PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933199
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933199
The global electric motor market is witnessing strong and sustained growth, driven by rapid industrial automation, rising adoption of electric vehicles (EVs), increasing demand for energy-efficient solutions, and expanding infrastructure development worldwide. According to the report, the electric motor market was valued at USD 79.45 billion in 2025 and is projected to grow to USD 85.31 billion in 2026. By 2034, the market is expected to reach USD 163.82 billion, registering a robust CAGR of 9.77% during the forecast period.
Electric motors are critical components across multiple industries, including manufacturing, HVAC, oil & gas, chemicals, power generation, transportation, and consumer appliances. Governments across the globe are enforcing stricter energy-efficiency regulations and carbon emission standards, pushing industries to shift toward IE3, IE4, and IE5 premium efficiency motors. The rising penetration of renewable energy systems, such as wind turbines and solar trackers, is also increasing the demand for specialized motor solutions.
Market Dynamics
Market Drivers
One of the most significant growth drivers is the rapid expansion of electric vehicles. Every electric vehicle relies on advanced traction motors, including induction motors, BLDC motors, and permanent magnet synchronous motors. Growing EV sales, supported by government incentives and emission regulations, directly boost demand for electric motors.
Additionally, industrial automation, robotics, HVAC systems, and infrastructure projects are fueling market growth. In September 2025, ABB India launched IE5 ultra-premium motors and announced an investment of USD 15.80 million to modernize its low-voltage motor manufacturing facility, highlighting the industry's shift toward high-efficiency technologies.
Market Restraints
Despite strong growth, the high initial cost of premium-efficiency motors acts as a restraint. Motors with IE3, IE4, and IE5 ratings require high-grade copper, advanced insulation systems, and precision manufacturing, making them expensive. This cost barrier limits adoption among small and medium-sized enterprises.
Market Opportunities
The rapid growth of HVAC systems and building infrastructure presents major opportunities. Urbanization, smart city development, data centers, metro stations, and commercial complexes require extensive motor-driven systems for cooling, ventilation, and water circulation. In July 2025, Nidec Corporation adopted Siemens' Teamcenter X software to enhance motor design and supply efficiency, strengthening innovation in the automotive and HVAC sectors.
Market Trends
A key trend shaping the market is the rising demand for Brushless DC (BLDC) motors. BLDC motors offer higher efficiency, compact design, low maintenance, and longer lifespan compared to traditional brushed motors. These motors are increasingly used in electric vehicles, robotics, industrial automation, home appliances, and HVAC systems. In December 2022, Nidec developed a low-cost BLDC motor for electric fans, signaling a shift away from conventional AC motors.
Market Challenges
The electric motor market faces challenges from fluctuating raw material prices, particularly copper, aluminum, steel, and rare-earth elements. Price volatility directly impacts production costs and profit margins, making manufacturers cautious about large-scale investments.
The low-voltage (up to 1 kV) segment dominates with a 44.60% market share in 2026, driven by extensive use in household appliances, HVAC systems, pumps, fans, and industrial machinery.
The regular speed (up to 3000 rpm) segment leads with 83.69% share in 2026, as it is widely used in pumps, fans, compressors, and conveyors.
The up to 100 kW segment dominates with 48.90% share in 2026, due to its flexibility and widespread industrial applications.
Industrial machinery leads the market with a 57.19% share in 2026, supported by heavy usage in manufacturing, chemicals, oil & gas, mining, and automotive industries.
Asia Pacific dominated the electric motor market in 2025 with USD 35.27 billion and continued leadership in 2026 with USD 38.20 billion, driven by rapid industrialization in China, India, and Japan. China alone is projected to reach USD 21.43 billion by 2026.
North America is expected to reach USD 19.26 billion by 2026, supported by automation and energy-efficiency regulations. Europe follows closely, projected to reach USD 14.57 billion by 2026, driven by strict EU energy standards.
Competitive Landscape
Key players include ABB, Siemens, WEG, Nidec, Mitsubishi Electric, Toshiba, Regal Rexnord, and Bosch Rexroth. Companies are actively pursuing acquisitions, partnerships, and product innovations to strengthen their global presence and expand high-efficiency motor portfolios.
Conclusion
The global electric motor market, valued at USD 79.45 billion in 2025, is set for strong expansion, reaching USD 163.82 billion by 2034. Growth is driven by electric vehicle adoption, industrial automation, energy-efficient technologies, and infrastructure development. While high initial costs and raw material price fluctuations pose challenges, continuous innovation and supportive government policies will ensure sustained market growth in the coming years.
Attributes Details
Segmentation By Motor Type, By Speed, By Power Rating, By Application, and Region
By Motor Type * Low Voltage (Up to 1 kV)
By Speed * Regular Speed (Up to 3000 rpm)
By Power Rating * Upto 100 kW
By Application * Industry Machinery
By Region * North America (By Motor Type, By Speed, By Power Rating, By Application, and Country)