Electric Vehicle Business To Approach $500 Billion By 2025


GKN Driveline: Axial Flux Electric Motor AF-230

GKN Driveline: Axial Flux Electric Motor AF-230

Electric Vehicle Parade

Electric Vehicle Parade

According to IDTechEx, the entire electric vehicle business is growing rapidly:

“The electric vehicle business will approach a massive $500 billion in 2025 with the traction motors being over $25 billion.”

On the topic of traction motors, IDTechEx adds:

“Their design, location and integration is changing rapidly. Traction motors propelling land, water and air vehicles along can consist of one inboard motor or – an increasing trend – more than one near the wheels, in the wheels, in the transmission or ganged to get extra power. Integrating is increasing with an increasing number of motor manufacturers making motors with integral controls and sometimes integral gearing. Alternatively they may sell motors to the vehicle manufacturers or to those integrating them into transmission.”

Forward-looking predictions are almost never accurate, but seeing as how nearly all of the recent predictors we’ve seen point to substantial growth in the electric vehicle business, we can be reasonably sure that the EV market will continue to grow as the years pass.  The rate of growth is rather unpredictable, but growth is growth and that’s all that really matters for now.

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6 Comments on "Electric Vehicle Business To Approach $500 Billion By 2025"

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I learned a new word today from the summary of that paper: homologated.

“Motors for highly price-sensitive markets such as electric bikes, scooters, e-rickshaws and micro EVs (car-like vehicles not homologated as cars so made more primitively) should avoid the price hikes of neodymium and other rare earths in the magnets.”

FYI homologated means, as far as I can tell “illegitimate” but not necessarily illegally, more in like, legally bypassing a mound of regulation. Small time. Non-street-legal. Chinese-farmer-makes-his-own-robot type of thing. The entire EV conversion scene is not homologated.

Should have said “Chinese-farmer-makes-his-own-helicopter”. Would have been way more appropos.

Homologate means official approval or certification.

Non-homologated usually means grey market.
Not explicitly legal nor illegal(black market).

“not homologated as cars” in the quoted context means that those “car-like vehicles” fall into a vehicle categorization that does not require certification to motor vehicle safety standards. In the US, that would include 3-wheeled vehicles. NEV is a formal classification in the US that has its own rules, including 25mph top speed and the allowance to only use public roads with speed limits up to 35mph. NEVs could be considered non-homologated because they do not have to certified to FMVSS (Federal Motor Vehicle Safety Standards).

Love the intrinsic beauty of an electric motor compared to an ICE…. simplicity.

The question is, how many electric motor manufacturers do you really need? They’re all pretty much the same design, so once you’ve optimized production and quality, what do you differentiate on?

Very good point, which makes EVs very disruptive to the industry. This is why most of the incumbent brands are adverse to them (except Nissan and BMW), and prefer to seriously invest more in PHEVs (Ford, Chevy, VW, Mitsubishi, etc). Protectionism is very difficult with EVs (take Tesla rocketing to the top with only its 2nd car). Where the battery industry is beginning to show consolidation already, EV motors will continue to have many players experimenting and competing as the market grows. Economies of scale will eventually win out though, and price will eventually be the only differentiator, benefiting companies such as Tesla who begin to sell in real volume.