Automotive Motors Market

Market Overview

The global automotive motors market size was valued at USD 32.55 billion in 2021. It is expected to reach USD 58.84 billion by 2030, growing at a CAGR of 6.8% during the forecast period (2022–2030).

Motors are an essential vehicle component because they ensure their operation is carried out without hiccups. It is inherent to the process of any vehicle that involves a continuous rotational motion. Motors are used in various applications within a vehicle, including power steering motors, seat cooling fans, battery cooling fans, power window motors, engine cooling fans, wiper system motors, and others. These motors are used in applications where passenger comfort is as important as the vehicle's ability to move the driver efficiently.

The expansion of the market is driven by several factors, including an increase in the production of vehicles around the world, a high demand for safety and convenience features, and an increase in the requirement for electric vehicles. It is anticipated that the increased weight and cost of the overall system will act as a barrier to market expansion. In addition, the proliferation of applications that use electric motors and the advent of the concept of autonomous vehicles is anticipated to create many opportunities for expanding the market.

Market Dynamics

Market Driving Factors

High Demand For Features That Prioritize Convenience And Safety to Aid Growth

There has been a trend toward an increased demand for more technologically advanced vehicle features in the automotive industry. These features include power steering systems, climate control systems, anti-lock braking systems, and other similar systems. Because of this, there has been an increase in the number of motors applications in automobiles, which has been a primary driver of the expansion of this market. In addition, consumers in developed economies have a growing demand for improved convenience, safety, and comfort levels in automobiles. Steering-mounted controls, heads-up displays, advanced infotainment systems, gesture control systems, telematics, and central controllers are examples of features in high demand.

Other desirable features include comfort, luxury, safety, and security benefits. In addition, the global automotive market has seen an increase in the number of electronic components and software content found in vehicles worldwide. These components and content work together to provide drivers with the most cutting-edge technology-based infotainment and telematics system. In addition, safety and convenience features that detect pedestrians and cyclists, automatic high-beam headlights, blind-spot warning systems, lane-departure warning systems (LDWS), and automatic emergency braking systems (AEBS) are becoming increasingly popular in today's market. All of these factors will be anticipated to fuel demand for automotive motors.

Growing Demand for Electric Vehicles to Impede the Market Growth

Significant demand for electric vehicles has emerged in recent years as the number of people concerned about the potentially devastating effects of climate change and the alarming levels of pollution recorded in the world's major cities continues to rise. As a result of the recent increase in the price of gasoline and diesel, there has been an increase in the number of people looking for efficient vehicles for their fuel use. Depletion of fossil fuel reserves and the growing trend among businesses to derive the most significant possible profit from their oil reserves are both factors that contribute to the acceleration of the increase in demand. Therefore, these factors give rise to the need for advanced fuel-efficient technologies, which leads to a surge in demand for electrically-powered vehicles for travel, which generates the demand for automotive motors.

In most electric vehicles, the traction motor is the most common type. As a result, the expansion of the market for electric vehicles contributes to the development of the automotive motors industry. In addition, electric motors are already commonplace in an internal combustion engine (ICE)-powered vehicles; however, the rise in popularity of electric vehicles has led to an explosion of new developments in automotive electric motors; these developments are what is driving the expansion of the market.

Market Restraining Factors

Growing Popularity of the Trend of Shared Mobility to Restrict Market Growth

Mobility services allow people who can't afford a car to enjoy a stress-free travel experience. Car sharing and ride-hailing services like Uber and Lyft help reduce these costs for the user by providing better utilization. As a result, there is less traffic in the city, and the pollution produced by vehicles is reduced. As a result, digitally-enabled car-sharing and ride-hailing services manage travel needs in the most efficient and environmentally friendly way possible. A single mobile app can manage the sharing and ride-hailing process, from trip planning to payment. Uber and other ride-hailing services are expected to play a significant role here in the coming years, reducing the time and money it takes to get around. As a result of this trend, the automotive motors market is expected to decline. Ride-sharing apps have become increasingly popular in recent years.

For example, Uber rolled out its ride-hailing service in 30 new cities to broaden its reach globally. Customers can take advantage of special offers, free rides, and coupons from the major players to learn about new services and products. Patients can get free rides from Lyft. In addition, Lyft has invested in several partnerships, the most notable of which is healthcare transportation, providing new mobility options for non-drivers, including the elderly, the young, the disabled, and those without access to a vehicle. Because fewer people own cars and fewer parking spaces are required, ride-sharing services benefit the environment and society. As a result, vehicle sales worldwide fall due to more people using public transportation. These factors can hinder growth in the automotive motors market.

Market Opportunities

Introduction of Driverless Cars to Boost Market Opportunities

Self-driving vehicles are powered by electric motors and utilize artificial intelligence (A.I.) software, light detection and ranging (LiDAR), and RADAR sensing technology. These technologies are used to monitor a range of 60 meters around the car and create an active 3D map of the environment. The vehicle is constructed not to require a human operator to move from one location to another. They were driving at high speeds, repeatedly applying the brakes, and then rapidly accelerating again, all causing a significant amount of fuel to be consumed.

Autonomous vehicles have a minor impact on the environment because they use a smaller capacity of their batteries and consume less gas than traditional vehicles. This provides additional benefits, which help ensure it is suitable for the environment. Consumer interest in connected automobiles that use the Internet of Things (IoT) and successful traffic congestion management drive the market expansion. In addition, the development of the automotive sector, the demand for luxury automobiles, and the government's regulations are anticipated to create many opportunities for the key players currently operating in the global market for automotive motors.

Regional Analysis

The global automotive motors market has been studied across North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the highest revenue contributor growing at a CAGR of 6.9% during the forecast period. The automotive and motor industry in the Asia-Pacific region is governed by government policies that promote environmentally responsible manufacturing and investments. In addition, an increase in the number of vehicles and passenger cars registered in Asia and the Pacific creates lucrative opportunities for developing the market for automotive motors.

In addition, the market's growth in the Asia-Pacific region is driven by an increase in the demand for technologically advanced vehicles among the general populace and an increase in the implementation of IoT in the automotive industry. Further fueling the expansion of the market are the numerous technological breakthroughs connected to the automotive industry that has been made possible by initiatives taken by the government, such as investments in research and development related to automotive production.

Europe is the second-largest contributor to the global automotive motors market and is estimated to grow at a CAGR of 6.9% during the forecast period. The expansion of the market for automotive motors in Europe can be attributed, in part, to the development of new technologies as well as the growth of vehicle standards. In addition, the rapid rise in sales of premium cars encourages the development of more advanced vehicles in Europe, which drives the expansion of the automotive motors market in this region.

North America is the third-largest contributor to the global automotive motors market because there was an increase in sales of vehicles across the board, including passenger vehicles, commercial vehicles, and other types of vehicles.

The automotive industry in LAMEA has a relatively slow adoption rate of advanced systems due to the region's geographic location. The growth of the LAMEA automotive motors market is driven by several factors, including the expansion of the Internet of Things (IoT), an increase in the demand for advanced technologies in the automotive industry, and an expansion of the focus on the safety and security of vehicles.

Segmental Analysis

The global automotive motors market has been divided into type, vehicle type, function, technology, and applications.

By Type

Based on the type, the global market has been categorized into D.C. brushed motors, brushless D.C. motors, stepper motors, and traction motors.

The D.C. brushed motors segment is the highest contributor to the market, growing at a CAGR of 5.4% during the forecast period. The market's expansion is driven by various factors, including the availability of straightforward and inexpensive controllers, low overall construction costs, and the capability of being rebuilt for extended service life. These motors perform exceptionally well in severe working conditions, even when the temperature constantly changes. Due to this factor, the application of D.C. brushed motors in automobiles boosts the market growth.

The second-largest segment is the brushless D.C. motors segment is expected to grow at a CAGR of 8.3% during the forecast period. Due to the absence of brushed D.C. motors, brushless D.C. motors require less overall maintenance than their brushed counterparts. Compared with brushed D.C. motors, BLDC operates effectively at all speeds with a rated load while maintaining high efficiency and high output power-to-size ratio.

By Vehicle Type

Based on the vehicle type, the global market has been categorized into two-wheelers, electric two-wheelers, passenger cars, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), BEVs, PHEVs, and HEV.

The passenger cars segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.1% during the forecast period. It is anticipated that rising discretionary income levels in countries like India and China will increase the demand for passenger vehicles, which will, in turn, lead to an increase in the demand for automotive motors used in passenger cars. The auto industry is also using aluminum to cut down on the overall weight of vehicles and improve their efficiency when it comes to fuel consumption. For instance, Land Rover started producing electric cars in November 2018, using lightweight materials such as aluminum to reduce the overall weight of the vehicles. In addition, passenger cars typically get better gas mileage and cost less than larger vehicles, contributing to their rising popularity worldwide.

The two-wheelers segment is the second-largest segment and is estimated to grow at a CAGR of 8.2% during the forecast period. Compared to other vehicles, two-wheelers typically have lower operating costs and can be economical. In addition, two-wheelers are used for various riding purposes, such as daily commuting, off-road riding, long-distance traveling, cruising, and others, contributing to the market's expansion.

By Function

Based on the function, the global market has been categorized into performance, comfort and convenience, and safety and security.

The comfort and convenience segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.5% during the forecast period. The growth of the automotive motors market for comfort and convenience is driven by an increase in people's disposable income and an increase in awareness of vehicle safety, security, and convenience features. In addition, an increase in the population of developing countries presents an opportunity to expand the market.

The performance segment is the second-largest segment and is estimated to grow at a CAGR of 7.4% during the forecast period. Performance-related motors are driving the market's growth because they help smooth out a vehicle's operation, including steering, driving, and braking, among other functions. For example, electric steering motors are included in the electric power steering (EPS) system.    

By Technology

Based on the technology, the global market has been categorized into PWM and DTC.

The PWM segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.3% during the forecast period. Pulse-width modulation is considered the best method to control the amount of power delivered to a load without dissipating any wasted energy, driving the market's growth. This is one of the main reasons for the development of the market. Additionally, there is minimal power loss in switching devices, another factor contributing to the market's expansion.

The DTC segment is the second-largest segment and is estimated to grow at a CAGR of 9.2% during the forecast period. The direct torque control technology is most commonly used in electric vehicles to control the vehicle's torque directly. This directly controls the vehicle's torque, which results in high efficiency and less energy loss, driving the market's growth. In addition, the key players currently operating in the market are poised to benefit from the increasing popularity of electric vehicles.

By Application

Based on the application, the global market has been categorized into the alternator, ETC, electric parking brake, sunroof motor, fuel pump motor, ECM, wiper motor, engine cooling fan, HVAC, VVT, EGR, starter motor, anti-lock brake system, EPS, and PLG.

The ETC segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.5% during the forecast period. For the market to grow, electronic throttle control must be easily integrated with other systems like traction control, engine control, electronic stability control, and cruise control. ETCs enhance the convenience, safety, and fuel economy of vehicles, all of which contribute to the expansion of the market.

The ECM segment is the second-largest segment and is estimated to grow at a CAGR of 3.6% during the forecast period. Electronically commutated motors are superior in energy consumption by up to 90 percent, which enables E.C. fans to consume approximately 70 percent less energy when compared to conventional fans. In turn, this causes a decrease in energy usage, a decrease in operating expenses, an increase in comfort, a decrease in noise, an extension of the motor's life, and ultimately growth in the market.

Recent Developments

• May 2022- BorgWarner's Silicon Carbide Inverter Powers Two Performance Car Brands to Win in Range.