Improved vehicle performance, replacement of transmission, driveshaft, axles, and differentials and the ability to supply torque to its associated tyre, generating more power to improve the efficiency of a vehicle, drive the global in-wheel motor market to reach $ 4.39 billion by 2026 from an estimated $ 808 million in 2021.
According to the new market research report - In-Wheel Motor Marketby propulsion, vehicle type, motor, cooling, power output, vehicle class, motor weight and region - Global Forecast to 2026, published by MarketsandMarkets, the global in-wheel motor market is projected to grow at a CAGR of 40.3% till 2026.
The major players in this space include Protean Electric, Elaphe, ZIEHL-ABEGG, Printed Motor Works and NTN.
Electric Passenger Cars
According to the research firm, the electric passenger car segment is the largest of all segments of the market and is expected to witness significant growth during the forecast period. Passenger cars are expected to grow at a considerable rate in the emerging economies of the Asia Pacific region. The growth of in-wheel motors in passenger cars can be attributed to improved efficiency, high torque, increased power, and better vehicle handling for new and existing vehicles. This vehicle segment is the most promising market for in-wheel motors as it is the largest in the automotive industry.
Battery Electric Vehicles
Governments prefer battery electric vehicles (BEVs) as these are zero-emission vehicles. Various governments around the world support the sales of BEVs with subsidies and tax rebates. Countries such as the US, Canada, the UK, and Germany focus heavily on EVs. The BEV segment is the largest and majorly used across all four regions.
Asia Pacific accounts for the largest BEV market, with countries such as China, Japan, and South Korea leading BEV sales. Strong government support and favourable policies are the major factors for the fast growth of BEVs in the region and the fast popularisation of EV charging stations. The top five selling BEV models in Europe are Renault Zoe, Nissan Leaf, Tesla Model S, BMW i3, and Volkswagen e-Golf. Among these, Tesla Model S, Chevy Volt, BMW i3, and Nissan Leaf are equipped with in-wheel motors.
Asia Pacific
The Asia Pacific region is estimated to be the largest in-wheel motor market in 2026 because government promotions and schemes have led to an increase in EV sales over the years, catering to the demand for in-wheel motors. For instance, NTN, a Japan-based company, supplies in-wheel motors to EV start-up FSAT (Changchun Fawsn Auto Tech).
In-wheel motor is majorly found in electric commercial vehicles; therefore, governments of various countries in the Asia Pacific region are focusing on these vehicles. For example, even in developing countries like India, the government has announced phase-2 of its Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme in April 2019 with an outlay of over $ 1.4 billion. Moreover, in 2021, the scheme got an extension till March 2024 to further facilitate EV growth and infrastructure. Besides, OEMs such as BYD are planning to open manufacturing plants of electric buses and electric trucks to meet the regional demand in different countries of Asia Pacific, the research firm noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: ZIEHL-ABEGG.