Europe Electric Vehicle Motor Market Research Report: Forecast (2025-2030)

Market Definition

Electric Vehicle motors are specially designed motors to empower an electric vehicle. The motor converts the electrical energy into mechanical energy using the various components installed in the motor. These motors are installed by several electric vehicle manufacturers globally, including Europe.

Market Insights & Analysis: Europe Electric Vehicle Motor Market (2025-30):

The Europe Electric Vehicle Motor Market size was valued at around USD32.9 billion in 2024 and is projected to reach USD80.2 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 16% during the forecast period, i.e., 2025-30.

This market growth is observed due to the increase in the demand for electronic and hybrid vehicles, advancements in technology, the rise in the implication of strict regulations, and others. The demand for hybrid and electric vehicles has surged significantly with government support. European officials are implementing numerous policies and schemes to promote the growth of electric vehicles. This is due to achieving the aim to reduce carbon emissions, thus supporting low-emission products such as electric vehicles. The electric motor is compact and lightweight, and is fuel-efficient as it reduces emissions over the traditional internal combustion engine. The electronic vehicle dynamics work on the electronic motors, thus raising the utility of electric motors. Furthermore, the electric motors are equipped with sensors and technologies that conveniently reduce the load exerted by the driver while driving. Hence, providing an expensive premium experience to the driver.

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Moreover, innovations and advancements in technology and material sciences have increased the durability of motors. The motors, coupled with AI, help in maximizing efficiency and conserving time. Moreover, the development of charging infrastructure in Europe, with approximately 3.5 million charging points to be installed by 2030, as per the European Commission. This leads to the easy accessibility of power for electric vehicles. Thus, increasing the number of electric vehicle consumers in Europe.

Additionally, the consumers’ inclination towards sustainable vehicles raises the demand for electric vehicles. Consequently, this increases the demand for electric vehicle motors in Europe. 

Europe Electric Vehicle Motor Market Driver:

Stringent Government Regulations Boosting Market Demand – As per global organizations, Europe is ranked as the fourth-largest emitter of greenhouse gases in 2023. Thus, this has pushed the European government to issue several guidelines and standard regulations, and policies to minimize such emissions. As a consequence, electric vehicles are promoted due to their relatively low emission of CO2. Electric vehicles use electricity to induce magnetism, and the vehicle runs on this dynamic. In this dynamics, there is no emission of toxic gases into nature, which is observed in conventional vehicles and motors. This has resulted in a shift of consumers towards electric vehicles, with approximately 51.6% of the total vehicles sold in Europe being electric. This surge in the demand for electric vehicles directly raises the demand for electric vehicle motors.

Europe Electric Vehicle Motor Market Opportunity:

Government Incentives & Tax Exemptions – The aim of the European government to reduce 50% of the emissions by 2035 has resulted in the formation of the Clean Industrial Act. This act was proposed by the European Commission in February 2025, under which the government offers financial aid and funds to manufacturers who support the zero-to-low-emission industry. This results in generating a potential for electric vehicle manufacturers in the region. Additionally, the European government provides incentives and one-time tax exemptions on the registration of electric vehicles. This makes the ownership of electric vehicles more affordable for Europeans. This, in turn, drives demand for Electric motors in the region.

Europe Electric Vehicle Motor Market Challenge:

High Cost of Motor to Hinder Market Growth – The cost of rare earth materials, such as neodymium, dysprosium, etc., used in the major components of the electric motor, such as magnets, is relatively high. These metals are used in motors due to their high magnetic power, which improves the efficiency and durability of the motor. Moreover, the other components of motors, such as the inverter, convert the supplied power to AC. Similarly, other electrical systems in the motor inflate the price of the motor. However, such expensive components are not used in internal combustion engines, hence they are cheap. Thus, the middle-income population prefers conventional vehicles over electric ones.

Moreover, the electric motor manufacturers in Europe import automotive components from China. This is due to China having the world’s largest manufacturing units and the availability of low-cost labor. However, the implication of EU tariffs has increased the import cost of the automotive products. Thus further fueling the price of the Motors in Europe.

Europe Electric Vehicle Motor Market Trend:

Integration of AI in Electric Vehicle Motor – The advancements, such as AI, etc., in the automobile industry, have revolutionized the automobile industry. The implications of AI, LiDAR, and others have resulted in the formation of Autonomous Driving Systems. This system analyses the surroundings and aids the driver, hence reducing the mechanical labor. Autonomous system-equipped vehicles allow vehicles to interact via sensors and algorithms installed in the motors to optimize the routes, thus increasing the efficiency of the vehicle.

Moreover, this system reduces the mechanical strain of the driver while turning as the torque sensors installed in the motors detect the motion and operate. Apart from these, this system reduces the strain on the vehicle, hence resulting in more durability. These factors have resulted in raising the demand for autonomous-driven electric vehicles among the European population. This results in manufacturers such as Easymile inculcating such technologies in their motors.

Europe Electric Vehicle Motor Market (2025-30): Segmentation Analysis

The Europe Electric Vehicle Motor Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2025-2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on Variant:

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Fuel Cell Electric Vehicle (FCEV)

Based on Variant type, Battery Electric Vehicle (BEV) holds the largest market share of approximately 63% of the total. This is due to the strict emission regulations, technological advancements, operational efficiency, the dynamics of the vehicles, etc. The Battery Electric Vehicle motor is powered using an advanced lithium-ion battery. The lithium-ion battery has more capacitance, which results in storing the charge for a longer duration. This results in avoiding the frequent charging of the battery and thus is efficient for longer travel. Moreover, BEVs are battery-operated and thus there is no emission of toxins in the environment. This has resulted in the Europeans and the European government inclining towards battery-operated electric vehicles.

Based on Power Rating:

• Upto 20kW
• 21kW-100kW
• 101kW-250kW
• Above 250kW

The electric vehicle motor with a power rating of 101kW to 250kW has more than 45% of the market share.  This market share is due to its large power output, operational efficiency, and other factors. The motors with these ratings are installed in passenger cars, SUVs, and light commercial vehicles, due to their high performance. As it provides better acceleration and power to the vehicles. This has led several automotive manufacturers, such as Tesla and others, to install these motors into their electric vehicles.

Moreover, the motors of these ratings require lower maintenance, thus decreasing the operational cost of the vehicles. This has resulted in the adoption of electric buses and trucks equipped with these rating motors. Hence, raising the market share of 101kW-250kW power-rated motors in Europe.

Europe Electric Vehicle Motor Market (2025-30): Regional Projections

• Germany
• The UK
• France
• Italy
• Spain
• The Netherlands
• Scandinavia
• Rest of Europe

Regionally, the market is growing in multiple countries, however, Germany has the largest growing electric vehicle market, with more than 35% of the manufacturing and sales of electric vehicles across the region. This is due to consumer awareness, a rise in disposable income, strict government rules and regulations, and others.  Furthermore, some of the countries in Germany have low-emission zones, thus the vehicles used by the majority of the population in such places in Electric. This fuels the demand for electric vehicles, eventually impacting the demand for electric vehicle motors. In recent years, the environmental campaigns and drives to maintain the ecological balance have risen in Germany, due to the European Union’s Green Deal. Such campaigns and programs have spread awareness among consumers, thus inclining the consumer toward environmentally safe and sustainable alternatives such as electric vehicles.

Moreover, the government of Germany is developing the infrastructure, such as charging points, etc., for the widespread adoption of electric vehicles. In 2023, the authorities of Germany issued a tender to install nearly 8,000 fast charging points in approximately 900 locations. Along with this, the government is providing incentives and tax benefits on the registration of electric vehicles. This has resulted in the registration of more than 2.8 million Electric vehicles in Germany. Hence, the incentives and investments of the European government in developing the electric vehicle ecosystem have further fueled the demand for electric vehicles. Henceforth, positively influencing the demand for electric vehicle motors in the country.

Europe Electric Vehicle Motor Industry Recent Development:

• 2024: Valeo partnered with Renault to produce the next generation of rare-earth metals electric motors in Italy.
• 2024: Schaeffler invested in expanding the charging infrastructure globally with 3,000 charging points in Europe.

Gain a Competitive Edge with Our Europe Electric Vehicle Motor Market Report

1. Europe Electric Vehicle Motor Market by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Europe Electric Vehicle Motor Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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