Automotive Electric Motors Market: Introduction
- Increase in production and sales of electric vehicles, year-on-year, led by environmental norms and government incentives provided to the electric vehicle industry, is estimated to boost the automotive electric motors market during the forecast period
- An electric motor is defined as a device that converts electrical energy into mechanical energy in the form of rotational motion. Electric motors are developed for the automotive industry and installed in automobiles and commercial vehicles as drives for wiping systems, engine cooling, and passenger compartment air-conditioning as well as for the adjustment of windows, sliding roofs, and seats.
Key Drivers of Automotive Electric Motors Market
- Electric vehicles (EVs) use a different automotive technology as compared to the technology used by conventional vehicles. The performance of EVs depends entirely on the specifications of the electric motors. The performance of the motor is determined by the torque-speed and power-speed characteristic of the traction motor. The major advantage of using these motors is the reduced level of emission. Electric motors enable the vehicle to be 100% emission-free, thus greatly helping in keeping the environment green. Consistent rise in sales of electric vehicles is boosting the electric motor industry.
- Witnessing the current growth story and future prospects in the automotive electric motor industry, Nidec Corporation plans to invest US$ 1.8 billion for the manufacture of electric motors used in vehicles. In total, the new facilities are expected to manufacture 8.4 million electric motors per year. On November 2, 2020, Volvo Cars opened a new electric motor laboratory in Shanghai, China, to design and develop motors in-house.
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Challenges in Automotive Electric Motors Market
- Electric motors in EVs are powered by the battery pack and take longer to become operational. Moreover, the EV can’t be used when the battery is being recharged.
- The recent outbreak of COVID-19 pandemic has affected national as well as international automotive supply chains, manufacturing and R&D operations and hampered the market. Post first wave of COVID-19 global economies have started opening up and automotive manufacturing operations have begun to normalize; however, increase in the COVID-19 cases again in several countries across Europe have prompted governments to implement a second round of lockdown restrictions and consequently, uncertainty in the automotive industry continues. A gradual recovery of demand and supply is anticipated in the next few months despite concerns around the risk of second wave of infection in numerous countries and other geopolitical risks.
Opportunities in Automotive Electric Motors Market
- Demand for EV electric motors is estimated to reach 30 million annually, by 2030, and vehicles are likely to be equipped with two to three electric motors. Manufacturers of electric motors are focusing on strategies to capture opportunities. For instance, Nidec Corporation expects to account for 35% share of the market, from 4% currently, by lowering the cost of electric powertrains by 30% to 50% as compared to its competitors.
- Countries across the globe are offering incentives to EV and EV parts manufacturers to boost EV production and usage. In September 2020, the Government of India announced new tax incentives, slashing the tax from 21.55% to 17.16%. Likewise, six countries across Europe have introduced additional green recovery incentives to promote sales of EVs, starting in June and July months of 2020. Preliminary results for July give an indication for the effect on EV adoption in H2. These incentives are offering significant opportunity for manufacturers of automotive electric motors.
Automotive Electric Motors Market in Europe to Expand Significantly
- Popularity of electric vehicles is increasing in Europe and around the world, as production costs have been decreasing, charging infrastructure is being deployed, and the urgency to reduce the transport sector’s climate emissions increases. The European Union’s CO2 emission standards and investments in infrastructure and manufacturing have spurred growth of electric vehicle across the region. Europe witnessed strong sales during the first half of 2020, supported by generous incentives and better supply of new and improved EVs. This is likely to boost the market during the entire 2020. The impact of COVID-19 on vehicle markets was severe in Europe; however, EV sales continue to be robust despite the pandemic. The largest volume growth contributors were Germany, France, and the U.K. Except for Norway, all prominent EV markets in Europe posted gains this year. The region is anticipated to witness robust sales in the next few years, and hence, Europe is likely to remain a key region for the electric motor market. Bosch is a prominent manufacturer of electric motors in Europe.
Key Players Operating in Automotive Electric Motors Market
The automotive electric Motors market is moderately consolidated. A few of the key players operating in the global automotive electric motors market are:
- Robert Bosch N.V.
- Nidec Corporation
- Johnson Electric Holdings Limited
- Siemens AG
- Continental AG
- Denso Corporation
- Toshiba Corporation
- Rockwell Automation, Inc.,
- Borgwarner Inc.
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Global Automotive Electric Motors Market: Research Scope
Global Automotive Electric Motors Market, by Type
- DC Series Motor
- Brushed DC Motor
- Brushless DC Motor
- Permanent Magnet Synchronous Motor
- Induction Motor
- Three Phase AC Induction Motor
- Switched Reluctance Motors (SRM)
Global Automotive Electric Motors Market, by Vehicle Type
Global Automotive Electric Motors Market, by Sales Channel
Global Automotive Electric Motors Market, by Propulsion
- Internal Combustion Engine (ICE)
- Battery Electric Vehicle (BEV)
- Hybrid Electric Vehicle (HEV)
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The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
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