Electric Motors Market

[439 Pages Report] The electric motors market is projected to reach USD 206.4 billion by 2029 from an estimated USD 152.2 billion in 2024, at a CAGR of 6.3% during the forecast period (2024−2029). The increasing demand for HVAC (Heating, Ventilation, and Air Conditioning) systems in the residential, commercial, and industrial sectors and the shift towards energy-efficient electric motors in various industries are driving the electric motor market. The adoption of electric motors helps reduce energy utilization and operational costs in manufacturing industries.

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Electric Motors Market Dynamics

Drivers: Increased demand for HVAC systems

The increasing demand for heating, ventilation, and air conditioning systems (HVAC) is driving the electric motors market. Rapid urbanization and growth in the residential, commercial, and industrial motor market are increasing the demand for HVAC systems. Electric motors drive fans, compressors, pumps, and blowers in HVAC systems. The use of electric DC motors in HVAC systems assures high efficiency in airflow systems. The Asia Pacific region, especially China and India, is witnessing significant demand for HVAC systems due to the ever-growing industrial motors market and commercial sectors.

Players operating in the HVAC industry have started automating their sales and service processes, which allows them to cut their customer acquisition costs and keep the pricing competitive. The deployment of smart technologies, such as the use of smartphone applications, helps users control lighting, ventilation, and other systems from one control point.

Restraints: Fluctuating prices of raw materials

Fluctuation in the prices of raw materials is restraining the growth of the electric motor market. Some of the raw materials used in electric motors are permanent magnets, steel bars, copper wires, and precision thin metals. The change in the price of these materials may cause an imbalance between demand and supply on a global scale. Geopolitical tensions and trade restrictions also affect the price and availability of these materials. These fluctuations in the price of raw materials are a major restraining factor for the electric motors market.

Opportunities: Transition of global automotive industry toward electric vehicles

Electric mobility is bringing a major transition in the global automobile industry. The need for decarbonization is driving the demand for electric vehicle motor market. Advancements in battery technologies have reduced the cost of batteries and improved their charging speed. The increase in government support by providing redemptions on tax and incentives for promoting eco-friendly electric vehicles is also providing opportunities for the growth of the electric motors market.

Governments around the world are implementing various policies and offering various incentives to encourage the adoption of ev motor market to reduce greenhouse gas emissions and fight climate change. These policies include subsidies on EV purchases, tax incentives, and implementation of stringent emission regulations. OEMs are investing significantly in increasing the production of electric vehicles. This growth of the electric vehicle motor market sector offers significant opportunities for players in the electric ac motors market.

Challenges: Shortage of components and supply chain issues

The majority of the raw materials and other products required for manufacturing electric motors come from China, the US, and a few parts of Europe. Hence, production slowdowns in these regions could severely impact the electric motor industry. The raw material shortage for battery components such as lithium, copper, nickel, and cobalt directly affects the production of electric vehicles. The price fluctuations and speculations on these materials could create uncertainty and volatility for EV producers.

Electric Motors Market Ecosystem

Leading companies in this electric motor market include well-established, financially strong manufacturers. Some of the major companies in this electric motor sales market include ABB (Switzerland), Siemens (Germany), NIDEC CORPORATION (Japan), WEG (Brazil), and Wolong Electric Group (China). These corporations have been operating in the electric drives market for a long time and have a differentiated product portfolio, modern manufacturing technologies, and robust sales and marketing networks.

DC electric motors segment expected to register higher CAGR during forecast period

DC motors have excellent starting torque capability. Their output torque and speed depend on both the electrical input and the design of the motor. These motors are used in consumer appliances, such as air conditioning units, vacuum cleaners, and microwave ovens. DC motors are also used in medical instruments such as infusion pumps and dialysis machines due to their precise and reliable operation. Thus, the growing demand for DC motors in various applications is driving the electric motor market for this segment.

1 HP motors segment to account for largest share in overall electric motors market during forecast period

The electric motor market segmentation based on output power into two types: <1 hp motors (fractional horsepower) and >1 hp motors (integral horsepower). <1 HP motors are utilized in numerous industries and applications. These motors are used in small applications to drive pumps and compressors in pump motors, vertical thrust handling motors, and hazardous location motors. In the automobile sector, electric motors are used in electric windows, power seats, wing mirrors, central locking systems, roof, and trunk openers.

"Asia Pacific to be largest and fastest-growing electric motors market"

Asia Pacific is expected to dominate the global electric motor market size between 2024 and 2029, followed by Europe and North America. The growth in urban population is driving the demand for infrastructure, such as commercial buildings, residential complexes, and public utilities. Electric motors are required in HVAC systems, elevators, and water treatment systems in the building & infrastructure sector. This is driving the electric motors market size in the Asia Pacific region.

Key Market Players

The global electric motor market is dominated by a few major players that have a wide regional presence. The major players in the electric motors market are ABB (Switzerland), Siemens (Germany), NIDEC CORPORATION (Japan), WEG (Brazil), and Wolong Electric Group (China). Between 2020 and 2024, these companies adopted strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions to capture a larger electric motors market share.

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Scope of the Report

This research report categorizes the electric motors market based on Resin Type, Application, and Region.

By Type:

• AC Motors
• DC Motors

By Power Rating:

• <1 KW motors
• 1-2.2 KW motors
• 2.2-375 KW motors
• 375-900 KW motors
• Above 900 KW motors

By Voltage:

• Low Voltage (Below 690 V)
• Medium Voltage (Between 690 V And 45 KV)
• High Voltage (Above 45 KV)

By Rotor Type:

• Inner Rotors
• Outer Rotors

By Output Power:

• <1 HP Motors (Fractional Horsepower Motors)
• >1 HP Motors (Integral Horsepower Motors)

By End User:

• Commercial
• Residential
• Industrial
• Transportation
• Agriculture

By Region:

• Asia Pacific
• Europe
• North America
• South America
• Middle East & Africa

Recent Developments

• In May 2023, ABB announced the completion of its acquisition of Siemens' low-voltage NEMA motor business. The acquisition of this business is part of the Motion business area's profitable growth strategy. It strengthens ABB's position as a leading industrial NEMA motor manufacturer and provides an even stronger platform from which ABB can better serve its global customers.
• In April 2023, Siemens Mobility expanded its manufacturing and services facility in Munich-Allach to meet the growing demand for locomotives and services.
• In February 2024, AIR, creator of eVTOLs for the consumer market, announced its partnership with Nidec Motor Corporation, a leading manufacturer of commercial, industrial, and appliance motors and controls, to develop motors for the production model of AIR's two-seater eVTOL (electric vertical takeoff and landing) aircraft, AIR ONE.
• In July 2023, Nidec Corporation announced that it had acquired full ownership of TAR, LLC d/b/a Houma Armature Works from its founding family through the Company's subsidiary, Nidec Motor Corporation.

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