Segmented permanent magnet (PM) can effectively reduce the eddy current loss of surface permanent magnet synchronous motor (SPMSM) with minimum performance impact. The relationship between axially and circumferentially segmented PM and the eddy current loss is analyzed. The analytical solution of PM eddy current loss of SPMSM is derived. The factors that affect the eddy current loss of PMs include air gap flux density, tooth harmonic frequency (speed and slot number), pitch, PM resistivity, PM permeability, etc. The analysis shows that circumferentially segmented PM plays main role to reduce PM eddy current loss. The accuracy of this analysis result is verified.