In-wheel Motor Market, by Vehicle Type (Passenger Vehicles and Commercial Vehicles), Propulsion Type (Battery Electric Vehicle, Hybrid Electric Vehicle, and Plug-in Hybrid Electric Vehicle), Distribution Channel (Original Equipment Manufacturer and Aftermarket), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global In-wheel Motor Market Analysis

The in-wheel motor market forecast is projected to be $4,120.60 million in the 2021-2028 timeframe, growing from $612.0 million in 2020, at a healthy CAGR of 27.10%.

Market Synopsis

The growing demand for the utilization of electric vehicles is the key driving factor expected to augment the demand for in-wheel motors, aiding the expansion of in-wheel motor market size.

However, the reduction in vehicle production globally is predicted to hamper the market growth.

According to the regional analysis of the market, the Asia-Pacific in-wheel motor market share is anticipated to grow at a CAGR of 27.70%, by generating a revenue of $1,682.40 million during the in-wheel motor market forecast period.

 In-wheel Motor Market Overview

An in-wheel motor is a type of electric vehicle drive system. Traditional electric vehicles are designed to replace gasoline engines with electric motors. However, the in-wheel motors are installed around each drive wheel to drive the wheels directly. The motors are mounted near each drive wheel which move the wheels through a very small drive shaft. Due to the very small drive shaft, there is almost no time lag associated with rotation, the engine output is immediately transmitted to the wheel and the wheel can be controlled very accurately.

Covid-19 Impact on In-wheel Motor Market

The Covid-19 impact on in-wheel motor market has been negative. The imposed lockdown measures globally affected the automobile industry for the sales of new vehicles and transportation of raw materials such as electronics devices and steel that are required for manufacturing automotive parts got delayed due to the COVID-19, negatively impacting the growth of the in-wheel motor market. During the pandemic period, the reduction in utilization of automobiles, both passenger and commercial vehicles due to decrease in mobility and lockdown restrictions across the world has adversely affected the in-wheel motor market share.

The Scope of Improving the Fuel Efficiency of the Vehicle is a Major Driving Factor that is Expected to Augment the Demand for In-wheel Motor Market

The basic advantage that an in-wheel motor provides is high power output for the same size of engine with improved fuel efficiency. Conventional EVs feature a design where the gasoline engine is substituted with an electric motor. The in-wheel motor EV, though, installs motors right around each of the driving wheels to directly power the wheels. In addition to this, in-wheel motor, motors are installed close to each of the drive wheels and are moving the wheels through extremely small drive shafts. Since the drive shafts are so small, the time lag that arises with the rotation all but disappears, and motor power is transmitted to the wheels instantaneously, making it possible to control the wheels very precisely. These factors are expected to aid the in-wheel motor market growth in the forecast period.

To know more about global in-wheel motor market insight and drivers, get in touch with our analysts here.

The Reduction in Production of Vehicles Globally to Restrain the Market Growth.

The reduction in production of vehicles due to events such as the global pandemic of Covid-19 that led to decrease in utilization of vehicles across the world can hamper the growth of in-wheel motors market as the demand for the in-wheel motors is dependent on the usage of vehicles. In addition to this, the lack of financing or expensive financing options for manufacturers in many countries are anticipated to hamper the market growth to hamper market growth.

The Adoption of Electric In-wheel Motors in Developing Countries is Expected to Create Opportunities for In-wheel Motor Market

The factors such as rising demand for low-emission vehicles and government regulations to support long-distance zero-emission vehicles through subsidies and tax refunds have forced manufacturers to offer EVs including EV parts around the world with a bright scope in the developing countries such as China, India, Vietnam, and others, which complements the demand for components such as in-wheel motors. These are the positive in-wheel motor market trends that are expected to act as facilitators of the in-wheel motor market growth during the forecast period.

To know more about global in-wheel motor market trends, get in touch with our analysts here.

Source: Research Dive Analysis

The passenger vehicles sub-segment is predicted to have a dominating share in the global market as well as fastest growth and register a revenue of $3,284.30 million in 2028, growing from $487.6 million in 2020 during the forecast period, with a CAGR of 27.30%.
The increasing demand for environment friendly options of mobility and growing utilization of electric cars in the passenger vehicle category are expected to aid the passenger vehicles sub-segment. As the passenger vehicles category is the most dominating in terms of number of vehicles sold, the need for emission less vehicles such as electric vehicles is high in this category. These factors are expected to propel the growth of this sub-segment.

Source: Research Dive Analysis

The battery electric vehicle sub-segment is estimated to have a dominating market share in the global market and register a revenue of $1,910.90 million in year 2028, with a healthy CAGR of 26.70% during the forecast period. 
The battery electric vehicle engines are generally installed in commercial vehicles as the cost of battery electric vehicle is less than that of hybrid electric vehicle. Commercial vehicles that are utilized for goods transportation, in mines for raw material transportation, and lifting heavy load require in-wheel motors as an essential component for optimum operational efficiency of the engine. These factors are expected to aid the growth of this sub-segment.

The hybrid electric vehicle sub-segment of the global in-wheel motor market is projected to have the fastest growth and register a revenue of $1,496.20 million during the analysis timeframe, growing at a healthy CAGR of 27.70%. The utilization of hybrid electric vehicle has advantages such as that the vehicles are more fuel efficient than petrol engines and are more environment friendly than the petrol vehicles. The hybrid electric vehicles generate more torque (pulling power) than their petrol counter parts. These factors are expected to aid the growth of hybrid electric vehicle sub-segment in the forecast period.

Source: Research Dive Analysis

The original equipment manufacturer sub-segment is anticipated to have a dominating share in the global market and surpass $3,041.00 million by 2028, with an increase from $457.3 million in 2020. The large-scale production of vehicles such as commercial and passenger vehicles with an increasing focus on fuel efficiency is expected to contribute to the growth of the sub-segment of equipment manufacturers. rooted. According to the International Organization of Motor Vehicle Manufacturers, an international trade association whose members are 39 national auto industry trade associations, total vehicle production in 2020 was 77 million units. Therefore, increased vehicle production is expected to contribute to the growth of this sub-segment during the forecast period.

The aftermarket sub-segment of the global in-wheel motor market is projected to have the fastest growth and register a revenue of $1,079.50 million during the analysis timeframe, growing at a healthy CAGR of 27.70%. An increase in installations and replacement of parts such as wheel engines in passenger and commercial vehicles due to overuse over long distances is expected to contribute to the growth of this sub-sector.

Source: Research Dive Analysis

The Market for In-wheel Motor in Asia-Pacific to be the Most Dominating as well as Fastest Growing

The Asia -Pacific in-wheel motor market generated $241.4 million in 2020 and is projected to register a revenue of $1,682.40 million by 2028. The rapid urbanization and increasing demand for ecofriendly mobility solutions in the developing markets such as India and China are aiding the growth of in-wheel motor market in Asia-pacific region, as in-wheel motors are used in the electric vehicles. The surge in urban population in the cities with increasing per capita income of the increased population are acting as catalysts in the utilization of electric vehicles and aiding the growth of in- wheel motor market in the forecast period.

Competitive Scenario in the Global In-wheel motor Market

Agreement and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading in-wheel motor market players are Protean Electric, Printed Motor Works, Ziehl-Abegg SE, NTN Corporation, Elaphe Propulsion Technologies Ltd, Schaeffler Technologies AG & Co. KG, NSK LTD., GEM Motors d.o.o., Lordstown Motors Corporation, and Tesla, Inc.

Porter’s Five Forces Analysis for the Global In-wheel Motor Market:

• Bargaining Power of Suppliers: The suppliers in the in-wheel motor market are moderate in number. Several companies are working on new in-wheel motor technologies such as wheel hub drive, hub motor, to gain the major market share.
  Thus, the bargaining power of suppliers is moderate. 
• Bargaining Power of Buyers: Buyers have moderate bargaining power as this technology is in growing stage and there is limited number of good suppliers. This increases the pressure on the automotive companies to manufacture the in-wheel motor on their own or choose among available suppliers.
  Thus, the bargaining power of buyers is moderate 
• Threat of New Entrants: Companies entering the in-wheel motor market are adopting technological innovations in in-wheel motor development for attracting clients. The initial investment in the in-wheel motor is moderate. 
  Thus, the threat of the new entrants is moderate.
•  Threat of Substitutes: There is no alternative product for in-wheel motor solutions. 
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Protean Electric, and NTN Corporation Companies who do acquisitions to gain major market share. 
  Therefore, competitive rivalry in the market is high.