In-Wheel Motor Market Size, Share & Trends Analysis Report By Propulsion (BEV, FCEV, HEV, PHEV Magnesium, Others), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Vehicle Class (Mid-priced, Luxury), By Motor Type (Axial Flux Motor, Radial Flux Motor), By Cooling Type (Air Cooling, Liquid Cooling), By Power Output Type (Up to 60 KW, 60–90 KW, Above 90 KW) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The in-wheel motor market size was valued at USD 931.87 million in 2022. It is projected to reach USD 16.41 billion by 2031, growing at a CAGR of 37.54% during the forecast period (2023–2031). The International Energy Agency predicted that by 2020 there would be 10 million vehicles on the planet's roads, with sales of electric vehicles accounting for 4.6% of the total.

An in-wheel motor is installed to power an electric vehicle (EV). Conventional EVs are built around electric motors rather than gasoline engines. However, the In-wheel motor EV has motors installed directly around each wheel used for propulsion. With the in-wheel motor, the car's behavior is more in tune with the steering, in addition to the high accelerator responsiveness that is a benefit of EVs. In response to the driver's inputs, the car will automatically accelerate or turn in the desired direction. With in-wheel motors, more space can be made for other components on the vehicle's chassis, which is a significant advantage. Any in-wheel motor has a significant advantage over conventional electrical machines because of the ease with which batteries, range extenders, and essential luggage and passenger capacity can be added to an existing vehicle or incorporated into a new design.

Market Dynamics

Global In-Wheel Motors Market Drivers

Increasing Penetration of Electric Vehicles Globally

A thriving transportation industry is crucial to economic and social development because it facilitates communication and trade between businesses and individuals. There has been a recent uptick in research and development of alternative methods of propelling road vehicles as people become increasingly aware of the limited supply of fossil fuels. In addition, regulations aimed at reducing pollution, carbon dioxide emissions, and traffic noise in urban areas have made plug-in electric vehicles a more enticing alternative to conventional automobiles. Manufacturers are supplying electric cars worldwide due to factors such as the rising demand for low-emission and government regulations supporting long-range, zero-emission vehicles through subsidies and tax rebates. The need for electric vehicle parts and components is skyrocketing with the growing popularity of these vehicles.

Global In-Wheel Motors Market Restraints

Increase in Unsprung Weight in Wheel

To enhance the driving experience, automakers strive to reduce the amount of unsprung mass in the car. In-wheel motor technology adds unsprung weight to a vehicle, which can compromise ride quality. Suspension, brakes, bearings, wheels/tracks, and other components directly connected to the wheel are all included in the unsprung weight or mass. Wheel axles, bearings, hubs, tyres, and even a chunk of driveshafts, springs, shocks, and suspension links are all factored into the unsprung weight. A vehicle's brakes add unsprung weight to the wheel, increasing the load on the wheel. The increased unsprung weight can limit the use of in-wheel motor technology.

Global In-Wheel Motors Market Opportunities

Change in the Regulatory Environment Globally

The promotion of electric vehicles has received massive policy backing over the past decade (EVs). These changes indicate the growing preference for electric cars brought on by policy support and heightened awareness of climate change due to fossil fuel consumption. The government's incentive and subsidy programs for EV manufacturers and buyers also contribute to the growth of the in-wheel motor market. Market shares are affected by the inherent benefits of in-wheel motors, such as the flexibility to mount additional components on the vehicle chassis.

Regional Analysis

The global in-wheel motor market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.  

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global in-wheel motor market and is expected to grow during the forecast period. Since in-wheel motors are used in electric vehicles, the rapid increase in sales of such vehicles in countries like China and Japan, rapid urbanization, and rising demand for environmentally friendly transportation solutions in emerging economies like India and China are all contributing to the expansion of the In-Wheel Motor Market. Throughout the projected study period, the In Wheel Motor Market will expand thanks to several factors, chief among them an increase in the urban population and a subsequent rise in per capita income, both encouraging people to buy electric vehicles.

Europe is expected to grow during the forecast period. As a result of the highest EV sales in recent years, the European market is predicted to expand rapidly over the forecast period. In addition, the region's expansion is fueled by stringent emission rules and regulations and the massive investments made by significant vehicle OEMs to meet the region's demand for fuel-efficient and lightweight automobiles. In addition, there are a growing number of additional requirements for maintaining air quality and noise pollution as a result of the high volume of traffic in cities. Several European cities have implemented environmental zones that restrict entry to vehicles that do not meet specific emission criteria to protect residents' health from harmful air pollutants. Most market regulation comes from Germany, the UK, and other European countries. The expansion of the market is aided by the presence of major in-wheel motor manufacturers in Europe.

With an anticipated 88% share of the North American market, the United States is poised to take the lead in the global automotive in-wheel motor market. Growth in the market is anticipated to be fueled by rising demand for vehicles with enhanced convenience, safety, and comfort in developed economies. High demand and sustained market growth are expected for the forecast period thanks to features like steering-mounted controls, cutting-edge infotainment systems, telematics, centralized controllers, and the comfort, safety, luxury, and security they provide.

LAMEA is expected to show rapid growth due to strong EV sales in recent years. Many governments are shifting their incentives away from conventional cars because of falling sales and toward electric vehicles as more of them offer subsidies for purchasing these vehicles. As more people learn about the potential of in-wheel motors to improve fuel efficiency, and as electric in-wheel motors gain popularity in developing countries, the market can access lucrative new growth avenues over the forecast time frame.

Segmental Analysis

The global in-wheel motor market is segmented by vehicle type, motor type, and propulsion.

By Vehicle Type Analysis

Based on vehicle type, the global in-wheel motor market is bifurcated into passenger cars and commercial vehicles.

The passenger cars segment is the highest contributor to the market and is expected to grow during the forecast period. Increases in efficiency, torque, power, and vehicle control may contribute to the widespread adoption of in-wheel motors in modern passenger vehicles. Most electric vehicle producers focus on enhancing vehicles with longer ranges, lighter weights, and more efficient layouts. Manufacturers of electric vehicles can guarantee efficient use of space and increased power output by installing motors on the wheels. It's not just EV manufacturers who want to see improvements in electric vehicles' weight, range, interior volume, and manoeuvrability; Tier 1 companies are also keen on seeing them made. It means that the market for cars with seats for people will remain the largest during the anticipated time frame.

By Motor Type Analysis

Based on motor type, the global in-wheel motor market is bifurcated into radial flux motor and axial flux motor.

The axial flux motor segment is the highest contributor to the market and is expected to grow during the forecast period. The axial flux motor outperforms the radial flux motor in terms of power density and efficiency. It's small enough to fit in or near each wheel. It finds its primary use in low-speed, high-torque situations. Miniature, lightweight, and powerful axial flux motors are becoming increasingly popular. They can be used as direct drives in electric vehicles, increasing output torque and efficiency. Unlike a radial flux motor, this one is easy to produce and put together. As a result, it is expected that this sector will maintain its position as the market leader throughout the projection period.

By Propulsion Analysis

Based on propulsion, the global in-wheel motor market is bifurcated into BEV, FCEV, HEV, and PHEV.

The HEV segment is the highest contributor to the market and is expected to grow during the forecast period. Hybrid and plug-in electric vehicles use electricity as their primary fuel source, improving the efficiency of conventional vehicle designs. Hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and all-electric vehicles (EVs) are the three main categories into which the current generation of "electric drive vehicles" can be sorted. When put together, they have the potential to cut petroleum consumption significantly, and major automakers are already producing them. It is anticipated that this market segment will expand during the forecast period as increased production of these vehicles drives demand.

Impact of covid-19

COVID-19, or the Coronavirus disease, has wreaked havoc, unlike any other pandemic the world has witnessed in over a century. Also, the forecasts of its impact on the global economy are unprecedented, with many experts comparing it to the Great Depression of 1929. The United Nations Conference on Trade and Development (UNCTAD) quantified the impact at a staggering USD 1 Trillion.

Lockdowns across industries globally brought manufacturing activities to a grinding halt in most industries worldwide, further resulting in a significant drop in the demand for the product. Thus, the recent outbreak of COVID-19 in countries such as Italy, France, Germany, and Spain is anticipated to hamper the need for the development in the building & construction and other end-use sectors in the near future. In addition, the surging raw material prices and stringent European Union regulations are further anticipated to hamper the market's growth in the upcoming years.

Market Recovery

The distribution system was negatively affected due to the suspension of manufacturing plants caused by detentions implemented in the bulk of nations worldwide. Furthermore, domestic and foreign restrictions on travel, quarantine regulations, and confinement slowed the shipment of manufactured parts already on their way. Major players, in particular, are involved in adopting initiatives such as strategic partnerships, mergers & acquisitions, and joint ventures to vertically merge across the value chain.

Recent Developments

• April 2022- Protean Electric, the industry pioneer in in-wheel motor (IWM) technology, has announced that it will present its IWM innovations at the prestigious Vienna Motor Symposium.
• May 2021- e-Traction, a firm specializing in developing and deploying direct-drive in-wheel electric traction systems for automobiles and heavy-duty vehicles, has introduced RetroMotion, an in-wheel motor electric drivetrain explicitly targeted at the commercial fleet conversion market.