Axial Flux E-Motor Manufacturing in 2025: Unleashing Next-Gen Efficiency and Compact Power for Electric Vehicles. Explore the Market Forces, Innovations, and Strategic Shifts Shaping the Future of E-Mobility.

• Executive Summary: Key Trends and Market Outlook to 2030
• Market Size, Growth Rate, and 2025–2030 Forecast (18% CAGR)
• Technology Overview: Axial Flux E-Motor Design and Advantages
• Competitive Landscape: Leading Manufacturers and New Entrants
• Raw Materials, Supply Chain, and Manufacturing Innovations
• Application Segments: Automotive, Aerospace, and Beyond
• Regulatory Environment and Industry Standards (e.g., ieee.org, asme.org)
• Strategic Partnerships, M&A, and Investment Activity
• Challenges: Scalability, Cost, and Technical Barriers
• Future Outlook: Disruptive Trends and Long-Term Opportunities
• Sources & References

Executive Summary: Key Trends and Market Outlook to 2030

Axial flux e-motor manufacturing is undergoing a pivotal transformation in 2025, driven by the accelerating electrification of mobility and the demand for higher power density, efficiency, and compactness in electric drive systems. Unlike traditional radial flux motors, axial flux designs offer significant advantages in terms of torque density and reduced weight, making them increasingly attractive for automotive, aerospace, and industrial applications.

Key industry players are scaling up production capabilities and refining manufacturing processes to meet growing demand. YASA Limited, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz Group AG, is integrating its motors into next-generation electric vehicles, with plans for expanded production in Europe. Magna International Inc. is also advancing axial flux e-motor manufacturing, leveraging its global footprint to supply OEMs with scalable solutions. Meanwhile, ZF Friedrichshafen AG has announced investments in axial flux motor production, targeting both passenger and commercial vehicle segments.

Manufacturing trends in 2025 emphasize automation, precision assembly, and advanced materials. Companies are adopting automated winding and assembly lines to improve consistency and reduce costs. The use of high-performance magnets and innovative cooling solutions is becoming standard, as manufacturers seek to maximize efficiency and thermal management. Partnerships with material suppliers and equipment manufacturers are critical to overcoming challenges related to the handling of thin laminations and the integration of complex stator and rotor assemblies.

The outlook for the next few years is robust. As regulatory pressures for lower emissions intensify and OEMs commit to electrification targets, demand for axial flux motors is expected to outpace that of conventional designs in certain segments. YASA Limited and Magna International Inc. are both expanding their customer bases beyond automotive, exploring applications in aviation and stationary energy storage. Additionally, new entrants and established suppliers are investing in R&D to further improve manufacturability and cost-effectiveness, with several pilot production lines expected to reach commercial scale by 2026–2027.

In summary, 2025 marks a period of rapid industrialization and technological refinement for axial flux e-motor manufacturing. The sector is poised for significant growth through 2030, underpinned by strong OEM partnerships, advances in automated production, and the expanding application of axial flux technology across multiple industries.

Market Size, Growth Rate, and 2025–2030 Forecast (18% CAGR)

The axial flux e-motor market is poised for significant expansion between 2025 and 2030, driven by the accelerating electrification of vehicles and the unique advantages of axial flux technology. As of 2025, the global market size for axial flux electric motors is estimated to be in the low hundreds of millions USD, with projections indicating a compound annual growth rate (CAGR) of approximately 18% through 2030. This rapid growth is underpinned by increasing adoption in automotive, commercial vehicle, and high-performance mobility sectors, where the compactness, high power density, and efficiency of axial flux motors offer compelling benefits over traditional radial flux designs.

Key industry players are scaling up manufacturing capabilities to meet anticipated demand. YASA Limited, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz Group AG, is central to the integration of axial flux motors in next-generation electric vehicles, particularly in high-performance and luxury segments. YASA’s Oxfordshire facility is ramping up production, with plans to supply motors for future Mercedes-Benz AMG models. Similarly, Magna International Inc. has entered the axial flux space through its acquisition of e-Traction, aiming to leverage the technology for commercial vehicle electrification.

European and Asian manufacturers are also investing in axial flux motor production. Schaeffler AG has announced the development of axial flux motors for both automotive and industrial applications, with pilot production lines operational in Germany. In Asia, Nidec Corporation is expanding its e-motor portfolio to include axial flux designs, targeting both passenger and commercial EV markets. These investments are supported by strategic partnerships with OEMs and tier-one suppliers, reflecting growing confidence in the scalability and commercial viability of axial flux technology.

The outlook for 2025–2030 is characterized by increasing OEM adoption, especially as automakers seek to optimize vehicle packaging and performance. Regulatory pressures for higher efficiency and lower emissions further incentivize the shift toward advanced e-motor architectures. As manufacturing processes mature and economies of scale are realized, the cost differential between axial and radial flux motors is expected to narrow, accelerating mainstream adoption. By 2030, axial flux e-motors are projected to capture a significant share of the high-performance and premium EV segment, with broader penetration into mass-market vehicles likely as production volumes rise and supply chains stabilize.

Technology Overview: Axial Flux E-Motor Design and Advantages

Axial flux electric motors (AFEMs) are gaining significant traction in the electric vehicle (EV) and industrial sectors due to their compact design, high power density, and efficiency advantages over traditional radial flux motors. The manufacturing landscape for axial flux e-motors is evolving rapidly in 2025, driven by increased demand for lightweight, high-performance propulsion systems and the entry of new players with advanced production capabilities.

A key differentiator in axial flux e-motor manufacturing is the unique architecture, which positions the stator and rotor discs parallel to each other, resulting in a shorter axial length and reduced material usage. This design enables higher torque density and improved cooling, but also introduces manufacturing challenges, particularly in precision assembly, thermal management, and the integration of advanced materials such as soft magnetic composites and high-performance permanent magnets.

Several leading companies are scaling up their axial flux motor production in 2025. YASA Limited, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz Group AG, is expanding its manufacturing footprint to support the integration of axial flux motors in next-generation electric vehicles. YASA’s patented yokeless and segmented armature design allows for automated, high-throughput assembly, which is critical for meeting automotive quality and volume requirements. The company’s Oxford facility is a benchmark for advanced axial flux motor manufacturing, leveraging robotic winding, automated magnet placement, and in-line quality control.

Another notable player, Magnax, is focusing on modular, scalable production lines for its axial flux motors, targeting both automotive and industrial applications. Magnax emphasizes the use of distributed manufacturing cells and digital process control to ensure consistency and scalability as demand grows. The company is also investing in the development of recyclable and rare-earth-reduced magnet technologies to address supply chain and sustainability concerns.

In Asia, Nidec Corporation is leveraging its global manufacturing expertise to accelerate the commercialization of axial flux motors, with new production lines coming online in Japan and Europe. Nidec’s approach integrates advanced automation, precision stamping, and proprietary cooling solutions to optimize performance and manufacturability.

Looking ahead, the outlook for axial flux e-motor manufacturing is robust. Industry analysts expect a surge in adoption as OEMs seek to improve EV range and performance while reducing weight and cost. Key trends include increased automation, the use of digital twins for process optimization, and the adoption of sustainable materials. As production volumes rise, economies of scale and continued innovation in manufacturing processes are expected to further enhance the competitiveness of axial flux e-motors in the global electrification landscape.

Competitive Landscape: Leading Manufacturers and New Entrants

The competitive landscape for axial flux e-motor manufacturing in 2025 is characterized by a dynamic mix of established automotive suppliers, innovative startups, and strategic partnerships. Axial flux motors, known for their high power density and compact design, are increasingly seen as a key enabler for next-generation electric vehicles (EVs), motorcycles, and industrial applications.

Among the leading manufacturers, Yaskawa Electric Corporation and Siemens AG have leveraged their extensive experience in electric motor production to develop axial flux solutions for both automotive and industrial markets. Siemens AG has integrated axial flux technology into its e-mobility portfolio, focusing on modularity and scalability for OEMs. Meanwhile, Yaskawa Electric Corporation is expanding its manufacturing capabilities to meet growing demand from Asian and European automakers.

A significant player in the automotive sector is Mercedes-Benz Group AG, which, following its acquisition of YASA Limited in 2021, has accelerated the industrialization of axial flux motors for its next-generation electric vehicles. YASA’s proprietary axial flux technology is being integrated into high-performance models, with production ramping up at dedicated facilities in the UK and Germany. This move positions Mercedes-Benz Group AG as a frontrunner in the premium EV segment, with plans to expand axial flux adoption across its lineup in the coming years.

Other notable entrants include Magna International Inc., which has announced investments in axial flux motor development for both passenger and commercial vehicles, and Ricardo plc, which is collaborating with OEMs to design and prototype axial flux solutions tailored to specific vehicle architectures. Magna International Inc. is leveraging its global manufacturing footprint to scale production, while Ricardo plc focuses on engineering services and low-volume manufacturing.

Startups such as Saietta Group plc and Aveox Inc. are also making significant strides. Saietta Group plc has established a new production facility in the UK, targeting light commercial vehicles and two-wheelers, while Aveox Inc. is supplying axial flux motors for aerospace and defense applications.

Looking ahead, the competitive landscape is expected to intensify as more OEMs and suppliers invest in axial flux technology to achieve higher efficiency and power density. Strategic collaborations, vertical integration, and advances in automated manufacturing are likely to shape the sector’s evolution through the late 2020s.

Raw Materials, Supply Chain, and Manufacturing Innovations

Axial flux electric motors (AFEMs) are gaining significant traction in the electric vehicle (EV) and industrial sectors due to their compact design, high power density, and efficiency advantages over traditional radial flux motors. As of 2025, the manufacturing landscape for AFEMs is rapidly evolving, with a focus on raw material sourcing, supply chain resilience, and innovative production techniques.

A critical aspect of AFEM manufacturing is the use of advanced magnetic materials, particularly high-grade neodymium-iron-boron (NdFeB) permanent magnets. The supply of these rare earth elements remains a strategic concern, as global demand for EVs and renewable energy systems continues to rise. Leading manufacturers such as YASA (a wholly owned subsidiary of Mercedes-Benz Group AG) and Magnax are actively working to secure stable supplies of rare earth materials, often through direct partnerships with mining and refining companies. In parallel, there is a growing emphasis on recycling and circular economy initiatives to recover rare earths from end-of-life products, helping to mitigate supply risks and reduce environmental impact.

Copper is another essential raw material, used extensively in the windings of AFEMs. The volatility of copper prices and potential supply bottlenecks have prompted manufacturers to explore alternative winding techniques and materials, such as aluminum or advanced composites, though copper remains the industry standard for high-performance applications. Companies like YASA and Magnax are investing in process optimization to reduce copper usage without compromising motor efficiency.

On the manufacturing front, innovations in automated assembly, precision stamping, and additive manufacturing are streamlining production and enabling greater scalability. For example, YASA has developed proprietary processes for assembling its thin, disc-shaped stators and rotors, which are central to the axial flux architecture. These processes emphasize high throughput and quality control, essential for meeting the growing demand from automotive OEMs. Similarly, Magnax is leveraging modular production lines and digital manufacturing tools to accelerate time-to-market and support flexible customization for different vehicle platforms.

Looking ahead, the outlook for AFEM manufacturing in the next few years is shaped by ongoing investments in material science, supply chain localization, and automation. As major automakers such as Mercedes-Benz Group AG integrate axial flux motors into their next-generation EVs, the sector is expected to see further consolidation and vertical integration, with manufacturers seeking greater control over critical raw materials and production technologies. This trend is likely to enhance supply chain resilience and drive continued innovation in axial flux e-motor manufacturing.

Application Segments: Automotive, Aerospace, and Beyond

Axial flux electric motors (AFEMs) are gaining significant traction across multiple application segments, with automotive and aerospace industries at the forefront of adoption. The unique design of axial flux motors—characterized by their pancake-like geometry and short magnetic path—enables higher power density, improved efficiency, and reduced weight compared to traditional radial flux motors. These advantages are driving a wave of manufacturing investments and partnerships as the technology matures for mass-market deployment in 2025 and the following years.

In the automotive sector, leading OEMs and suppliers are accelerating the integration of axial flux motors into electric vehicle (EV) platforms. Mercedes-Benz Group AG has publicly announced the use of axial flux motors in its next-generation EV architectures, following its acquisition of YASA, a UK-based pioneer in axial flux technology. YASA’s motors are being manufactured at scale to support Mercedes-Benz’s electrification strategy, with production lines optimized for high-volume output and quality control. Similarly, Renault Group has entered into partnerships to explore axial flux integration, aiming to leverage the technology’s compactness for improved vehicle packaging and performance.

Tier-1 suppliers are also investing in axial flux motor manufacturing. Marelli has developed its own axial flux e-motor platform, targeting both passenger cars and high-performance vehicles. The company is scaling up production capabilities in Europe and Asia, with a focus on automated assembly and advanced materials to meet automotive-grade reliability and cost targets. GKN Automotive is another key player, collaborating with OEMs to deliver integrated e-drive systems featuring axial flux motors for both hybrid and fully electric vehicles.

In aerospace, the push for electrification and sustainable aviation is catalyzing axial flux motor adoption. Rolls-Royce Holdings plc is actively developing axial flux propulsion systems for electric and hybrid-electric aircraft, citing the technology’s superior power-to-weight ratio as critical for flight applications. Manufacturing efforts are focused on precision engineering, lightweight materials, and rigorous testing to meet stringent aerospace standards.

Beyond automotive and aerospace, axial flux motors are being explored for industrial automation, robotics, and marine propulsion. Companies such as Siemens AG are investigating axial flux designs for compact, high-efficiency drives in factory automation and renewable energy systems.

Looking ahead to 2025 and beyond, the outlook for axial flux e-motor manufacturing is robust. As production processes mature and economies of scale are realized, costs are expected to decrease, further accelerating adoption across diverse sectors. The next few years will likely see increased collaboration between OEMs, suppliers, and technology specialists to refine manufacturing techniques, standardize components, and expand the application landscape for axial flux motors.

Regulatory Environment and Industry Standards (e.g., ieee.org, asme.org)

The regulatory environment and industry standards for axial flux e-motor manufacturing are rapidly evolving as the technology matures and adoption accelerates in automotive, aerospace, and industrial sectors. In 2025, the focus is on harmonizing safety, efficiency, and environmental standards to support the commercialization of axial flux motors, which differ significantly from traditional radial flux designs in terms of architecture, materials, and performance characteristics.

Key international standards bodies such as the IEEE and the ASME are actively updating and expanding their guidelines to address the unique aspects of axial flux motor design and manufacturing. The IEEE, through its Standards Association, is working on revisions to the IEEE 1812 and related standards, which cover test procedures and performance metrics for electric machines, including emerging topologies like axial flux. These updates aim to ensure that new e-motor designs meet rigorous criteria for efficiency, thermal management, and electromagnetic compatibility, which are critical for high-performance applications in electric vehicles and aviation.

The ASME, meanwhile, is contributing to the development of manufacturing process standards, particularly in areas such as advanced winding techniques, precision assembly, and the use of novel materials like soft magnetic composites and high-performance permanent magnets. These standards are essential for ensuring repeatability, quality, and safety in mass production, especially as leading manufacturers such as Yaskawa Electric Corporation and Siemens AG scale up their axial flux motor offerings for global markets.

In the European Union, regulatory frameworks are being updated to reflect the growing importance of axial flux motors in meeting stringent CO₂ emissions and energy efficiency targets. The EU’s Ecodesign Directive and related regulations are expected to incorporate specific provisions for next-generation e-motors, influencing design choices and supply chain requirements for manufacturers such as Magnax and Marelco, both of which are actively developing axial flux solutions for automotive and industrial applications.

Looking ahead, the next few years will see increased collaboration between industry, standards organizations, and regulatory bodies to address challenges such as rare earth material sourcing, recyclability, and lifecycle assessment. The establishment of dedicated working groups within the IEEE and ASME is anticipated, with the goal of publishing comprehensive standards tailored to axial flux e-motor manufacturing by 2026–2027. This regulatory evolution is expected to accelerate market adoption, foster innovation, and ensure that axial flux motors meet the highest benchmarks for safety, sustainability, and performance.

Strategic Partnerships, M&A, and Investment Activity

The axial flux e-motor sector is experiencing a surge in strategic partnerships, mergers and acquisitions (M&A), and investment activity as automakers and technology firms seek to capitalize on the unique advantages of this motor architecture. Axial flux motors, known for their high power density and compact form factor, are increasingly viewed as a key enabler for next-generation electric vehicles (EVs), particularly in premium, performance, and space-constrained applications.

A notable trend in 2025 is the deepening collaboration between established automotive OEMs and specialized axial flux motor developers. Mercedes-Benz Group AG has continued to strengthen its relationship with YASA Limited, a pioneer in axial flux technology. Following its 2021 acquisition of YASA, Mercedes-Benz has integrated YASA’s motors into its high-performance EV platforms, with further investments in scaling up production capacity and R&D for next-generation designs. This partnership exemplifies the strategic importance placed on in-house axial flux expertise for differentiation in the luxury EV segment.

Meanwhile, Renault Group has expanded its collaboration with Advanced Electric Machines (AEM), focusing on sustainable, rare-earth-free axial flux motors. The partnership aims to accelerate the industrialization of AEM’s technology for mass-market EVs, with joint investment in pilot manufacturing lines and supply chain localization in Europe. This reflects a broader industry push to reduce reliance on critical raw materials and enhance supply chain resilience.

On the investment front, several startups specializing in axial flux motors have secured significant funding rounds in 2024–2025. Magnax, a Belgian company, has attracted new strategic investors from both the automotive and aerospace sectors, supporting its plans to establish a high-volume manufacturing facility in Western Europe. The company’s focus on modular, scalable production processes is designed to meet anticipated demand from both established OEMs and new mobility entrants.

M&A activity is also intensifying as larger suppliers seek to acquire or partner with axial flux innovators to broaden their electrification portfolios. Schaeffler AG has announced minority investments and technology-sharing agreements with several axial flux startups, aiming to integrate these motors into its e-mobility systems offering. This approach allows traditional suppliers to rapidly access advanced IP and manufacturing know-how without the lengthy development cycles of in-house R&D.

Looking ahead, the outlook for strategic partnerships and investment in axial flux e-motor manufacturing remains robust. As OEMs race to differentiate their EV offerings and meet tightening efficiency and sustainability targets, further consolidation and cross-sector collaboration are expected. The next few years will likely see increased joint ventures, co-development agreements, and targeted acquisitions as the axial flux segment transitions from niche to mainstream adoption.

Challenges: Scalability, Cost, and Technical Barriers

Axial flux electric motors (AFEMs) are gaining attention for their high power density and efficiency, but their manufacturing faces significant challenges as the industry seeks to scale production in 2025 and beyond. One of the primary hurdles is scalability. Unlike traditional radial flux motors, AFEMs require precise assembly of thin, flat stators and rotors, often incorporating advanced materials such as soft magnetic composites and high-grade permanent magnets. This complexity complicates automation and mass production, leading to higher initial capital expenditures and slower ramp-up times for new manufacturing lines.

Cost remains a critical barrier. The use of rare earth magnets, such as neodymium, and specialized materials for stator and rotor cores drives up material costs. Additionally, the need for advanced cooling systems and compact, lightweight housings further increases the bill of materials. Companies like YASA Limited, a pioneer in axial flux technology, have invested heavily in proprietary manufacturing processes to address these issues, but widespread adoption is still limited by the high cost per unit compared to established radial flux alternatives.

Technical barriers also persist. Achieving consistent quality in the thin, planar windings and ensuring reliable insulation are ongoing challenges. The flat geometry of AFEMs makes them more susceptible to eddy current losses and thermal management issues, necessitating innovative cooling solutions and advanced control electronics. Magnax, another leading developer, has focused on modular designs and improved thermal management, but scaling these solutions for automotive or industrial volumes remains a work in progress.

Supply chain constraints further complicate the outlook. The reliance on rare earth elements exposes manufacturers to geopolitical risks and price volatility. Efforts to localize supply chains or develop alternative magnet technologies are underway, but these are long-term solutions. In the near term, companies such as YASA Limited and Magnax are partnering with established automotive OEMs to co-develop production processes and share risk, as seen in YASA’s acquisition by Mercedes-Benz Group AG.

Looking ahead, the outlook for axial flux e-motor manufacturing will depend on advances in automation, material science, and supply chain resilience. Industry leaders are optimistic that, with continued investment and collaboration, the cost and scalability barriers can be overcome, enabling broader adoption in electric vehicles and other high-performance applications over the next several years.

Future Outlook: Disruptive Trends and Long-Term Opportunities

The future outlook for axial flux e-motor manufacturing in 2025 and the following years is marked by rapid technological advancements, increased investment, and a growing shift toward electrification in both automotive and industrial sectors. Axial flux motors, known for their compact design, high power density, and efficiency, are increasingly seen as a disruptive alternative to traditional radial flux motors, particularly in electric vehicles (EVs), motorcycles, and aerospace applications.

Several leading companies are scaling up their manufacturing capabilities to meet anticipated demand. YASA, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz Group AG, is integrating its motors into next-generation luxury and performance EVs. YASA’s manufacturing expansion in the UK is expected to support Mercedes-Benz’s electrification strategy, with serial production of axial flux motors for premium vehicles projected to begin in the mid-2020s.

Meanwhile, Magna Powertrain is actively developing axial flux e-motor solutions, leveraging its global manufacturing footprint to supply both established automakers and new entrants. Magna’s focus is on scalable production processes and modular motor architectures, aiming to reduce costs and accelerate adoption across multiple vehicle platforms.

In Asia, Nidec Corporation is investing heavily in axial flux motor R&D and manufacturing, targeting not only automotive but also industrial and robotics markets. Nidec’s strategy includes building new production lines and forming partnerships with OEMs to integrate axial flux motors into a broader range of applications, with commercial rollouts expected to intensify from 2025 onward.

The sector is also witnessing the entry of innovative startups and technology licensors. Magnax, based in Belgium, is licensing its proprietary axial flux designs to manufacturing partners, focusing on high-performance and lightweight applications such as electric aviation and motorcycles. This licensing model is expected to accelerate the global proliferation of axial flux technology by enabling rapid scaling without the need for each OEM to develop in-house expertise.

Looking ahead, the main disruptive trends include the adoption of automated, high-throughput manufacturing processes, the use of advanced materials (such as silicon carbide and novel cooling systems), and the integration of digital twins for process optimization. As regulatory pressures for decarbonization intensify and battery technologies improve, axial flux e-motor manufacturing is poised for significant growth, with industry leaders and agile newcomers alike shaping a competitive and innovative landscape.

Sources & References

• YASA Limited
• Magna International Inc.
• ZF Friedrichshafen AG
• e-Traction
• Siemens AG
• Magna International Inc.
• Ricardo plc
• Saietta Group plc
• Aveox Inc.
• Renault Group
• Marelli
• GKN Automotive
• Rolls-Royce Holdings plc
• IEEE
• ASME
• Advanced Electric Machines (AEM)
• Schaeffler AG