Greentech Lead Europe: The European traction motor market
generated revenues of Euro 55 million in 2010 and this may reach $1.6 billion
in 2017.
Emission norms and government support are driving vehicle
manufacturers (VMs) towards greater adoption of hybrid and electric vehicles,
according to Frost & Sullivan.
The European traction motor market is likely to grow at a
CAGR of 50 percent for hybrid electric vehicles (HEVs) and electric vehicles
(EVs).
Permanent magnet motors are expected to dominate the
market. The concern over the availability and pricing of rare earth metals will
open up the market for other motor technologies such as induction and hybrid
motors.
About 30-40 percent of VMs outsourcing motors from
suppliers are planning to bring the intelligence in-house as of now.
“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,” said Frost & Sullivan
Team Leader Anjan Hemanth Kumar.
Car makers in Europe are required to bring down their
fleet’s average CO2 emissions in accordance with the limit-value curve from
2012.
Most EU-15 states offer a discount for EVs on the first
registration tax applicable on vehicle acquisition. Against the backdrop of
these drivers, all OEMs have adopted unique strategies to reduce CO2 emissions,
with powertrain electrification taking precedence over other technologies.
Hybrids and EVs tend to command high retail prices, which
require VMs to bridge the cost gap between hybrids and their conventional
equivalents. For VMs, EV technologies such as traction electric motors and
advanced batteries are not part of a strong in-house portfolio. They remain
wary of moving away from internal combustion engines, which represent a
century-old technology with strong infrastructure.
VMs in the short-term are looking to contract specialist
EV system developers that can integrate the systems into the vehicle. In the
medium- to long-term, the preference would be for Tier 1 suppliers with strong
intra-organizational support. OEMs that would look to develop in-house electric
motor capabilities are likely to retain the design and intelligence but source
the modules and components.