North America Electric Motor Market

North America Electric Motor Market Size

The North America Electric Motor market size was valued at USD 30.17 billion in 2024. The European market is estimated to be worth USD 36.96 billion by 2033 from USD 30.86 billion in 2025, growing at a CAGR of 2.28% from 2025 to 2033.

Electric motors convert electrical energy into mechanical energy, powering an array of devices and systems, from household appliances to industrial machinery. The market includes several types of electric motors, such as AC motors, DC motors, and stepper motors, each serving distinct functions and industries. This growth is driven by increasing demand for energy-efficient solutions, advancements in motor technology, and the rising adoption of automation in manufacturing processes. Furthermore, the growing emphasis on sustainability and reducing carbon footprints is propelling the demand for electric motors that offer improved efficiency and lower emissions. As industries continue to evolve and adapt to changing technological landscapes, the North American electric motor market is poised for significant expansion, driven by innovation and the need for reliable, efficient power solutions. 

MARKET DRIVERS 

Growing Demand for Energy Efficiency 

The increasing emphasis on energy efficiency is a primary driver of the North American electric motor market. As industries and consumers alike seek to reduce energy consumption and lower operational costs, the demand for energy-efficient electric motors has surged. The U.S. Department of Energy states that electric motors account for approximately 70% of industrial electricity consumption is showcasing the significant impact that efficiency improvements can have on overall energy usage. The implementation of stringent energy efficiency standards, such as the Energy Star program, has further incentivized manufacturers to develop and adopt high-efficiency motors. These motors not only consume less energy but also contribute to reduced greenhouse gas emissions, aligning with broader sustainability goals. The shift towards energy-efficient solutions is not only beneficial for the environment but also offers substantial cost savings for end-users, making it a critical driver of market expansion. 

Advancements in Automation and Industrialization 

A key driver of the North American electric motor market is the rapid advancements in automation and industrialization. The ongoing trend towards automation in manufacturing processes is transforming the way industries operate is leading to increased demand for electric motors that can support automated systems. As of 2023, there were approximately 381,964 industrial robots operating in U.S. factories, marking a 12% increase from the previous year. Electric motors are integral components of these robotic systems is providing the necessary power for precise movements and operations. Additionally, the rise of smart manufacturing and the Internet of Things (IoT) is driving the need for advanced electric motors that can communicate and integrate with digital systems. As industries strive to enhance productivity, reduce downtime, and improve operational efficiency, the demand for electric motors that support automation technologies is expected to grow significantly.  

MARKET RESTRAINTS  

High Initial Costs of Advanced Electric Motors 

Apart from the promising growth prospects, the North American electric motor market faces notable restraints, particularly concerning the high initial costs associated with advanced electric motors. While energy-efficient and high-performance motors offer long-term savings through reduced energy consumption, the upfront investment can be substantial. According to industry estimates, the cost of high-efficiency electric motors can be 20% to 30% higher than standard motors which may deter some businesses from making the switch. This financial barrier is particularly challenging for small and medium-sized enterprises (SMEs) that may have limited budgets for capital expenditures. Further, the costs associated with installation, maintenance, and potential retrofitting of existing systems can further complicate the decision-making process for potential adopters. Consequently, the high initial investment required for advanced electric motors represents a significant restraint that could hinder market growth, particularly among price-sensitive consumers who may opt for less efficient alternatives. 

Supply Chain Disruptions 

A grave restraint impacting the North American electric motor market is the ongoing supply chain disruptions that have emerged in recent years. The COVID-19 pandemic has exposed vulnerabilities in global supply chains, leading to delays in the procurement of critical components for electric motor manufacturing. According to industry reports, many manufacturers have experienced significant lead time increases for essential materials, such as copper and steel, which are vital for electric motor production. These disruptions not only affect production schedules but also escalate costs, as manufacturers may need to source materials from alternative suppliers at higher prices. Additionally, the semiconductor shortage has further complicated the supply chain for electric motors, particularly for those used in advanced applications such as electric vehicles and automation systems.  

MARKET OPPORTUNITIES 

Rising Adoption of Electric Vehicles 

The North American electric motor market is poised to capitalize on the rising adoption of electric vehicles (EVs) as a significant opportunity for growth. The shift towards sustainable transportation solutions is gaining momentum is supported by increasing consumer awareness of environmental issues and government incentives promoting EV adoption. The U.S. Department of Energy reveals that sales of electric vehicles in the United States reached over 300,000 units in 2021, representing a 100% increase from the previous year. Electric motors are a critical component of EVs, providing the necessary power for propulsion and contributing to the overall efficiency of the vehicle. As automakers invest heavily in electric vehicle technology and expand their EV offerings, the demand for high-performance electric motors is expected to surge. This trend presents a substantial opportunity for manufacturers in the electric motor market to innovate and develop advanced motor solutions tailored for electric vehicles.  

Expansion of Renewable Energy Sources 

A promising prospect for the North American electric motor market lies in the expansion of renewable energy sources, especially wind and solar power. As the transition towards clean energy accelerates, the demand for electric motors in renewable energy applications is expected to rise significantly. As per the U.S. Energy Information Administration, renewable energy sources accounted for approximately 20% of total electricity generation in the United States in 2020, a figure projected to increase in the coming years. Electric motors play a crucial role in various renewable energy systems, including wind turbines and solar tracking systems, where they are used for control mechanisms and energy conversion. The growing emphasis on sustainability and reducing carbon emissions is driving investments in renewable energy infrastructure, further propelling the demand for electric motors.  

MARKET CHALLENGES 

Intense Competition and Price Pressure 

The North American electric motor market encounters major challenges stemming from intense competition among manufacturers. The market is described by a diverse range of players, including established brands and emerging startups, all vying for market share. The industry estimates states that the top five companies account for approximately 40% of the total market share is indicating a highly fragmented landscape. This competitive environment can lead to price wars, which may erode profit margins for manufacturers and hinder their ability to invest in research and development. Additionally, the rapid pace of technological advancements necessitates continuous innovation to stay ahead of competitors, placing further pressure on companies to allocate resources effectively. As manufacturers strive to differentiate their products and capture consumer attention, the challenge of maintaining profitability while navigating a competitive market landscape becomes increasingly complex. 

Regulatory Compliance and Standards 

Another formidable challenge facing the North American electric motor market is the need to comply with stringent regulatory standards and certifications. Government agencies, such as the U.S. Department of Energy and the National Electrical Manufacturers Association, impose rigorous testing and certification requirements for electric motors to ensure safety and efficiency. According to industry experts, compliance with these regulations can impose substantial costs on manufacturers, particularly for those that may need to invest in new technologies or processes to meet evolving standards. Additionally, the potential for regulatory changes can create uncertainty in the market, making it challenging for companies to plan long-term investments. Consequently, the regulatory landscape presents a significant challenge for the North American electric motor market, requiring manufacturers to remain agile and responsive to changing requirements. 

REPORT COVERAGE

SEGMENTAL ANALYSIS 

By Type Insights 

The AC motors segment capture the controlling market share by having 60.7% of the total market in 2024 which is influenced by the widespread application of AC motors in various industries, including HVAC systems, industrial machinery, and household appliances. AC motors are favored for their reliability, efficiency, and ability to operate at high speeds, making them suitable for a wide range of applications. The versatility and established presence of AC motors in the market contribute to their continued dominance in the North American electric motor landscape. 

On the other hand, the fastest-growing segment within the North American electric motor market is the DC motor segment, with a projected CAGR of 8.4% due to the increasing demand for DC motors in applications such as electric vehicles, robotics, and renewable energy systems. DC motors are known for their precise speed control and high torque capabilities, making them ideal for modern applications that require advanced performance. As per the market research, the DC motor segment is expected to capture a larger share of the market as more industries seek to implement efficient and responsive motor solutions. The growing emphasis on automation and electrification further positions the DC motor segment for significant growth in the coming years. 

By Voltage Insights 

The low voltage electric motors segment remained the prevailing category in the North American electric motor market by contributing 70.7% of the total market in 2024. This superiority is driven by the extensive use of low voltage motors in various applications, including HVAC systems, industrial equipment, and consumer appliances. Low voltage motors are favored for their versatility, ease of installation, and cost-effectiveness, making them a popular choice among manufacturers. In the European Union, regulations mandate that low-voltage motors meet specific efficiency criteria, such as the IE3 efficiency class, to reduce energy consumption and environmental impact. The widespread adoption of low voltage motors contributes to their continued dominance in the North American electric motor market. 

Contradictory, the medium voltage electric motor segment is expected register the quickest rate in the North American electric motor market, with an estimated CAGR of 8.9% throughout the forecast period. This sudden rise can be caused by the increasing demand for medium voltage motors in industrial applications, such as mining, oil and gas, and water treatment. Medium voltage motors are known for their ability to handle higher power requirements and operate efficiently in demanding environments. According to market forecasts, the medium voltage motor segment is expected to capture a larger share of the market as industries seek to implement robust and efficient motor solutions. The growing emphasis on industrial automation and the need for reliable power sources further position the medium voltage segment for significant growth in the coming years. 

By Speed Insights 

The medium speed motors segment gained the maximum portion of the North American electric motor market and captured a 52.8% of the total market in 2024. This rule is defined by the comprehensive application of medium speed motors in various applications, including industrial machinery, HVAC systems, and pumps. These motors are preferred for their balance of efficiency and performance and is making them suitable for a wide range of operational requirements. Studies show that medium speed motors, typically operating between 500 to 1,800 RPM, can achieve up to 94% energy efficiency, making them a preferred choice for industrial applications that require both power and energy savings. The versatility and established presence of medium speed motors contribute to their continued dominance in the North American electric motor landscape. 

The Quickest developing segment within the North American electric motor market is the high-speed motor, with a projected CAGR of 10.3% in the coming years. This progress can be credited to the escalating requirement for high-speed motors in applications such as robotics, aerospace, and high-performance machinery. These motors are known for their ability to deliver rapid acceleration and precise control is making them ideal for modern applications that require advanced performance. According to market research, the high-speed motor segment is expected to capture a larger share of the market as more industries seek to implement efficient and responsive motor solutions. The growing emphasis on automation and the need for high-performance equipment further position the high-speed segment for significant growth in the coming years. 

By Application Insights 

The industrial machinery segment led the largest market share of the North American electric motor market and accounted for 45.2% of the total market in 2024. This control is fuelled by the extensive use of electric motors in various industrial applications including manufacturing, material handling, and processing. Electric motors are essential components of industrial machinery, providing the necessary power for operations and enhancing overall efficiency. The widespread adoption of electric motors in industrial applications contributes to their continued dominance in the North American electric motor market. 

Apart from this, the transportation segment is anticipated to be the Most rapidly evolving category under the North American electric motor market and is projected to have a CAGR of 11.9% over the forecast period. This development can be linked to the growing interest for electric motors in electric vehicles, public transportation systems, and other transportation applications. As the shift towards sustainable transportation solutions accelerates, the demand for electric motors that power electric vehicles and hybrid systems is expected to rise significantly. The market forecasts suggest that the transportation segment is expected to capture a larger share of the market as more manufacturers and consumers prioritize electric mobility. The heightening focus on reducing carbon emissions and enhancing energy efficiency in transportation further positions this segment for significant growth in the coming years. Automakers are investing heavily in electric vehicle technology and infrastructure, so, the need for high-performance electric motors tailored for transportation applications will continue to expand which is driving innovation and development within the North American electric motor market. 

REGIONAL ANALYSIS 

The United States is large and growing steadily in the North American electric motor market by commanding 75.6% of the total market share in 2024. The U.S. market is defined by a powerful demand for electric motors propelled by advancements in technology and increasing industrial automation. As per the U.S. Department of Energy, electric motors make up nearly 70% of the electricity consumed in the manufacturing sector which is spotlighting their main role in industrial operations. The ongoing push for energy efficiency and sustainability is prompting manufacturers to invest in high-efficiency electric motors, further driving market growth. Besides, the rise of electric vehicles and renewable energy applications is creating new opportunities for electric motor manufacturers.  

The electric motor market in Canada is growing at a healthy pace and captured a 15.8% of the total electric motor market share. The Canadian market is supported by similar factors as the U.S., including the increasing demand for energy-efficient solutions and the adoption of automation technologies across various industries. The Natural Resources Canada states that the industrial sector is a significant consumer of electric motors, with a growing emphasis on reducing energy consumption and greenhouse gas emissions. The Canadian government has implemented various initiatives to promote energy efficiency, further supporting the growth of the electric motor market. 

Mexico accounts for the remaining 10% but is growing quickly in the North American electric motor market. The Mexican market exhibits a growing demand for electric motors driven by industrialization, urbanization, and increasing investments in manufacturing. The National Institute of Statistics and Geography states that Mexico's manufacturing sector has been evolving rapidly which is leading to increased demand for electric motors in various applications. Further, the government has been allocating funds for the infrastructure improvements and energy efficiency initiatives which is further supporting the growth of the electric motor market. 

KEY MARKET PLAYERS

The major key players in Europe North America electric motor market are Rockwell Automation, AMETEK, Inc., Johnson Electric Holdings Limited, Siemens AG, Mitsubishi Heavy Industries, Ltd., ABB Ltd, Robert Bosch GmbH, and General Electric Company, and others.

MARKET SEGMENTATION

This research report on the North America electric motor market is segmented and sub-segmented into the following categories.

By Type

• AC Motor
  • Induction AC Motor
  • Synchronous AC Motor
• DC Motor
  • Brushed DC Motor
  • Brushless DC Motor
• Others

By Voltage

• Low Voltage Electric Motors
• Medium Voltage Electric Motors
• High Voltage Electric Motors

By Speed

• Ultra-High-Speed Motors
• High-Speed Motors
• Medium Speed Motors
• Low Speed Motors

By Application

• Industrial Machinery
• HVAC
• Transportation
• Household Appliances
• Motor Vehicles
• Others

By Country

•  The United States 
• Canada 
• Mexico
• Rest of North America