The electric motor market is estimated to be valued at USD 150.9 billion in 2025. It is projected to reach USD 285.9 billion by 2035, registering a compound annual growth rate (CAGR) of 6.6% over the forecast period.
| Metric | Value |
|---|---|
| Estimated Size (2025E) | USD 150.9 billion |
| Projected Value (2035F) | USD 285.9 billion |
| CAGR (2025 to 2035) | 6.6% |
The market is projected to add an absolute dollar opportunity of USD 135.1 billion over the forecast period. This reflects a 1.9 times growth at a compound annual growth rate of 6.6%. The market's evolution is expected to be shaped by rapid electric vehicle adoption, industrial automation expansion, renewable energy infrastructure development, and rising energy efficiency mandates, particularly where high-performance and sustainable motor solutions are required.
By 2030, the market is projected to reach USD 207.7 billion, accounting for USD 56.8 billion in incremental value over the first half of the decade. The remaining USD 79.2 billion is expected to be realized during the second half, suggesting a moderately accelerated growth pattern. Product innovation in brushless DC motors, smart connectivity, and energy-efficient designs is gaining traction.
Companies such as Nidec Corporation and Robert Bosch GmbH are advancing their competitive positions through investment in electric vehicle motor technology, industrial automation solutions, and global manufacturing networks. Rising EV adoption, expanding renewable energy projects, and stringent energy efficiency regulations are supporting expansion across automotive, industrial, HVAC, and renewable energy applications. Market performance will remain anchored in energy efficiency standards, reliability benchmarks, and technological innovation capabilities.
The market holds a significant and rapidly growing share across its parent markets. Within the global industrial machinery market, it accounts for 12.8% due to its essential role in automation and manufacturing processes. In the automotive electrification segment, it commands a 35.7% share, supported by electric vehicle expansion and automotive manufacturing requirements. It contributes nearly 18.9% to the renewable energy equipment market and about 22.4% to the energy-efficient industrial equipment segment. In smart manufacturing systems, electric motors hold around 16.2% share, driven by Industry 4.0 integration and automation requirements. Across the HVAC equipment market, its share is close to 28.6%, owing to its position as a core component in heating, ventilation, and air conditioning systems.
The market is undergoing a strategic transformation driven by rising demand for brushless DC motors, IoT integration, and high-efficiency motor technologies. Advanced technologies such as permanent magnet synchronous motors, variable frequency drives, and intelligent control systems have enhanced performance, energy efficiency, and operational reliability, making electric motors essential components across diverse industrial and consumer applications. Manufacturers are introducing specialized motor solutions, including fractional horsepower motors for precision applications, high-power motors for industrial machinery, and traction motors tailored for electric vehicles, expanding their role beyond traditional applications to comprehensive electrification solutions. Strategic collaborations between motor manufacturers and technology companies have accelerated innovation in smart features and market penetration.
The electric motor market’s growth is driven by accelerating electric vehicle adoption, industrial automation expansion, and renewable energy infrastructure development, making it an attractive technology category for manufacturers and end-users seeking efficient and sustainable power solutions. The growing emphasis on energy efficiency, carbon emission reduction, and smart manufacturing systems appeals to industries prioritizing operational excellence, environmental sustainability, and technological advancement.
Growing awareness of energy efficiency benefits, smart motor control systems, and variable speed drive integration is further propelling adoption, particularly in automotive, industrial manufacturing, and renewable energy applications. Rising investments in electric vehicle infrastructure, expanding renewable energy projects, and continuous technological innovation are also enhancing market accessibility and industrial adoption.
As electric vehicle penetration and industrial automation accelerate across global markets and sustainability becomes increasingly important, the market outlook remains highly favorable. With industries prioritizing energy efficiency, operational reliability, and environmental compliance, electric motors are well-positioned to expand across various automotive, industrial, residential, and renewable energy applications.
The market is segmented by product, power output, application, end-use industry, and region. By product, the market is bifurcated into AC motors (induction and synchronous) and DC motors (brushed and brushless). Based on power output, the market is categorized into <1HP, 1-5HP, 5-10HP, 10-20HP, 20-50HP, 50-100HP, 100-300HP, 300-500HP, and above 500HP. In terms of application, the market is segmented into pumps, fans, drives, compressors, general machinery, centrifugal machinery, grinders, extruders, robotics, and others. By end-use industry, the market is divided into industrial (oil & gas, power generation, mining, food & beverages, pulp & paper, chemicals, air separation plant, and other manufacturing), residential, HVAC & refrigeration, medical, municipal water treatment, transportation (automotive, aviation, electric vehicles, railways, and boats), and others. Regionally, the market is classified into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
The AC motors segment holds a dominant position with 70% of the market share in the product category, owing to their superior reliability, cost-effectiveness, and widespread compatibility with industrial power systems that enable consistent performance across diverse applications. AC motors are extensively used across industrial and commercial settings due to their robustness, low maintenance requirements, and ability to operate efficiently with standard electrical infrastructure.
They enable industries to achieve reliable operational performance while maintaining excellent energy efficiency and durability in demanding industrial environments. As demand for industrial automation, energy-efficient systems, and reliable motor solutions grows, the AC motor segment continues to gain preference in both traditional manufacturing and modern smart factory environments.
Manufacturers are investing in advanced AC motor technologies, including high-efficiency induction motors and intelligent control systems, to enhance performance, expand application versatility, and improve operational outcomes. The segment is poised to grow further as global industrial automation preferences favor proven AC motor technologies and energy efficiency standards become more stringent.
Industrial applications remain the core market segment with 45% of the market share in 2025, as they provide essential power solutions for manufacturing processes, industrial machinery, and automated systems that form the backbone of modern industrial operations. Their functional versatility supports various industrial applications, including pumps, compressors, conveyor systems, and process equipment, making them indispensable for industrial productivity and automation.
Industrial electric motors also ensure consistent operational performance, energy efficiency, and reliability in challenging industrial environments, while offering scalable power solutions suitable for diverse manufacturing requirements. This makes them essential in contemporary industrial automation and process optimization environments.
Ongoing demand for industrial automation and the efficiency required for modern manufacturing operations are key trends driving the sustained relevance of industrial applications in this motor category.
In 2024, global electric motor adoption grew by 6.7% year-on-year, with Asia-Pacific and North America taking significant market shares. Applications include electric vehicle propulsion, industrial automation, renewable energy systems, and HVAC equipment. Manufacturers are introducing specialized motor technologies and smart connectivity options that deliver superior performance and energy efficiency. Brushless DC motor formulations now support precision control positioning. Evidence-based energy efficiency studies and performance reliability data support industrial confidence. Technology providers increasingly supply ready-to-use smart motor systems with integrated control electronics to reduce implementation complexity.
Electric Vehicle Adoption Accelerates Electric Motor Market Demand
Automotive manufacturers and suppliers are choosing advanced electric motors to achieve superior vehicle performance, enhance energy efficiency, and meet growing demands for electric vehicle electrification. In performance tests, brushless DC motors deliver up to 95% efficiency compared to traditional internal combustion engines at 25-30% efficiency levels. Motors equipped with permanent magnet technology maintain optimal performance throughout extended operational periods and diverse driving conditions. In automotive applications, integrated motor control systems help reduce energy consumption while maintaining safety standards by up to 40%. Smart connectivity applications are now being deployed for vehicle performance monitoring, increasing adoption in sectors demanding comprehensive electrification solutions.
Cost Pressures, Raw Material Constraints and Competition Limit Growth
Market expansion is constrained by higher costs of advanced motor technologies, raw material price volatility, and competition from conventional mechanical systems. High-efficiency motor prices can range from 20-40% higher than standard models, depending on technology selection and performance requirements, impacting adoption rates and leading to delayed upgrades in cost-sensitive applications. The dependency on rare earth materials restricts scalable production capacity, increasing supply chain risks by 15-25% for permanent magnet motor manufacturing. Competition from alternative technologies adds complexity to market positioning, especially for traditional applications with established mechanical solutions. Limited awareness of the total cost of ownership benefits restricts widespread adoption, particularly in price-sensitive markets and conventional industrial sectors.
| Countries | CAGR (2025 to 2035) |
|---|---|
| Japan | 8.5% |
| China | 7.0% |
| France | 6.8% |
| Brazil | 6.5% |
| UK | 6.4% |
| Germany | 6.2% |
| USA | 6.0% |
In the electric motor market, Japan leads with the highest projected CAGR of 8.5% from 2025 to 2035, driven by advanced manufacturing automation, electric vehicle adoption, and energy efficiency initiatives. China follows with a CAGR of 7.0%, supported by its dominant position in electric vehicle manufacturing and industrial automation expansion. France shows robust growth at 6.8%, benefiting from renewable energy investments and industrial modernization programs. Brazil, the UK, Germany, and the USA demonstrate consistent growth ranging from 6.0% to 6.5%, supported by established industrial bases and ongoing electrification trends, reflecting regional differences in market maturity and industrial development patterns.
The report covers an in-depth analysis of 40+ countries; seven top-performing OECD countries are highlighted below.
Revenue from electric motors in Japan is projected to grow at a CAGR of 8.5% from 2025 to 2035, significantly exceeding the global average. Growth is fueled by advanced manufacturing automation, the adoption of electric vehicles, and stringent energy efficiency regulations across major industrial centers, including Tokyo, Osaka, and Nagoya. Japanese manufacturers are increasingly adopting high-efficiency motor solutions as Industry 4.0 initiatives drive demand for precision automation equipment.
Key Statistics
The electric motor market in China is anticipated to expand at a CAGR of 7.0% from 2025 to 2035, reflecting strong industrial manufacturing dominance and electric vehicle market leadership. Growth is centered on traction motor development and industrial automation expansion in the Beijing, Shanghai, and Shenzhen regions. Advanced motor technologies, including brushless DC motors, permanent magnet motors, and smart control systems, are deployed for electric vehicle manufacturers and industrial automation companies seeking performance optimization.
Key Statistics
Sales of electric motors in France are projected to flourish at a CAGR of 6.8% from 2025 to 2035, driven by renewable energy infrastructure expansion and industrial modernization initiatives. Growth has been concentrated in wind energy projects and industrial automation upgrades in the Paris, Lyon, and Marseille regions. Industrial adoption is shifting from conventional motor systems toward high-efficiency, smart-enabled motor solutions. Renewable energy positioning and industrial automation are leading market deployment strategies.
Key Statistics
Demand for electric motors in Germany is expected to increase at a CAGR of 6.2% from 2025 to 2035, reflecting steady industrial modernization and automotive electrification trends. Demand is driven by Industry 4.0 implementation, energy efficiency mandates, and robust automotive manufacturing infrastructure in Berlin, Munich, and Stuttgart markets. German engineering excellence and precision manufacturing standards are increasingly adopted by quality-focused industrial customers seeking reliable motor solutions.
Key Statistics
Revenue from electric motors in Brazil is projected to rise at a CAGR of 6.5% from 2025 to 2035, supported by an expanding industrial base, infrastructure development, and mining sector growth. Industrial adoption in São Paulo, Rio de Janeiro, and Belo Horizonte is experiencing expansion in mining equipment, manufacturing automation, and infrastructure projects. Brazilian industries leverage cost-effective motor solutions to meet expectations for industrial productivity and energy efficiency improvements.
Key Statistics
The electric motor market in the UK is expected to grow at a CAGR of 6.5% from 2025 to 2035, reflecting post-Brexit industrial modernization with a focus on renewable energy integration and manufacturing efficiency. Growth is centered on offshore wind projects and industrial automation upgrades in the London, Manchester, and Glasgow regions. Advanced motor technologies, including high-efficiency AC motors, smart control systems, and renewable energy applications, are being deployed for energy companies and manufacturing facilities.
Key Statistics
The electric motor market in the USA is anticipated to expand at a CAGR of 6.0% from 2025 to 2035, reflecting mature market dynamics with a focus on industrial automation and electric vehicle infrastructure development. Growth has been concentrated in manufacturing modernization and EV charging infrastructure in California, Texas, and Michigan regions. Advanced motor applications are shifting from traditional industrial uses toward electric vehicle manufacturing and smart grid applications. Industrial automation and renewable energy positioning are leading market deployment strategies.
Key Statistics
The market is moderately concentrated, featuring a mix of leading industrial manufacturers, technology innovators, and specialized motor developers with varying degrees of engineering expertise, global distribution capabilities, and proficiency in market applications. Nidec Corporation leads the market with an estimated 15% share, primarily driven by its expertise in brushless DC motor technology and dominant position in precision motor applications. Robert Bosch GmbH maintains a significant market presence through innovative automotive motors, industrial automation solutions, and comprehensive product portfolios that cater to diverse industry segments.
WEG S.A., and Hitachi Ltd. differentiate through diversified industrial motor ranges, advanced engineering capabilities, and established relationships with major industrial customers that serve various power ratings and application requirements. These companies focus on specialized motor technologies, performance optimization, and comprehensive technical support programs, addressing growing demand from electric vehicle manufacturers, industrial automation companies, and renewable energy developers.
Regional specialists emphasize innovation in motor efficiency, smart connectivity, and competitive cost structures, creating value in mainstream industrial markets and specialized precision applications.
Entry barriers remain high, driven by challenges in advanced motor technology development, global manufacturing scale establishment, and compliance with stringent efficiency and safety standards across multiple industrial categories. Competitiveness increasingly depends on technological innovation capabilities, global manufacturing presence, and application expertise for diverse industrial and automotive environments.
| Items | Value |
|---|---|
| Quantitative Units (2025) | USD 150.9 Billion |
| Product | AC Motor (Induction Motor, Synchronous Motor), DC Motor (Brushed DC, Brushless DC) |
| Power Output | <1HP, 1-5HP, 5-10HP, 10-20HP, 20-50HP, 50-100HP, 100-300HP, 300-500HP, Above 500HP |
| Application | Pumps, Fans, Drives, Compressors, General Machinery, Centrifugal Machinery, Grinders, Extruders, Robotics, Others |
| End-Use Industry | Industrial (Oil & Gas, Power Generation, Mining, Food & Beverages, Pulp & Paper, Chemicals, Air Separation Plant, Other Manufacturing), Residential, HVAC & Refrigeration, Medical, Municipal Water Treatment, Transportation (Automotive, Aviation, Electric Vehicles, Railways, Boats), Others |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Countries Covered | United States, Canada, United Kingdom, Germany, France, China, Japan, South Korea, Brazil, Australia, India and 40+ Countries |
| Key Companies Profiled | Robert Bosch GmbH, Hitachi, Ltd, Nidec Corporation, WEG S.A, Siemens AG, ABB Group, Johnson Electric, Hyosung Corporation, Schneider Electric SE, Bonfiglioli Riduttori S.p.A, Kirloskar Electric Company Ltd., Allied Motion Technologies Inc, East West Manufacturing, LLC, Hyundai Electric Co. Ltd |
| Additional Attributes | Dollar sales by motor type, application, and end-use industry; regional demand trends; competitive landscape; technological advancements in efficiency and performance; integration with automation and electric mobility; sustainability initiatives; smart motor systems adoption |
The global electric motor market is estimated to be valued at USD 150.9 billion in 2025.
The market size for electric motor is projected to reach USD 285.9 billion by 2035.
The electric motor market is expected to grow at a 6.6% CAGR between 2025 and 2035.
The AC motors segment is projected to lead in the electric motor market with 70% market share in 2025.
In terms of end use, the industrial segment is projected to command 45% share in the electric motor market in 2025.
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