The Social Democrat leader had sought to build a government with the Green Party that would have the support in parliament of the center-right Liberal and Center parties.
But talks with those two parties broke down and left Löfven without the necessary votes to break through.
Löfven is serving as the nation's acting prime minister in a caretaker government. He was the speaker of Parliament's second premier candidate. Friday's vote was the second of four votes before extra elections must be held.
As a new election becomes more likely the speaker of parliament is talking to the Electoral Authority about preparations. He also told reporters though he would "do everything I can to prevent" extra elections from happening.