Electric Motor Market

Global Electric Motor Market Size 

The size of the global electric motor market was worth USD 133.82 billion in 2024. The global market is anticipated to grow at a CAGR of 5.70% from 2024 to 2033 and be worth USD 220.39 billion by 2033 from USD 141.45 billion in 2025. 

Electric motors are ubiquitous, powering everything from household appliances to complex industrial machinery, electric vehicles (EVs), and renewable energy systems. Electric motors have become indispensable in reducing carbon footprints and advancing green technologies as the world pivots toward sustainability and energy efficiency. According to the International Energy Agency, electric motors account for nearly 45% of global electricity consumption. According to the U.S. Department of Energy, industrial electric motor systems consume approximately 28% of all electricity generated globally by emphasizing their significance in energy management strategies.

In recent years, innovations in motor technology, such as permanent magnet motors and variable frequency drives that have enhanced efficiency and performance metrics. The high-efficiency motors can reduce energy losses by up to 20-30% by offering substantial environmental and economic benefits.

MARKET DRIVERS

Transition to Renewable Energy Systems

The growing prominence to adopt renewable energy source is majorly to drive the growth of the electric motor market. The electric motors are integral to renewable technologies such as wind turbines and solar tracking systems, which require precise motion control and high efficiency. According to the International Renewable Energy Agency (IRENA), renewable energy accounted for 83% of all new power capacity added globally in 2022, with wind and solar leading the charge. Wind turbines, for instance, rely on advanced electric motors for pitch control and yaw systems by enhancing operational efficiency. According to the U.S. Energy Information Administration, wind power generation in the United States alone increased by 15% in 2022 compared to the previous year by reflecting growing demand for motor-driven components. The adoption of renewable energy systems will continue to propel the demand for specialized electric motors is fostering innovation and scalability in this sector.

Stringent Energy Efficiency Regulations

The stringent regulations mandating energy efficiency are another factor that is prompting the growth of the electric motor market. Governments and international bodies are enforcing policies to curb energy consumption in industrial and commercial sectors. For example, the European Union’s Ecodesign Directive mandates that electric motors meet specific efficiency classes, such as IE3 or higher, depending on their application. Similarly, the U.S. Department of Energy has implemented minimum efficiency performance standards (MEPS) for electric motors, which are projected to save approximately 7.7 quads of energy over 30 years. These regulatory frameworks incentivize industries to adopt high-efficiency motors by reducing energy waste significantly. A study by the Lawrence Berkeley National Laboratory, compliance with MEPS could decrease global electricity demand for motor systems by up to 20%. Such measures not only drive technological advancements but also position electric motors as critical tools in achieving national and global sustainability targets.

MARKET RESTRAINTS

High Initial Costs of Advanced Motor Technologies

The high upfront costs associated with advanced electric motor technologies pose a significant restraint to market growth. Their initial purchase and installation expenses can be prohibitive for small and medium-sized enterprises while high-efficiency motors, such as permanent magnet synchronous motors, offer long-term energy savings. According to the U.S. Department of Energy, the cost of premium efficiency motors can be 20-30% higher than standard models by deterring widespread adoption despite their potential to reduce operational expenses over time. According to the International Energy Agency, retrofitting existing industrial systems with energy-efficient motors often requires significant capital investment, which may not be feasible for businesses operating on tight budgets. This financial barrier is further exacerbated in developing regions where access to affordable financing remains limited. As a result, the transition to advanced motor technologies is often slower than anticipated that is hindering the overall pace of market expansion.

Supply Chain Vulnerabilities for Critical Materials

The supply chain vulnerabilities for critical materials, such as rare earth elements used in electric motor production, which present another major restraint. Rare earth metals like neodymium and dysprosium are essential for manufacturing high-performance permanent magnets in motors, yet their supply is concentrated in a few countries that is leading to geopolitical and logistical challenges. According to the U.S. Geological Survey, China accounts for over 60% of global rare earth production by making markets highly susceptible to export restrictions and price volatility. According to the European Commission, disruptions in rare earth supply chains could increase motor production costs by up to 15% by impacting profitability and innovation. These material dependencies also raise environmental concerns, as mining and processing rare earth elements generate significant ecological damage.

MARKET OPPORTUNITIES

Electrification of Transportation and Urban Mobility

The rapid electrification of transportation systems presents a transformative opportunity for the electric motor market. Electric vehicles (EVs), e-bikes, and electric public transit systems are driving unprecedented demand for efficient and compact motors. The International Energy Agency reports that global EV sales surpassed 10 million units in 2022 by accounting for 14% of all car sales, and this figure is expected to rise as countries implement stricter emissions regulations. According to the U.S. Department of Transportation, over 50% of urban trips globally could be served by micromobility solutions like e-scooters and e-bikes by 2030. The need for reliable and high-performance motors will surge as cities invest in sustainable urban mobility solutions, including electric buses and autonomous shuttles. This shift not only expands the market but also fosters innovation in lightweight and energy-efficient motor designs tailored for diverse mobility applications.

Advancements in Smart Manufacturing and Industry 4.0

The integration of electric motors into smart manufacturing processes under Industry 4.0 initiatives offers another significant growth avenue. Electric motors equipped with IoT sensors and predictive maintenance capabilities are becoming essential for optimizing industrial operations. According to the U.S. National Institute of Standards and Technology, smart manufacturing could enhance production efficiency by up to 30%, driven by real-time data analytics and automation powered by advanced motors. According to the European Commission, the adoption of smart motor systems in industrial settings could reduce energy consumption by 10-15% by aligning with sustainability goals. As industries embrace digital transformation, the demand for connected and intelligent motor solutions is set to grow exponentially. These advancements not only improve operational precision but also position electric motors as key enablers of the next industrial revolution, unlocking new revenue streams and technological possibilities.

MARKET CHALLENGES

Recycling and End-of-Life Management of Motors

The lack of robust recycling infrastructure for electric motors poses a significant challenge as the volume of discarded motors increases with technological advancements. According to the U.S. Environmental Protection Agency, only 15-20% of electronic waste, including end-of-life motors, is currently recycled globally by leading to substantial environmental and economic losses. Rare earth elements and other critical materials used in motor components often end up in landfills, exacerbating resource scarcity. According to the International Energy Agency, recovering rare earth metals from discarded motors could reduce material costs by up to 25%, whereas existing recycling technologies remain inefficient and costly.

Technological Fragmentation and Standardization Gaps

The absence of universal standards for electric motor design and compatibility creates technological fragmentation, hindering seamless integration and scalability. According to the National Institute of Standards and Technology, inconsistent motor specifications across industries lead to inefficiencies, with energy losses estimated at 5-10% due to suboptimal system integration. As per European Commission, over 40% of industrial motor applications face interoperability issues by resulting in higher operational costs and reduced performance. This lack of standardization also complicates global supply chains, as manufacturers must adapt products to meet diverse regional requirements. The absence of cohesive standards slows innovation and adoption rates as industries increasingly adopt smart and connected systems.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Motor Type Insights

The AC motors segment dominated the electric motor market by occupying 50.1% of the total share on 2024. Their prevalence stems from their efficiency, reliability, and suitability for industrial applications, including HVAC systems and pumps, which account for nearly 45% of global electricity consumption. According to the International Energy Agency, AC motors are integral to renewable energy systems, such as wind turbines. Their ability to operate seamlessly with variable frequency drives enhances energy savings by making them indispensable in modern infrastructure.

The hermetic motors segment is expected to witness a fastest CAGR of 8.5% from 2025 to 2033. This growth is driven by their critical role in refrigeration and air conditioning systems, which are expanding due to urbanization and rising global temperatures. According to the International Renewable Energy Agency, cooling demands could triple by 2050 by increasing reliance on hermetic motors. Additionally, advancements in energy-efficient designs align with stringent environmental regulations. These motors' compact, sealed structure ensures durability and minimal maintenance by making them vital for sustainable climate control solutions.

By Power Output Insights

The integral Horsepower motors segment was the largest and held 45.6% of the electric motor market share in 2024. These motors are widely used in industrial applications such as pumps, compressors, and conveyor systems due to their high power output and efficiency. According to the International Energy Agency, industrial motor systems consume about 40% of global electricity, with Integral Horsepower motors playing a pivotal role. Their importance lies in their ability to handle heavy-duty operations by making them indispensable in manufacturing and infrastructure development.

The fractional Horsepower motor segment is projected to grow at a CAGR of 8.2% during the forecast period. This rapid growth is driven by increasing demand in consumer appliances, HVAC systems, and emerging applications like robotics and IoT-enabled devices. According to the U.S. Energy Information Administration, residential energy consumption accounts for 20% of total electricity use, with small motors powering essential appliances like fans and washing machines. Additionally, the proliferation of smart homes and automation technologies has further accelerated adoption. The need for compact, energy-efficient motors is rising as urbanization expands in Asia-Pacific regions.

By Voltage Insights

The "Up to 1 kV" segment dominated the electric motor market by accounting for significant share in 2024 due to its widespread use in residential appliances, HVAC systems, and small industrial applications, where low-voltage motors are cost-effective and energy-efficient. According to the U.S. Department of Energy, low-voltage motors consume nearly 40% of all electricity in industrial settings. Their affordability, ease of installation, and compliance with energy efficiency standards make them indispensable. This segment's importance will continue to grow as urbanization and electrification expand.

The "Above 6.6 kV" segment is likely to exhibit a CAGR of 8.5% in the next coming years. This rapid growth is driven by increasing investments in heavy industries, renewable energy projects, and large-scale infrastructure requiring high-power motors. According to the European Commission, high-voltage motors are essential for applications like wind turbines and mining equipment, where they reduce energy losses by up to 15%. Additionally, the U.S. Energy Information Administration, utility-scale renewable energy installations, which rely on high-voltage motors that grew by over 10% annually in the past five years.

By Application Insights

The industrial machinery segment was accounted in holding the dominant share of the electric motor market in 2024 due to the widespread use of motors in pumps, compressors, conveyors, and manufacturing equipment, where they consume nearly 70% of industrial electricity. According to the International Energy Agency, improving motor efficiency in industrial applications could reduce global electricity demand by 10%. The driving productivity and energy management across industries by making it a cornerstone of modern manufacturing and infrastructure development.

The motor vehicles segment is anticipated to have an estimated a CAGR of 15.6% during the forecast period. This rapid growth is fueled by the accelerating adoption of electric vehicles (EVs), with global EV sales surpassing 10 million units in 2022. The U.S. Environmental Protection Agency, EVs rely on advanced motors for propulsion by contributing to their energy efficiency and reduced emissions. Additionally, government incentives, such as tax credits and subsidies, are propelling EV adoption further. As automakers invest heavily in electrification, this segment’s expansion is pivotal in reducing transportation-related carbon footprints while fostering innovation in lightweight and high-performance motor technologies.

By End-User Insights

The industrial sector was the largest by holding the prominent share of the electric motor market share in 2024 with the widespread use of motors in manufacturing, material handling, and HVAC systems, where they consume nearly 70% of industrial electricity. According to the International Energy Agency, industrial motors are critical for achieving energy efficiency goals, with high-efficiency models reducing energy losses by up to 30%. Their importance lies in powering machinery that drives productivity and economic growth.

The transportation segment is on the rise and expected to witness a CAGR of 18.5% during the forecast period. This rapid expansion is fueled by the global shift toward electric vehicles (EVs), with EV sales surpassing 10 million units in 2022, as reported by the IEA. Governments worldwide are implementing stringent emissions regulations by driving investments in EV infrastructure and motor technologies. According to the U.S. Department of Transportation, over 50% of urban mobility could transition to electric modes by 2030, that further accelerates the demand. Electric motors in transportation are pivotal for decarbonization by offering higher efficiency and lower maintenance costs compared to internal combustion engines. This growth amplifies the sector's critical role in achieving global sustainability targets.

REGIONAL ANALYSIS

Asia-Pacific was the top performer in the electric motor market with dominant share of 45.1% in 2024. This dominance is driven by rapid industrialization, urbanization, and the region's prominence in electric vehicle production, particularly in China, which manufactured over 60% of global EVs in 2022. According to the U.S. Energy Information Administration, Asia-Pacific accounts for nearly 50% of global electricity consumption, with electric motors playing a pivotal role in industrial and commercial applications. The region's emphasis on renewable energy systems, such as wind turbines and solar farms that further amplifies demand.

The Middle East and Africa exhibit the highest growth rate in the electric motor market, with a CAGR of 12.3% during the forecast period. This growth is fueled by investments in infrastructure development, renewable energy projects, and industrial diversification under initiatives like Saudi Arabia's Vision 2030. According to the International Renewable Energy Agency, solar and wind capacity in the region is projected to grow by 250% by 2030 with the rising demand for efficient motors. Additionally, rising urbanization and electrification efforts in Sub-Saharan Africa are creating new opportunities.

North America and Europe are expected to maintain steady growth that is driven by stringent energy efficiency regulations and the adoption of Industry 4.0 technologies. The U.S. Department of Energy predicts a 5% annual increase in high-efficiency motor adoption in North America by 2030. In Europe, the European Commission studies have shown that the motor-driven systems will account for 70% of industrial energy use. Latin America is likely to see moderate growth due to agricultural modernization, with the Inter-American Development Bank projecting a 7% rise in motor demand by 2028. Collectively, these regions will play crucial roles in advancing global energy efficiency and technological innovation.

Top 3 Players in the market

Siemens AG

Siemens AG is a global leader in the electric motor market, known for its cutting-edge and energy-efficient motor solutions. The company specializes in high-performance motors used across diverse sectors, including renewable energy systems like wind turbines and solar farms. Its SIMOTICS series stands out for achieving exceptional efficiency levels, meeting some of the highest industry standards. Beyond manufacturing, Siemens promotes digitalization by integrating IoT-enabled smart motors that enhance predictive maintenance and operational efficiency. By aligning with global sustainability goals, Siemens has established itself as a key enabler of green technologies, driving innovation and supporting the transition to cleaner energy systems.

ABB Ltd.

ABB Ltd. is another dominant player in the electric motor market, recognized for its expertise in producing low- and medium-voltage motors tailored for industries such as mining, oil and gas, and transportation. The company’s synchronous reluctance motors (SynRM) are particularly notable for their ability to significantly reduce energy losses compared to conventional induction motors. ABB also plays a pivotal role in advancing electric mobility by providing motors for EVs and hybrid vehicles. Through its Motion business unit, ABB contributes to global energy savings by promoting sustainable industrial practices. Its focus on innovation and efficiency has made it a trusted partner for industries seeking reliable and eco-friendly motor solutions.

Nidec Corporation

Nidec Corporation is a leading innovator in the electric motor market, especially in the small precision motor segment. The company excels in producing compact and lightweight motors used in appliances, automotive systems, and robotics. Its traction motors for electric vehicles have gained significant attention, with partnerships in the EV sector driving demand. Nidec's acquisition of Embraco expanded its portfolio into compressors and HVAC systems, further strengthening its global presence. The company places a strong emphasis on research and development, fostering breakthroughs in motor efficiency and miniaturization. This strategic focus ensures Nidec remains at the forefront of technological advancements, delivering innovative solutions that cater to evolving market needs.

Top strategies used by the key market participants

Innovation and R&D Investments

Key players in the electric motor market prioritize innovation and substantial investments in research and development to maintain their competitive edge. Companies like Siemens AG and ABB Ltd. focus on developing next-generation motor technologies, such as high-efficiency motors, IoT-enabled smart systems, and compact designs tailored for electric vehicles and renewable energy applications. By integrating advanced materials and digital solutions, these companies enhance motor performance, reduce energy losses, and improve operational efficiency. Nidec Corporation, for instance, emphasizes miniaturization and precision engineering, enabling it to cater to niche markets like robotics and EV traction systems. Continuous R&D efforts allow these players to stay ahead of technological trends and address evolving customer demands effectively.

Strategic Acquisitions and Partnerships

Strategic acquisitions and collaborations are critical tools used by industry leaders to expand their product portfolios and global footprint. For example, Nidec Corporation’s acquisition of Embraco strengthened its position in the compressor and HVAC motor segment. Similarly, ABB Ltd. has formed partnerships with automotive manufacturers to supply motors for electric vehicles, enhancing its presence in the rapidly growing EV market. These alliances enable companies to leverage complementary expertise, access new markets, and scale production capabilities. Collaborations with governments and renewable energy firms also help key players align with sustainability goals.

Focus on Sustainability and Compliance

Sustainability is a cornerstone strategy for major players aiming to strengthen their market position. Companies like Siemens AG and ABB Ltd. emphasize compliance with stringent energy efficiency regulations, such as the EU’s Ecodesign Directive and MEPS standards, ensuring their products meet or exceed global benchmarks. By offering energy-efficient motors that reduce carbon footprints, these companies appeal to environmentally conscious industries and governments. Additionally, they actively participate in global decarbonization initiatives, positioning themselves as leaders in the transition to green technologies. This focus not only enhances brand reputation but also drives demand from sectors prioritizing sustainable practices.

KEY MARKET PLAYERS AND COMPETITIVE LANDSCAPE

The Major Players in the Electric Motor Market are Abb Group, Allied Motion Technologies, Inc., Ametek, Inc., Arc Systems Inc., Brook Crompton UK Ltd. (Subsidiary Brook Crompton Holdings), Denso Corporation, Faulhaber, Emerson Electric Co., Franklin Electric Co., Inc., Johnson Electric Holdings Ltd., Maxon Motors Ag, Nidec Corporation, Regal Beloit Corporation, Rockwell Automation Inc., Siemens

The electric motor market is characterized by intense competition, driven by the presence of established giants and emerging players striving to capture market share amid rapid technological advancements and shifting consumer demands. Leading companies such as Siemens AG, ABB Ltd., and Nidec Corporation dominate the landscape, leveraging their expertise in high-efficiency motors, smart technologies, and precision engineering. These firms invest heavily in research and development to innovate products that align with global sustainability goals, energy efficiency standards, and the growing demand for electric vehicles (EVs) and renewable energy systems. Their strong brand recognition, extensive distribution networks, and strategic partnerships further solidify their competitive advantage.

However, the market also witnesses significant contributions from regional players and niche manufacturers focusing on specialized applications like robotics, HVAC systems, and small appliances. This diversification creates a fragmented yet dynamic competitive environment. Companies are increasingly adopting strategies such as mergers, acquisitions, and collaborations to expand their portfolios and geographic reach. For instance, partnerships with EV manufacturers or renewable energy projects have become critical for gaining a foothold in high-growth sectors.

Additionally, regulatory pressures and the push for energy-efficient solutions intensify competition, compelling firms to differentiate themselves through superior product performance, cost-effectiveness, and compliance with international standards. As industries worldwide transition toward electrification and automation, the competitive landscape is expected to evolve further, fostering innovation while challenging companies to adapt to changing market dynamics and maintain their relevance in an increasingly crowded marketplace.

RECENT HAPPENINGS IN THE MARKET

In December 2024, ABB agreed to acquire the power electronics unit of Gamesa Electric from Siemens Gamesa. This acquisition is anticipated to enhance ABB's position in the renewable power conversion technology market by expanding its product offerings and customer base.

In December 2024, Hitachi Energy signed contracts exceeding $2 billion with German grid operator Amprion to construct four converter stations. This initiative aims to support Germany's energy transition by enhancing the high-voltage grid to accommodate renewable energy sources like wind and solar power.

In May 2024, ABB agreed to acquire Siemens’s wiring accessories business in China. This deal is expected to provide ABB with access to a distribution network across 230 cities in China, strengthening its market presence in the region.

In January 2024, ABB acquired Real Tech, a Canadian company specializing in optical sensor technology for real-time water monitoring and testing. This acquisition is anticipated to expand ABB’s capabilities in water management solutions.

In January 2024, ABB acquired R&D engineering firm Meshmind to expand its artificial intelligence and software capabilities. This acquisition aims to enhance ABB’s technological offerings and competitiveness in the market.

In June 2023, ABB agreed to acquire smart home automation provider Eve Systems. This acquisition is expected to strengthen ABB's position in the smart home market by integrating Eve Systems' innovative products and technologies.

In December 2022, ABB opened a new 67,000-square-meter robotics factory in Shanghai following a $150 million investment. This expansion is anticipated to enhance ABB’s manufacturing capabilities and presence in the robotics market.

In July 2020, Hitachi acquired 80.1% of ABB’s power grid business for $68.5 billion. This acquisition aimed to strengthen Hitachi’s position in the power grid sector by integrating ABB’s expertise and technologies.

In March 2020, ABB agreed to sell its solar inverter business to Italian manufacturer Fimer. This divestment was intended to streamline ABB’s portfolio and focus on core business areas.

In 2023, the global electric motors market was valued at $129.78 billion and is projected to reach $240.61 billion by 2032, growing at a CAGR of 7.1%. This growth is expected to benefit major companies like Siemens, ABB, Hitachi, AMETEK, and Mitsubishi Heavy Industries.

MARKET SEGMENTATION

This research report on the Global Electric Motor Market has been segmented and sub-segmented into the following categories.

By Motor Type

• AC Motors
• DC Motors
• Hermetic Motors

By Power Output

• Fractional Horsepower (Up to 1HP)
• Integral Horsepower (Above 1HP)

By Voltage

• Up to 1 kV
• 1 kV-6.6 kV
• Above 6.6 kV

By Application

• Industrial Machinery
• Motor Vehicles
• HVAC Equipment
• Electrical Appliances
• Others

By End-User

• Industrial
• Commercial
• Residential
• Agriculture
• Transportation

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa