In recent years, the growth of electric vehicles has increased, and they have become an essential component of the automobile industry. Electric vehicles are a path toward greater energy efficiency and lower emissions of pollutants and other greenhouse gases. The key elements driving this rise include rising environmental concerns as well as beneficial government efforts. Besides, electric vehicles require low maintenance, have automatic controls, and are available in both two-, three-, and four-wheel vehicle types. Due to this, the demand for electric motors has increased significantly. According to OMR Research, the market for electric vehicle motors is anticipated to grow at a CAGR of 21.7% during the forecast period of 2023–2029.
Segments of the Market
The global market for electric motors for electric vehicles is segmented on the basis of motor type and vehicle type. Based on the motor type, the market is sub-segmented into alternative current (AC) motors and direct current (DC) motors. An alternative current motor (AC motor) is a type of electric motor that consists of a stator and a coil that are powered by alternating current to transform electric current into mechanical power. The stator is the motor's fixed component, while the rotor is its revolving component. On the other hand, an electrical device known as a direct current motor (DC motor) converts electrical energy into mechanical energy. Direct current is used as the electrical energy source for a DC motor, which transforms it into mechanical rotation.
Further, based on the vehicle type, it is sub-segmented into plug-in hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and pure electric vehicles (PEV). All three vehicle types are sub-segmented into passenger and commercial vehicles.
Recent Developments
Companies such as Aisin Corporation, BYD Motors Inc., Yaskawa Electric Corporation, Robert Bosch GmbH, Tesla Inc., Toyota Motor Corp., GKN Automotive, Toshiba International Corporation, Continental AG, Denso Global, and Hitachi Automotive Electric Motor Systems, among others, are increasing the market’s growth with their various mergers and acquisitions activities, product and new innovation launches, and collaborations. Some of the recent activities in the market include:
• In April 2022, Hyundai Motor Group (the Group) said that it has secured a deal with the State of Georgia to build its first US plant specifically for the manufacturing of full electric vehicles and batteries. The new EV factory and battery manufacturing facilities will cost approximately USD 5.54 billion. The new factory, with an annual capacity of 300,000 units, will break ground in early 2023 and is scheduled to initiate commercial production in the first half of 2025. The battery manufacturing plant will be developed through a strategic collaboration, the details of which will be revealed later. Local EV manufacturing will expand customer access to the group's revolutionary EVs in the US. The group also hopes to develop a stable supply chain and a robust EV ecosystem in the US through the battery manufacturing plant.
• In November 2022, in association with the Chinese battery companies CATL and CMB International, the Indonesia Investment Authority intends to establish a $2 billion electric vehicle (EV) fund. In a press announcement during the G20 summit in Bali, the fund's CEO, Ridha Wirakusumah, announced the news with executives from CMB International and CATL. In order to capitalize on a global market that is anticipated to grow quickly as a result of governments' commitments to reduce greenhouse gas emissions, the fund will invest in the EV value chain.
• In November 2022, BorgWarner, a Michigan-based world-leading supplier to the automotive industry, announced a $500 million investment in Wolfspeed Inc., a developer and manufacturer of semiconductors and silicon carbide devices. These devices are important for the efficient performance of an electric vehicle. For instance, an inverter controls the flow of electricity from the battery to the electric motor as well as the conversion of direct current (DC) to alternating current (AC) in the powertrain of an electric vehicle (s). When the driver needs it, such as during hard acceleration, silicon carbide-based inverters help deliver a quicker flow of power to an EV's wheels.
Conclusion
The implementation of strict pollution and fuel economy standards, government incentives, and improved charging infrastructure are some of the primary drivers for the electric vehicle market's growth, resulting in increased adoption of electric vehicles. In addition, road transportation, which is responsible for 16% of global emissions, requires a transition to electric vehicles, which will soon be assisted by rising EV sales. For instance, according to the International Council on Clean Transportation (iCCT), global EV sales in 2021 increased by 107% from 2020 to a new high of 6.9 million, setting a new record. For the first time since 2012, global EV sales have increased by almost twofold in a single year.
This growth is attributed to EVs’ greater performance, increased model availability, and increased range. If the growth of the market continues, CO2 emissions from vehicles can be decreased to achieve net zero emissions by 2050. However, the popularity of electric automobiles hasn't yet spread to every country. Sales in developing and emerging countries have been slower because of higher purchase costs and a lack of available charging infrastructure. This factor may restrain the growth of the electric motor market for electric vehicles.