The Europe Electric Motors For Electric Vehicle Market report segments the industry into Application Type (Passenger Car, Commercial Vehicle), Motor Type (AC Motor, DC Motor), Vehicle Type (Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle, Battery/Pure Electric Vehicle), and Country (Germany, United Kingdom, Italy, France, Netherlands, Spain, Rest of Europe).

Explore the Europe Electric Vehicle Motor Market valued at USD 32.9 billion in 2024 and projected to reach USD 80.2 billion by 2030, growing at a CAGR of 16%. Get insights on trends, opportunities, and future outlook says MarkNtel latest report.

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Electric Vehicle Motor Market Size 2024-2028

The electric vehicle (EV) motor market size is forecast to increase by USD 80.27 billion at a CAGR of 50.22% between 2023 and 2028.

The market is experiencing significant growth, driven by increasing sales of electric vehicles due to their fuel efficiency and environmental benefits. Rules and regulations, such as emissions norms, are pushing the adoption of EVs in urbanized areas. Subsidy programs and tax benefits offered by governments in various countries are further boosting the market. The market is segmented based on motor type, including AC induction motor and DC permanent magnet motor, and vehicle type, including passenger cars and commercial vehicles. Challenges include the lack of operational charging infrastructure in emerging markets and the dependence on rare earth metals for battery production.
Additionally, the need for battery recycling and the development of cost-effective and efficient battery technologies are key trends in the market. The charging infrastructure and battery recycling are crucial for the widespread adoption of EVs and the growth of the market.

Electric Vehicle Motor Market Analysis

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Power Rating

  MPR
  HPR
  LPR


Type

  AC motor
  DC motor


Geography

  APAC

    China


  Europe

    Germany
    France
    Norway


  North America

    US


  South America



  Middle East and Africa

By Power Rating Insights

The MPR segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to rules and regulations promoting the adoption of fuel-efficient vehicles and subsidy programs encouraging the shift towards EVs. Mid-power rating motors, such as MPR motors, remain popular choices for full or plug-in hybrid powertrains and low-range pure EVs, as demonstrated by their use in vehicles like the Nissan Leaf, Hyundai Sonata, Hyundai Ioniq Electric, Toyota Prius, and Chevrolet Volt. However, the market share of mid-power rating motors is expected to decline as demand for All Wheel Drive EVs (AWD EVs) increases. This trend is attributed to the growing preference for dual hybrid powertrains, which utilize low-power rating motors as secondary motors.

Additionally, concerns regarding the sourcing and recycling of rare earth metals used in EV motors and the development of charging infrastructure are key factors influencing market dynamics.

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The MPR segment accounted for USD 1.41 billion in 2018 and showed a gradual increase during the forecast period.

Will APAC become the largest contributor to the Electric Vehicle (Ev) Motor Market?

APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region is experiencing significant growth due to the increasing popularity of EVs in countries such as China, Japan, India, Singapore, Thailand, and South Korea. Rules and regulations promoting the adoption of fuel-efficient vehicles, subsidy programs, and tax benefits for EV owners are key drivers for this market. China and Japan are currently leading the market, with China accounting for a substantial share due to its large EV sales volume. South Korea, India, and Hong Kong are also expected to be significant contributors to the market's growth during the forecast period. The increasing production and sales of EVs will result in higher demand for EV related parts, including batteries, power inverters, and motors.

Moreover, the development of charging infrastructure and initiatives for battery recycling and the use of rare earth metals in EV motors will further boost market growth.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Dynamics

The market is experiencing significant growth due to the increasing adoption of electric vehicles (EVs) by automakers as an alternative to traditional internal combustion engine vehicles. The shift towards clean mobility is driven by stringent emission regulations and fuel economy norms. The propulsion systems of EVs primarily use AC synchronous motors, which offer high torque and efficie

The European electric motor market for electric vehicles (EVs) is experiencing robust growth, driven by stringent emission regulations, increasing consumer demand for eco-friendly transportation, and supportive government policies promoting EV adoption. The market, valued at approximately €X billion (estimated based on provided CAGR and market size) in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 13.87% from 2025 to 2033. This expansion is fueled by the burgeoning EV sector, encompassing hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). The increasing adoption of electric motors in passenger cars is a primary driver, alongside the growing demand for electric motors in commercial vehicles, reflecting the electrification trend across the transportation industry. Technological advancements leading to higher efficiency, improved power density, and reduced costs of electric motors are also contributing significantly to market expansion. Key segments within the market include AC and DC motors, each catering to specific EV applications and performance requirements. Leading players like Hitachi Automotive Systems, Siemens AG, Continental AG, BMW AG, BorgWarner Inc, Robert Bosch GmbH, Delphi Technologies, DENSO Corporation, and LG Electronics are actively competing to capture market share through innovation and strategic partnerships. The strong presence of established automotive manufacturers and component suppliers in Europe positions the region as a key player in the global EV motor market. The regional distribution of market share within Europe shows strong performance in major economies such as Germany, the United Kingdom, France, and other significant markets. However, growth is expected across all specified European countries (United Kingdom, Germany, France, Italy, Spain, Netherlands, Belgium, Sweden, Norway, Poland, Denmark). Challenges, including supply chain constraints and the need for further development of charging infrastructure, could slightly temper growth. However, the long-term outlook remains positive given the continuous governmental investment in EV infrastructure and the escalating consumer preference for sustainable mobility solutions. Market segmentation by vehicle type – HEV, PHEV, and BEV – reveals differing growth trajectories reflecting the varied technological advancements and market penetration rates of each EV category. The continuous evolution of battery technology and the concurrent decrease in battery prices are poised to further accelerate the adoption of BEVs, which, in turn, will fuel demand for electric motors in the coming years. This comprehensive report provides an in-depth analysis of the burgeoning Europe electric motors EV market, projecting robust growth from 2025 to 2033. We examine the market's dynamics, encompassing historical data (2019-2024), current estimates (2025), and future forecasts (2025-2033). The study covers key market segments including electric vehicle motors, hybrid electric vehicle (HEV) motors, plug-in hybrid electric vehicle (PHEV) motors, battery electric vehicle (BEV) motors, AC motors, DC motors, and applications in passenger cars and commercial vehicles. This report is essential for stakeholders seeking a clear understanding of the market landscape and strategic opportunities within the European electric vehicle sector. Key drivers for this market are: Increasing Consumer Preference toward Fast Food Consumption Fosters the Growth of the Market. Potential restraints include: Rapid Integration of Online Food Delivery Services Hampers the Growth of the Market. Notable trends are: Passenger cars Captures Major Share in Market.

The Europe electric vehicle motors market size was valued at USD 1.51 Billion in 2024. The market is further projected to grow at a CAGR of 18.20% between 2025 and 2034, reaching a value of USD 8.04 Billion by 2034.

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Europe Electric Motors for Electric Vehicle Market Size 2024-2028

The Europe electric motors for EV market size is forecast to increase by USD 127.91 billion at a CAGR of 13.78% between 2023 and 2028.

The electric vehicle (EV) market in Europe is experiencing significant growth due to the increasing demand for sustainable transportation solutions. One of the key driving factors is the growing awareness and adoption of EVs to reduce carbon emissions and combat climate change. Another trend influencing the market is the rise of Silicon Carbide inverters, which are increasingly being used in electric motors for EVs to enhance efficiency and reduce energy losses.
However, the market faces challenges such as raw material scarcity and price volatility associated with the manufacturing of electric motors for EVs. The scarcity of neodymium and dysprosium, key components in the production of permanent magnets used in electric motors, can impact the cost and availability of EVs. Therefore, the market is witnessing ongoing research and development efforts to explore alternative materials and manufacturing processes to mitigate these challenges.

Europe Electric Motors for Electric Vehicle Market Analysis

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

Application

  Passenger vehicle
  Commercial vehicle


Type

  AC motor
  DC motor


Geography

  Europe

    Germany
    UK
    France
    Italy

By Application Insights

The passenger vehicle segment is estimated to witness significant growth during the forecast period. The European electric vehicle market is experiencing significant growth due to increasing concerns over environmental issues, including air pollution and climate change. Governments across Europe are offering incentives such as tax credits, subsidies, and reduced registration fees to promote the adoption of electric passenger vehicles. These initiatives aim to mitigate the environmental impact of traditional vehicles and reduce dependence on fossil fuels. Advancements in electric motor technology, energy storage, and efficiency have led to lower battery costs, making electric vehicles (EVs) more affordable for consumers. The smaller carbon impact, cheaper operating costs, less maintenance, and performance parity with conventional vehicles are further driving demand.

Global automakers are responding by introducing more electric models, addressing concerns over range anxiety through improved charging infrastructure and longer driving ranges. Despite the high initial costs, consumer spending power, investment decisions, and innovative mobility solutions are enabling the mass adoption of electric vehicles. Challenges such as performance issues, dependability, worker skills, manufacturing procedures, infrastructure adaptation, and consumer knowledge are being addressed through continuous innovation and collaboration between industry stakeholders. Overall, the European electric vehicle market is poised for growth, with a focus on enhancing vehicle performance, overall efficiency, and consumer appeal.

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The passenger vehicle segment accounted for USD 59.97 billion in 2018 and showed a gradual increase during the forecast period.

Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Dynamics

Electric motors have become a pivotal component in the rapidly growing electric vehicle (EV) market in Europe. The increasing concern towards environmental issues, such as air pollution and climate change, has led to the adoption of EVs as a viable alternative to traditional internal combustion engine vehicles. European governments offer tax credits and subsidies to incentivize the purchase of EVs, making them more affordable for consumers. The advancements in electric motor technology have led to improvements in power density, energy storage system, and efficiency. Lower battery costs have also contributed to the affordability of EVs, making them a more viable option for consumers.
The smaller carbon impact of EVs is a significant factor in their increasing popularity. Global automakers are investing heavily in the development and production of EVs with electric motors. The cheaper operating costs and less maintenance required for EVs compared to traditional vehicles make them an attractive option for consumers. The European EV market is expected to grow significantly in the coming years, driven by the increas

Europe Electric Motor Market size was valued at USD 117.58 Billion in 2024 and is projected to reach USD 168.5 Billion by 2032, growing at a CAGR of 4.60% during the forecast period 2026-2032.Europe Electric Motor Market: Definition/ OverviewElectric motors use magnetic fields to transform electrical energy into mechanical energy. Electric motors are widely employed in a variety of industries across Europe due to their efficiency, dependability, and versatility. These motors are classified into three types: AC motors, DC motors, and synchronous motors, each of which is designed for a unique purpose and necessity.Electric motors are used in several European industries, including automotive, manufacturing, and renewable energy. The power electric vehicles (EVs) in the automotive industry, helping to accelerate the transition to sustainable transportation. In manufacturing, electric motors power machines and automation systems, increasing productivity and precision.

The Europe Electric Vehicle Market report segments the industry into Vehicle Type (Commercial Vehicles, Passenger Vehicles, Two-Wheelers), Fuel Category (BEV, FCEV, HEV, PHEV), and Country (Austria, Belgium, Czech Republic, Denmark, Estonia, France, Germany, Ireland, Italy, Latvia, Lithuania, Norway, Poland, Russia, Spain, Sweden, UK, Rest-of-Europe). Get five years of historical data as well as five-year forecasts.

In 2021, the size of the electric vehicle traction motor market in Europe reached a value of **** billion U.S. dollars. It is projected that the market size will increase with a compound annual growth rate (CAGR) of ***** percent between 2022 and 2027, reaching the size of **** billion U.S. dollars in 2027.

The EV Motor Manufacturers Market report segments the industry into Assembly (Wheel Hub, Central Power Train), Application (Passenger Cars, Commercial Vehicles), Motor Type (Brushless DC Motor, Permanent Magnet Synchronous Motor, Asynchronous Motor, and more), Power (Up to 100 kW, 101-250 kW, Above 250 kW), and Geography (North America, Europe, Asia-Pacific, and more).

Europe EV Electric Motors Market size was valued at USD 5.4 Billion in 2024 and is projected to reach USD 25.0 Billion by 2032, growing at a CAGR of 21.1 % during the forecast period from 2026-2032.

Europe EV Electric Motors Market: Definition/Overview

Electric motors for electric vehicles (EVs) are essential components that transform electrical energy into mechanical energy, which powers the vehicle’s wheels. These motors are efficient and developed to meet the high demands of modern electric transportation. In Europe, EV electric motors are primarily classified into two types: permanent magnet synchronous motors (PMSM) and induction motors.

EV electric motors are used in commercial electric vehicles, buses, and two-wheelers, in addition to passenger cars. As Europe continues its shift to sustainable mobility, electric motors will play an important role in lowering greenhouse gas emissions, increasing energy efficiency, and promoting cleaner air in cities.

The electric car motor market is experiencing robust growth, projected to reach a substantial size with a Compound Annual Growth Rate (CAGR) of 17.7% from 2025 to 2033. This expansion is fueled by several key factors. The increasing adoption of electric vehicles (EVs), driven by government regulations promoting cleaner transportation and growing consumer awareness of environmental concerns, is a primary driver. Furthermore, technological advancements in motor design, leading to improved efficiency, power density, and reduced costs, are significantly contributing to market expansion. The shift towards higher-performance EVs and the growing demand for hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) are also bolstering market growth. Different motor types cater to diverse EV requirements; permanent magnet synchronous motors (PMSMs) dominate due to their high efficiency, while asynchronous motors offer cost advantages. The market is geographically diverse, with North America, Europe, and Asia-Pacific being key regions driving demand. Competition is intense, with established automotive component manufacturers alongside emerging players vying for market share. This dynamic landscape indicates a future where technological innovation and strategic partnerships will play crucial roles in shaping the market's trajectory. The market segmentation reveals a strong preference for PMSMs within the various motor types. The application segment shows a balanced distribution across HEVs, PHEVs, and BEVs, highlighting the diverse usage of electric car motors across different vehicle types. The geographical distribution mirrors global EV adoption trends, with regions like China, the United States, and several European countries exhibiting the highest demand. Future growth will be significantly impacted by battery technology advancements, charging infrastructure development, and the overall cost competitiveness of EVs compared to internal combustion engine vehicles. Continued government incentives and supportive policies are also expected to further stimulate market expansion, fostering both innovation and competition among key players.

Norway has the highest penetration of plug-in electric vehicles (PEVs) in Europe. Norway is one of the smallest car markets in the European free trade market: Norway's passenger car sales were around ******* units between January and December 2023. Some ******* plug-in electric cars were registered in 2023. One of the most popular car brands in the Scandinavian country is the American all-electric marque Tesla. Norway’s electric mobility policy Norway’s jump in electric mobility is due to the country’s high car import tolls being lifted for electric vehicles, with registration taxes also waived. Such incentives make an electric vehicle comparatively cheaper to the purchase of a combustion engine powered car. As of 2023, there were nearly ******* electric passenger cars on Norwegian roads. Leading EV models 2023 was a record year for electric vehicle sales in Europe. Topping the list of most-sold model of electric vehicles was the Tesla Model Y. European manufacturers have been sluggish to penetrate the EV market but are quickly emerging as key players. Germany-based Volkswagen, which recorded two of its models topping the EV sales in Europe, almost ******* its worldwide electric vehicle sales between 2020 and 2021. Foreign manufacturers, such as Tesla and Nissan still perform very well.

The electric vehicle (EV) motor market is experiencing robust growth, projected to reach $8486.7 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 3.7% from 2025 to 2033. This expansion is driven by several key factors: the increasing global adoption of electric vehicles spurred by environmental concerns and government incentives; advancements in battery technology leading to improved EV range and performance; and ongoing R&D efforts resulting in more efficient and powerful electric motors. Major players like Bosch, ZF Friedrichshafen AG, and BYD are heavily investing in innovation, leading to a competitive landscape marked by continuous improvements in motor design, power density, and cost-effectiveness. The market segmentation is likely diverse, encompassing various motor types (e.g., permanent magnet synchronous motors, induction motors), voltage classes, and applications across different EV categories (passenger cars, commercial vehicles). Geographic variations in market penetration are expected, with regions like North America and Europe leading the adoption, followed by a gradual expansion in Asia and other developing markets. The sustained growth trajectory of the EV motor market is anticipated to continue throughout the forecast period (2025-2033). Factors such as the rising demand for electric buses and trucks in public transportation and logistics sectors, coupled with the ongoing electrification of private transportation, will fuel this expansion. However, challenges such as the availability of raw materials for motor production, particularly rare-earth elements for permanent magnet motors, and the need for robust charging infrastructure remain significant considerations. The competitive landscape will continue to evolve with mergers, acquisitions, and strategic partnerships shaping the industry. The market will see further innovation in areas like silicon carbide technology for inverters and improved thermal management systems to enhance motor efficiency and lifespan.

The Electric Vehicle (EV) Motor market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 28% from 2025 to 2033. This surge is driven by the escalating global demand for electric vehicles fueled by environmental concerns, government regulations promoting EV adoption, and continuous advancements in battery technology leading to increased vehicle range and performance. Key market segments include passenger cars, which currently dominate market share, but commercial vehicles are witnessing rapid expansion. The brushless DC motor segment holds a significant portion of the market due to its efficiency and cost-effectiveness. However, advancements in permanent magnet synchronous motors (PMSM) are driving their increased adoption, particularly in high-performance EV applications. The market is geographically diverse, with North America and Asia Pacific currently leading in adoption, followed by Europe. However, emerging markets in the Asia-Pacific region, particularly India and Southeast Asia, are poised for significant growth due to increasing vehicle production and supportive government policies. Technological advancements, such as the development of more powerful and efficient motor designs, will continue to shape market dynamics. Competition is fierce, with major automotive manufacturers and specialized motor suppliers vying for market share, resulting in continuous innovation and price pressure. The restraints on market growth primarily involve the high initial cost of EVs compared to internal combustion engine (ICE) vehicles and the limitations in the charging infrastructure development, particularly in developing regions. Nevertheless, ongoing investment in charging infrastructure and technological breakthroughs in battery technology are mitigating these constraints. The market is witnessing a shift towards higher-power motors (above 250 kW) as the demand for high-performance electric vehicles increases. This trend indicates a substantial opportunity for manufacturers specializing in these segments. The market is witnessing strategic partnerships and mergers and acquisitions among key players to consolidate market share and enhance technological capabilities, driving further innovation within the EV motor ecosystem. The long-term forecast points to a continuously expanding market with a significant shift towards more sustainable and efficient transportation solutions, driven by the global transition towards electric mobility. Recent developments include: In November 2022, Nidec Corporation announced an investment of USD 715 million in Mexico to manufacture electric motors and e-axle drives for electric vehicles. The plant is anticipated to have a production capacity of 1 million units annually when it becomes operational in April 2023 or March 2024., In October 2022, Brose Fahrzeugteile GmbH & Co. KG started the second building construction at its Bamberg location. The expansion will add 13000 sq m and increase the workspaces from 600 to 1200. The company is investing EUR 60 million (USD 62.4 million) in the growth of the premises., In August 2022, Brose Fahrzeugteile GmbH & Co. KG announced an investment of EUR 1.5 million (USD 1.56 million) to double the capacity of measuring electromagnetic compatibility (EMC) at its Wurzburg R&D center in Germany., In February 2022, Valeo SA bought out Siemens AG's stake in their joint electric vehicle components venture called Valeo Siemens eAutomotive, which manufactures motors, axles, and powertrain electronics for electric vehicles.. Notable trends are: Rising Demand for Electric Vehicles to Augment Growth of Market.

The Western Europe Electric Motors for Electric Vehicle market report offers a thorough competitive analysis, mapping key players’ strategies, market share, and business models. It provides insights into competitor dynamics, helping companies align their strategies with the current market landscape and future trends.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

The global automotive electric motors market for electric vehicles (EVs) is experiencing robust growth, driven by the surging demand for EVs worldwide. The market, currently valued at approximately $25 billion in 2025, is projected to expand significantly, achieving a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This substantial growth is fueled by several key factors: the increasing adoption of stringent emission regulations globally, government incentives promoting EV adoption, advancements in battery technology leading to improved EV performance and range, and the decreasing cost of electric motors and associated components. The market is segmented by motor type (AC and DC) and vehicle application (passenger and commercial vehicles), with the passenger vehicle segment currently dominating. AC motors hold a larger market share due to their higher efficiency and power density compared to DC motors. Geographical analysis reveals strong growth across North America, Europe, and Asia-Pacific, with China and the United States representing major markets. Technological advancements are key to the future of this market. Continuous improvements in motor design, materials science, and power electronics are leading to more efficient, powerful, and cost-effective electric motors. The integration of smart functionalities and advanced control systems further enhances performance and optimizes energy consumption. However, challenges remain, including the need for robust charging infrastructure, the high initial cost of EVs compared to internal combustion engine vehicles, and concerns about battery lifespan and recycling. Despite these challenges, the long-term outlook for the automotive electric motors market for EVs remains incredibly positive, propelled by the global shift towards sustainable transportation. The increasing focus on reducing carbon emissions and improving air quality further strengthens the market’s growth trajectory, making it an attractive investment opportunity for stakeholders across the automotive value chain.

The European Motor Vehicle Wholesaling and Retailing industry’s revenue is forecast to climb at a compound annual rate of 1.6% over the five years through 2025 to €1,461.3 billion, with a projected hike of 2.2% in 2025. Revenue slumped through 2022 but made a comeback in 2023 as the semiconductor shortage eased. In 2023, the EU car market showed clear signs of recovery. According to ACEA data, EU car sales rose by 13.9% from 2022 levels, reaching around 10.5 million units for the year. However, in 2024, the growth slowed considerably, notching up just a modest rise of 0.8%. This surge in car sales boosted profitability for many car dealers. Although electric vehicles are increasingly popular, many people still opt for petrol cars due to lower upfront costs and easier refuelling access than charging an EV, as highlighted by data from Jato Dynamics showing new electric cars in Europe cost 22% more than similar petrol equivalents. Petrol models also remain cheaper to manufacture and maintain because simpler powertrains lessen exposure to rising raw material prices like aluminium, which has averaged around €2,350 per tonne in 2024 according to London Metal Exchange figures. Car wholesalers and retailers are responding to higher electric vehicle prices by maintaining attractive petrol portfolios. They're also offering affordable mild-hybrid options as a practical bridge for buyers concerned about EV costs. This helps businesses capture short-term sales and addresses consumer hesitation around investing in pricier electric vehicles. European governments are increasing their efforts to cut emissions in line with climate agreement targets. Zero- and low-emission zones are becoming widespread in European city centres, which restrict the entry of high-polluting vehicles. Governments are incentivising the uptake of electric vehicles by offering subsidies and zero tax on new purchases. The sale of new diesel and petrol cars will be banned in many countries (2030 in the UK, 2035 in the EU), encouraging people and fleet owners to switch to an electric vehicle for their next purchase. Over the five years through 2030, revenue is forecast to climb at a compound annual rate of 5.8% to reach €1,934.5 billion. Connected cars will also be a focus for many dealers, as infotainment systems become widely demanded by customers.

The global EV in-wheel motor market is experiencing robust growth, driven by the surging demand for electric vehicles (EVs) and the increasing adoption of advanced automotive technologies. The market's expansion is fueled by several key factors, including the rising concerns about environmental pollution and greenhouse gas emissions, coupled with government incentives and supportive policies promoting EV adoption worldwide. Furthermore, in-wheel motors offer significant advantages over traditional drivetrain systems, such as improved vehicle efficiency, enhanced handling and maneuverability, and increased design flexibility, leading to innovative vehicle architectures and improved space utilization. The segment encompassing brushless motors is expected to dominate due to their superior efficiency, longer lifespan, and reduced maintenance needs compared to brushed motors. While the BEV (Battery Electric Vehicle) segment currently holds a major market share, significant growth is projected across all vehicle types – including HEV (Hybrid Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), and FCEV (Fuel Cell Electric Vehicle) – as technology advancements and cost reductions make in-wheel motor integration more viable. The market is witnessing intense competition among established automotive component manufacturers and emerging technology companies, driving innovation and fostering rapid technological advancements. The geographic distribution of the market shows a concentration in developed regions like North America, Europe, and Asia Pacific, driven by early adoption of EVs and well-established automotive industries. However, developing economies are also demonstrating significant growth potential, propelled by rising disposable incomes and increasing government support for EV infrastructure development. The market faces certain challenges, including high initial costs associated with in-wheel motor technology, potential concerns about weight distribution and overall vehicle dynamics, and the need for robust power electronics and battery management systems. Nonetheless, ongoing research and development efforts aimed at improving efficiency, reducing costs, and addressing safety concerns are poised to overcome these hurdles and further stimulate market growth. Over the forecast period (2025-2033), the market is expected to witness a continued expansion, driven by technological advancements and increasing demand, creating substantial opportunities for manufacturers and investors in the automotive and renewable energy sectors. Let's assume a conservative CAGR of 15% for illustrative purposes, based on the strong market drivers.