Traction Motor Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Traction Motor Market Size - Analysis

Traction Motor Market Trends

The automotive industry has seen rapid growth in demand for electric vehicles in recent years. Battery-powered EVs provide numerous benefits over internal combustion engine vehicles such as lower operating costs, less reliance on fossil fuels, and quieter operation.

On the production side, automakers have heavily invested in their electric lineups, planning dozens of new EV nameplates over the next few years. Mainstream brands are marketing EVs to the masses rather than just niche audiences. These factors alleviate barriers that may have existed previously in the traction motor market.

Market Driver - Rising Focus on Fuel Efficiency and Reducing Carbon Emissions

In addition, climate change has risen up the public agenda. Younger generations in particular favor brands that demonstrate leadership on sustainability issues. Against this backdrop, automakers recognize putting greater numbers of EVs on the road as a necessity to appease regulators and retain licenses to sell in high-volume markets.

Market Challenge - High Initial Costs for Implementing Traction Motor Technologies

Traction motor manufacturers also face challenges related to developing ecosystems around new technologies and ensuring adequate support infrastructure is in place to provide parts, services and repairs for electric vehicles. With upfront costs being considerably higher compared to conventional internal combustion engine vehicles, it hampers the pace at which the traction motor market can transition to more sustainable powertrain options. Finding ways to reduce production costs through economies of scale, innovation, and supply chain integration will be important for the future growth prospects of the traction motor market.

Market Opportunity - Growing adoption of renewable energy sources for electric motors

The growing integration of renewables into national power grids and their increasing cost competitiveness provides a reliable source of clean energy to power electric traction motors. As renewable energy starts meeting a larger portion of electricity demand, it can significantly boost the credentials of EVs and rail systems that rely on electric traction motors.

Key winning strategies adopted by key players of Traction Motor Market

Focus on technology innovation: Companies like CRRC, SainSunt Ltd., and Siemens have achieved success by continuously innovating their traction motor technologies.

Focus on aftermarket services: Players like Crrc and TMH are focusing more on product reliability and after-sales services. For example, CRRC established maintenance centers close to major rail routes in China and India. This helped CRRC win over 50% of the aftermarket services contracts in these regions.

Segmental Analysis of Traction Motor Market

Insights, By Type: Electrification of Rail Routes Drives Growth of AC Traction Motors

The ongoing electrification of railway routes across major economies is a key factor propelling the demand for AC traction motors. Countries are aggressively investing in electrification to replace aging diesel locomotives and cut carbon emissions. As rail electrification gathered pace worldwide, it has significantly boosted the installations of AC traction motors in locomotives over the last decade.

In terms of application, the railways segment contributes 55% share of the traction motor market currently. However, the automotive segment is emerging as an important end-use industry for traction motors, driven by the rising electrification of vehicles. Within the automotive segment, in-wheel traction motors are gaining traction due to their suitability for electric vehicles (EVs) with in-wheel motor architecture.

The focus on electrification is fueling prototyping and testing of EVs featuring innovative in-wheel motor technology. In-wheel traction motors may displace conventional traction motors and propel the automotive segment to higher shares in the overall traction motor market.

Insights, By Voltage: Advancements in High Power Wide Band-gap Semiconductors

PMSMs are gaining prominence for their high efficiency, reliability and compact design. To meet the power requirements of heavy duty engines and machinery, PMSMs need to be rated for high voltages. Wide band-gap semiconductors like silicon carbide (SiC) and gallium nitride (GaN) allow higher operating temperatures and frequencies compared to conventional silicon. This enables more compact, lightweight and powerful motor drive systems.

Additional Insights of Traction Motor Market

• Siemens and Hitachi have been making joint efforts in Asia to develop energy-efficient traction motors for the emerging traction motor market.
• GE’s involvement in North America includes collaboration with automakers to provide integrated electric propulsion systems for commercial vehicles.
• Asia-Pacific leads the traction motor market in terms of production, owing to the high demand for electric motors in China and India.
• The traction motor market has seen significant growth due to the surge in electric vehicle demand. The rail sector, in particular, is moving toward more eco-friendly and efficient traction motors.

Competitive overview of Traction Motor Market

The major players operating in the traction motor market include Siemens AG, ABB Ltd., General Electric Company, Bosch Limited, Nidec Corporation, Toshiba Corporation, Hitachi, Ltd., Mitsubishi Electric Corporation, Rockwell Automation, Inc., Regal Beloit Corporation, Schneider Electric SE, WEG S.A., Hyundai Rotem Company, CRRC Corporation Limited, and Dana Incorporated.

Recent Developments in Traction Motor Market

Traction Motor Market Segmentation

• By Type
  • AC Traction Motors
  • DC Traction Motors
  • Permanent Magnet Synchronous Motors (PMSM)
• By Application
  • Railways
  • Automotive
  • Others
• By Voltage
  • Low Voltage (Below 1 kV)
  • Medium Voltage (1 kV – 3 kV)
  • High Voltage (Above 3 kV)