ELECTRIC MOTOR MARKET ANALYSIS

Market Size and Trends

The electric motor market is estimated to be valued at US$ 134.71 Bn in 2024 and is expected to reach US$ 218.25 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031.

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The electric motor market is witnessing positive trends driven by stringent emission norms and rising demand for energy-efficient systems. With greater acceptability of electric vehicles and strong government initiatives towards renewable energy, the demand for efficient motors from automotive and energy industries is growing. Manufacturers are focusing on the development of smart motors integrated with Internet of Things (IoT) and cloud connectivity to optimize performance. Adoption of permanent magnet motors is increasing due to their high torque to weight ratio. However, high production cost and availability of substitutes continue to limit the market growth to some extent. Overall, the electric motor market is expected to flourish over the long term owing to rapid industrialization and manufacturing automation worldwide.

Rising Demand for Energy-efficient Systems

With growing environmental conservation concerns worldwide, there is an increasing push towards replacing old mechanical drive systems with more energy efficient electric motor driven systems. Electric motors provide higher levels of efficiency compared to systems driven by combustion engines. They can optimize energy usage and cut greenhouse gas emissions significantly. Many industries are actively seeking ways to reduce their carbon footprint and lower operating costs. Electric motors address both these needs very well. Switching to motor-driven equipment allows reducing electricity wastage and fuel consumption. They cause less wear and tear too since their operation involves fewer moving parts compared to other technologies. The payback period for investing in electric motor systems has become very attractive considering long term energy savings. To meet international climate targets, governments are also offering various subsidies and tax rebates to industries adopting green technologies. This is motivating more companies to replace their fossil-fuel guzzling machinery with electric alternatives. The trend is especially strong in commercial sectors like Heat Ventilation and Air Conditioning (HVAC), packaging, material handling, and machine tools where efficiency gains can be substantial. Overall, the economic and environmental benefits of electric motorization are boosting its adoption across multiple industrial verticals.

Market Concentration and Competitive Landscape

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Advanced motor technologies are powering the ongoing automation revolution. Robots are utilizing various types of motors for precisely controlling joint movements, conveyor operations, and others. The demand for servo motors, stepper motors, and brushless motors is increasing steadily as robot deployments expand into new domains. Manufacturers are automating more of their assembly line processes to improve productivity and quality. E-commerce warehouses too are automating sorting and order fulfilment using autonomous mobile robots. These robots rely on robust yet high-precision electric motors for navigation and task execution. Even in non-industrial settings, service robots powered by electric motors are finding applications in healthcare, agriculture and domestic assistance. Meanwhile, motion control systems driven by servo motors are indispensable in areas such as printing, semiconductors manufacturing, medical devices packaging and several others that require tight integration of mechanical and electrical components. The advent of Industry 4.0 with its pillars of connectivity, artificial intelligence, and advanced analytics is reinforcing the crucial role electric motors play in automation. Their ability to deliver smooth, fast, and accurate motion drives further the capabilities as well as economic benefits of automation technologies.

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With evolving technology, production of efficient and high-performance motors is costly for manufacturers. Strict environmental regulations pose compliance issues. Moreover, developing motors suitable for diverse industrial applications is complex. Adapting motors for renewable energy integration and integration within smart grids needs further innovation. Fluctuating raw material prices also impact the costs. Additionally, lack of standard testing methods delays product launches. Establishing distribution networks globally to address geographically fragmented demand remains a hurdle.

Market Opportunities: Integration of IoT with electric motors

Investments in industrial automation and IIoT are stimulating the motor demand. Electrification of transportation is opening up a vast market. Growth in manufacturing industries and focus on energy efficiency will propel the market. Deployment of renewable energy sources relies heavily on electric motors. Supportive government policies for clean technology adoption are helping. Market players can gain by innovating

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In terms of motor type, AC motor contributes the highest share of the market owing 53.7% in 2024 to its superior efficiency and versatility compared to other motor types. AC motors can efficiently utilize electric power at all speeds, thereby consuming less energy than alternatives. They maintain steady torque at varying speeds, making them suitable for a wide range of industrial applications requiring flexibility of operation. AC motors also produce less vibrations and noise than DC motors. The consistency of their torque output even during fluctuations in supply voltages further enhances their reliability. Their ability to start and stop smoothly without risk of overshooting also makes AC motors safer to use around humans in many commercial and residential applications. Their brushless design eliminates the need for periodic brush replacement, lowering maintenance costs over the motor's lifetime. Moreover, advances in variable frequency drives have allowed precise control of AC motor speed through efficiency optimization. As industries intensify focus on energy efficiency while automating more complex processes, the advantages of AC motors in delivering versatility and efficiency has made them the dominant choice, accounting for the highest market share.

Insights By, Voltage- Wide Application Range Captures Peak Demand in 1 kV-6.6 kV Voltage Band

In terms of voltage, the 1 kV-6.6 kV segment contributes the highest share owing 47.8% in 2024 of the electric motor market due to catering to a wide range of industrial applications that maximize motor efficiency within this voltage band. Motors in the 1-6.6 kV range can effectively handle medium to heavy loads in industries like oil and gas, mining, power generation, and chemical processing without oversizing. They support a variety of common industrial equipment from pumps and fans to conveyers and material handling systems. The voltage headroom allows variable speed control for flexibility while keeping harmonic distortions lower than lower voltage alternatives. Further, recent grid connections in emerging economies have standardized in this medium voltage range, concentrating demand. As industrial automation proliferates and process plant capacities expand globally, optimal load matching within this voltage spectrum ensures maximum energy efficiency to be derived. Thereby, 1 kV-6.6 kV motors have dominated applications that span across sectors, capturing the highest market share.

Insights By, End Use- Logistics Backbone Spurs Transportation Sector Demand

In terms of end user, the transportation sector leads the electric motor market owing 32.6% in 2024 to motors being extensively used as the logistics backbone. Motors find ubiquitous applications powering diverse transportation vehicles and equipment ranging from rolling stock and aircraft to industrial vehicles, automobiles and ships. In automobiles alone, over 40 motors are installed today to operate components from window lifts to climate control systems. Motors also energize various auxiliary functions across aircraft, metros, trams and freight trains. In the logistics industry, they are vital to material handling systems sustaining efficient movement of cargo. With transportation being a driver of globalization, motors have become indispensable to modern logistics operations. As international trade grows along with the rise of e-commerce, transportation networks are expanding concertedly. This widespread reliance on electric motors throughout diverse modes has elevated the transportation sector’s prominence as the largest end user segment. Going forward as well, its strategic importance will spur continued high demand from this segment.

Regional Insights

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North America has been the dominant region in the global electric motor market owing 39.2% in 2024. The presence of leading motor manufacturers such as ABB, Siemens, and General Electric has firmly established the motor supply chain in the region. Additionally, the well-developed industrial sector utilizing a plethora of motor-driven equipment has contributed to North America commanding the largest market share. Stringent energy efficiency standards implemented by organizations like the Consortium for Energy Efficiency have also pushed the adoption of premium efficiency motors.

With factories closer to the major end-user industries, companies in North America have lower transportation costs and faster turnaround times. This enables just-in-time manufacturing and supply. The regional presence also allows these firms to customize offerings as per client requirements better than overseas competitors. Local manufacturing also means they face fewer trade barriers and do not have currency risk exposure. Together, these factors have enabled North American electric motor providers to defend their market leadership.

On the other hand, Asia Pacific has emerged as the fastest growing regional market. The burgeoning industrial and manufacturing activity in countries like China and India is the primary driver of this growth. Both nations are witnessing expansions and new plants across industries like construction, pharmaceuticals, automotive, etc. This is translating to massive demand for industrial motors. SEA nations are also industrializing rapidly to become global export hubs, augmenting regional requirements.

Asia Pacific has other advantages as well. An abundance of low-cost raw materials and labor have attracted significant foreign investments. This has boosted local motor manufacturing prowess over the years. Moreover, governments provide subsidies and relaxations to promote indigenous industry. This is giving Asian producers an edge over imported products on pricing. With costs expected to reduce further, Asia Pacific electric motor suppliers will become increasingly competitive globally. Coupled with the surging domestic needs, the region remains on track for continued fastest market expansion.

Market Report Scope

Key Developments

• In July 2023, General Electric Vernova's Solar & Storage Solutions teamed up with Fortune Electric is a leading company specializing in electrical engineering and manufacturing. to create Battery Energy Storage Solutions (BESS) in Taiwan. The aim is to utilize electric motors within the storage system to regulate energy flow, manage battery charging and discharging, and ensure seamless integration of stored energy.
• In May 2023, ABB Limited is a global leader in technology, providing a wide range of products, systems, and services for various industries. announced the acquisition of Siemens' low voltage NEMA motor business. This acquisition will bolster ABB Limited's position as a manufacturer of NEMA motors and expand its offerings in the NEMA motor industry.
• In August 2022, Johnson Electric Holdings Limited is a global leader in electric motors, motion subsystems, and related technologies. introduced a steering wheel adjuster motor. This electric motor allows drivers to adjust their steering wheel for a more comfortable driving position.
• In August 2022, Siemens is a global powerhouse in diversified technology and engineering partnered with MAHLE is a global automotive supplier headquartered in Stuttgart, Germany, specializing in engine components, filtration systems, and thermal management solutions. to develop an inductive charging system for electric vehicles, which includes electric motor components. This collaboration also involved establishing standardized procedures to ensure compatibility between the charging infrastructure and electric vehicles.
• In May 2022, Allied Motion Technologies Inc. is a global company specializing in motion control solutions and technologies. acquired ThinGap is a leading company specializing in advanced motor and generator technologies. to enhance its motion capabilities and provide integrated motion solutions. The acquisition of ThinGap's motor expanded Allied Motion's product offerings in the electric motor market.

*Definition: The electric motor market involves companies that manufacture electric motors in various power ranges and designs. Electric motors are used across industries to convert electrical energy into mechanical energy and power various machines and equipment. The market includes companies producing AC and DC motors used in industrial machinery, vehicles, home appliances, HVAC equipment, and other applications. Key players in the electric motor market offer motors optimized for different applications with advanced technologies for higher efficiency, precision and durability.

Market Segmentation

• Motor Type Insights (Revenue, US$ BN, 2019 - 2031)
  • AC Motor
  • DC Motor
  • Hermetic Motors
•  Voltage Insights (Revenue, US$ BN, 2019 - 2031)
  • Up to 1 kV
  • 1 kV-6.6 kV
  • Above 6.6 kV
•  End User Insights (Revenue, US$ BN, 2019 - 2031)
  • Industrial
  • Commercial
  • Residential
  • Agriculture
  • Transportation
• Regional Insights (Revenue, US$ BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players
  • ABB Group
  • Allied Motion Technologies, Inc.
  • Ametek, Inc.
  • Dumore Corp.
  • Franklin Electric
  • General Electric Company
  • Hitachi, Ltd.
  • Hyosung Corp.
  • Hyundai Electric Co, Ltd.
  • Johnson Electric
  • Kirloskar Electric Company, Ltd.
  • Lincoln Electric Holdings, Inc.
  • Nidec Motor Corp.
  • Regal Rexnord Corp.
  • Robert Bosch GmBH
  • Rockwell Automation.
  • Schneider Electric
  • Siemens AG
  • Teco Westinghouse
  • Toshiba Corp.
  • WEG S.A.