Energy Efficient Motor Market Expected to Reach $119.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Energy Efficient Motor Market," The energy efficient motor market size was valued at $48.5 billion in 2022, and is estimated to reach $119.1 billion by 2032, growing at a CAGR of 9.5% from 2023 to 2032.

Energy efficient motors have improved manufacturing procedures and superior materials, as well as longer bearing lifetimes, greater service factors, reduced waste heat output, and less vibration, all of which promote dependability. Efficient electric motors gain higher efficiency by minimizing losses, which account for just 3-6% of the energy flowing through the motor. Efficient electric motors have the ability to minimize emissions related with energy savings through variable speed drive (VSD). The primary function of a VSD is to regulate the speed of a motor based on the load. The addition of the VSD assists in the optimization of the overall system's efficiency. Efficient energy motors are slightly more expensive than ordinary motors.

Energy-efficient motors are used in a variety of industries, including the industrial, commercial, residential, and agricultural sectors, among others. Higher efficiency of these motors, along with reduced maintenance costs, has resulted in an increase in demand for a variety of applications. This technology has been constantly improved with the goal to minimize power usage. It has immediately extended its uses in material handling, material processing, and HVAC, pumps, among others. Government regulations also offer additional incentives for manufacturers to follow standards like Minimum Energy Performance Standards and Environment Protection Act in motor production. Growing environmental concern is also encouraging the use of energy-saving technologies in a variety of applications. All these factors are predicted to drive the energy efficient motor market growth during the forecast period.

However, the high cost of extremely premium efficiency (IE4) motors is expected to hinder industry expansion. When compared to normal motors, the initial cost of energy-efficient motors is higher. IE4 motors are more costly due to the use of premium materials and enhanced manufacturing and design procedures to improve efficiency. The rotors of these motors use larger-diameter copper wires and more aluminum to reduce resistance losses. A better cooling fan is used as well to reduce winding losses. The use of high-end, costly materials increases the overall cost of these various types of motors. All these factors are anticipated to restrict the growth of the energy efficient motor market forecast period.

Leading market players are constantly innovating to maintain their competitive edge. The energy efficient motor market shares illustration showcases the revenue distribution among key companies. Acquisitions, partnerships, and collaborations are pivotal strategies driving growth and expansion of the market. This presents an opportunity for the energy efficient motors market to grow and innovate. In May 2022, ABB India announced the launch of Flameproof Motors, a low voltage flameproof motors family designed for safe use in potentially explosive environments. The newly launched products offer essential advantages such as low vibration levels, increased dependability, and less maintenance requirements for a lower cost of ownership. These factors are anticipated to boost the energy efficient motor market opportunities  in the upcoming years.

The energy efficient motor market share is segmented on the basis of type, product type, application, end user and region. By type, it is classified into super premium-IE4, premium-IE3, high-IE2, and standard-IE1. By product type, it is classified into AC motor and DC motor. By application, it is classified into pumps, fans, compressed air, refrigeration, material handling, and material processing. By end user, it is classified into industrial, commercial, residential, agriculture sector, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the energy efficient motor market analysis report include ABB Ltd, Crompton Greaves, General Electric, Honeywell International, Inc., Kirlosakar Electric Company, Ltd, Microchip Technology, Inc., Magneteck, Inc., Johnson Controls Inc., Simens AG, and Weg S.A.

The report offers a comprehensive analysis of the global energy efficient motor market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights on the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Energy Efficient Motor Industry

• The COVID-19 pandemic had a significant impact on the global energy-efficient motor industry. Initially, the industry faced challenges such as disrupted supply chains, labor shortages, and reduced production capacities due to lockdowns and restrictions in various regions. This resulted in delays in manufacturing and delivery of energy-efficient motors.
• The economic downturn caused by the pandemic led to a temporary reduction in demand for these motors, especially in sectors like manufacturing and construction, which were hit hard by the crisis. Industries were in an effort to cut costs, postpone or cancel capital expenditure projects, affecting the adoption of energy-efficient motors.
• The pandemic highlighted the importance about energy efficiency, prompting a surge in the adoption of energy-efficient motors across various sectors. Companies sought ways to cut operational costs, and energy-efficient technologies proved instrumental in achieving these savings.

Key Findings of the Study

• Based on type, the super premium-IE4 sub-segment emerged as the global leader in 2022 and the premium-IE3 sub-segment is anticipated to be the fastest growing during the forecast period.
• Based on product type, the AC motor sub-segment emerged as the global leader in 2022 and the DC motor sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on application, the pumps sub-segment emerged as the global leader in 2022 and the fans sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on end user, the industrial pumps sub-segment emerged as the global leader in 2022 and it is predicted to show the fastest growth in the upcoming years.
• Based on region, North America registered the highest market share in 2022 and Asia-Pacific is predicted to show the fastest growth in the upcoming years