According to a recent report published by Allied Market Research, titled, "Automotive Motors Market by Type, Vehicle Type, and Application: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global automotive motors market size was valued at $31.01 billion in 2018, and is projected to reach $49.20 billion by 2026, registering a CAGR of 5.9% from 2019 to 2026.
Presently, the U.S. dominates the global automotive motors market, followed by Mexico and Canada in North America. However, Canada is expected to grow at a higher CAGR during the forecast period. In addition, in 2018, China led the market in the Asia-Pacific region followed by Japan, India, South Korea, and rest of Asia-Pacific countries.
Factors such as increase in global vehicle production, high demand for safety and convenience features, and rise in requirement of electric vehicles drive the growth of the market. However, increased weight and cost of the overall system are anticipated to hamper the market growth. Further, wide number of applications employing the use of electric motors, and concept of autonomous cars are expected to create numerous opportunities for market expansion.
The automotive motors market is positively affected by safety regulations implemented by government for installation of power window, airbags, and anti-lock braking systems (ABS) in every vehicle. Europe and North America have been witnessed to follow these regulations more stringently as compared to Asia-Pacific and rest of the world.
In developing countries, OEMs are providing key less entry and anti-lock braking system (ABS) as standard features in vehicles, supporting the government to improve safety measures, which boosts the sales of automotive motors. These safety systems need separate motors to function smoothly and to communicate with other components of vehicle to provide complete safety to passengers. Hence, as the incorporation of safety features has been made obligatory, the demand for automotive motors is anticipated to grow, which fuels the growth of the automotive motors market.
People who are not capable of purchasing a car can experience seamless travel through mobility services. According to the Bureau of Transportation Statistics, the average cost to own and operate a vehicle is around $8,858, assuming 15,000 miles traveled annually. Mobility as a service decreases such costs to the user by providing improved utilization of transport services such as car sharing and ride hails. Also, such services reduce city congestion and decrease overall vehicle emissions. Therefore, digitally-enabled car sharing, and ride-hailing manages travel needs in the smartest way and it also provides a hassle-free and environmentally sound alternative to private car ownership. This sharing and ride hailing activity that includes the entire process from travel planning till payments can be handled by a single mobile app. In coming years, ride hailing services are projected to play a major role in this space by reducing the manual tasks and thereby minimizing the overall time and cost. This trend is expected to hamper the growth of the automotive motors market.
The number of users relying on ride-sharing applications has increased in the recent years. For instance, Uber launched their ride hailing services in 30 cities for expanding its business across the globe. To create awareness and promote their new services, the key players offer discounts, free ride, and coupon facilities to the customers. Moreover, Lyft is providing free rides to patients.
Lyft also invested in several partnerships, most noticeably in healthcare transportation, which provides new mobility options for non-drivers, including older people, younger people, people with disabilities, and people without access to a vehicle. The ride sharing service helping the environment & society by reducing greenhouse gas emissions due to decreased vehicle ownership and reduces the need of an individual parking space. Thus, increased use of public transportation globally translates into the reduction in vehicle sales. Therefore, this impedes the growth of the automotive motor market.
Key Finding of The Automotive Motors Market:
- By type, the DC brushed motors segment generated the highest revenue in the automotive motors market analysis in 2018.
- LAMEA is anticipated to exhibit the highest CAGR during the forecast period while considering automotive motors market growth.
- Latin America leads the market in the LAMEA region.
- The leading companies listed in the report expects high revenue from automotive motors market returns.
The key players profiled in the automotive motors market share include BorgWarner Inc., Continental AG, DENSO CORPORATION, Johnson Electric Holdings Limited, Mitsuba Corporation, MABUCHI MOTOR CO., LTD., Nidec Corporation, Robert Bosch GmbH, Siemens AG, and VALEO.