Based on Mobility Global's August 2026 webinar, “Navigating the Future: Trends in Propulsion Technology and Impact on Supply Chain Through the EV Transition”. 

A global electric motor market in transition 

The global electric motor industry is entering a defining period. Electrification continues to reshape automotive manufacturing, but the path towards fully electric mobility is becoming more varied across regions. 

Changing consumer expectations, geopolitical pressures, material availability and advances in propulsion technology are influencing how manufacturers plan production and invest in new capabilities. 

According to research presented by Mobility Global, global traction motor volumes are forecast to grow from approximately 59 million units to more than 130 million units by 2037. 

This expansion presents significant opportunities for electric motor manufacturers, materials suppliers and technology providers. Yet the growth will not be uniform. Regional differences in policy, consumer demand and manufacturing strategies are creating distinct approaches to electrification. 

For businesses operating across the electric motor value chain, understanding these differences will be essential to making informed decisions about production capacity, technology development and future partnerships. 

Electric vehicle growth is creating a more diverse propulsion market 

Battery electric vehicles (BEVs) remain central to the long-term outlook for electrification. Mobility Global forecasts that BEVs will account for approximately 33% of electric motors produced globally in 2030, increasing to 45% by 2037. 

However, the transition is no longer following a single propulsion strategy. 

Plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles (REEVs) are gaining attention as manufacturers respond to concerns about vehicle affordability, charging infrastructure and driving range. 

This is particularly evident in Greater China, where manufacturers have expanded their portfolios to include several electrified propulsion architectures. 

The impact is substantial. Adjustments to Mobility Global's propulsion forecasts added approximately eight million motors to the projected global total for 2035 compared with its November 2025 outlook. 

This reflects an important distinction for the supply chain: electric motor demand is not dependent exclusively on BEV adoption. 

Hybrid and range-extended architectures also require electric propulsion components, creating opportunities across different motor configurations and performance requirements. 

For suppliers, this increases the importance of flexible production capabilities. Manufacturers must support different vehicle architectures while maintaining competitive costs, consistent quality and reliable delivery. 

North America: Policy uncertainty reshapes manufacturing priorities 

North America's electric motor market is experiencing significant adjustments as policy changes and geopolitical developments influence investment decisions. 

Mobility Global's analysis identifies several pressures affecting regional demand, including changes to EV tax credits, tariffs, restrictions affecting rare earth magnet exports and shifting consumer sentiment. 

Together, these factors have contributed to a reduction of approximately 25% in the North American electric motor import outlook. 

Despite these pressures, the longer-term direction remains towards electrification. The challenge for manufacturers is determining how to invest while market conditions continue to change. 

Manufacturers bring more production in-house 

One of the clearest developments is the movement towards internal manufacturing of electric motor components. 

Mobility Global forecasts that North American in-house rotor and stator production volumes will increase approximately fourfold by 2036. 

At the same time, outsourced production is expected to remain comparatively flat, reducing its share from around 40% to below 15%. 

This represents a significant change in how manufacturers organise their supply chains. 

Rather than relying on external suppliers for complete assemblies, OEMs are increasingly seeking direct access to individual components, specialist materials and manufacturing expertise. 

For suppliers, opportunities may therefore shift towards precision laminations, magnetic materials, electrical conductors, insulation systems and components manufactured to customer specifications. 

The ability to support internal production programmes with consistent quality and dependable supply could become an increasingly important competitive advantage. 

Permanent magnet motors remain dominant 

North America is also expected to maintain its reliance on permanent magnet motor technology. 

Interior permanent magnet and surface-mounted permanent magnet motors are forecast to represent approximately 80% of regional motor volumes through 2036. 

Although induction motors and electrically excited synchronous motors offer alternatives, their adoption is not expected to displace permanent magnet technologies significantly within this period. 

This creates continued exposure to rare earth material supply risks, particularly for high-performance magnet compositions. 

Manufacturers must therefore balance performance requirements with material security, while considering opportunities to reduce heavy rare earth content and diversify sourcing. 

Europe: Manufacturing growth meets supply chain transformation 

Europe's electric motor market presents a different picture. 

Mobility Global forecasts European electric motor production to increase from approximately 3.5 million units in 2026 to 12.4 million units by 2038. 

Exports are also expected to expand, from approximately 160,000 units to 2.2 million units over the same period. 

These figures point towards substantial manufacturing growth, alongside increasing international demand for European-produced electric motors. 

However, growth is accompanied by changes in component sourcing, motor design and manufacturing technology. 

Outsourcing creates new opportunities for component suppliers 

Unlike North America, Europe's manufacturing outlook indicates increasing opportunities for external component suppliers. 

While OEMs continue investing in internal system integration, the proportion of electric motors and stators produced in-house is expected to decline. 

Mobility Global forecasts that in-house stator production will increase in absolute volume, but its share of the market will fall from approximately 42% to 33% by 2038. 

This suggests that external suppliers will play an increasingly important role in supporting production growth. 

For companies specialising in stator manufacturing, winding systems, automation and component assembly, the opportunity lies in delivering the production capacity and technical capabilities that manufacturers require. 

The ability to scale production while meeting strict performance, cost and quality requirements will be particularly valuable. 

Europe accelerates the move towards rare earth free motors 

Material security is becoming a central consideration in European electric motor development. 

Mobility Global forecasts that rare earth free motor penetration in Europe will increase from approximately 33% in 2025 to 50% by 2038. 

Electrically excited synchronous motors (EESMs) are expected to lead this transition, offering manufacturers an alternative to permanent magnet architectures. 

Induction motors will also remain important, particularly in secondary drive applications. 

This shift reflects growing interest in reducing exposure to rare earth supply constraints without compromising motor performance. 

For manufacturers and suppliers, the transition creates demand for alternative conductor technologies, rotor designs, insulation materials and production processes. 

It also highlights the importance of collaboration between materials specialists, motor designers and manufacturing equipment providers. 

Hairpin winding technology becomes central to European production 

Winding technology is another area undergoing significant change. 

Mobility Global forecasts that hairpin U-Pin winding will remain Europe's dominant electric motor winding technology, with volumes increasing from approximately 2.5 million units in 2026 to 10.8 million units in 2038. 

Its market share is expected to rise from around 60% to 69%. 

Continuous hairpin winding, including wave and S-winding technologies, is also gaining ground. Forecast volumes increase more than thirteenfold to approximately 2.4 million units by 2038. 

Meanwhile, insertion round wire winding is expected to lose market share as manufacturers adopt alternative production methods. 

The supplier landscape is changing accordingly. 

The number of suppliers participating in continuous hairpin winding is forecast to increase from 11 in 2026 to 20 by 2038. Participation in traditional insertion winding is expected to decline from 29 to 16 suppliers. 

These developments indicate a broader shift in manufacturing investment. 

Hairpin winding can support compact motor designs and high slot fill factors, but it also introduces specific production challenges. 

Precision forming, conductor insulation, welding quality and automated inspection all become important considerations. 

For machinery and technology suppliers, supporting repeatable, high-volume production will be essential as manufacturers expand their use of these winding methods. 

Higher motor speeds are changing engineering requirements 

Across the global market, manufacturers are increasingly developing motors capable of operating at higher rotational speeds. 

Higher-speed designs can deliver greater power density, allowing manufacturers to reduce motor size, weight and material requirements. 

In North America, motors operating above 15,000 RPM are expected to account for the largest share of the market through 2036. 

Europe is also progressing towards higher-speed architectures. Mobility Global forecasts regional penetration of high-speed motors to increase from approximately 7.7% in 2026 to 22.6% by 2038. 

However, the engineering requirements become more demanding as rotational speeds increase. 

Rotor mechanical stress, bearing durability, thermal management and noise, vibration and harshness all require careful consideration. 

Manufacturers must also address the relationship between motor design and power electronics. 

Higher switching frequencies and more advanced inverter technologies are becoming increasingly important to achieving the required performance. 

Silicon carbide gains ground in electric propulsion 

Silicon carbide (SiC) power electronics are expected to play a growing role in supporting these developments. 

Mobility Global forecasts SiC's share of the relevant North American switching device market to increase from approximately 14% in 2026 to around 50% by 2036. 

The technology is particularly relevant to 800V vehicle architectures, where its switching and efficiency characteristics can support higher-performance propulsion systems. 

Conventional silicon technologies will remain important in cost-sensitive applications, while gallium nitride is expected to find opportunities where compact packaging offers particular advantages. 

For the electrical manufacturing supply chain, these changes reinforce the growing connection between motor design, thermal management, insulation systems and power electronics. 

Greater China: Scale, integration and manufacturing leadership 

Greater China remains central to global electric motor production. 

According to Mobility Global, the region accounts for approximately 47% of global motor production in 2026. 

Its manufacturing scale, domestic supplier capabilities and investment in integrated propulsion systems continue to shape the international market. 

BEV motors are forecast to represent approximately 65% of Greater China's electric motor production by 2038. 

Although PHEV and REEV technologies remain important during the transition, their combined share is expected to decline over the longer term. 

Domestic suppliers strengthen their position 

Chinese manufacturers have established significant advantages in cost competitiveness, manufacturing capacity and system integration. 

Mobility Global's research indicates that non-domestic electric motor suppliers operating in Greater China are expected to experience limited growth over the coming decade. 

Meanwhile, domestic manufacturers continue expanding production capabilities and developing increasingly integrated propulsion systems. 

The research identifies 22 OEMs or suppliers with full vertical assembly capabilities covering systems, motors, inverters, rotors and stators. 

This level of integration gives manufacturers greater control over production processes, component compatibility and costs. 

For international suppliers, competing on manufacturing volume alone may become increasingly difficult. 

Specialist engineering expertise, differentiated materials and advanced manufacturing technologies could offer stronger opportunities for collaboration. 

Chinese electric motor exports continue expanding 

Greater China's influence also extends beyond its domestic market. 

Mobility Global forecasts that imported motors from Greater China will account for approximately 15% of European demand and 27% of South Asian demand by 2031. 

This creates both opportunities and competitive pressures for manufacturers in other regions. 

European businesses must consider how imported components affect pricing, sourcing strategies and local production investment. 

At the same time, international partnerships may provide access to specialist capabilities and manufacturing capacity. 

The challenge will be balancing commercial competitiveness with supply chain security and long-term production requirements. 

Rare earth supply remains a global concern 

Across all three regions, access to rare earth materials remains a critical issue. 

China's export control measures affecting selected rare earth elements and magnet technologies have increased attention on material availability and sourcing risks. 

Dysprosium and terbium remain particularly relevant because of their use in high-performance permanent magnets. 

Although some restrictions introduced in October 2025 were temporarily suspended, earlier controls continued to influence supply chain planning at the time of Mobility Global's analysis. 

Manufacturers are responding by exploring alternative motor architectures, reducing heavy rare earth content and developing new magnet compositions. 

In Greater China, the share of motors manufactured without heavy rare earth elements is forecast to increase from approximately 4% in 2026 to 23% by 2036. 

These developments demonstrate that material strategy is becoming closely connected to motor design. 

For suppliers, future competitiveness will depend not only on material performance, but also on supply reliability, cost stability and the ability to support different manufacturing approaches. 

What these trends mean for the electric motor supply chain 

Mobility Global's forecasts highlight an industry moving towards greater regional differentiation. 

North American manufacturers are prioritising internal production and supply chain control. European manufacturers are expanding output while creating opportunities for specialist component suppliers. Greater China continues to lead in manufacturing scale and integrated propulsion development. 

Across these markets, several priorities are becoming increasingly important. 

Manufacturers need production systems capable of supporting different propulsion architectures. Materials suppliers must respond to changing demand for copper, electrical steel and magnetic materials. Machinery providers must deliver the precision, automation and repeatability required for advanced winding technologies. 

At the same time, motor designers and power electronics specialists must work more closely to address higher speeds, thermal performance and integrated drive systems. 

These changes create opportunities for businesses that understand how individual technologies contribute to complete propulsion systems. 

Connecting the industry shaping electric motor production 

The next decade of electric motor development will be defined by the decisions manufacturers and suppliers make today. 

From rare earth free motor architectures and advanced winding systems to higher-speed propulsion and integrated power electronics, the industry is developing new approaches to performance, cost and manufacturing efficiency. 

Turning these developments into commercially viable solutions requires collaboration across the value chain. 

CWIEME Berlin brings together electric motor manufacturers, materials specialists, component suppliers and production technology providers to exchange technical expertise, discover new solutions and build partnerships that support global electrification. 

As the global meeting place for transformer, motor and e-mobility innovators, CWIEME Berlin connects the people and technologies driving the industry forward. 

Explore the latest electric motor technologies and connect with the global electrical manufacturing community at CWIEME Berlin.