Electric Motor Market

Electric Motor Market Research, 2032

The global electric motor market size was valued at $142.2 billion in 2020, and is projected to reach $373.9 billion by 2032, growing at a CAGR of 9.5% from 2023 to 2032. An electric motor is an electromechanical device that transforms electrical energy into mechanical rotational energy. Widely employed across diverse applications, these motors range from small household items like fans, electric shavers, and washing machines to industrial equipment such as robots and pumps. Motors are primarily categorized based on the type of electricity they utilize, including AC (Alternating Current) and DC (Direct Current).

The electric motor market is negatively impacted by the economic slowdown triggered by the war in Ukraine and the impact of the coronavirus pandemic. Furthermore, the slowdown in the global automotive industry and fluctuating prices of raw materials are limiting the electric motor market growth.

Market Dynamics

The electric motor market is primarily driven by various factors such as a rise in the demand for new vehicles, electric vehicles, home appliances, industrial machinery, and all other products that make significant use of electric motors. Global population growth has been an instrumental factor in the growth of various industrial and non-industrial sectors including the automotive industries. For example, despite the ongoing economic uncertainties in 2023, many consumers began to make purchases that had been put off during the COVID-19, which bolstered car sales. For instance, in the first half of 2023, Chinese auto sales grew by 9.8%. Similarly, in India, passenger vehicle sales rose by 27%, while commercial vehicle sales grew by 16%. The automotive industry is a major consumer of electric motors. On average, a typical car has nearly 40 electric motors. In addition, the rising fuel prices and rising concerns related to environment degradation have bolstered the demand for electric vehicles.

Moreover, the number of new residential and commercial buildings, development of water supply pipelines, increase in the number of wastewater treatment facilities, public agriculture irrigation systems, and other infrastructure in developing economies is rising eventually driving the demand for electric motors for pumping purpose. In addition, the rise in the number of industrial facilities including food and beverages, chemical and petrochemicals, pharmaceuticals, and other industrial facilities globally, also positively affects the electric motor market growth. Moreover, a rise in demand for electric motor has been witnessed in heating, ventilation, and air conditioning (HVAC) applications, owing to features such as high torque and lower noise level. According to the International Energy Agency (IEA), around 40% of electricity is being used for power electric motors. In addition, the electric motor is more efficient, lightweight, and has a high operating speed. In addition, the rise in demand for higher efficiency permits electric motors to be made lighter, compact, and silent drives the demand for electric motor in sectors such as HVAC. It is noted that HVAC systems with electric motors have seasonal energy efficiency ratio (SEER) ratings of 13 and higher, which makes them up to 30% more efficient than systems with their brushed counterparts. All these factors collectively drive the growth of the global electric motor market. The cost of an electric motor essentially depends on factors such as the materials used for manufacturing and labor and other costs. The commonly used materials are copper, aluminum, cast iron and steel. The prices of these materials keep fluctuating and since COVID-19, the average prices of metals such as copper and steel have remained higher leading to increased cost of final product that is motors. Furthermore, various other components such as electronic switching controller to switch the voltage to the motor coils in synchronization with the motor’s rotation and others also add significantly to the final price of a motor.

Companies are increasingly participating in government-led energy management programs. By participating in such programs, apart from contributing to national energy and carbon savings, businesses directly take advantage from lower costs, reduced exposure to fluctuations in energy prices, and increased competitiveness. After 1st July 2023, implementation of stringent regulations for deployment of IE4 motors may be expected in industrial applications. Moreover, the U.S. has amended and implemented the Energy Policy and Conservation Act in the country which is effective from September 29, 2023. This act prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including electric motors. The introduction of such standards which promote the development of energy efficient electric motors are expected to be an opportunity for growth for the key players which are constantly innovating their products.

The electric motor market witnessed various obstructions in its regular operations due to the COVID-19 pandemic and inflation. Earlier, the global lockdowns resulted in reduced industrial activities, eventually leading to reduced demand for electric motors from various sectors such as automotive and industrial. However, COVID-19 has subsided, and the major manufacturers in 2023 are performing well. Contrarily, the economic slowdown is a new major obstructing factor for the entire industry. The inflation, which is a direct result of the Ukraine-Russia war and few long-term impacts of the coronavirus pandemic, has introduced volatility in the prices of raw materials used for manufacturing electric motors. In addition, the cost of oil & gas has also increased substantially, and many countries; especially, the countries in Europe, Latin America, North America, and Sub-Saharan Africa experience negative impacts in industrial production, including the production of electric motor. However, India and China are performing relatively well. In addition, economic slowdown is expected to worsen in the coming years, as the possibility of the ending of the war between Ukraine and Russia is less.

Segmental Overview

The electric motor market is segmented into Motor type, Component and Application. 

On the basis of motor type, the market is divided into alternate current (AC) motor and direct current (DC) motor. Depending on component, the market is categorized into rotor, stator, bearings, frame, end-bracket, and others. By application, the market is divided into automobile-traction motor, automobile-non traction motor, HVAC, medical equipment, industrial machinery, home appliances, and others. Region-wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

By type: The electric motor market is divided into alternate current (AC) motor, and direct current (DC) motor. In 2020, the AC motor segment held the largest electric motor market share, in terms of revenue, and the same segment is expected to grow with a higher CAGR during the forecast period. An alternating current (AC) motor converts electric energy into mechanical energy. The major reason for the utilization of AC motors is the easy availability of AC power. In addition, these motors can be designed and built easily with a variety of features, and different sizes ranging from a few watts to thousand kilowatts. They are mainly used in industrial applications, aerospace, compressors, and machine tools. Furthermore, AC motors are classified as synchronous and induction motors based on working characteristics.

By component: The electric motor market is divided into rotor, stator, bearings, frame, end-bracket, and others. In 2020, the rotor segment dominated the electric motor market, in terms of revenue, and the same segment is expected to witness growth at a higher CAGR during the forecast period. The rotor is necessary because it is responsible for transforming electrical energy into mechanical energy. Without a rotor, the motor would not be able to perform the desired function of converting electrical power into useful mechanical work or motion. Different types of motors, such as induction motors and synchronous motors, have different rotor designs, but they all serve the fundamental purpose of facilitating the conversion of energy in an electric motor.

By application: The electric motor market is categorized into automobile - traction motor, automobile - non-traction motors, HVAC, medical equipment, industrial machinery, household appliances, and others. The automobile - traction motor segment accounted for the highest market share in terms of revenue in 2020 mainly due to the increase in adoption of electric vehicles (EVs), and hybrid vehicles. Moreover, the same segment is expected to grow with the highest CAGR during the forecast period.

By region: Asia-Pacific accounted for the highest market share in 2022 and LAMEA is expected to grow with a highest CAGR during the forecast period. Asia-Pacific is a highly developing region with the fastest growing population. According to the United Nations, nearly two-thirds of the world population resides in Asia-Pacific, with China and India alone accounting for one-third of the global population. In addition, the rate of urbanization in Asia-Pacific is also high. Thus, owing to high population growth and urbanization in the region, the industrial, automotive, and household sectors witness a rapid rise, thereby, demand for electric motors, which are extensively used in these sectors is anticipated to rise in the coming years. However, the manufacturing sector in LAMEA has a greater potential for growth, which is anticipated to be a major reason for the rise in demand for electric motors. In addition, countries in LAMEA have large concentrations of oil & gas, which are further expected to enhance the growth potential of the electric motor market in the region.

Competition Analysis

Key companies profiled in the electric motor market forecast report include ABB, Denso Corporation, Emerson Electric Co., Johnson Electric Holdings Limited, Maxon, NIDEC CORPORATION, Regal Rexnord Corporation, Rockwell Automation Inc., Siemens AG, and Arc Systems Inc.

The major players that operate in the global market have adopted key strategies such as acquisition, business expansion, product launch, and other strategies to strengthen their market outreach and sustain the stiff competition in the market. For instance, in July 2023, Innomotics has been established as a distinct legal entity in Germany. This entity, which is the subsidiary of Siemens AG, unifies the diverse business operations of the motors and large drives supplier, incorporating activities related to low- to high-voltage motors, geared motors, medium-voltage converters, motor spindles, and associated project and service offerings, all under one umbrella. Moreover, in September 2023, Rockwell Automation, Inc. and Infinitum, the innovator behind sustainable air core motor technology, have entered into an exclusive agreement to collaboratively develop and distribute an innovative class of high efficiency, integrated low voltage drive and motor technology. This groundbreaking solution is anticipated to bring substantial energy savings and cost reductions for industrial customers worldwide, facilitating a reduction in their carbon footprint and promoting sustainability.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the electric motor market analysis from 2020 to 2032 to identify the prevailing electric motor market opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the electric motor market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global electric motor market trends, key players, market segments, application areas, and market growth strategies.

 Electric Motor Market Report Highlights