Canada Electric Motor for Electric Vehicle Market Report and Forecast 2025-2034

Canada Electric Motor for Electric Vehicle Market Outlook

The Canada electric motor for electric vehicle market size reached approximately USD 157.50 million in 2023. The market is projected to grow at a CAGR of 15.3% between 2024 and 2032, reaching a value of around USD 584.30 billion by 2032.

Key Takeaways

• In Q1 2022, 7.7% of overall vehicles registered in Canada were electric vehicles.

• Reportedly, 79% of Canadians prefer to buy an electric vehicle with a 400-kilometre range on a single charge.

• The Canadian government aims to phase out sales of light-duty combustion vehicles by 2035.

Electric motors convert electrical energy into mechanical motion and are classified into two categories, DC (Direct Current) and AC (Alternating Current). Each category has several types that offer unique abilities suited for specific applications.

Most electric motors work by using the interaction of the motor magnetic field and electrical current in a wound wire to produce force or torque supplied on the motor shaft. An electrical generator is mechanically identical to an electrical motor but functions with a reversed flow of energy, converting mechanical power to electrical power. Electric motors are better in terms of energy efficiency as their energy conversion rate is up to 98%. This means they can convert almost all the energy they consume into mechanical work.

Key Trends and Developments

The rising demand for energy-efficient motors; increasing preference for EVs; advancements in motor technologies; and the rising use of 3D printing for electric motors are positively impacting the Canada electric motor for electric vehicle market growth

Canada Electric Motor for Electric Vehicle Market Trends

The demand for electric motors is expected to increase in Canada in the forecast period due to the growing adoption of electric vehicles. Electric vehicles are more cost-effective and environmentally friendly than conventional vehicles. They do not emit carbon dioxide, making them safer for public health and the environment, further boosting their preference.

Moreover, the Canadian government's various policies and initiatives have also stimulated the Canada electric motor for electric vehicle market growth. For instance, in December 2023, the government mandated that all passenger cars, SUVs, light trucks, and crossovers sold by 2035 must be zero-emission vehicles (ZEVs). This is part of the government's broader strategy to combat climate change. Additionally, ZEVs must account for at least 20% of all cars sold by 2026 and at least 60% by 2030.

Market Segmentation

“Canada Electric Motor for Electric Vehicle Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Plug-in-hybrid vehicles are expected to dominate the Canada electric motor for electric vehicle market share due to their ability to function at low cost and tax efficiency

Battery electric vehicles are also referred to as all-electric vehicles (AEVs). These vehicles use BEV technology and are powered entirely by a battery-powered electric drivetrain. They are more efficient compared to hybrid and plug-in hybrids.

Hybrid electric vehicles, on the other hand, use both an internal combustion engine (usually petrol) and a battery-powered motor powertrain. The petrol engine is used both to drive and charge the battery. These types of vehicles are not generally as efficient as plug-in hybrid vehicles or fully electric.

Plug-in hybrid electric vehicles, often abbreviated as PHEVs, use batteries to charge an electric motor and another fuel, such as gasoline, to power an internal combustion engine (ICE). The vehicle initially runs on electric power, and when the battery gets depleted, it automatically switches to the internal combustion engine.

The key components of plug-in hybrid electric vehicles are batteries, charge ports, electric traction motors, and fuel tanks, among others. The volume of plug-in hybrid electric car sales in Canada grew to around 29,000 units in 2022, the highest recorded annual PHEV sales in the country.

Competitive Landscape

Major players in the Canada electric motor for electric vehicle market are expanding their production capabilities amid the rising demand for electric vehicles

Other players in the Canada electric motor for electric vehicle market are Jing-Jin Electric Technologies Co. Ltd. and BAIC Group Co., Ltd., among others.

In January 2024, Honda Motor Co., a multinational conglomerate based in Japan, announced its plans of constructing an electric vehicle plant in Canada. This project is estimated to cost nearly 2 trillion yen ($13.83 billion). The new plant is likely to include the in-house production of batteries for electric cars. The automaker is currently reviewing several potential sites for the plant, including one located next to an existing automobile factory in Ontario. According to Nikkei, the company aims to begin operating the new plant by the year 2028.

Key Highlights of the Report