Market Size of Europe Electric Motors for Electric Vehicle Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 13.87 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe EV Electric Motors Market Analysis
The European electric motors for the electric vehicle market are valued at USD 126.85 billion in 2021 and are expected to surpass a net valuation of USD 276.53 billion by 2027 end, registering a solid CAGR growth of 13.87% over the forecast period.
Electric vehicles are witnessing significant growth owing to the need for addressing future energy requirements. The need to attain sustainable transportation plays a significant role in driving electric vehicle demand. Electric vehicles are coming up as an integral part of the automotive industry and represent a pathway towards achieving energy efficiency along with reduced emissions of pollutants and other greenhouse gasses.
Electric motors are the main component in the powertrain of any electric vehicle since the competition in electric vehicles is getting intense between the vehicle manufacturers, the conventional vehicle manufacturers are jumping into the electric vehicles market to attain an added advantage over competitors.
Although, during COVID-19 the market witnessed a steady decline amid the supply chain challenges faced by distributors and suppliers in Europe. In addition, the impact of COVID-19 on the electric vehicle market was inevitable as it affected almost every other industry in the market. However, the electric vehicle (EVs) market is witnessing substantial growth owing to the swiftly escalating year-on-year adoption rate of mild-hybrid electric vehicles across Europe. Soon after Q1 2022, demand for electric vehicles elevated the adoption of electric motors in Europe which has taken the market again to the recovery phase. For instance, In Q1, 2022 Volkswagen Group which includes Volkswagen, Audi, Porsche, Skoda, and SEAT reported a net sale of 99,100 units under its BEV segment. This showcases a steep rise of 65.2 % year-on-year growth rate. In FY2021, Volkswagen Group sold a record-breaking number of its plug-in electric vehicles roughly 762,400 units.
Further, over the longer-term forecast period, increasing environmental concerns coupled with favorable government initiatives and policies are some of the major factors driving the market growth. Rising energy costs and competition among emerging energy efficiency technologies have also been driving the market growth.
Government policies played a huge role in promoting electric vehicles. The results can be witnessed in many European countries, where electric vehicles have occupied a significant portion of the total vehicle population. Norway and France are positioned to take the leading role in the electric vehicle industry, owing to the supporting government policies.
Considering the aforementioned factors and developments, demand for electric motors is expected to remain on the positive side over the forecast period.
