The market for traction motors is expected to increase rapidly due to the growing electric vehicle (EV) market, rising railway infrastructure investment, and the continuous shift to sustainable urban mobility. The market, which was valued at USD 18,240 million in 2025, is expected to grow at a strong 13.0% compound annual growth rate (CAGR) from 2025 to 2035, reaching USD 51,580 million. Advanced electric propulsion systems are being adopted by the public and private sectors because to growing environmental concerns and governmental obligations for zero-emission transportation.

The traction motors market is currently undergoing a significant surge, primarily attributable to the escalating need for eco-friendly transportation modes. With a growing global emphasis on sustainable practices, electric vehicles (EVs) have emerged as a pivotal driving force within the automotive sector. This market’s upward trajectory is primarily steered by the robust sales of battery-electric cars (BEVs) and plug-in hybrid electric vehicles (PHEVs).

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Rising Sales of BEVs and PHEVs Foster Market Growth

The rapid evolution of the global Traction Motors Market can be attributed primarily to the increasing preference for environmentally sustainable transportation solutions. In this context, the significant role played by electric vehicles (EVs) in reshaping the automotive industry toward a more sustainable trajectory cannot be understated. The market’s expansion is underpinned by the escalating uptake of battery-electric cars (BEVs) and plug-in hybrid electric vehicles (PHEVs).

Moreover, the introduction of eco-friendly hybrid technology as an alternative fuel source is fostering an upsurge in market demand. Stringent government regulations aimed at curbing vehicular emissions and mitigating environmental pollution, coupled with initiatives to encourage the adoption of electric vehicles, are further amplifying the market’s scope. According to the projections outlined by Future Market Insights (FMI) for the period spanning 2022 to 2032, the global Traction Motors Market is anticipated to register a significant compound annual growth rate (CAGR) over the forecast period.

Proliferation of Sustainable Electric Mobility Create Significant Market Opportunities:

The automotive industry worldwide is moving towards manufacturing ultra-lightweight, more sustainable vehicles that are innovative and affordable, increasing the global electric traction motor industry share. Governments in countries worldwide have realized the potential of electric vehicles. Resultantly, many of them have initiated new policies and proposals for e-mobility infrastructures.

Such initiatives have helped them meet their goals to address climate change and net-zero carbon targets. Additionally, large-scale uses of hypercars and increasing government initiatives to revolutionize e-mobility influence the market growth. Simultaneously, the government incentive programs to encourage EV manufacturers for increased hybrid electric vehicle production impact market growth positively.

Regional Analysis:

Asia Pacific dominates the global Traction Motors Market, mainly due to the rising popularity of alternative fuel vehicles. Besides, growing investment in rolling stock and focus on electric vehicles to reduce carbon emission drive the Traction Motors Market growth. Supportive government plans to improve manufacturing sectors boost the Traction Motors Market size.

Massively increased production and sales of e-vehicles in the region create lucrative growth opportunities. Also, increasing foreign direct investments and heavy investments by key players for advanced product developments are major factors impacting the Traction Motors Market revenue.

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Key Market Segments Covered in the Traction Motors Industry Research:

Application:

• Transportation
• Industrial machinery and equipment
• Others

End Users:

• Hybrid vehicles
• Compact construction equipment
• Escalators
• Elevators
• Other (Washing machines, Electric Aircraft, etc.)

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East & Africa