the global supply chain, leading to concerns about shortages and increased material costs.
Furthermore, price volatility in raw materials directly impacts the overall production cost of such motors, making it challenging for manufacturers to maintain competitive pricing. Additionally, the unpredictability of material costs hampers long-term planning and investment decisions for companies operating in the EV ecosystem. In conclusion, the interplay of raw material scarcity, price volatility, and geopolitical tensions from events such as the Russia-Ukraine war creates a challenging environment for the Europe electric motors for EV market. Such factors are expected to limit the market growth during the forecast period.
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
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.
Bayerische Motoren Werke AG - The company offers electric motor for EVs such as BMW Externally Excited Synchronous Motor or EESM, with AC motors used in EV.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The passenger vehicle is estimated to witness significant growth during the forecast period. Increasing environmental awareness, coupled with stringent emissions regulations, has fueled the demand. European countries are prioritizing sustainability, encouraging the adoption of electric mobility to mitigate the environmental impact of traditional vehicles.
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The passenger vehicle was the largest and was valued at USD 59.97 million in 2018. Automakers are investing heavily in research and development to improve the performance, efficiency, and design of EVs further attracting consumers. Additionally, a growing awareness of climate change and a shift towards sustainable lifestyles among European consumers are driving the demand for eco-friendly transportation solutions. The emphasis on reducing carbon footprints and embracing clean energy aligns with the goals of such passenger vehicles. Major automotive manufacturers are introducing a variety of such models, ranging from compact cars to luxury vehicles, catering to diverse consumer preferences. As European cities implement stricter emission regulations and low-emission zones, the popularity of such passenger vehicles is expected to soar, fostering a sustainable and eco-conscious automotive landscape in the region. Such factors will fuel the segment growth during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Europe EV Electric Motors Market faces dynamic challenges and opportunities within the automotive industry. Major players like Volkswagen Group, Daimler, and Ford Motors are driving year-on-year growth in the Battery Electric Vehicle (BEV) segment. Environmental concerns and government initiatives are accelerating investment plans, particularly in the development of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). The focus on expanding EV charging infrastructure and providing tax reductions is evident. Additionally, German component manufacturer Mahle is contributing to the industry's growth, while supply chain challenges and the need for sustainable policies shape the future landscape. Overall, the market is witnessing a transformative shift towards electric mobility, with various stakeholders actively participating in advancing the electric motors market for electric vehicles.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.78% |
Market growth 2024-2028 |
USD 127.91 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.23 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., AMETEK Inc., Bayerische Motoren Werke AG, BorgWarner Inc., Continental AG, DENSO Corp., GEM motors d.o.o, Hitachi Ltd., Magna International Inc., Mitsubishi Electric Corp., Nidec Corp., Robert Bosch GmbH, Siemens AG, Tesla Inc., Toshiba Corp., Valeo SA, Ford Motor Co., General Motors Co., Renault SAS, and Volkswagen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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