PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1784320
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1784320
The global energy efficient motor market is estimated to grow from USD 48.52 billion in 2025 to USD 72.06 billion by 2030, at a CAGR of 8.2% during the forecast period. The escalating demand for energy-efficient and high-performance motors in electric vehicles, industrial automation systems, and HVAC systems contributes to the market growth.
Scope of the Report | |
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Years Considered for the Study | 2021-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Million) and Volume (Million Units) |
Segments | Distributed Control System Market by installation type, type, power output rating, eficiency level, end user, application , and region |
Regions covered | North America, Europe, Asia Pacific, South America, and the Middle East & Africa |
Sector-wise adoption also gains pace due to technological improvements and tightening energy regulations. Sector-wise deployment is also gaining momentum due to rapid advancements in motor design, integration of IoT and smart sensors for predictive maintenance, and increasingly stringent global energy efficiency regulations. Moreover, the shift toward renewable energy and sustainable manufacturing practices continues to drive investments in energy-efficient motor solutions.
"The IE3 segment is projected to grow at a significant rate from 2025 to 2030."
The IE3 segment is anticipated to grow at a considerable CAGR in the energy efficient motor market during the forecast period. Rotor losses in IE3 motors are reduced considerably by using copper as the conductor material in the squirrel cage rather than aluminum, which leads to the reduction of the slip under load conditions. The reduction in air gaps and thinner laminations made of better-quality steel ensures higher efficiency than traditional motors. These technological modifications in the IE3 efficiency level motors are pushing the market. Additionally, favorable regulatory frameworks mandating the adoption of IE3 motors in several countries, rising demand from industries such as manufacturing, water treatment, and oil & gas, and increasing focus on lifecycle cost savings further boost the segmental growth. The enhanced performance, lower operational costs, and reduced carbon emissions associated with IE3 motors make them an attractive option for end users aiming to improve energy efficiency and sustainability.
"Commercial is likely to be the second-largest segment in the energy efficient motor market from 2025 to 2030. "
The end user segment is categorized as industrial, commercial, residential, automotive, agriculture, and aerospace & defense. The commercial segment is expected to be the second-largest end user in the energy-efficient motor market during the forecast period. This growth is primarily due to the increasing demand for HVAC systems, elevators, escalators, refrigeration units, and building automation solutions in commercial buildings, such as offices, shopping malls, hospitals, hotels, and educational institutions. Energy-efficient motors help reduce operational costs and support sustainability goals by minimizing energy consumption and carbon emissions. Moreover, the implementation of green building codes and energy performance standards across various countries further accelerates the adoption of high-efficiency motors in commercial applications.
"North America is likely to be the second-largest market between 2025 and 2030."
North America is projected to be the second-largest energy efficient motor market due to the high uptake in industrial automation, electric cars, and HVAC systems. The area already has an established industrial sector, heavy investment in energy-efficient equipment, and favorable government policy toward clean energy and electrification. Furthermore, the major automotive and manufacturing firms in the US and Canada are becoming more aggressive in the inclusion of permanent magnet motors to achieve performance and sustainability objectives, enhancing the demand in the region.
By Company Type: Tier 1 - 45%, Tier 2 - 30%, and Tier 3 - 25%
By Designation: C-level Executives - 35%, Directors - 25%, and Others - 40%
By Region: North America - 27%, Europe - 20%, Asia Pacific - 33%, Middle East & Africa - 12%, and South America - 8%
Note: The tiers of the companies are defined based on their total revenues as of 2024. Tier 1: >USD 1 billion, Tier 2: USD 500 million to USD 1 billion, and Tier 3: <USD 500 million. Other designations include sales managers, engineers, and regional managers.
The energy efficient motor market is dominated by a few major players with a wide regional presence. The leading players in the energy efficient motor market are ABB (Switzerland), Siemens (Germany), Regal Rexnord Corporation (US), Wolong Electric Group Co., Ltd (China), and Nidec Corporation (Japan).
The report defines, describes, and forecasts the global energy efficient motor market, by Installation type, type, power output rating, application, end user, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the energy efficient motor market.
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