The global sale of electric motors is estimated to be worth USD 141.6 billion in 2024 and is anticipated to reach a value of USD 268.2 billion by 2034. Sales are projected to rise at a CAGR of 6.6% over the forecast period between 2024 and 2034. The revenue generated by electric motors in 2023 was USD 132.8 billion. The industry is predicted to exhibit a Y-o-Y growth of 6.7% in 2024.
This projected growth indicates a value growth of nearly 1.9X from the current value over the study period. The electric motor demand is set for substantial growth, propelled by several influential factors. The rising emphasis on energy efficiency and environmental sustainability is driving increased demand for advanced electric motors, particularly those offering high performance and lower emissions.
Innovations in motor technology, such as the development of compact and lightweight designs, are attracting attention across diverse sectors, including automotive and aerospace. The expansion of renewable energy projects, like wind and solar, is creating new opportunities for electric motors.
Additionally, the surge in electric vehicle adoption is amplifying the need for specialized motors. Recent advancements, including Siemens' progress in smart motor technology and enhancements in electric vehicle drivetrains, are reshaping industry dynamics. Together, these factors are fueling the robust growth of the electric motor market globally.
| Attributes | Key Insights |
|---|---|
| Estimated Value (2024) | USD 141.6 billion |
| Projected Size (2034) | USD 268.2 billion |
| Value-based CAGR (2024 to 2034) | 6.6% |
The electric motor demand is characterized by diverse demand across its segments. Motors with power outputs of less than 1HP and 1-5HP are prevalent, primarily used in small appliances and light machinery such as home vacuum cleaners and office equipment.
These motors are valued for their cost-effectiveness and reliability in lower-power applications. On the other hand, motors with power outputs exceeding 500HP are essential for heavy-duty applications, including large-scale industrial machinery and equipment in mining operations.
AC motors are a major segment, with induction motors being widely adopted due to their robustness and efficiency in industrial applications like automated conveyor systems. In contrast, brushless DC (BLDC) motors are increasingly utilized in areas requiring high precision and minimal maintenance, such as in sophisticated medical instruments and advanced robotics.
Pumps and compressors are leading applications in the electric motor market. Pumps are critical in agricultural and water treatment systems, while compressors are integral to refrigeration in commercial facilities. As technology progresses, applications in electric vehicle drives and industrial automation are expanding.
The industrial sector remains the largest consumer of electric motors, driven by needs in oil & gas, power generation, and mining. This sector's demand reflects the necessity for reliable motors in challenging environments. The transportation sector, including electric vehicles and railways, is also growing, driven by the push for enhanced performance and environmental sustainability.
The annual growth rates of the electric motors market from 2024 to 2034 are illustrated below in the table. Starting with the base year 2023 and going up to the present year 2024, the report examined how the industry growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
This gives stakeholders a comprehensive picture of the sector’s performance over time and insights into potential future developments.
The table provided shows the growth of the sector for each half-year between 2023 and 2024. The market was projected to grow at a CAGR of 6.2% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable increase in the growth rate.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 6.2% (2023 to 2033) |
| H2 2023 | 6.6% (2023 to 2033) |
| H1 2024 | 6.4% (2024 to 2034) |
| H2 2024 | 6.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected as 6.4% in the first half and grow to 6.8% in the second half. In the first half (H1) as well as in the second half the market witnessed an increase of 20 BPS.
The global push towards energy efficiency is driving significant demand for high-efficiency electric motors across various industries.
The global push towards energy efficiency, driven by stringent regulations and environmental concerns, is significantly boosting the demand for energy-efficient electric motors. Governments across the world, especially in regions like Europe and North America, are implementing strict energy consumption standards for industrial machinery and household appliances.
This is compelling manufacturers to adopt electric motors with higher efficiency ratings, such as IE3 and IE4 motors. For example, the European Union’s Ecodesign Directive mandates minimum energy performance standards, driving the adoption of high-efficiency motors across industries.
The industrial sector, being a major consumer of electric motors, is increasingly focusing on upgrading to energy-efficient solutions to reduce operational costs and carbon footprints. As industries continue to prioritize sustainability, the demand for these advanced electric motors is expected to grow, positioning energy efficiency as a key driver in the global market.
The rapid adoption of electric vehicles globally is significantly increasing the demand for advanced electric motors.
The rapid adoption of electric vehicles (EVs) is a major driver for the electric motor sales. With governments worldwide pushing for reduced carbon emissions, the shift from internal combustion engine vehicles to EVs is accelerating. Countries like China, the USA, and several European nations are offering incentives and subsidies to boost EV sales, which in turn is increasing the demand for electric motors.
Tesla, for instance, uses multiple electric motors in its vehicles to optimize performance and range. Additionally, traditional automakers like Volkswagen and Ford are heavily investing in EV development, further fueling the need for high-performance electric motors. As the global automotive industry transitions towards electrification, the demand for efficient, lightweight, and powerful electric motors is expected to soar, making EV adoption a critical driver for the growth.
The global expansion of renewable energy projects is creating substantial opportunities for electric motor manufacturers in the wind and solar power sectors.
The expansion of renewable energy projects presents a significant opportunity for the demand of electric motors. With the global transition towards sustainable energy sources like wind, solar, and hydropower, the demand for electric motors in these sectors is rising. Electric motors are crucial in wind turbines for converting kinetic energy into electricity and in solar power systems for tracking solar panels.
For example, the increasing installation of wind turbines in offshore wind farms, particularly in Europe and China, is creating a substantial demand for high-efficiency electric motors. Additionally, as more countries commit to ambitious renewable energy targets, the need for electric motors in these applications will continue to grow.
Companies that innovate to meet the specific requirements of renewable energy systems, such as durability and efficiency, are well-positioned to capitalize on this expanding growth opportunity.
Rising Adoption of Compact and Lightweight Electric Motors.
The growing demand for compact and lightweight electric motors is emerging as a significant trend in the market, driven by the need for efficiency and space optimization across various applications. As industries strive to enhance performance while minimizing energy consumption, there is a shift towards motors that offer the same or improved power output in a smaller, lighter package.
This trend is particularly prominent in sectors like automotive, aerospace, and consumer electronics. For instance, the rise of electric vehicles (EVs) has heightened the demand for compact motors that contribute to reducing vehicle weight, thereby increasing range and efficiency. Companies like Nidec Corporation are developing ultra-compact motors designed for use in EVs and drones, where weight is a critical factor.
Additionally, in consumer electronics, compact motors are enabling the development of sleeker and more portable devices. As industries continue to innovate, the emphasis on compact and lightweight electric motors is expected to grow, driving advancements in materials and design technologies to meet these evolving demands.
The high initial costs and complex installation processes associated with advanced electric motors are restraining their widespread adoption in price-sensitive areas.
A significant challenge in the demand of electric motors is the initial investment and intricate installation requirements for advanced electric motors. Despite offering long-term operational savings, these energy-efficient and smart motors have much higher upfront costs compared to conventional models. Furthermore, installing these sophisticated motors often necessitates specialized expertise and equipment, adding to the overall expense.
This issue is particularly pronounced for small and medium-sized enterprises (SMEs) in emerging markets, where financial constraints and limited technical skills can impede adoption.
For instance, in the industrial sector, upgrading to high-efficiency motors may require extensive retrofitting of existing systems, which can be both labor-intensive and costly. These barriers can slow the pace of adoption, particularly in markets sensitive to price, thus restraining the broader growth of the demand for electric motors.
The electric motors recorded a CAGR of 5.6% during the historical period between 2019 and 2023. The growth of electric motors was positive as it reached a value of USD 132.8 billion in 2023 from USD 106.8 billion in 2019.
Between 2019 and 2023, the global electric motor sales experienced significant fluctuations, influenced by several macroeconomic and industry-specific factors. The COVID-19 pandemic had a substantial impact, causing supply chain disruptions, factory shutdowns, and a decline in industrial activities, which directly affected the production and sales of electric motors.
The market saw a sharp decline in demand during 2020 as global manufacturing output slowed, particularly in sectors like automotive, industrial machinery, and appliances. However, recovery began in 2021, driven by the reopening of economies, government stimulus packages, and a resurgence in manufacturing activities, especially in key regions like China, the USA, and Europe.
From 2024 to 2034, the global sale of electric motors is expected to experience steady growth, propelled by ongoing advancements in industrial automation, electrification of transport, and the transition towards renewable energy.
The increasing adoption of electric vehicles (EVs), coupled with the growth in renewable energy projects such as wind and solar power, will be key drivers for the demand for electric motors. Additionally, the trend towards energy efficiency in industrial applications will spur demand for advanced electric motors with higher efficiency and lower energy consumption.
The anticipated shift towards electrification across various industries, including transportation, manufacturing, and energy, will shape the future demand for electric motors. Even as traditional sectors stabilize, new opportunities are emerging in areas like electric aircraft, autonomous vehicles, and smart grid technologies.
Manufacturers are likely to focus on innovation, developing electric motors that are not only efficient but also adaptable to a wide range of applications and future technologies. This focus on versatility and sustainability will be crucial in driving the growth over the forecast period.
Tier 1 companies include industry leaders with annual revenues exceeding USD 1,500 billion. These companies are capturing a share of 10-15% globally. These frontrunners are characterized by high production capacity and a wide product portfolio. These tier I players include General Electric, Robert Bosch GmbH, Hitachi, Ltd. And Nidec Corporation.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 500 to 1,500 billion, holding a presence in specific regions and exerting significant influence in local economies. These players contribute nearly 12-15% of the share.
These firms are distinguished by their robust presence overseas and in-depth industry expertise. They possess strong technology capabilities and adhere strictly to regulatory requirements. Some of the players include Siemens AG, WEG S.A., ABB Group, Regal Beloit Corporation, Toshiba Corporation, and others.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 500 billion and contributing nearly 70-75% of the share. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. Tier 3 includes manufacturers such as Schneider Electric SE, Bonfiglioli Riduttori S.pnson Electric.A., Kirloskar Electric Company Ltd., Allied Motion Technologies Inc., and other regional and local players.
The section below covers the industry analysis for electric motor sales in different countries. The demand analysis on key countries in several regions of the globe, including North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East, and Africa is provided.
China is set to capture 72.7% of the East Asia electric motor market, driven by its extensive manufacturing capabilities and advancements in electric vehicles and renewable energy technologies.
The USA will hold a 64.5% share in North America, fueled by its strong electric vehicle development and sophisticated motor production infrastructure. Germany is expected to lead Western Europe with a 22.0% share, supported by its engineering expertise and focus on high-efficiency motor technologies.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| The USA | 6.2% |
| Japan | 6.0% |
| Germany | 5.6% |
| India | 5.4% |
| China | 5.3% |
The sale of electric motors in China is projected to grow at a 5.3% CAGR by 2034. China's dominance in the demand of electric motors is largely attributed to its robust manufacturing infrastructure and swift technological progress. Significant investments in electric vehicle production, demonstrated by companies such as BYD and NIO, drive innovation in motor technology.
The expansion of renewable energy projects, including large-scale wind and solar installations, fuels the demand for high-performance electric motors. Supportive government policies and a growing electric vehicle infrastructure further enhance China’s position as a leading force in the global electric motor sector.
The sales in the USA are projected to grow at a 6.2% CAGR. In the USA, the electric motor demand benefits from a strong emphasis on energy efficiency innovations and a rapidly expanding technology sector. The development of high-efficiency motors tailored for data centers, which require precise cooling and energy management, reflects this trend.
The surge in smart home technologies and the Internet of Things (IoT) also stimulates demand for electric motors with advanced control systems. Additionally, significant investment in high-performance electric motor research for aerospace applications, such as the USA Air Force's initiatives, highlights the country’s focus on next-generation motor technologies.
The sale of electric motors in Germany is projected to grow at a CAGR of 5.6% by 2034. Germany stands out in the sale of electric motors due to its exceptional precision engineering and innovative integration with renewable energy sources. The country is at the forefront of developing high-performance motors for cutting-edge automotive and rail applications, leveraging its deep engineering expertise.
Furthermore, Germany’s emphasis on incorporating electric motors into advanced energy storage systems, like those used for stabilizing renewable energy grids, underscores its commitment to sustainability. These advancements solidify Germany’s influential role in driving the demand for electric motors.
The section explains the growth trajectories of the leading segments in the industry. In terms of power output type, the above 500 HP type will likely dominate and generate a share of around 29.1% in 2024.
Based on the product type, the AC electric motor segment is projected to hold a major share of 72.1% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Above 500 HP (Power Output) |
|---|---|
| Value Share (2024) | 29.1% |
The dominance of electric motors above 500 HP in the market is driven by their essential role in large-scale industrial projects and advanced energy applications. These high-power motors are crucial for powering industrial-grade equipment, such as large centrifugal pumps used in petrochemical refineries and water treatment facilities.
The expansion of mega-scale data centers, which require robust cooling systems, also drives demand for high-capacity electric motors to handle massive HVAC systems efficiently. Additionally, the development of next-generation electric ships and submarines, which utilize powerful motors for propulsion and onboard systems, underscores their importance in cutting-edge maritime technology.
| Segment | AC Motor (Product Type) |
|---|---|
| Value Share (2024) | 72.1% |
The dominance of AC motors in the market stems from their versatile applications and cost advantages in high-demand industries. In automotive manufacturing, AC motors power large robotic arms used in assembly lines, enabling precision and reliability in mass production.
The use of AC motors in commercial refrigeration units, such as those in supermarket cold storage, highlights their efficiency and durability in temperature control applications.
Furthermore, the integration of AC motors in water pumping stations for municipal water supply demonstrates their capability to handle high loads and continuous operation. Their cost-effectiveness is evident in widespread adoption in both new installations and system upgrades, enhancing operational efficiency and reducing long-term expenses.
Key companies manufacturing electric motors slightly consolidate the market with about 20-25% share that are prioritizing technological advancements, integrating sustainable practices, and expanding their footprints in the region. Customer satisfaction remains paramount, with a keen focus on tailoring machines to meet diverse automotive industry needs.
These industry leaders actively foster collaborations to stay at the forefront of innovation, ensuring their electric motors align with the evolving demands and maintain the highest standards of quality and adaptability.
Recent Industry Developments
The power output segment is further categorized into <1HP, 1-5HP, 5 - 10 HP, 10 -20 HP, 20 - 50 HP, 50 - 100HP, 100 - 300 HP, 300 - 500HP, and Above 500HP.
The Product Type segment is classified into AC Motor and DC Motor.
The application segment is categorized into Pumps, Fans, Drives, Compressors, General Machinery, Centrifugal Machinery, Grinders, Extruders, Robotics, and Others.
The application segment is categorized into Industrial, Residential, HVAC & Refrigeration, Medical, Municipal Water Treatment, Transportation, and Others.
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East and Africa.
The electric motors used in automobiles were valued at USD 132.8 billion in 2023.
The demand for electric motors is set to reach USD 141.6 billion in 2024.
The rising demand for HVAC systems, and growth in the penetration of green vehicles in developing economies to drive the demand for electric motors during the forecast period.
The electric motor demand is projected to reach USD 268.2 billion by 2034.
AC electric motors are expected to lead during the forecast period.
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