PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803419
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803419
The global electric motors market was valued at USD 166.0 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 4.6%, reaching USD 222.8 billion by 2032. This growth is primarily driven by the rising demand for electric motors across various industries, including manufacturing, HVAC systems, and transportation. Additionally, the increasing adoption of electric vehicles (EVs) plays a key role in expanding the market, as electric motors are integral to the operation of EV engines, contributing to the global shift towards more environmentally friendly transportation solutions.
Electric motors are also pivotal in enhancing energy efficiency across industries. With the global push toward reducing carbon emissions and the rise in energy-efficient solutions, the demand for advanced electric motors in appliances, HVAC systems, and automotive applications is on the rise. For example, the U.K. and India entered into a partnership in 2023 to promote net-zero transport systems, which further underscores the growing role of electric motors in global efforts to curb greenhouse gas emissions. The market is further bolstered by regulatory pressures that mandate greater energy efficiency, driving innovation in motor technologies.
Key Insights
Market Size & Growth: The global electric motors market is projected to grow from USD 166.0 billion in 2024 to USD 222.8 billion by 2032, advancing at a CAGR of 4.6%.
Energy-Efficient Motors Demand: The rising demand for energy-efficient motors is a key trend driving market growth. Energy efficiency standards, such as IEC's IE3 and IE4 classifications, are pushing manufacturers to innovate motors that require less maintenance and generate more torque at low speeds. The shift to energy-efficient AC motors with power ratings between 0.75 to 375 kW is significant, especially in HVAC and industrial machinery applications.
Growth in Electric Vehicles (EVs): The electric vehicle industry is a major growth driver for the electric motors market, with global electric car sales surpassing 17 million units in 2024, accounting for more than 20% of all cars sold. The widespread adoption of electric motors in EVs is accelerating due to stricter emission regulations and advancements in EV technology, driving up demand for high-performance motors.
Increasing Use of AC Motors: AC motors, especially synchronous motors, accounted for 75% of the market in 2024. They are preferred for their versatility, higher efficiency, and durability, especially in applications like HVAC systems, industrial machinery, and automotive applications. Their widespread use across a variety of industries ensures their dominance in the market.
Rise of DC Motors: The DC motor segment, particularly brushless DC motors, is growing rapidly with an expected CAGR of 5.5%. These motors are increasingly used in applications that demand higher efficiency, longer operational life, and reduced maintenance, such as in robotics, consumer electronics, and automotive sectors.
Technological Innovations in Robotics: The rapidly advancing field of robotics is creating new opportunities for the electric motors market. Motors used in robotics for automation tasks, medical applications, space exploration, and military services are seeing growing demand. As industrial and portable robots require electric motors for motion, demand for high-efficiency motors in these applications is expected to rise significantly.
Global Industrialization: The industrial sector remains the largest consumer of electric motors, accounting for 50% of the market share in 2024. Motors are essential for powering machinery such as pumps, compressors, and conveyors used in manufacturing, processing, and heavy engineering sectors. The expansion of industrial operations in emerging markets is driving motor demand.
Rising Adoption in HVAC Systems: The demand for electric motors in HVAC systems is increasing, driven by the need for energy-efficient, low-noise motors. As HVAC systems become essential in residential, commercial, and industrial settings, electric motors that offer better torque and energy efficiency are becoming increasingly popular.
Demand in Material Handling and Consumer Goods: The <1 kW motors category is expected to grow at the highest CAGR of 4.7%, driven by increased demand from small appliances, consumer goods, and automated machinery in sectors like medical devices, textile processing, and semiconductor manufacturing.
Voltage and Power Ratings: Low-voltage motors dominated the market with a 70% share in 2024, primarily due to their wide application in residential appliances and industrial systems. However, medium-voltage motors are projected to grow at the highest CAGR, driven by their demand in industries like oil and gas, mining, and renewable energy.
Regional Insights: The Asia-Pacific (APAC) region accounted for 40% of the market share in 2024 and is expected to continue leading the market, with a growth rate of 5.6% during the forecast period. This growth is attributed to the increasing industrialization, government regulations on motor efficiency, and the rising production and sales of electric vehicles, particularly in China and Japan. North America and Europe are also significant markets, driven by demand for premium motors in industrial, automotive, and HVAC applications.
Competitive Landscape: The market is highly fragmented with both global players like ABB, Siemens, and Nidec, and regional manufacturers in emerging economies like India, China, and Brazil. The focus is on product innovation, with companies integrating new technologies such as brushless DC motors and servo motors to meet evolving consumer and industrial needs.
Electric Motors in EV and Hybrid Vehicles: Electric motors are essential components of EVs and hybrid vehicles. Companies like BorgWarner and ZF Friedrichshafen are making significant strides in producing high-efficiency motors for these vehicles, which are driving innovation in electric mobility and expanding the market for electric motors.
Key Manufacturers: Leading manufacturers in the electric motors market include ABB Ltd., Siemens AG, WEG S.A., Nidec Corporation, and Regal Rexnord Corporation. These companies are focusing on expanding their portfolios with energy-efficient and advanced motor technologies to cater to the growing demand from diverse industrial, commercial, and residential applications.
Market Developments: Noteworthy developments in the market include ZF Friedrichshafen's mass production of asynchronous motors for automotive OEMs in China, and BorgWarner's plans to expand its presence in the electric vehicle motor market, supplying motors for major Chinese domestic brands. Furthermore, Mercedes-Benz's concept AMG GT XX, powered by YASA's axial-flux motors, highlights the growing importance of high-performance motors in the automotive sector.