Europe Electric Vehicle Motors Market Report and Forecast 2024-2032

Europe Electric Vehicle Motors Market Outlook

The Europe electric vehicle motors market size was valued at USD 1.51 billion in 2023. The market is further projected to grow at a CAGR of 18.20% between 2024 and 2032, reaching a value of USD 6.94 billion by 2032.

Key Takeaways

• The volume of EV sales in Europe increased by 15% in 2022.

• In Europe, the proportion of EV sales is projected to rise significantly in the coming years, reaching 80% in 2030.

• In 2022, Germany accounted for 18% of pure electric vehicle sales in Europe.

Electric motors convert electrical energy from the electric vehicle's battery into mechanical energy. They play a crucial role in powering e-vehicles, offering a more sustainable and environmentally friendly mode of transportation compared to traditional internal combustion engines. There are three main types of electric motors commonly used to power EVs: synchronous permanent magnet motors, synchronous electrically excited motors, and asynchronous induction motors.

Also, electric motors are most efficient at low RPMs and higher loads, and they can also function as generators during regenerative braking, which slows the vehicle and extends its range. This process is central to extending an electric car's range and improving its efficiency, which is increasing the Europe electric vehicle motors market demand.

Key Trends and Developments

Adoption of sustainable materials in e-motors, rising focus on high-power EVs, and advancements in motor technologies are boosting the market growth

June 2023

Germany invested EUR 6.3 billion over the past three years to rapidly expand the electric vehicle charging infrastructure, with an additional EUR 900 million for the buildup of fast-charging infrastructure for commercial cars and trucks.

September 2022

For light commercial vehicles, Robert Bosch introduced a new electric drive system that is enhanced by a DC/DC converter, motor, and vehicle control unit.

March 2022

Volkswagen invested around EUR 460 million in its Wolfsburg plant, primarily to produce the electric ID.3 model and an additional fully electric model in the SUV segment. The investment is part of Volkswagen's broader strategy to accelerate its EVs production.

February 2022

Renault Group and Valeo Siemens eAutomotive formed a strategic partnership for the co-development of a new-generation electric motor in France, which is designed to eliminate the use of rare earths, meeting stringent environmental requirements, and offering high performance.

Adoption of sustainable materials in e-motors

The Europe electric vehicle motors market development can be fostered due to the integration of rare earth element-free electric  motors in EVs, which reduces dependency on scarce resources and aligns with sustainable practices.

Rising demand for EVs in Europe

Growing awareness in European countries regarding eco-conscious living is accelerating the adoption and demand of electric vehicles because they produce significantly less carbon emissions compared to conventional vehicles.

Increasing focus on high-power electric vehicle motors

The increasing focus on high-power electric vehicle motors  in EVs helps enhancing driving speed and acceleration. Robert Bosch recently launched high-power EV motors with a power of 800 V and advanced cooling technologies, which can increase the Europe electric vehicle motors market growth.

Advancements in electric motor technology

A key Europe electric vehicle motors market trend is the introduction of in-wheel motor technology by companies like Elaphe and Protean Electric. In-wheel motors, which are attached in the rim of an EV’s wheels offers features like better torque response, more road safety, quicker acceleration, and longer range.

According to the International Energy Agency (IEA),  in Europe, electric car sales increased by over 15% in 2022, accounting for over 35% of the global electric vehicle market share. The rising adoption of EVs in Europe, necessitates the demand for efficient electric vehicle motors, thereby driving the market growth. The electric vehicle motors market in Europe is thus driven by the increasing adoption of electric vehicles (EVs) and government initiatives promoting sustainable transportation. The top 5 countries in Europe with the highest share of EV sales are Norway, Sweden, the Netherlands, Denmark, and Germany.

Moreover, the ongoing technological advancements in electric motor designs, regenerative braking systems, and improved power density, contribute to the overall Europe electric vehicle motors market demand. Also, with several European automakers, including Toyota, Tesla, and GM, actively investing in research and development to promote sustainable motor technologies, the adoption of electric motors free of rare earth elements is predicted to grow.

Market Segmentation

Europe Electric Vehicle Motors Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Motor Type

• AC Motor

• DC Motors

Market Breakup by Vehicle Type

• Hybrid Electric Vehicle (HEV)

• Plug-in Hybrid Electric Vehicle (PHEV)

• Pure Electric Vehicle (PEV)

Market Breakup by Application

• Passenger Car 

• Commercial Vehicles

Market Breakup by Country

• Germany

• United Kingdom

• France

• Italy

• Others

Passenger cars are expected to hold significant market share due to the increasing demand from daily commuters

As per Europe electric vehicle motors market analysis, both, passenger cars and commercial vehicles are expected to hold significant shares in the market due to the growing popularity of battery-electric and plug-in hybrid electric vehicles in United Kingdom, Germany, France, Italy, and Spain. Sales of battery-electric vehicles have been rising steadily in Europe in 2023; in October and November, sales reached 14.2% and 16.3%, respectively. In addition, it is expected that the market will continue to grow as more electric vehicle models become available. General Motors invested more than EUR 3.6 billion in two Michigan factories in 2022 to increase the production of electric commercial vehicles. Ford Motors announced in March 2022 that three new electric passenger cars will be available in Europe by 2024.

To deliver the greatest technology for electric vehicles, businesses are also investing more in R&D initiatives. This illustrates how the market for electric motors is growing to meet the growing demand for electric vehicles. Moreover, the production of more dependable and efficient electric vehicles has been made possible due to the development of advanced electric motors and battery technologies, which has further fuelled the expansion of the passenger car and commercial vehicle segments in the Europe electric vehicle motors market.

AC and DC motors plays a crucial role in enhancing EVs performance and is expected to grow significantly in the forecast period

According to Europe electric vehicle motors market analysis, EVs in Europe utilise both AC (alternating current) and DC (direct current) motors to power their drivetrains. European EVs frequently use AC motors because they improve energy efficiency by converting kinetic energy into electrical energy and support regenerative braking, which reduces manufacturing costs. AC motors provide high torque at low speeds, improving acceleration and performance in urban driving conditions of the region.

Also, AC motors have a simpler design with fewer parts compared to DC motors, contributing to ease of maintenance and cost savings. Tesla vehicles, such as the Model 3 and Model S, prominently feature AC induction motors known for their high efficiency and performance.

DC motors, on the other hand are specifically brushed and brushless DC motors and are also utilised in certain European EV models. These motors offer advantages such as compact size and precise speed control. DC motors, especially brushless variants, are known for their compact size, making them suitable for EVs with space constraints.

According to Europe electric vehicle motors market report, European EV manufacturers place a strong emphasis on maximising efficiency to extend range and reduce energy consumption. This focus influences the selection and integration of both AC and DC motor technologies, which is driving the segment’s growth.

Competitive Landscape

The market players are introducing novel technologies to stay ahead in the competition, further increasing their collaboration efforts to meet the evolving regulatory landscape.

Robert Bosch GmbH is a engineering and technology company that was founded in 1886. It offers auto parts and accessories, ebike systems, motor vehicle technology, household appliances, security systems, and solar inverters. Bosch is headquartered in Germany, Europe and has regional companies in some 60 countries.

Siemens AG is headquartered in Germany and was founded in 1847. The company's operations cover automation and digitisation in the manufacturing industries, intelligent building and distributed energy system infrastructure, rail transport solutions, and more. Its focus is on infrastructure, transportation, and healthcare.

MAHLE GmbH is an automotive parts manufacturer based in Stuttgart, Germany. The company was established in 1920 and manufactures systems for internal combustion engines and their accessories, such as valve train, special engines, motorsports, piston systems, cylinder components, air management, and liquid management systems.

ABB Ltd is a multinational corporation headquartered in Switzerland and was founded in 1988. The company offers a wide range of products, systems, solutions, and services in the electrification, robotics, automation, and power sectors.

Other key players in the Europe electric vehicle motors market include Continental AG, O.M.E. Motori Elettrici s.r.l., VASCAT, S.A., Lynch Motor Company Ltd., Teco Electric & Machinery Co., Ltd., and Johnson Electric Holdings Limited, among others.

Germany holds the largest share due to the rising demand for EVs in the country

Germany holds a prominent Europe electric vehicle motors market share due to the growing demand for battery electric vehicles as battery electric vehicles (BEVs) account for 30% of the Germany automotive market share. Even in 2021, Germany registered 3,55,961 new battery-electric vehicles. The country also provides significant tax breaks and financial aid for the purchase of electric vehicles and the installation of charging stations. The government offers a 20% refund on new electric cars that cost less than 50,000 EUR, which encourages the sale of EVs. Furthermore, Germany's efforts to reach 15 million electric vehicle sales by 2030 is expected to increase the demand for electric motors in the coming years.

However, as per Europe electric vehicle motors market segmentation, several European countries  have been leading in the adoption of electric vehicles, driven by supportive government policies, financial incentives, and growing consumer interest in sustainable transportation. For example, Norway holds the largest market share of plug-in electric car sales. The Netherlands has a market share of 23% for electric vehicles while Denmark has a market share of 21% for battery electric vehicles.

Key Highlights of the Report