Electric Motor Market

How Big is the Electric Motor Market in 2026?

Sales of electric motors will expand at a 6.6% CAGR between 2026 and 2036. Market value is estimated at USD 160.1 Billion in 2026, up from USD 150.9 Billion in 2025, and will reach USD 303.4 Billion by 2036.

Electric motor market size is estimated at USD 160.1 Billion in 2026, up from USD 150.9 Billion in 2025, a 6.1% rise in one year, as per FMI. Efficiency rules and power prices set the pace of replacement. Electric car sales passed 20 million units in 2025, about one in four new cars sold worldwide [1]. Demand for electric motors will emerge from factories, utilities and buildings that run pumps, fans, compressors and conveyors for long hours, and from vehicle makers that fit several motors into each electric car.

Our analysts at FMI have also tracked growth of electric motors in parallel with adjacent markets to analyze opportunities for backward or forward integration. Growth of the electric motor market will lead to a valuation of USD 143.3 Billion between 2026 and 2036. Faster-moving technologies will shift value toward higher-efficiency designs. Sales of permanent magnet motors will rise from USD 59.9 Billion in 2026 to USD 161.2 Billion by 2036 at a 10.4% CAGR, an opportunity of USD 101.3 Billion.

Demand for variable frequency drives will create a USD 29.2 Billion opportunity at a 5.6% CAGR, moving from USD 40.2 Billion in 2026 to USD 69.4 Billion by 2036. Adoption of industrial robotic motors will grow fastest, from USD 1.8 Billion to USD 6.6 Billion at 14%. As per FMI's analysis, the broader electric motor category will grow slower than these niche markets as a large part of revenue comes from induction motors bought on replacement cycles, and those cycles follow plant capital budgets.

Key Takeaways of Electric Motor Market

• Pumps held 18% of electric motor demand by application in 2025.
• By product type, FMI finds that AC motors led demand in 2025 and will keep the lead through 2036.
• Key companies operating in the electric motor market include ABB Ltd., Innomotics GmbH, Nidec Corporation, WEG S.A., Regal Rexnord Corporation, Toshiba International Corporation, TECO Electric & Machinery Co., Ltd., and CG Power and Industrial Solutions Ltd., and the full report covers many more players.
• By country, China grows fastest at 6.8%, and the GCC Countries grow slowest at 5.4%.

Analyst Perspective

“My analysis shows that motor makers that pair IE4 and higher designs with drives for pumps, fans and compressors will hold the replacement orders through 2036. Plant owners will judge a motor on lifetime energy cost and payback period.”

- Nikhil Kaitwade, Principal Consultant, Future Market Insights

How is the Electric Motor Market Segmented?

According to FMI, the electric motor market is segmented by product type, power rating, voltage range, application, end use, and region.

Product type covers AC motors, brushed DC motors, and brushless DC motors.
Power rating covers below 1 HP, 1 to 5 HP, 5 to 10 HP, 10 to 20 HP, 20 to 50 HP, 50 to 100 HP, 100 to 300 HP, 300 to 500 HP, and above 500 HP.
Voltage range covers below 1 kV, 1 to 10 kV, and above 10 kV.
Application covers pumps, fans, drives, compressors, general machinery, centrifugal machinery, grinders, extruders, robotics, and others.
End use covers transportation, industrial, residential, medical, and others.

Why Do Pumps Lead the Electric Motor Market by Application?

FMI finds that pumps accounted for 18% of application demand in 2025.

Demand for electric motors in pumps will stay the highest by application, as per FMI. Water networks, irrigation, process plants, buildings and homes all move fluids with motor-driven pumps, and few practical substitutes exist for the motor in this duty. A large installed base brings steady replacement orders. Long duty cycles push buyers toward inverter-duty designs and variable speed control. in May 2026, Nidec Motor Corporation showed a new TEFC inverter-duty closed coupled pump motor line for variable-speed applications [2]. Sales of centrifugal pumps will rise from USD 40.2 Billion in 2026 to USD 66.1 Billion by 2036.

• Pumps held 18% of electric motor demand by application in 2026. Demand will be driven by a large replacement base.
• In May 2026, Nidec presented the TEFC inverter-duty closed coupled pump motor line and a 500 hp NEMA Premium 4 TITAN model at EASA 2026 [2].

Why Do AC Motors Lead the Electric Motor Market by Product Type?

FMI finds that AC motors will lead product type demand through 2036.

AC motors will lead product type demand, as per FMI. Simple construction, standard frames and wide availability suit continuous duty in compressors, fans, pumps and conveyors, and AC designs accept drives for precise speed control. Plant owners in China and India hold large fleets of IE1 and IE2 motors in machinery, pumps and fans, and upgrades to IE3, IE4 and IE5 designs give AC electric motor suppliers a long replacement queue. CG Power rates the NEXORA general purpose series at IE3 and IE4 and optimizes the range for VFD operation, with 37 kW to 90 kW ratings in the first frame size [3].

• AC motors led product type demand in 2025 and will keep the lead through 2036, backed by standard designs and IE3 and IE4 upgrades.
• In August 2026, CG Power launched NEXORA, a series of IE3 and IE4 general purpose motors for global low voltage markets [3].

What are the Drivers, Restraints, and Opportunities in the Electric Motor Market?

As per FMI's analysis, replacement of older industrial motors and vehicle electrification will drive sales, raw material costs and retrofit budgets will slow upgrades, and magnet-free high-efficiency designs sold with drives will open a higher-value revenue pool till 2036.

• Driver: Plant owners replace IE1 and IE2 motors in pumps, fans and compressors, and vehicle makers add traction and auxiliary motors to each electric model.
• Restraint: Copper, steel and magnet price swings raise component cost, and heavy industry treats motor retrofits as capital-intensive decisions.
• Opportunity: Key trends in electric traction motors and high-efficiency industrial packages point to higher revenue per unit for suppliers with motor and drive know-how.

Lifetime energy cost weighs heavily against purchase price in motor buying. ABB reports that a magnet-free IE6 synchronous reluctance motor cuts energy losses by up to 60% against IE3 induction motors in hazardous areas [4]. For one 110 kW motor running all year at 75% load, ABB puts payback at about 8 months [4]. Motors built to the new IE4 rules in the United States can weigh up to about 20% more, and inrush current may rise in some designs [5]. As a result, retrofits need checks on frame fit, starters and drives, and suppliers that package motor, drive and service will hold the replacement contracts.

Which Country CAGRs are Profiled in the Electric Motor Market?

Country	CAGR, 2026 to 2036
China	6.8%
ASEAN	6.1%
U.S.	5.9%
Japan	5.8%
GCC Countries	5.4%

How do Country-level CAGRs Compare in the Electric Motor Market?

As per FMI's analysis, electric motor growth rates will differ by 1.4 percentage points across profiled countries through 2036. China will lead at a 6.8% CAGR and is the only profiled country above the global 6.6% pace. GCC Countries will record the slowest rate at 5.4%. At the regional level, East Asia, Eastern Europe, and South Asia and Pacific will grow above the global CAGR and together hold about 52% of market value.

• China leads at 6.8% on vehicle output and new large-motor capacity.
• ASEAN follows at 6.1% as regional electric car sales more than doubled in 2025.
• The United States at 5.9% and Japan at 5.8% form the middle band.
• GCC Countries grow 1.4 points below China, with demand tied to transit and water projects.

Beyond the profiled countries, the full FMI report analyzes CAGRs across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East and Africa, along with leading countries in each region.

Country Outlook

• Demand for electric motors in China will rise at a 6.8% CAGR, the fastest pace among profiled countries. CAAM data show new energy vehicle sales of 16.49 million units in 2025, up 28.2% and equal to 47.9% of all vehicle sales [6]. Each of these vehicles carries traction and auxiliary motors. Innomotics opened a 600-million-yuan plant in Tianjin in June 2026 for high-voltage and large low-voltage motors, with annual output of 2,500 MW at full capacity [7].
• Electric motor market growth in ASEAN will hold at a 6.1% CAGR till 2036, led by vehicles and electronics assembly. The International Energy Agency reports that electric car sales in Southeast Asia more than doubled in 2025 to over half a million units [1]. Viet Nam reached nearly 40% electric share of new car sales, and Thailand about one quarter [1]. Electronics plants add demand for compact and micro motors.
• Sales of electric motors in the United States will grow at a 5.9% CAGR till 2036, supported by federal efficiency rules. DOE standards require NEMA Premium 4 (IE4) efficiency for ODP, TEFC and explosion-proof motors rated 100 to 250 hp made on or after June 1, 2027 [5]. Air-over motors, earlier outside the efficiency rules, also come under the standard [5]. ABB estimates payback of 2 to 5 years for most applications, a case for early replacement in pumps, compressors, conveyors and HVACR systems [5].
• Adoption of electric motors in Japan supports a 5.8% CAGR through 2036, tied closely to factory automation. The International Federation of Robotics reports 36,219 industrial robot installations in Japan in 2025, down 19%, and the country fell to third place among robot markets [8]. Each robot uses several servo motors and servo drives for precise joint movement, so a recovery in robot orders will lift motor demand.
• Key trends in the GCC countries electric motor market point to infrastructure-led growth at a 5.4% CAGR, the lowest among profiled countries. Riyadh received bids from four consortia for metro Line 7, a 65 km orbital line with 19 stations, in early 2026 [9]. The line will extend to the six-line, 176 km network [9]. Desalination plants add a steady replacement base for large pump motors.

Who are the Notable Companies in the Electric Motor Market?

Key companies in the market include ABB Ltd., Innomotics GmbH, Nidec Corporation, WEG S.A., Regal Rexnord Corporation, Toshiba International Corporation, TECO Electric & Machinery Co., Ltd., and CG Power and Industrial Solutions Ltd.

Competition among electric motor supplier’s centers on efficiency class, application fit and service reach, as per FMI. The market is fragmented, and the report sorts the companies profiled into three strategy groups. WEG agreed in June 2026 to supply about 600 low and medium voltage motors to the Thacker Pass lithium project in Nevada for compressors, fans, pumps and crushers [10]. Regal Rexnord brought Kollmorgen servo motion systems to Automate 2026 in June [11]. TECO unveiled a 400-kW hair-pin oil-cooled direct-drive motor for electric buses in April 2026 [12]. Toshiba International sells EQP Global general-purpose motors from 0.5 to 800 hp with NEMA Premium efficiency [13].

• Global Industrial Motor and Drive Platforms: ABB Ltd., Innomotics GmbH and WEG S.A. cover low voltage to high voltage motors with drives and service across many regions.
• Application and Motion Motor Specialists: Nidec Corporation, Regal Rexnord Corporation and TECO Electric & Machinery Co., Ltd. build ranges around pumps, HVAC, motion control and e-mobility duties.
• General-Purpose Motor Suppliers with Regional Depth: CG Power and Industrial Solutions Ltd. and Toshiba International Corporation focus on standard industrial motor ranges with strong home-market distribution.

Competitive Benchmarking

Company	Efficiency Class Range	Application Breadth	Drive and Motion Integration	Geographic Reach
ABB Ltd.	High	High	High	Global
Innomotics GmbH	High	High	High	49 countries and regions
Nidec Corporation	Medium	High	Medium	Global
WEG S.A.	High	High	High	Global
Regal Rexnord Corporation	Medium	High	High	North America, Europe and Asia
Toshiba International Corporation	Medium	Medium	Medium	North America with international distribution
TECO Electric & Machinery Co., Ltd.	Medium	Medium	Medium	Asia, North America and Europe
CG Power and Industrial Solutions Ltd.	Medium	Medium	Medium	India with export markets

Scoring basis: Efficiency Class Range scores the highest documented IEC or NEMA class. Application Breadth scores documented duties from pumps to vehicles. Drive and Motion Integration scores motors sold with drives or motion systems. High marks broad documented capability, Medium narrower capability, and Low limited public documentation. Geographic Reach reflects evidenced sales, plants or service, as reviewed by FMI in September 2026.

Key Developments

• In May 2026, ABB launched a magnet-free IE6 synchronous reluctance motor for hazardous areas, with up to 60% lower energy losses than IE3 induction motors [4].
• In June 2026, Innomotics began operations at its new plant in Tianjin, China, with total investment of approximately 600 million yuan, adding annual production capacity of 2,500 MW for high-voltage and large low-voltage motors [[7]] .
• In August 2026, CG Power launched NEXORA, a new series of IE3 and IE4 general purpose motors that widens the company's low voltage motor portfolio [3].

Key Players

Global Industrial Motor and Drive Platforms

• ABB Ltd.
• Innomotics GmbH
• WEG S.A.

Application and Motion Motor Specialists

• Nidec Corporation
• Regal Rexnord Corporation
• TECO Electric & Machinery Co., Ltd.

General-Purpose Motor Suppliers with Regional Depth

• CG Power and Industrial Solutions Ltd.
• Toshiba International Corporation

Report Scope and Methodology

Coverage field	Report scope
Market breakdown	5 categories: Product Type (AC Motors, DC Motors (Brushed), DC Motors (Brushless)), Power Rating (<1 HP, 1 to 5 HP, 5 to 10 HP, 10 to 20 HP, 20 to 50 HP, 50 to 100 HP, 100 to 300 HP, 300 to 500 HP, Above 500 HP), Voltage Range (Below 1 kV, 1 to 10 kV, Above 10 kV), Application (Pumps, Fans, Drives, Compressors, General Machinery, Centrifugal Machinery, Grinders, Extruders, Robotics, Others), End Use (Transportation, Industrial, Residential, Medical, Others), and Region
Quantitative units	USD Billion
Market definition	Revenue from AC and DC electric motors sold within the stated product type, power rating, voltage range, application and end use segmentation. The definition excludes standalone drives and controllers, spare parts and repair services, and the value of downstream equipment in which motors are installed.
Regions covered	North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, Middle East and Africa
Countries covered	Leading countries across seven regions, with profiled CAGRs for China, ASEAN, the U.S., Japan, and GCC Countries
Key companies profiled	A few of the notable companies out of many players covered by FMI: ABB Ltd., Innomotics GmbH, Nidec Corporation, WEG S.A., Regal Rexnord Corporation, Toshiba International Corporation, TECO Electric & Machinery Co., Ltd., and CG Power and Industrial Solutions Ltd.
Forecast period	2026 to 2036
Approach	FMI applies a hybrid bottom-up and top-down sizing framework that reconciles motor shipments, pricing and supplier revenue with industrial output, vehicle production and installed-base replacement cycles.

Research Methodology

Method	Approach
Primary research	FMI's primary-research framework engages motor manufacturers, drive suppliers, pump and compressor makers, distributors, repair shops and plant engineers to test efficiency requirements, pricing, lead times and replacement decisions.
Desk research	The analysis reviews efficiency regulations, vehicle and robot statistics, infrastructure tenders, company announcements and product information. FMI retains sources that define demand mechanisms, supplier roles, country conditions or product developments inside the market boundary.
Market sizing and forecasting	The sizing framework combines the baseline value with product type, power rating, voltage and application structure, unit prices and country-level industrial and vehicle demand. Forecasts consider efficiency rules, raw material costs, plant capacity and replacement cycles.
Data validation	Estimates are checked against public data, company activity and interview findings. Standalone drives, downstream equipment value, overlapping revenues and unsupported claims are removed before final reconciliation.

Electric Motor Market by Segments

Electric Motor Market Segmented by Product Type

• AC Motors
• DC Motors (Brushed)
• DC Motors (Brushless)

Electric Motor Market Segmented by Power Rating

• <1 HP
• 1 to 5 HP
• 5 to 10 HP
• 10 to 20 HP
• 20 to 50 HP
• 50 to 100 HP
• 100 to 300 HP
• 300 to 500 HP
• Above 500 HP

Electric Motor Market Segmented by Voltage Range

• Below 1 kV
• 1 to 10 kV
• Above 10 kV

Electric Motor Market Segmented by Application

• Pumps
• Fans
• Drives
• Compressors
• General Machinery
• Centrifugal Machinery
• Grinders
• Extruders
• Robotics
• Others

Electric Motor Market Segmented by End Use

• Transportation
• Industrial
• Residential
• Medical
• Others

Electric Motor Market Segmented by Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia and Pacific
• Middle East and Africa

Research Sources and Bibliography

• [1] International Energy Agency (2026, May 20). Global EV Outlook 2026.
• [2] Nidec Motor Corporation (2026, May 26). Nidec at EASA 2026: Featuring new high-efficiency motors plus in-stock and ready to install motors.
• [3] T&D India (2026, August 5). CG expands LV motors portfolio, launches NEXORA.
• [4] ABB (2026, May 13). ABB is first in world to offer a magnet-free IE6 motor for hazardous areas.
• [5] ABB (2026, August 11). What you need to know about the 2027 DOE efficiency mandate and NEMA Premium 4 requirements.
• [6] CnEVPost (2026, January 14). China NEV sales total 1.71 million units in Dec, bringing full-year 2025 sales to 16.49 million.
• [7] Xinhua (2026, June 26). Tianjin plant of German motor company Innomotics starts operation.
• [8] International Federation of Robotics (2026, September 24). Five Million Robots now Operate in Factories Globally.
• [9] Railway Gazette International (2026, February 12). Alstom among bidders for Riyadh metro Line 7.
• [10] International Mining (2026, June 26). WEG signs agreement to supply 600 electric motors for Thacker Pass.
• [11] Robotics 24/7 (2026, June 21). Automate 2026: Regal Rexnord to highlight integrated motion technologies for robotics and factory automation.
• [12] TECO Electric & Machinery Co., Ltd. (2026, April 14). TECO Expands into Agricultural and Commercial Drone Markets, Unveils a New-Generation High-Power E-Bus Powertrain System with a Hair-Pin Oil-Cooled Motor.
• [13] Toshiba International Corporation (2026, September). EQP Global Motor Series.
• [14] electrive.com (2026, June 10). Mercedes-Benz begins axial flux motor production in Berlin.

This bibliography is provided for reader reference and is not exhaustive. The full FMI report contains the complete reference list and detailed citations.

This Report Answers

• What will the Electric Motor Market size be in 2026, and what value will FMI forecast for 2036?
• Which replacement, efficiency and electrification needs will keep supporting demand for electric motors?
• Why will pumps hold the leading position within the Application category?
• Why will AC motors lead the Product Type category through 2036?
• How will growth rates differ across China, ASEAN, the U.S., Japan, and GCC Countries till 2036?
• How will IE4 rules and IE5 and IE6 designs change motor replacement decisions?
• How will copper, steel and magnet prices affect supplier margins and retrofit timing?
• How will electric vehicles and robots add new motor volume?
• What will plant engineers need to check before approving a new motor supplier?