The electric motors for internal combustion engine (ICE) vehicles market is poised for significant growth, with a projected increase of USD 223.8 million at a compound annual growth rate (CAGR) of 5.6% between 2023 and 2028. This growth is fueled by several key drivers, trends, and strategic actions by major players within the industry. As the world shifts toward greener and more energy-efficient mobility solutions, electric motors are playing a pivotal role in transforming the transportation sector.
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The electric motors for IC engine vehicles market is segmented by vehicle type into passenger cars, commercial vehicles, and two-wheelers. The passenger car (PC) segment is expected to witness the highest growth during the forecast period. This growth is driven by increasing sales in the entry-level vehicle sector and the growing popularity of larger utility vehicles such as SUVs, crossovers, and multi-purpose vehicles (MPVs). The integration of electric motors into passenger vehicles enhances vehicle performance and provides convenience features like power windows, contributing to their widespread adoption.
Moreover, light commercial vehicles (CVs) and two-wheelers are also witnessing strong demand for electric motors. The electrification of these segments is in line with the global push towards reducing carbon emissions and achieving zero-emission goals. These vehicles play a critical role in reducing urban air pollution and improving energy efficiency.
APAC
China
India
Japan
North America
United States
Europe
Germany
South America
Middle East and Africa
The Asia-Pacific (APAC) region is set to contribute 58% of the global market growth during the forecast period. This region is experiencing rapid expansion in the adoption of electric motors for IC engine vehicles, driven by government initiatives such as subsidies and tax exemptions for battery electric vehicles (BEVs) and new energy vehicles (NEVs). Countries like China, India, and Japan are at the forefront of the shift toward greener mobility solutions.
China, for instance, has implemented stringent safety regulations, making power windows a standard feature in new passenger cars. As a result, there is a significant rise in the demand for electric motors for both passenger cars and commercial vehicles. India is also witnessing gradual improvements in safety standards and electric vehicle adoption, though it lags behind in comparison to China and South Korea.
In APAC, automakers are focusing on local manufacturing to reduce dependence on international trade, especially concerning critical minerals for battery production. The region is also heavily investing in charging infrastructure, including public charging stations and smart charging technologies. As these infrastructures expand, the affordability of electric vehicles (EVs) is improving, making the transition to green mobility more accessible.
In North America, the United States is a key player in the electric motors for IC engine vehicles market. The U.S. government has set a target for 50% of all new vehicle sales to be zero-emission by 2030, significantly impacting the demand for electric motors. The development of charging networks and the incentivization of EV purchases are driving market growth, making electric vehicles more accessible to consumers.
The electric motors for IC engine vehicles market is witnessing growth due to the increasing adoption of New Energy Vehicles (NEVs) and various regulatory drivers. Governments worldwide are prioritizing decarbonization efforts, implementing policies that promote green mobility solutions. Incentives such as subsidies, tax exemptions, and rebates are motivating consumers to transition to battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs). This surge in demand for zero-emission vehicles (ZEVs) has directly contributed to the growing need for electric motors in internal combustion engine vehicles.
One of the primary drivers is the increasing adoption of power window systems. These systems are becoming standard in both passenger and commercial vehicles, driving the demand for electric motors. As automakers ramp up their efforts to electrify vehicles, they are increasingly producing in-house electric motors to meet the rising demand for these systems. This shift is enhancing the overall functionality and energy efficiency of vehicles.
Additionally, stringent fuel emission and fuel efficiency regulations continue to push vehicle manufacturers to integrate electric motors into their ICE vehicles. These regulations compel automakers to focus on reducing tailpipe emissions and improving fuel economy, a trend that is particularly evident in large models, including SUVs, crossovers, and light commercial vehicles.
One of the standout trends is the electrification of large vehicle models. Automakers are increasingly integrating electric motors into larger vehicles, such as SUVs, crossovers, and light commercial vehicles. These vehicles contribute significantly to global emissions, and their electrification is essential for meeting CO2 targets and improving fuel efficiency.
Large automakers, such as Toyota, BYD Auto, and Hyundai, are investing heavily in the production of in-house electric motors, making them central to their electric vehicle (EV) strategies. This vertical integration helps reduce dependency on external suppliers and enhances the compatibility of electric motor systems within their vehicle platforms.
The development of charging infrastructure is a critical factor influencing the market dynamics. As more consumers switch to electric vehicles, the need for accessible and efficient charging solutions grows. In addition to public charging points, smart charging technologies, including vehicle-to-grid systems, are gaining popularity for their ability to optimize energy use. This infrastructure is essential to facilitating the widespread adoption of electric vehicles and increasing their practicality in urban environments.
Another crucial factor is the battery supply chain. The production of lithium-ion batteries for electric vehicles is dependent on critical minerals like lithium, cobalt, and nickel. These materials are often sourced from regions with complex geopolitical landscapes, raising concerns about the sustainability and ethicality of their extraction.
As a response, automakers and battery manufacturers are focusing on battery recycling to mitigate supply chain risks. Recycling these critical minerals reduces reliance on mining and helps address the environmental concerns associated with battery production.
While the electric motors market is growing rapidly, several challenges remain. One of the main hurdles is the ongoing concern regarding battery supply chains. The need for critical minerals, such as lithium and cobalt, is critical to the production of lithium-ion batteries. International trade issues and environmental impacts related to the mining of these materials present significant challenges.
Additionally, stringent fuel emission and fuel efficiency regulations remain a key challenge for automakers. As governments push for zero-emission targets, vehicle manufacturers must navigate complex regulatory environments while ensuring that their vehicles remain affordable and accessible to consumers.
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The Electric Motors for IC Engine Vehicles Market is experiencing transformative growth, driven by the increasing integration of electric motors such as starter motors and alternator systems into conventional vehicle architectures. These motors support key functionalities like engine starter operations and battery charging, enhancing both fuel efficiency and engine performance. Technologies like brushless motors and DC motors are becoming more common in hybrid vehicles, contributing to smoother torque delivery and improved power output. Within these systems, components like permanent magnets, electromagnetic coils, and rotor assemblies are critical in optimizing motor efficiency and ensuring reliable engine support. Meanwhile, motor housing, armature winding, and field magnets play vital roles in enhancing electric drive stability, while cooling fans and voltage regulators assist in thermal and electrical regulation.
The competitive landscape in the electric motors market for IC engine vehicles is shaped by major players implementing various strategies to increase their market share. Key companies in this market include:
These companies are focusing on strategic alliances, product/service launches, and regional expansion to strengthen their positions in the market. Furthermore, partnerships between automakers and electric motor suppliers are helping improve the integration of electric motor systems into new energy vehicles (NEVs).
On the research and engineering front, the focus remains on advanced motor control systems and next-gen materials for better vibration reduction and motor durability. Key developments include improvements in synchronous motors and induction motors, which are widely used as core powertrain components in IC engine vehicles. Integration of electric circuits with automotive architecture is being refined to enhance load capacity and speed regulation, ultimately supporting smoother energy conversion. Market researchers are also analyzing components like commutator rings and stator cores that significantly affect high torque output and low noise performance. Applications like thermal management, crankshaft drive engagement, and ignition systems are being optimized to meet evolving industry standards, while innovations in motor efficiency help push the boundaries of automotive power solutions across both light and heavy vehicle segments.
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