PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1716304
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1716304
According to Stratistics MRC, the Global Electric AC Motors Market is accounted for $150.84 billion in 2025 and is expected to reach $268.74 billion by 2032 growing at a CAGR of 8.6% during the forecast period. Electric AC motors are widely used in industrial, commercial, and residential applications due to their efficiency, reliability, and versatility. These motors run on alternating current (AC) and use electromagnetic induction to transform electrical energy into mechanical motion. Synchronous and asynchronous motors are the two primary categories into which AC motors are usually divided. The most popular are induction motors, which are preferred for their low maintenance and straightforward design. Moreover, electric AC motors are an essential part of contemporary automation and energy systems, powering everything from industrial machinery and electric vehicles to home appliances and HVAC systems.
According to the International Energy Agency (IEA), electric motors are responsible for approximately 53% of global electricity consumption, highlighting their critical role in industrial and residential applications.
Emphasize on energy efficiency
One of the most energy-intensive equipment in commercial and industrial settings is the electric AC motor. Businesses and industries are under pressure to lessen their carbon footprint as a result of growing awareness of climate change and rising electricity costs. Modern AC motors use a lot less energy than conventional motors, especially those built under premium efficiency classes like IE3 and IE4. Additionally, companies are being encouraged to switch to energy-efficient AC motors by governments and international organizations such as the International Electro Technical Commission (IEC), which are pushing efficiency standards. Demand in both developed and developing economies is being driven by this shift.
Expensive initial investment costs
Long-term energy savings are provided by electric AC motors, but high-efficiency or specialty motors, especially those with IE3 or IE4 ratings, smart sensors, or integrated variable frequency drives (VFDs), can be substantially more expensive up front than standard models. Small and medium businesses (SMEs) with limited capital budgets are particularly concerned about this price disparity. In industrial settings, the initial financial burden is increased by the cost of upgrading entire motor systems, which includes rewiring, mounting, and control system adjustments. Furthermore, the overall market adoption rate has slowed as a result of companies frequently delaying modernization or sticking with antiquated motors.
Technological advancements in materials and motor design
The development of lighter, more compact and more efficient AC motors is made possible by ongoing research in motor design, which also makes use of new materials like amorphous metals and soft magnetic composites. Advanced winding techniques and improved thermal management systems are further enhancing durability and performance. The range of applications for motors is expanded by these advancements, which enable their use in more demanding settings such as high-speed rail, robotics, and aerospace. Moreover, manufacturers who make R&D investments can benefit from these trends by providing unique, valuable products that are suited to particular market demands.
Growing rivalry between brushless and dc motor technologies
Although AC motors are the industry standard for many commercial and industrial applications, the increasing use of DC and brushless DC (BLDC) motors, particularly in industries like robotics, electronics, electric vehicles, and appliances, presents a serious risk. Higher efficiency, improved speed control, and a longer lifespan with less maintenance are all benefits of BLDC motors. AC motors are frequently outperformed by DC-based motors in small, precision-driven applications. Additionally, DC motors are gaining market share due to technological advancements that make them more affordable and adaptable, which forces AC motor manufacturers to either innovate or risk becoming obsolete in some markets.
The COVID-19 pandemic affected the market for electric AC motors in a variety of ways. Global supply chain interruptions, plant closures, and a reduction in industrial activity caused a brief drop in demand in the early stages, particularly in industries like manufacturing, construction, and the automobile industry. In an effort to improve operational resilience and lessen reliance on manual labour, businesses also adopted automation and smart manufacturing technologies more quickly as a result of the pandemic. The need for electric AC motors was progressively restored by this change, especially in sectors that were investing in industrial automation, HVAC systems, and robotics. Furthermore, the post-pandemic emphasis on sustainable technologies and energy efficiency also aided in the market's recovery and long-term growth prospects.
The integral horsepower (HP) output segment is expected to be the largest during the forecast period
The integral horsepower (HP) output segment is expected to account for the largest market share during the forecast period because they can effectively handle high-power operations, these motors-which are usually rated above 1 HP-are widely used in industrial machinery, HVAC systems, compressors, pumps, and conveyors. The need for essential HP motors has been greatly increased by the expansion of manufacturing, building, and infrastructure development, particularly in emerging economies. Moreover, the use of these high-performance motors has also been accelerated by changes in industry automation and motor efficiency standards, which have made them an essential part of contemporary commercial and industrial applications worldwide.
The HVAC equipment segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the HVAC equipment segment is predicted to witness the highest growth rate. The growing demand for energy-efficient heating, ventilation, and air conditioning systems in residential, commercial, and industrial settings worldwide is the main factor driving this growth. The use of high-efficiency AC motors in HVAC systems has increased in popularity as environmental regulations become more stringent and energy conservation becomes a top priority. Furthermore, this market is expanding due to factors like growing urbanization, worries about climate change, and the increasing use of smart building technologies. It is anticipated that the demand for dependable and environmentally friendly heating and cooling solutions will accelerate its already strong growth trajectory.
During the forecast period, the Asia Pacific region is expected to hold the largest market share, fueled by the growing need for energy-efficient solutions, urbanization, and fast industrialization. Because of their robust manufacturing sectors and widespread use of industrial automation, HVAC systems, and electric vehicles, nations like China, Japan, and India are major contributors. The government's efforts to encourage sustainable energy use and the region's growing infrastructure projects support market expansion even more. Additionally, the growing emphasis on renewable energy sources and technological developments in electric motor efficiency are anticipated to maintain Asia-Pacific's market leadership.
Over the forecast period, the Middle East and Africa (MEA) region is anticipated to exhibit the highest CAGR. The need for energy-efficient motors is being driven by the region's fast industrialization as well as large investments in energy, automation, and infrastructure. The demand for electric motors is rising as a result of nations like Saudi Arabia and the United Arab Emirates diversifying their economies, concentrating on industrial growth, and implementing renewable energy sources. Furthermore, the market's explosive growth in the MEA region is also largely due to the drive towards automation and smart city technologies.
Key players in the market
Some of the key players in Electric AC Motors Market include Emerson Electric Co., Hitachi, Ltd., ABB Ltd., Johnson Electric Holdings Limited., Siemens AG, Nidec Corporation, Rockwell Automation Inc, Schneider Electric SE, Toshiba Corporation, Yaskawa Electric Corporation, Allied Motion Technologies Inc., Denso Corporation, Fuji Electric Co., Ltd., Ametek, Inc. and Mitsubishi Electric Corporation.
In March 2025, ABB has signed a Leveraged Procurement Agreement (LPA) to support as the automation partner for Dow's Path2Zero project at Fort Saskatchewan in Alberta, Canada. According to Dow, the project, which is currently under construction, will create the world's first net-zero Scope 1 and 2 greenhouse gas emissions ethylene and derivatives complex1, producing the essential building blocks needed for many of the materials and products that society relies on.
In January 2025, Emerson Electric Co. has entered into a definitive Agreement and Plan of Merger with Aspen Technology, Inc., a Delaware corporation, and Emersub CXV, Inc., a wholly-owned subsidiary of Emerson. This strategic move is set to bolster Emerson's market presence and expand its technological capabilities.
In May 2024, Hitachi Energy and Aibel have signed separate framework agreements with German renewable energy company, RWE, for multiple high-voltage direct current (HVDC) systems to accelerate the integration of offshore wind power into the grid. The agreement follows the signing of a Capacity Reservation Agreement (CRA) last November that reserves the engineering and production capacity to develop three major HVDC projects.