PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887082
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887082
The global AC electric motor market is witnessing strong growth driven by rapid industrialization, rising electric vehicle penetration, and growing investments in energy-efficient technologies. As per the 2024 assessment, the market was valued at USD 84.33 billion in 2024 and is expected to reach USD 90.74 billion in 2025, before accelerating significantly to USD 155.68 billion by 2032 at a CAGR of 8.02% between 2025 and 2032. Asia Pacific led the market in 2024, accounting for a dominant 39.57% share, supported by expanding manufacturing activities, strong automotive demand, and favorable clean-energy policies in China, India, and South Korea.
An AC electric motor operates through electromagnetic induction by converting alternating current into mechanical rotational energy. It plays an essential role across industries including automotive, industrial machinery, commercial equipment, agricultural systems, and household appliances. The rising shift from fossil-fuel-based systems to electric-powered machinery is driving substantial demand in both industrial and consumer segments.
Market Dynamics and Growth Drivers
One of the major catalysts for market expansion is the global transition toward electric mobility. Electric vehicles rely heavily on high-efficiency AC induction motors and permanent magnet synchronous motors for traction, torque control, and regenerative braking. Major automotive manufacturers worldwide are launching electric vehicle models equipped with advanced AC motor systems, increasing demand for high-performance motors. For example, AC Cars announced in 2024 that it will transition its entire sports car lineup to all-electric engines, replacing traditional V8 models with a 225 kW electric motor system.
Industrial automation remains another critical growth driver. With Industry 4.0 adoption accelerating, the integration of advanced robotics, industrial IoT, smart manufacturing systems, and programmable logic controllers is increasing the need for precision-controlled AC motors. South Korea, the global leader in robot density, reported 1,012 robots per 10,000 workers, demonstrating the high incorporation of AC motors across factories. These motors power conveyors, robotic arms, compressors, HVAC systems, and pumping units, enabling high reliability and operational efficiency.
Challenges and Opportunities
Despite their advantages, AC electric motors come with relatively higher installation and maintenance costs compared to conventional systems. Equipment such as inverters, controllers, ESC units, and monitoring solutions increase the overall setup cost. The continuous run-time of industrial motors also adds to long-term maintenance expenditures, which may restrain adoption among price-sensitive users.
However, growing environmental concerns and carbon-neutral initiatives worldwide present lucrative market opportunities. Governments in major economies are enforcing strict emission-reduction policies, incentivizing industries to adopt energy-efficient AC motors. The automotive industry, in particular, is encouraging manufacturers to transition toward fully electric fleets, boosting long-term motor demand.
Market Segmentation Highlights
By Power Output
By Voltage
By Application
By End-User
Asia Pacific - Market Leader
Asia Pacific recorded USD 33.73 billion in 2024, driven by EV adoption, industrial modernization, and government incentives for low-emission technologies.
North America
North America holds strong growth potential due to the presence of major motor manufacturers and rapid expansion of the EV market. U.S. companies like Rivian, Lucid, and Canoo are expected to contribute significantly to 2025 demand.
Europe
Europe's growth is supported by strict energy-efficiency regulations under the 2021 European Green Deal, pushing industries toward sustainable AC motor solutions.
Latin America & Middle East/Africa
These regions are expanding steadily due to increasing EV interest, industrial equipment upgrades, and rising clean-energy investments.
Conclusion
With market value rising from USD 84.33 billion in 2024 to USD 155.68 billion by 2032, the AC electric motor market is positioned for strong, sustained growth. Electrification trends, industrial automation, and environmental policies will continue shaping the market through 2032.
Segmentation By Power Output
By Voltage
By Application
By End-User
By Region