Axial Flux Motor Manufacturing in 2025: The Next Leap in High-Efficiency Electric Drive Systems. Explore How This Disruptive Technology Is Shaping the Future of EVs and Industrial Applications.
- Executive Summary: Key Trends and Market Drivers in 2025
- Axial Flux Motor Technology: Fundamentals and Innovations
- Global Market Size, Segmentation, and 2025–2030 Growth Forecasts
- Competitive Landscape: Leading Manufacturers and New Entrants
- Manufacturing Processes and Supply Chain Dynamics
- Applications: Electric Vehicles, Industrial, Aerospace, and Beyond
- Material Advances: Magnets, Cores, and Thermal Management
- Regulatory Environment and Industry Standards (e.g., IEEE, ASME)
- Challenges: Scalability, Cost, and Integration Barriers
- Future Outlook: Strategic Opportunities and Roadmap to 2030
- Sources & References
Executive Summary: Key Trends and Market Drivers in 2025
Axial flux motor manufacturing is poised for significant growth in 2025, driven by the accelerating demand for high-efficiency, compact electric propulsion systems across automotive, aerospace, and industrial sectors. The unique architecture of axial flux motors—characterized by their pancake-like shape and short magnetic path—enables higher power density and efficiency compared to traditional radial flux designs. This has attracted major automotive OEMs and tier-one suppliers seeking to optimize electric vehicle (EV) performance and reduce weight.
Key industry players are scaling up production capabilities and forging strategic partnerships to commercialize axial flux technology. Mercedes-Benz Group AG has acquired a stake in YASA, a leading axial flux motor specialist, and is integrating this technology into its next-generation electric drivetrains. Similarly, Renault Group has announced collaborations with axial flux innovators to enhance the efficiency and range of its future EV models. These moves underscore the growing confidence in axial flux motors as a core enabler of electrification strategies.
Manufacturing advancements are central to this momentum. Companies such as YASA Limited and Magnax are investing in automated production lines and advanced materials, including high-grade silicon steel and innovative cooling systems, to achieve scalable, cost-effective output. The adoption of automated winding and precision assembly processes is expected to reduce unit costs and improve quality consistency, addressing previous barriers to mass adoption.
In parallel, the supply chain for critical components—such as rare earth magnets and specialized laminations—is being strengthened through long-term agreements and vertical integration. GKN Automotive is expanding its eDrive manufacturing footprint, with a focus on integrating axial flux technology into its modular platforms for global OEMs. This trend is expected to accelerate as manufacturers seek to localize production and mitigate supply chain risks.
Looking ahead, the outlook for axial flux motor manufacturing remains robust. Industry forecasts anticipate double-digit annual growth rates through the late 2020s, fueled by regulatory pressures for higher efficiency and the electrification of commercial vehicles and aviation. As manufacturing processes mature and economies of scale are realized, axial flux motors are set to become a mainstream solution for next-generation electric propulsion systems.
Axial Flux Motor Technology: Fundamentals and Innovations
Axial flux motor manufacturing is undergoing significant transformation in 2025, driven by the growing demand for high-efficiency, compact electric motors in automotive, aerospace, and industrial applications. Unlike traditional radial flux motors, axial flux designs offer higher power density and efficiency, but their manufacturing presents unique challenges, particularly in precision assembly, thermal management, and material selection.
Key players in the sector are scaling up production capabilities and refining manufacturing processes to meet increasing demand. YASA Limited, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz, has established advanced manufacturing lines in the UK, focusing on automated stator winding, precision rotor assembly, and integrated cooling solutions. Their production approach emphasizes modularity and scalability, enabling rapid adaptation to different vehicle platforms. YASA’s motors are already being integrated into high-performance electric vehicles, with further expansion planned as Mercedes-Benz accelerates its electrification strategy.
Another notable manufacturer, Magnax, based in Belgium, is commercializing its proprietary yokeless axial flux motors for both mobility and industrial markets. Magnax’s manufacturing process leverages automated coil winding and direct-cooling techniques to achieve high efficiency and reliability. The company is investing in new production facilities and partnerships to support anticipated growth in electric aviation and heavy-duty vehicle sectors.
In Asia, Nidec Corporation is expanding its axial flux motor production, targeting both automotive and industrial applications. Nidec’s manufacturing strategy includes vertical integration of key components, such as permanent magnets and precision laminations, to ensure supply chain resilience and cost control. The company is also collaborating with global OEMs to tailor axial flux solutions for specific use cases, reflecting a trend toward customization in the sector.
Manufacturing innovations are also being driven by advances in materials and automation. The adoption of high-performance soft magnetic composites and advanced cooling systems is enabling thinner, lighter stators and rotors, while robotic assembly lines are improving consistency and throughput. Industry bodies such as the Society of Motor Manufacturers and Traders are supporting standardization efforts to facilitate broader adoption and interoperability.
Looking ahead, the outlook for axial flux motor manufacturing is robust. As OEMs seek to differentiate their electric drivetrains, demand for compact, high-torque motors is expected to rise sharply through 2025 and beyond. Manufacturers are responding with increased investment in automation, supply chain integration, and R&D, positioning axial flux technology as a cornerstone of next-generation electrified mobility and industrial systems.
Global Market Size, Segmentation, and 2025–2030 Growth Forecasts
The global axial flux motor manufacturing sector is poised for significant expansion between 2025 and 2030, driven by the rapid electrification of transportation, increased demand for high-efficiency electric motors, and ongoing innovation in lightweight, compact propulsion systems. Axial flux motors, characterized by their pancake-like geometry and superior power density, are increasingly favored in electric vehicles (EVs), aerospace, and industrial applications.
As of 2025, the market is segmented by application (automotive, aerospace, industrial machinery, and others), motor type (single-rotor, dual-rotor, multi-rotor), and geography (North America, Europe, Asia-Pacific, and Rest of World). The automotive sector, particularly EVs, remains the dominant segment, with leading manufacturers such as YASA Limited (a wholly owned subsidiary of Mercedes-Benz Group AG), Magna Powertrain, and ZF Friedrichshafen AG investing heavily in axial flux technology for next-generation drivetrains. YASA Limited is notable for its proprietary axial flux architecture, which is being integrated into high-performance Mercedes-Benz EVs, while Magna Powertrain and ZF Friedrichshafen AG are scaling up production capabilities to meet anticipated OEM demand.
Europe is currently the largest regional market, supported by strong automotive manufacturing bases and aggressive electrification targets. However, Asia-Pacific is expected to witness the fastest growth, propelled by expanding EV production in China, Japan, and South Korea, and the emergence of new players such as Protean Electric and Turntide Technologies. North America is also seeing increased activity, with companies like Turntide Technologies focusing on industrial and commercial vehicle applications.
From 2025 to 2030, industry analysts and manufacturers anticipate a compound annual growth rate (CAGR) in the high double digits for axial flux motor manufacturing, with market value projections ranging from several hundred million to over a billion USD by 2030, depending on adoption rates in automotive and adjacent sectors. Key growth drivers include the need for higher efficiency and power density in EVs, regulatory pressure to reduce emissions, and the ongoing shift toward electrified propulsion in aviation and heavy industry.
Looking ahead, the sector is expected to benefit from continued investment in automated manufacturing processes, advanced materials (such as silicon carbide and high-performance magnets), and strategic partnerships between OEMs and motor specialists. The entry of new manufacturers and the scaling up of production by established players like YASA Limited, Magna Powertrain, and ZF Friedrichshafen AG will likely accelerate cost reductions and broaden the adoption of axial flux motors across multiple industries.
Competitive Landscape: Leading Manufacturers and New Entrants
The competitive landscape of axial flux motor manufacturing in 2025 is characterized by a dynamic mix of established automotive suppliers, innovative startups, and strategic partnerships. The sector is witnessing rapid technological advancements and increased investment, driven by the demand for high-efficiency, compact electric motors in automotive and industrial applications.
Among the leading manufacturers, Yaskawa Electric Corporation and Siemens AG have leveraged their extensive experience in electric drive systems to develop axial flux solutions for both mobility and industrial markets. Siemens AG has integrated axial flux technology into its portfolio, focusing on high-performance and energy-efficient applications, while Yaskawa Electric Corporation is expanding its reach in robotics and automation with compact motor designs.
A significant player, Mercedes-Benz Group AG, has made notable strides by acquiring UK-based YASA Limited, a pioneer in axial flux motor technology. YASA’s motors are now being integrated into Mercedes-Benz’s next-generation electric vehicles, with production scaling up at dedicated facilities in the UK and Germany. This move positions Mercedes-Benz Group AG at the forefront of axial flux adoption in the premium automotive segment.
Another key entrant is Magna International Inc., which has announced partnerships and investments to accelerate axial flux motor development for electric vehicle (EV) platforms. Magna International Inc. is leveraging its global manufacturing footprint to support OEMs seeking to adopt axial flux technology at scale.
Startups and new entrants are also shaping the competitive landscape. Ricardo plc has developed proprietary axial flux designs targeting both automotive and aerospace sectors, while Schaeffler AG is investing in advanced manufacturing processes to improve efficiency and reduce costs. Schaeffler AG is also collaborating with OEMs to integrate axial flux motors into hybrid and electric drivetrains.
Looking ahead, the outlook for axial flux motor manufacturing is robust, with further consolidation and collaboration expected as OEMs seek to differentiate their EV offerings. The entry of major suppliers and the scaling up of production capacity signal a maturing market, with ongoing innovation likely to drive down costs and expand adoption across multiple sectors.
Manufacturing Processes and Supply Chain Dynamics
Axial flux motor manufacturing is undergoing significant transformation in 2025, driven by the rapid electrification of mobility and the demand for higher power density and efficiency in electric motors. Unlike traditional radial flux motors, axial flux designs require specialized manufacturing processes, particularly in the production of stators, rotors, and the integration of advanced cooling systems. The unique geometry of axial flux motors—characterized by their pancake-like structure—necessitates precision in lamination stacking, winding, and assembly, often leveraging automated and robotic systems to ensure consistency and scalability.
Key players in the sector, such as YASA (now a wholly owned subsidiary of Mercedes-Benz AG), have pioneered scalable manufacturing techniques for axial flux motors, focusing on automated coil winding and direct cooling integration. YASA’s production facilities in the UK are designed for high-volume output, with a focus on quality control and traceability throughout the supply chain. Similarly, Magnax, headquartered in Belgium, has developed proprietary manufacturing processes that emphasize modularity and rapid assembly, enabling flexible adaptation to varying customer requirements in automotive and industrial applications.
The supply chain for axial flux motors is evolving to accommodate the increased demand for specialized materials, such as high-grade electrical steel, advanced permanent magnets, and thermally conductive resins. Companies like Hitachi Metals and VACUUMSCHMELZE are key suppliers of magnetic materials, supporting the sector’s need for high-performance components. The sourcing of rare earth elements for permanent magnets remains a critical concern, with manufacturers seeking to diversify suppliers and invest in recycling initiatives to mitigate risks associated with geopolitical tensions and supply bottlenecks.
Automation and digitalization are increasingly integral to axial flux motor manufacturing. Real-time monitoring, digital twins, and predictive maintenance are being implemented to optimize production lines and reduce downtime. Companies are also investing in vertical integration to secure critical supply chain nodes, from raw material processing to final assembly. For example, YASA and Magnax have both announced plans to expand in-house capabilities for key manufacturing steps, aiming to enhance quality assurance and reduce lead times.
Looking ahead, the outlook for axial flux motor manufacturing is robust, with anticipated growth in both automotive and industrial sectors. As OEMs accelerate electrification strategies, the demand for compact, efficient, and scalable motor solutions is expected to drive further innovation in manufacturing processes and supply chain management. Strategic partnerships between motor manufacturers, material suppliers, and automation technology providers will likely shape the competitive landscape through 2025 and beyond.
Applications: Electric Vehicles, Industrial, Aerospace, and Beyond
Axial flux motor manufacturing is rapidly gaining momentum in 2025, driven by the technology’s unique advantages in power density, efficiency, and compactness. These characteristics are particularly attractive for sectors where weight and space are critical, such as electric vehicles (EVs), industrial automation, and aerospace. The ongoing shift toward electrification and sustainability is accelerating the adoption of axial flux motors, with several leading manufacturers scaling up production and forging new partnerships to meet rising demand.
In the electric vehicle sector, axial flux motors are being integrated into both passenger and commercial vehicles due to their ability to deliver higher torque and efficiency in a smaller package compared to traditional radial flux motors. YASA, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz Group AG, is ramping up production to supply next-generation EV drivetrains. YASA’s motors are expected to feature in upcoming Mercedes-Benz electric models, reflecting a broader industry trend toward in-house motor development and vertical integration. Similarly, Magna Powertrain is advancing axial flux motor manufacturing for automotive applications, leveraging its global footprint to support OEMs in Europe, North America, and Asia.
Industrial applications are also seeing increased adoption of axial flux motors, particularly in robotics, automated guided vehicles (AGVs), and high-efficiency pumps. The compact form factor and high torque density enable more flexible machine designs and energy savings. Schaeffler has announced investments in axial flux motor production lines, targeting both industrial and mobility markets. The company’s focus is on modular motor platforms that can be customized for diverse applications, from conveyor systems to precision manufacturing equipment.
Aerospace is another frontier for axial flux motor technology. The push for electric and hybrid-electric propulsion in aviation is creating demand for lightweight, high-performance motors. Rolls-Royce is actively developing axial flux electric propulsion systems for urban air mobility and regional aircraft, aiming to reduce emissions and operating costs. The company’s ongoing collaborations with electric aircraft startups and research institutions underscore the sector’s commitment to electrification.
Looking ahead, the outlook for axial flux motor manufacturing is robust. As production scales and costs decrease, adoption is expected to broaden into new areas such as marine propulsion, renewable energy systems, and even consumer electronics. The next few years will likely see further investments in automated manufacturing, advanced materials, and supply chain localization, positioning axial flux motors as a cornerstone of the electrified future.
Material Advances: Magnets, Cores, and Thermal Management
Material innovation is a central driver in the evolution of axial flux motor manufacturing, with 2025 marking a period of rapid progress in magnets, core materials, and thermal management solutions. The unique geometry of axial flux motors—characterized by their short axial length and large diameter—demands materials that can deliver high power density, efficiency, and reliability under demanding operational conditions.
Permanent magnets remain at the heart of axial flux motor performance. In 2025, leading manufacturers such as GKN Powder Metallurgy and Maxwell Technologies are advancing the use of high-grade neodymium-iron-boron (NdFeB) magnets, with a focus on heavy rare earth element (HREE) reduction to mitigate supply chain risks and cost volatility. Companies are also exploring alternative magnet chemistries, such as samarium-cobalt (SmCo), for applications requiring higher thermal stability, though cost remains a limiting factor. The push for sustainable sourcing and recycling of rare earth materials is intensifying, with industry initiatives aiming to close the loop on magnet lifecycle management.
Core materials are another area of significant innovation. The adoption of soft magnetic composites (SMCs) and advanced silicon steels is enabling finer control over magnetic flux paths, reducing eddy current losses and improving overall efficiency. Sintergy and Schaeffler are among the companies investing in new powder metallurgy techniques to produce stator and rotor cores with complex geometries and superior magnetic properties. These advances are particularly relevant for the thin, disc-shaped laminations required in axial flux designs, where minimizing core losses is critical to achieving high power-to-weight ratios.
Thermal management remains a key challenge due to the compactness and high power density of axial flux motors. In 2025, manufacturers are increasingly integrating direct oil cooling and advanced heat sink structures into their designs. Yaskawa Electric Corporation and Magnax are pioneering the use of embedded cooling channels and high-conductivity materials, such as aluminum alloys and thermally conductive polymers, to efficiently dissipate heat from the stator and rotor. These innovations are essential for maintaining performance and longevity, especially in automotive and aerospace applications where thermal loads are significant.
Looking ahead, the next few years are expected to see further convergence of material science and manufacturing technology. The integration of additive manufacturing for custom core and magnet geometries, along with continued improvements in rare earth recycling and thermal interface materials, will likely define the competitive landscape for axial flux motor manufacturers through the late 2020s.
Regulatory Environment and Industry Standards (e.g., IEEE, ASME)
The regulatory environment and industry standards for axial flux motor manufacturing are evolving rapidly as the technology gains traction in electric mobility, industrial automation, and renewable energy sectors. In 2025, manufacturers are increasingly aligning with established standards from organizations such as the Institute of Electrical and Electronics Engineers (IEEE) and the American Society of Mechanical Engineers (ASME), which provide guidelines for motor performance, safety, and testing protocols.
IEEE standards, particularly those under the IEEE 112 and IEEE 1812 series, are widely referenced for testing efficiency, thermal performance, and vibration in electric motors, including emerging axial flux designs. These standards are being updated to accommodate the unique characteristics of axial flux topologies, such as their compact form factor and high torque density. The IEEE is actively engaging with industry stakeholders to ensure that new and revised standards reflect the latest advancements in materials, cooling methods, and power electronics integration.
ASME, known for its rigorous mechanical and safety standards, is also relevant to axial flux motor manufacturing. ASME’s codes for mechanical integrity, rotor balancing, and structural analysis are being adopted by leading manufacturers to ensure reliability and compliance in high-performance applications. Companies such as Yaskawa Electric Corporation and Siemens AG are integrating these standards into their design and production processes, particularly as they expand their portfolios to include axial flux solutions for electric vehicles and industrial drives.
In addition to IEEE and ASME, the International Electrotechnical Commission (IEC) is playing a growing role in harmonizing global standards for electric motors. IEC 60034, which covers rotating electrical machines, is being referenced by manufacturers such as Magnax and AxialFlux as they scale up production and enter new markets. These standards address critical aspects such as insulation, efficiency classes, and environmental testing, which are essential for regulatory approval in key regions including the European Union, North America, and Asia-Pacific.
Looking ahead, the regulatory landscape is expected to become more stringent as governments and industry bodies push for higher energy efficiency and lower emissions. The adoption of advanced standards will be crucial for manufacturers seeking to differentiate their products and access global markets. Collaboration between standardization bodies and industry leaders is anticipated to accelerate, ensuring that axial flux motor technology meets the evolving demands of electrification and sustainability.
Challenges: Scalability, Cost, and Integration Barriers
Axial flux motor manufacturing faces several significant challenges as the technology moves toward broader commercialization in 2025 and the coming years. One of the primary hurdles is scalability. Unlike traditional radial flux motors, axial flux designs require specialized manufacturing processes, particularly for their unique stator and rotor geometries. The thin, disc-like architecture demands high-precision assembly and advanced materials, such as soft magnetic composites and high-grade permanent magnets, which are not yet widely available at scale. Companies like YASA—now a wholly owned subsidiary of Mercedes-Benz Group AG—have invested heavily in proprietary manufacturing techniques, but scaling these processes to mass automotive production remains a complex task.
Cost is another major barrier. The reliance on rare earth magnets and advanced cooling systems increases the bill of materials compared to conventional motors. While some manufacturers are exploring alternative materials and magnet-free designs, these solutions are still in early development. Magnax, a Belgian company specializing in axial flux motors, has reported ongoing efforts to optimize their production lines and reduce costs, but acknowledges that economies of scale have not yet been fully realized. The high initial capital expenditure for setting up dedicated axial flux motor production lines further complicates cost competitiveness, especially for new entrants or smaller suppliers.
Integration into existing vehicle platforms presents additional challenges. Axial flux motors offer advantages in power density and efficiency, but their form factor and cooling requirements often necessitate significant redesigns of vehicle architectures. Automotive OEMs must adapt their chassis, thermal management systems, and power electronics to accommodate these motors. YASA has worked closely with Mercedes-Benz Group AG to integrate axial flux motors into high-performance electric vehicles, but such collaborations require substantial engineering resources and long lead times.
Looking ahead, the outlook for overcoming these barriers is cautiously optimistic. Industry leaders are investing in automation, advanced materials research, and modular manufacturing approaches to address scalability and cost. Partnerships between motor specialists and automotive OEMs are expected to accelerate integration solutions. However, widespread adoption of axial flux motors in mainstream electric vehicles will likely depend on further breakthroughs in manufacturing efficiency and supply chain development over the next several years.
Future Outlook: Strategic Opportunities and Roadmap to 2030
The outlook for axial flux motor manufacturing through 2030 is shaped by accelerating electrification trends, evolving supply chains, and strategic investments from both established automotive OEMs and specialized technology firms. As of 2025, the sector is transitioning from early-stage commercialization to broader industrial adoption, driven by the unique advantages of axial flux designs—namely, higher power density, reduced weight, and improved efficiency compared to traditional radial flux motors.
Key players are scaling up production capabilities to meet anticipated demand from electric vehicles (EVs), commercial transport, and industrial applications. YASA, a pioneer in axial flux technology and now a wholly owned subsidiary of Mercedes-Benz Group AG, is central to this shift. YASA’s Oxford-based facility is ramping up output to supply next-generation Mercedes-Benz EVs, with plans to expand manufacturing capacity and integrate advanced automation for higher throughput. This vertical integration signals a broader trend: major automakers are seeking in-house or closely allied axial flux production to secure supply and optimize performance for premium EV platforms.
Meanwhile, Magnax, headquartered in Belgium, is advancing modular axial flux motor designs for both automotive and aerospace sectors. The company is investing in automated assembly lines and forging partnerships with tier-one suppliers to accelerate time-to-market. Magnax’s focus on scalable, high-efficiency production processes is indicative of the sector’s move toward mass manufacturing, with a roadmap targeting significant volume increases by 2027.
In Asia, Nidec Corporation is leveraging its global manufacturing footprint to develop axial flux motors for a range of mobility and industrial applications. Nidec’s strategy includes the construction of new production facilities and the integration of digital manufacturing technologies to enhance quality control and reduce costs. The company’s commitment to axial flux technology is expected to catalyze broader adoption across the region, particularly as Asian automakers seek to differentiate their EV offerings.
Looking ahead to 2030, the axial flux motor manufacturing landscape is likely to be characterized by increased automation, supply chain localization, and the entry of new players specializing in advanced materials and precision engineering. Strategic opportunities will center on the development of standardized production platforms, the use of sustainable materials, and the integration of digital twins for predictive maintenance and process optimization. As regulatory pressures for higher efficiency and lower emissions intensify, axial flux motors are poised to capture a growing share of the electrified mobility and industrial markets, with leading manufacturers setting the pace for innovation and scale.
Sources & References
- Renault Group
- YASA Limited
- GKN Automotive
- YASA Limited
- Society of Motor Manufacturers and Traders
- Magna Powertrain
- ZF Friedrichshafen AG
- Protean Electric
- Siemens AG
- Magna International Inc.
- Ricardo plc
- Schaeffler AG
- VACUUMSCHMELZE
- Rolls-Royce
- Maxwell Technologies
- Sintergy
- Yaskawa Electric Corporation
- Institute of Electrical and Electronics Engineers (IEEE)
- American Society of Mechanical Engineers (ASME)
