EV Motors Market Grows Robustly (Again), And Guess Who Leads?

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Last Updated on: 29th April 2025, 04:40 pm

A recent study by Valuates Report indicates that the global market for Permanent Magnet Synchronous Motors (PMSMs) reached $15,580 million in 2024.

This massive PMSM market, segmented by type: below 5Kw, 5-10Kw, 10-50Kw, above 50Kw, and by application: automotive, elevator, industry and automation/robotics. The market is projected to expand to $26,010 million by 2031, exhibiting a Compound Annual Growth Rate (CAGR) of 7.7% during the forecast period.

The report identifies several key factors driving the growth of the PMSM market, with the automotive application providing the largest in terms of demand.

The market is evolving from disparate application clusters into a consolidated technology platform that spans consumer, industrial, and transportation sectors. The report notes that the market is experiencing double-digit compound annual growth, fueled by increasing energy-efficiency mandates, the expansion of electric mobility, and decreasing costs in power electronics.

The competitive landscape is characterized by a tiered structure: Chinese manufacturers leverage economies of scale in magnet supply, European companies focus on innovations in axial-flux and hair-pin winding technologies, and North American companies integrate digital twin technology and predictive service contracts. Strategic mergers and acquisitions are focused on securing magnet capacity and inverter intellectual property, while joint ventures with automotive Original Equipment Manufacturers (OEMs) establish long-term off-take agreements. The report emphasizes that success in this market increasingly depends on life-cycle carbon footprint metrics, field-upgradable firmware, and resilient supply chains. These factors are positioning agile manufacturers for sustained profitability in the global electrified vehicle market over the coming decade.

Trends Influencing Market Growth

PMSMs with power ratings below 5 kW are catalyzing market growth by meeting the rising demand for high-efficiency, compact drives in small domestic appliances, robotics end-effectors, medical pumps, and two-wheel electric mobility platforms. Start-ups developing smart kitchen devices are adopting these fractional-horsepower units to achieve significant energy consumption reductions compared to brushed DC motors, thereby meeting eco-label standards in Europe and Japan.

In the warehousing sector, low-voltage collaborative robots are integrating sub-5 kW PMSMs to achieve quiet, torque-dense actuation that complies with ISO 10218 safety speed limits. A significant factor in this segment is the role of Chinese manufacturers.

However, a bulk of the growth comes from electric scooter assembly lines in Asia, particularly those in China, which are standardizing interchangeable hub motors rated under 5 kW, enabling swappable-battery business models and qualifying for government subsidies. The high production volumes of NdFeB magnets in China are reducing material costs, making these miniature machines crucial in driving overall PMSM revenue growth and providing a competitive advantage for Chinese producers.

The 5–10 kW segment is accelerating PMSM market expansion by powering residential heat pumps, commercial drones, light electric four-wheelers, and industrial automation modules that require mid-range torque without the size of induction motors. Incentives related to European climate policy are driving installers to specify 7-kilowatt inverter-driven PMSMs in air-source heat pumps, where seasonal performance coefficients are significantly improved due to lower rotor losses.

Agricultural technology companies are employing 8-kilowatt axial-flux designs in autonomous field robots, extending battery runtimes and reducing reliance on diesel power. Delivery drone manufacturers are adopting 9-kilowatt out-runners that maintain thrust density while withstanding changes in altitude. Tier-1 suppliers for neighborhood electric vehicles are leveraging modular 48-volt, 10 kW powertrains to meet emission-free zone requirements in urban areas. These applications are aggregating demand, establishing the 5–10 kW category as a critical revenue source for PMSM producers.

EVs Are A Major Growth Catalyst

Automotive electrification represents a major catalyst for PMSM deployment, as OEMs transition from internal-combustion engines to battery powertrains and electrified auxiliary subsystems. High-performance PMSMs are prevalent in front and rear e-axle assemblies, delivering superior torque density, rapid response, and regenerative braking efficiency compared to induction motors. Mild-hybrid architectures incorporate belt-starter-generators based on interior-permanent-magnet technology, reducing CO₂ emissions to comply with stringent Corporate Average Fuel Economy (CAFÉ) and Euro 7 targets.

Thermal-management pumps, power-steering actuators, and electric superchargers are adopting compact PMSMs, increasing the number of units per vehicle. The emergence of 800-volt platforms in premium electric vehicles is amplifying demand for high-speed, oil-cooled variants that use segmented NdFeB magnets to mitigate eddy current losses.

As global electric vehicle production volumes increase and vertical integration intensifies, particularly in China, automotive procurement contracts are providing long-term revenue visibility for PMSM manufacturers. China’s dominance in rare earth magnet production gives its manufacturers a distinct advantage in the automotive PMSM sector.

The report indicates that escalating global energy-efficiency mandates are increasing the appeal of PMSMs, which offer IE5-class performance that surpasses induction alternatives. The International Energy Agency’s roadmap encourages the adoption of ultra-premium motors across industrial processes, while regions such as North America are enforcing minimum efficiency regulations under Department of Energy (DOE) Rulemaking.

Manufacturers retrofitting compressors, conveyors, and fan systems are achieving rapid payback through reduced electricity consumption, particularly as electricity tariffs rise. Lifecycle cost analyses highlight savings over the service life of motors, convincing procurement teams to prioritize PMSM upgrades. Certification programs, such as CE and UL, verify compliance, simplifying tender qualifications. As corporate Environmental, Social, and Governance (ESG) targets require quantifiable carbon reductions, high-efficiency PMSMs are becoming essential across major markets.

Renewable Energy Power R&D

The rapid deployment of distributed renewable-energy assets, including rooftop solar inverters and small-scale wind turbines, is stimulating demand for high-torque, variable-speed generators based on PMSM technology. These systems convert low-speed mechanical input into grid-compliant power with superior efficiency across a wider range of speeds than doubly-fed induction machines.

Microgrid developers value compact footprints and minimal maintenance, attributes offered by brushless magnet excitation. Grid codes increasingly require inertial support and fault-ride-through capabilities; advanced field-oriented control of PMSMs meets these requirements. An emerging factor in this sector is the increasing local manufacturing of generator-grade magnets in countries like India, Vietnam, and Brazil, which lowers logistics costs and makes renewable energy integration more attractive.

However, China’s established position in magnet production continues to play a significant role in the global supply chain for these components. As governments increase targets toward net-zero emissions, subsidies for community wind and hybrid photovoltaic projects are accelerating orders, solidifying renewable-energy integration as a key driver for the PMSM industry.

Industry 4.0 Automates Growth

Investments related to the Fourth Industrial Revolution in smart factories and logistics hubs are intensifying the demand for precise, low-maintenance electric drives. PMSMs are well-suited for these applications due to their synchronous speed control and high-power factor. Automated guided vehicles, delta robots, and high-speed pick-and-place arms utilize compact PMSMs to achieve micron-level positioning with minimal heat generation.

Variable-frequency drives with real-time Ethernet connectivity enable predictive maintenance dashboards, reducing downtime costs. As e-commerce order volumes surge, fulfillment centers are integrating thousands of these motors into cross-belt sorters and vertical lifts, significantly increasing unit shipments. The superior efficiency of PMSMs lowers facility carbon footprints, aligning with reporting frameworks such as the Carbon Disclosure Project (CDP).

Tax incentives for Industry 4.0 upgrades are further incentivizing investments. Consequently, the momentum of industrial automation is transforming PMSMs from niche servo applications into essential components in factory operations, expanding the market scale.

Market Share Analysis

The report identifies key players in the global Permanent Magnet Synchronous Motor market, including Mitsubishi Electric, Hitachi, and ABB. These top three companies hold approximately 20% of the global market share. Asia-Pacific and Europe are the primary markets, accounting for about 70% of the global market.

The 10-50kW power range is the dominant product type, representing approximately 40% of the market. Industry and automation is the leading application segment, holding around 60% of the market share. China’s dominance in magnet production, a crucial component of PMSMs, provides a significant advantage to manufacturers within the region.

Other companies mentioned in the report (in alphabetical order) are: ABB Ltd, Alstom, Bosch, Broad Ocean, Continental AG, General Electric (GE), Hitachi, JJE, Meidensha, Mitsubishi Electric, Siemens AG, Toshiba and XIZI FORVORDA.