India Traction Motor Market Outlook to 2028

India Traction Motor Market Overview

• The India Traction Motor Markethas experienced notable growth, this is reflected by GlobalTraction Motor Marketreaching a valuation ofUSD 7.2 billion in 2023, driven by the growing adoption of electric vehicles (EVs), significant investments in railway electrification, and government initiatives promoting sustainable transportation.
• Key players in the market include Bharat Heavy Electricals Limited (BHEL), Crompton Greaves, Siemens India, Alstom India, and ABB India. These companies are renowned for their robust technological capabilities, extensive product portfolios, and strong distribution networks.
• In 2023, Indian Railways and Bharat Heavy Electricals Limited (BHEL) entered a partnership aimed at developing energy-efficient traction motors for locomotives. This initiative is part of a broader effort to modernize the existing fleet of conventional DC traction motor-driven electric locomotives.
• States like Delhi and Uttar Pradesh, dominates the traction motor market due to higher industrial activities, significant investments in metro rail projects, and the growing adoption of electric vehicles in urban areas. The region's infrastructure development and government support further enhance its leading position in the market.

India Traction Motor Market Segmentation

By Product Type: The India Traction Motor Market is segmented by product type into AC Motors, DC Motors, and Synchronous Motors. In 2023, AC Motors dominated the market due to their high efficiency, reliability, and widespread use in electric vehicles and railway systems. The preference for AC Motors is driven by their ability to handle higher power loads and their lower maintenance requirements, making them ideal for heavy-duty applications.

By Application: The market is segmented by application into Railways, Electric Vehicles, and Industrial Machinery. In 2023, the Railways segment held the largest market share, driven by the Indian government's extensive investments in electrifying the railway network. This focus on reducing carbon emissions and enhancing energy efficiency has made railways a significant consumer of traction motors, especially with the push towards modernization and infrastructure upgrades.

By Region: The India Traction Motor Market is regionally segmented into North, South, East, and West India. In 2023, the Northern region led the market due to its higher concentration of industrial activities, extensive metro rail projects, and significant government investments in infrastructure development. The region's strategic importance in India's transportation network also contributes to its dominance.

India Traction Motor Market Competitive Landscape

• In July 2024, Alstom announced a significant expansion in India to meet the growing demand for advanced railway solutions. CEO Henri Poupart-Lafarge stated that the company has already invested over 300 million euros. Alstom's new manufacturing facility in Coimbatore, expected to be operational by the end of 2024, will produce critical components for metro projects across India, creating over 500 jobs.
• In 2023, Siemens Mobility, a separately managed company of Siemens AG, was awarded a 3 billion project by Indian Railways to design, manufacture, commission and test 1,200 electric freight locomotives of 9,000 horsepower each.This is the single largest locomotive order in the history of Siemens Mobility and Siemens India.

India Traction Motor Industry Analysis

India Traction Motor Market Growth Drivers

• Government Initiatives for Electrification: The Indian government has implemented several initiatives to promote the adoption of electric vehicles (EVs), which directly drives the traction motor market. As of July 2023, a total of832,824 electric vehicles (EVs)have been sold under the FAME-II scheme since its inception in April 2019.
• Rising Demand for Energy Efficiency: The push for energy efficiency in industrial applications is a significant growth driver for the traction motor market. By 2030, the Indian government aims to reduce energy consumption by 20% across various sectors, including manufacturing and transportation. This initiative is expected to increase the demand for energy-efficient motors, which are essential for meeting stringent energy performance standards.
• Infrastructure Development and Urbanization: India is undergoing extensive infrastructure development, particularly in urban areas, which is expected to bolster the traction motor market. The government's investment in infrastructure projects, such as the 111 lakh crore National Infrastructure Pipeline, aims to enhance connectivity and public transportation systems. This investment is projected to increase the demand for electric buses and trains

India Traction Motor Market Challenges

• Supply Chain Disruptions: The traction motor market faces challenges due to supply chain disruptions, particularly in the availability of critical raw materials. The ongoing global semiconductor shortage has impacted the production of electric vehicles, leading to delays in motor manufacturing. In 2024, it is expected that the semiconductor supply will remain constrained.
• High Manufacturing Costs: The production of traction motors requires advanced materials and technologies, leading to high manufacturing costs. In 2024, the prices of essential metals like copper and aluminum are projected to remain volatile, with copper prices expected to hover around 800 per kg. This price instability can significantly impact the cost structure for manufacturers, making it challenging to offer competitive pricing in the market.

India Traction Motor Market Government Initiatives

• National Motor Replacement Programme (NMRP): Launched by Energy Efficiency Services Limited (EESL), the NMRP aims to replace inefficient motors with high-efficiency IE3 motors. By 2025, the program is expected to have replaced over 1 million inefficient motors, resulting in significant energy savings estimated at 4,000 GWh annually.
• Production-Linked Incentive (PLI) Scheme: The Production Linked Incentive (PLI) Scheme for the automotive sector, initiated in November 2020, aims to boost domestic manufacturing and attract significant investments by offering incentives based on production output. It has garnered proposed investments of 67,690 crore from 85 approved applicants, creating nearly 29,000 jobs as of March 2024.

India Traction Motor Future Market Outlook

The India Traction Motor Market is expected to grow significantly by 2028 along with a respectable CAGR from 2023 to 2028, driven by increasing technological advancements & expansion of online retail.

Future Trends

• Expansion of Electric Vehicle Infrastructure: By 2028, the Indian government is projected to invest 20,000 crore in expanding EV charging infrastructure, significantly enhancing the accessibility and convenience of electric vehicles. This investment is expected to facilitate a substantial increase in EV adoption, with projections indicating that the number of electric vehicles on Indian roads could exceed 10 million by 2028.
• Increased Focus on Sustainability: Sustainability will become a central theme in the traction motor market by 2028, with manufacturers increasingly adopting eco-friendly practices in production. It is expected that around 50% of traction motors will be produced using sustainable materials and processes, aligning with global sustainability goals.