Electric Motors Market Size, Share, Forecast, & Trends Analysis by Type (AC Motors and DC Motors), Power Output (Fractional HP Motors (Upto 1 HP), Integral HP Motors (1 HP to 400 HP), Large HP Motors (More than 400 HP)), End User (Industrial Commercial) - Global Forecast to 2031

Electric Motors Market Size & Forecast

The Electric Motors Market is expected to reach $254.1 billion by 2031, at a CAGR of 7.1% from 2024 to 2031. The growth of the electric motors market is driven by the increase in demand for energy-efficient electric motors, growing demand for electric motors in manufacturing industries, increased sales of consumer electronics and appliances in developing countries, and increasing demand for HVAC systems. Furthermore, the advancements in motor technology and the progressive significance of electric motors in robotics & automation are expected to offer significant growth opportunities for players operating in the electric motors market.

Electric Motors Market Growth Drivers

• Increase in Demand for Energy-efficient Electric Motors

According to the report of IEA, the residential, services, and transport industries consume about 34% of all electricity generated. The energy-saving potential within industries and utilities is immense, particularly within electric motor-driven systems. Roughly 70% of all electrical energy consumed by industry is attributed to the millions of electric motors installed worldwide, with several million more being added annually. These motors power a wide array of machinery, compressors, fans, pumps, and conveyors across virtually all industrial sectors. Among the most energy-intensive industries are cement, chemical, iron, and steel. Pumps and fans exhibit the greatest potential for energy conservation, making them prime targets for initiating energy-saving initiatives.

The surge in demand for energy-efficient electric motors is a pivotal driver in propelling the electric motors market forward. Energy-efficient motors boast reduced electricity consumption, offering substantial long-term cost savings for businesses and consumers. This aligns with the global push for sustainability and decarbonization by curbing greenhouse gas emissions and overall energy usage. Compared to traditional motors, energy-efficient electric motors typically consume less electricity, translating to lowered operating expenses over time. Consequently, businesses and industries are drawn to these savings, recognizing their potential to enhance profitability and competitiveness.

Also, ongoing advancements in motor design, materials, and control systems have led to the development of highly efficient electric motors. These advancements improve motor performance while reducing energy losses, making energy-efficient motors more appealing to a wider range of applications. Such factors help to drive the growth of the market during the forecast period.

• Increasing Demand for HVAC Systems

Electric motors are fundamental components in most HVAC (Heating, Ventilation, and Air Conditioning) systems, powering fans, compressors, and other essential parts. The growing demand for HVAC systems spans across residential and commercial sectors. Rising disposable income in developing economies and the increasing focus on comfortable living conditions are driving up residential HVAC installations. Similarly, the expansion of commercial spaces like offices and retail stores fuels demand for commercial HVAC systems, all requiring electric motors. The trend towards energy-efficient buildings necessitates the use of high-efficiency electric motors in HVAC systems. These motors not only contribute to lower energy consumption for the building but can also improve the overall Seasonal Energy Efficiency Ratio (SEER) of the HVAC system, making it more cost-effective for users.

The evolution of HVAC technology, including the emergence of smart thermostats, variable refrigerant flow systems, and energy-efficient heat pumps, has revolutionized heating and cooling solutions. These innovations cater to consumers seeking more advanced and economical options for their HVAC needs. Moreover, advancements in electric motor technology, such as variable speed drives and brushless DC motors, have further enhanced HVAC system efficiency and performance. These innovations enable precise control over airflow and temperature, leading to optimized energy utilization and heightened comfort levels. Consequently, the increasing demand for HVAC systems, fueled by these technological advancements, is expected to drive market growth significantly in the forecast period.

Electric Motors Market Opportunity

• Advancements in Motor Technology

Electric motors have been a crucial component of modern technology. They have been used in a wide range of applications, from powering small household appliances to propelling massive industrial machinery. The increasing demand for energy efficiency, along with the need to reduce carbon emissions, has led to the development of advanced electric motor technologies.

Electric motor technology has witnessed remarkable improvements in terms of efficiency and performance. By leveraging advancements in materials, design, and control systems, modern electric motors can convert electrical energy into mechanical power with higher efficiency. This translates to improved range and battery life in electric vehicles, enhanced productivity in manufacturing processes, and increased energy savings across various applications. The durability and reliability of electric motors have been key areas of focus in recent years. Through advancements in materials and design, manufacturers have been able to create electric motors that can withstand harsh operating conditions, vibrations, and temperature variations. These robust motors require minimal maintenance, reducing downtime and operating costs for various industries.

There are various advancements in motor technology, which are as follows:

• Increased Power Density
• Continued Integration with IoT
• Advancements in Magnet Technology
• Expansion of Electric Mobility

• Progressive Significance of Electric Motors in Robotics & Automation

The surge in robotic adoption across diverse industries, spanning manufacturing, logistics, healthcare, and agriculture, underscores the need for specialized electric motors tailored to robotic applications. These motors must possess attributes such as precision, precise speed control, and durability to meet the demands of repetitive cycles and varied environments. Robots play pivotal roles in executing tasks ranging from routine assembly line operations to ventures into hazardous settings involving exposure to chemicals and radiation.

Motor technology advancements, including brushless DC motors and stepper motors, have revolutionized robotic operations by enabling finer movement control, heightened efficiency, and quieter performance. Innovations in motor design and materials have further bolstered reliability and durability, minimizing maintenance requirements. Modern electric motors empower robots to execute tasks with enhanced skill, speed, and versatility, spanning intricate surgeries, intricate assembly processes, and precise welding operations. These developments present lucrative growth prospects for the electric motors market in the future.

Electric Motors Market Challenges

• Shortage of Components and Supply Chain Issues

The most significant near-term impact on electric motors that are already contracted or in the manufacturing process will be felt through supply chains. Industry executives are anticipating delivery and construction slowdowns due to economic downturns, higher inflation, and unstable energy prices. Several components and parts for manufacturing electric motors come from China, the US, and a few parts of Europe. Manufacturing disruptions in China and the US could contribute to the stagnant growth in the electric motors market over the next one or two years.

The growing demand for electric vehicles (EVs), renewable energy systems, and industrial automation has put pressure on the supply of components such as rare earth metals, magnets, and semiconductors used in electric motors. Electric motors, especially those used in EVs, often rely on rare earth elements like neodymium and dysprosium for their magnets. The limited availability of these materials can create supply constraints. Such factors pose a serious challenge to the growth of electric motor adoption.

Electric Motors Market Analysis: Key Findings

By Type: In 2024, the AC Motors Segment to Dominate the Electric Motors Market

Based on type, the global electric motors market is segmented into AC motors and DC motors. In 2024, the AC motors segment is expected to account for the larger share of ~66% of the global electric motors market. The growth of this segment is attributed to the increasing adoption of automation in industries such as manufacturing, automotive, and robotics, which has led to a higher demand for AC motors.

These motors are vital components in automated systems, powering conveyor belts, pumps, fans, and other machinery. The growing demand for heating, ventilation, and air conditioning (HVAC) systems in residential, commercial, and industrial buildings is driving the demand for AC motors. These motors are commonly used in HVAC applications due to their ability to provide precise control over airflow and temperature. Also, ongoing advancements in motor design, materials, and control systems have improved the efficiency, reliability, and performance of AC motors. These advancements include the development of higher-efficiency motor designs, improved insulation materials, and advanced control algorithms.

However, the DC motors segment is projected to register the highest CAGR of ~9% during the forecast period. The DC motors market is segmented into brushed DC motors, brushless DC motors, stepper motors, and other DC motors. These motors possess remarkable starting torque capability and exhibit excellent speed regulation. They find extensive application in industrial machinery, equipment, and electronic toys requiring variable speed control. With a heightened awareness of energy consumption among industries and consumers, the superior efficiency of brushless DC motors renders them an appealing alternative to conventional brushed DC motors. Brushless DC motors, known for their low maintenance costs, are increasingly preferred, thereby driving higher revenue within the DC motor segment. Furthermore, the escalating demand for feature-rich consumer electronics such as drones, power tools, and high-end appliances is propelling the market for compact yet potent DC motors.

In October 2023, Toshiba Electronic Devices & Storage Corporation (Japan) launched two products of 600V small intelligent power devices (IPDs) for brushless DC motor drive applications, such as air conditioners, air cleaners, and pumps. In April 2022, AMETEK Haydon Kerk Pittman (HKP), a business unit of AMETEK, announced a new size in its IDEA Motor series of brushless DC motors: 57mm. This EC057B joins the 42mm EC042B product and enhances an already popular line of motors with integrated, programmable drives. The IDEA Motor combines a precision brushless servo motor with an IDEA Drive controller to reduce design time, wiring needs, and overall cabinet space, which in turn leads to lower system costs. The programmable drive is specifically designed for real-time, embedded motion control and is well-suited for autonomous and precise single-axis motion.

By Power Output: In 2024, the Fractional Horsepower Motors Segment to Dominate the Electric Motors Market

Based on power output, the global electric motors market is segmented into fractional horsepower motors (Upto 1 HP), integral horsepower motors (1 HP to 400 HP), and large horsepower motors (More than 400 HP). In 2024, the fractional horsepower motors segment is expected to account for the largest share of ~85% of the global electric motors market. The growth of this segment is attributed to the rise of automation and industrial applications, as various industrial processes rely on small motors for tasks like powering fans, pumps, and conveyor belts.

With the rise of automation across various industries, the need for integral horsepower motors is also on the ascent. HVAC systems in residential, commercial, and industrial buildings rely on low-power motors to facilitate functions such as fan operation. The growing requirement for efficient climate control is anticipated to drive the market for 1HP motors. Although electric vehicles primarily employ higher-powered motors for propulsion, there remains a demand for 1HP motors to power auxiliary functions like windows, seats, and ventilation systems. These factors are poised to fuel the market's growth throughout the forecast period.

In August 2022, ABB (Switzerland) entered into an agreement to purchase Siemens’ low-voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this acquisition provides a well-regarded product portfolio, a longstanding North American customer base, and an experienced operations, sales, and management team.

Additionally, the same segment is projected to register the highest CAGR during the forecast period.

By End User: In 2024, the Industrial Segment to Dominate the Electric Motors Market

Based on end user, the global electric motors market is segmented into industrial, commercial, residential, transportation, agriculture, and other end users. In 2024, the industrial segment is expected to account for the largest share of ~32% of the global electric motors market. Electric motors offer precise speed and torque control, making them ideal for variable-speed applications and automated processes. This level of control allows for the optimization of industrial tasks and improved product quality.

Electric motors provide precise control over speed and torque, making them well-suited for variable-speed applications and automated processes. This level of control enables the optimization of industrial tasks and enhances product quality. Compared to internal combustion engines, electric motors typically have fewer moving parts, resulting in higher reliability and reduced maintenance downtime. They are widely used in industrial equipment due to their suitability for operation in heavy industrial environments. Additionally, electric motors offer advantages such as high starting torque and stability in the face of electric current fluctuations. Various companies are launching initiatives to further develop the market for electric motors. For instance, in October 2022, Robert Bosch GmbH (Germany) announced the launch of production of electric motors at its Charleston, S.C. manufacturing facility. In July 2022, WEG S.A. (Brazil) launched W12, a light and versatile motor for industrial applications. The new W12 electric motor from WEG is designed for use in higher-performance industrial applications, offering versatility and efficiency.

Additionally, the same segment is projected to register the highest CAGR during the forecast period.

Geographical Analysis

In 2024, Asia-Pacific is expected to account for the largest share of ~47% of the global electric motors market. The large share of the Asia-Pacific market is attributed to the advancements in the agriculture sector and enormous investments in industrialization in countries including China, India, South Korea, and Australia. Further, the increasing production and sales of electric vehicles in countries including China and Japan, as well as the presence of established OEMs such as Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Toyota Industries Corporation (Japan), and Nissan Motor Corporation (Japan) are estimated to boost the growth prospects of the market in this region. The Asia-Pacific region, particularly China and India, is witnessing a surge in EV adoption.

Moreover, various key players in this market have launched various initiatives in the development of electric motors. For instance, in July 2023, General Electric Vernova’ Solar & Storage Solutions (U.S.) partnered with Fortune Electric (Taiwan) to develop Battery Energy Storage Solutions (BESS) in Taiwan. The purpose is to use electric motors in the storage system to keep control of the energy flow, manage the charging and discharging of batteries, and ensure smooth integration of the stored energy. In August 2022, Sona BLW Precision Forgings Ltd (India) crossed the milestone of producing 100,000 EV traction motors in its Chennai Plant in India. As more consumers and businesses adopt EVs, the EV traction motors market is expected to grow significantly in the coming years.

Additionally, the same region is projected to register the highest CAGR of ~8.5% during the forecast period.

Electric Motors Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the ABB Ltd. (Switzerland), Schneider Electric SE (France), Siemens AG (Germany), Rockwell Automation Inc. (U.S.), Allied Motion Technologies, Inc. (U.S.), AMETEK Inc. (U.S.), Johnson Electric Holdings Limited (Hong Kong), Nidec Motor Corporation (Japan), Franklin Electric Co., Inc. (U.S.), Regal Rexnord Corporation (U.S.), Arc Systems Inc. (U.S.), Denso Corporation (Japan), Emerson Electric Co. (U.S.), Nidec Corporation (Japan), and Oriental Motor USA Corp (Germany).

Electric Motors Industry Overview: Latest Developments from Key Industry Players

• In August 2023, WEG (Brazil) invested USD 40 million to produce electric motors, electrical panels, and industrial powder coatings.

• In June 2023, Equipmake Holdings PLC (U.S.) partnered with H55 SA (Switzerland), an electric aerospace propulsion company, to support H55 Electric Propulsion System (EPS) development with Equipmake, supplying its lightweight, power-dense, high-performance, state-of-the-art electric motors for use in electric aircraft.

• In August 2022, Johnson Electric Holdings Limited (Hong Kong) launched a steering wheel adjuster motor, enabling drivers to get access to a comfortable driving posture.
• In August 2022, Siemens (Germany) collaborated with MAHLE (Germany) to develop an inductive charging system for electric vehicles that includes electric motor components. This collaboration also included the implementation of standardized efforts for ensuring interoperability between the charging infrastructure, and electric vehicles.

Electric Motors Market Research Summary:

Key questions answered in the electric motors market report: