Electric Motors for IC Engine Vehicles Market - Global Forecast 2026-2032

The Electric Motors for IC Engine Vehicles Market size was estimated at USD 1.89 billion in 2025 and expected to reach USD 2.01 billion in 2026, at a CAGR of 7.76% to reach USD 3.19 billion by 2032.

The evolution of electric motors within internal combustion engine vehicles marks a significant advancement in the automotive industry’s ongoing commitment to efficiency and sustainability. Once viewed simply as starter generators, these electric drive units have emerged as integral components in mild-hybrid, full-hybrid, and dual-motor architectures. By seamlessly blending mechanical and electrical propulsion, they deliver enhanced torque at low speeds, support regenerative braking, and enable intelligent start-stop functionality. This convergence of technologies empowers manufacturers to comply with stringent emission regulations while offering drivers a more responsive and dynamic driving experience.

As the global automotive sector intensifies its focus on decarbonization, automakers are progressively integrating electric motors to bolster fuel economy and reduce carbon footprints across conventional platforms. Implementation spans from entry-level stop-start systems to sophisticated 48-volt architectures that drive significant reductions in greenhouse gas emissions without requiring a complete overhaul of existing powertrain assemblies. These electric assist solutions represent a vital bridge to fully electric mobility by reinforcing the value proposition of internal combustion engine vehicles, particularly in regions where charging infrastructure and consumer adoption of battery-electric vehicles remain nascent.

The automotive powertrain landscape is undergoing transformative shifts propelled by the dual imperatives of environmental stewardship and competitive differentiation. Electrification is no longer confined to battery-electric vehicles; instead, OEMs are embedding electric motors throughout ICE vehicular platforms to unlock new performance thresholds. The widespread adoption of 48-volt systems exemplifies this trend, offering a cost-effective pathway to substantial CO₂ reductions and peak torque augmentation in mass-market applications.

Concurrently, breakthroughs in power electronics, advanced semiconductor materials such as silicon carbide, and additive manufacturing methods for rotor and stator components have accelerated product development cycles. These technological forces are reshaping supply chain dynamics, prompting collaborations between traditional automotive suppliers, semiconductor firms, and startups. The result is an ecosystem where agility in design, modularity in architecture, and digital integration through smart control units are imperative for market leadership.

In 2025, the United States implemented a revised set of tariffs targeting certain electric motor components imported for internal combustion engine vehicles, reflecting broader trade policy objectives. These levies have led to increased landed costs for imported AC induction and DC brushless motors, prompting OEMs and tier-one suppliers to reassess their global sourcing strategies. The tariffs have particularly impacted manufacturers relying on Chinese and Southeast Asian suppliers, where economies of scale once provided competitive pricing advantages.

Faced with elevated import duties, many industry players have accelerated their efforts to localize production and diversify supplier networks. Joint ventures and greenfield investments in North America have gained momentum, reducing exposure to tariff volatility. Furthermore, engineering teams are exploring design optimizations that minimize reliance on subject components, while procurement organizations negotiate long-term contracts to hedge against additional policy shifts. These adaptive strategies underscore the critical need for agile supply chain management in today’s protectionist trade environment.

Segmentation by motor type reveals two primary architectures: AC and DC. Within the AC category, induction machines offer robustness and cost efficiency, while synchronous motors deliver higher power density and precise control. In the DC domain, brushed designs remain prevalent in legacy applications due to their simplicity, whereas brushless motors are prized for lower maintenance and superior efficiency. These distinctions guide design decisions across diverse vehicle applications.

When considering vehicle type, commercial vehicles branch into heavy and light commercial segments that demand high durability and torque output for load-bearing operations. Passenger cars divide into compact, midsize, and luxury classes, each with unique expectations for performance, refinement, and energy management. Two wheelers, subdivided by high and low engine capacity, leverage compact electric drive units to enhance acceleration and meet urban mobility requirements.

Power rating segmentation spans high, medium, and low voltage systems, with high voltage architectures underpinning strong torque performance in hybrid drivetrains, while low voltage solutions optimize cost and packaging in entry-level models. Cooling type further differentiates designs, as air-cooled motors offer simplicity for lighter applications and liquid-cooled units ensure thermal stability under sustained heavy loads. Finally, sales channels split between OEM and aftermarket pathways. Authorized service centers deliver factory-approved maintenance, while independent service networks cater to end users seeking cost-effective repairs and upgrades.

In the Americas, the market for electric motors in ICE platforms is shaped by evolving regulatory frameworks in the United States and Canada that incentivize reduced fuel consumption and emissions. Automakers are increasingly deploying 48-volt mild-hybrid systems to meet Corporate Average Fuel Economy (CAFE) standards, while aftermarket specialists expand their offerings for remanufactured starters and integrated generator modules.

Europe, the Middle East, and Africa present a mosaic of market drivers. Stringent Euro 7 emissions regulations have accelerated the adoption of synchronous electric machines in passenger cars, particularly across Germany and France. Meanwhile, emerging markets in North Africa and the Gulf Cooperation Council states exhibit a growing appetite for hybrid retrofits in heavy-duty trucks, driven by fuel cost volatility and sustainability targets.

Across Asia-Pacific, legacy vehicle fleets in India and Southeast Asia increasingly utilize brushless DC and induction motors within two wheeler hybrids to improve urban commute efficiency. Japanese and South Korean OEMs continue to innovate in liquid-cooled AC motors for performance-oriented passenger cars, leveraging deep expertise in compact motor integration and advanced materials research.

A handful of global players dominate the electric motor landscape for ICE vehicle applications. Bosch leads with its comprehensive 48-volt belt starter generator systems, which combine high torque output with seamless integration into existing powertrains. Denso’s compact brushless DC motor portfolio emphasizes lightweight construction and high efficiency, catering to both passenger and commercial vehicle segments. Continental’s synchronous machines distinguish themselves through scalable power classes and integrated inverter control units, reflecting the company’s drive toward modular electrification platforms.

Beyond these tier-one suppliers, specialized firms are carving out niches through technological differentiation. Valeo has focused on dual-function starter generators that streamline packaging and support rapid start-stop cycles. Nidec’s expertise in brushless DC motor manufacturing has enabled the company to capture significant share in the two-wheeler hybrid market. Siemens continues to push boundaries with high-voltage traction motors designed for demanding hybrid drive architectures, leveraging its heritage in industrial drives and power electronics.

Industry leaders should prioritize investments in advanced materials and manufacturing technologies to unlock the next wave of performance gains. Expanding research into silicon carbide inverters and additive manufacturing for rotor laminations can yield substantial efficiency improvements, while reducing reliance on rare earth materials supports long-term sustainability objectives. In parallel, strengthening supplier partnerships through collaborative R&D agreements can accelerate time-to-market for novel motor architectures.

Supply chain resilience is equally critical. Companies must diversify component sourcing to mitigate the impact of future tariff adjustments, while exploring nearshoring opportunities to reduce logistics complexity. Harmonizing interface standards across OEM platforms will simplify integration and lower development overheads. Finally, embedding digital twin simulations and smart diagnostics into motor control units can provide predictive maintenance insights, enhancing reliability and lowering total cost of ownership for end users.

This research leveraged a comprehensive methodology combining primary and secondary data collection to ensure robust and unbiased insights. Primary inputs were obtained through in-depth interviews with senior executives at OEMs, tier-one suppliers, and aftermarket service providers across North America, EMEA, and Asia-Pacific. These conversations illuminated key technology adoption drivers, procurement priorities, and supplier selection criteria.

Secondary research encompassed analysis of industry whitepapers, trade association reports, and regulatory filings to map the evolving policy landscape. Publicly available patent filings and academic publications provided visibility into emerging motor technologies and materials innovations. Data triangulation was conducted by cross-referencing company disclosures, customs import statistics, and supplier contract announcements. This blended approach underpins the accuracy and relevance of the findings presented in this report.

Electric motors are reshaping the internal combustion engine vehicle market by providing scalable electrification solutions that satisfy both regulatory demands and consumer expectations for performance and efficiency. The confluence of advanced power electronics, materials science breakthroughs, and targeted policy incentives has accelerated adoption across passenger cars, commercial vehicles, and two wheelers. However, the imposition of new tariff measures underscores the need for agile supply chain strategies and localized manufacturing investments.

By understanding critical segmentation dimensions-including motor type, vehicle application, power rating, cooling architecture, and sales channel pathways-industry stakeholders can tailor product offerings to precise market needs. Regional nuances in adoption drivers and regulatory landscapes further influence strategic planning, while insights into leading suppliers inform partnership and procurement decisions. This multifaceted perspective equips decision-makers to navigate a complex ecosystem and capitalize on the transitional momentum toward more sustainable mobility.

The journey toward electrification in internal combustion engine vehicles is at a pivotal moment, and no organization should navigate this landscape alone. Engage with Ketan Rohom, Associate Director of Sales & Marketing, to access the comprehensive market research report that delivers deep strategic guidance, critical data analysis, and forward-looking recommendations. By partnering with Ketan, you’ll secure the intelligence needed to anticipate regulatory changes, optimize product portfolios, and strengthen your competitive edge in a rapidly evolving market.

Don’t let emerging tariffs, shifting consumer preferences, or technological disruptions catch your organization unprepared. Connect with Ketan Rohom today to explore how this report can empower your leadership team with actionable insights, equip your R&D and strategy functions with robust segmentation analyses, and guide your market entry or expansion plans with confidence.