European traction motor market is expected to rise at a compound annual growth rate (CAGR) of 50% for hybrid electric vehicles (HEVs) and electric vehicles (EVs), recording sales of more than 2.6 million units by 2017, according to a new report.
According to Frost & Sullivan report, 'Strategic Analysis of Electric Motor Technologies for Electric and Hybrid Vehicles in Europe', the European EV market had earned revenue of EUR55m in 2010 and is expected to reach $1.6bn in 2017 with the support for adoption of hybrid and electric vehicles from the government.
According to the analysis, the demand for permanent magnet motors is expected to increase due to their performance and efficiency.
The rising concern over the availability and price of rare earth metals will lead to the development of other motor technologies including induction and hybrid motors.
The report revealed that the sourcing approaches for electric motors will differ among vehicle manufacturers (VM), revealing that about 30-40% of VMs receiving motors from suppliers are planning to develop domestically.
Frost & Sullivan team leader Anjan Hemanth Kumar said while some VMs are working with more than one supplier on the development of electric motors, others are choosing to develop it in-house.
"Reliability, strong R&D, a smooth supply chain and tight quality control coupled with state-of-the-art manufacturing procedures and facilities are some of the key sourcing criteria for VMs," Hemanth Kumar said.
The study also revealed that the VMs, further, planning to bond specialist EV system developers that can incorporate the systems into the vehicle, while in the medium- to long-term, Tier 1 suppliers with strong intra-organisational support would be preferred.