Energy Efficient Motor Market Size, Share, Growth, Analysis

Energy Efficient Motor Market Size Share and Industry Trends

[214 Pages Report] The global energy efficient motor market size in terms of revenue was estimated to be worth $41.7 billion in 2023 and is poised to reach $59.3 billion in 2028, growing at a CAGR of 7.3% from 2023 to 2028. Major factors that would further drive the adoption of energy efficient motors include stringent government policies with the goal of achieving high efficiencies in appliances, equipments in various sectors so to move towards decarbonization.

To know about the assumptions considered for the study, Request for Free Sample Report

Energy Efficient Motor Market Growth Dynamics

Drivers: Government initiatives encouraging adoption of energy efficient motors

Governments can set minimum energy efficiency standards for motors, which require manufacturers to produce motors that meet or exceed certain efficiency levels. These standards can help drive the market towards more energy efficient motors and make them more widely available. The Government is also  providing education and outreach programs to raise awareness of the benefits of energy efficient motors and how they can be integrated into various industries. This can include training programs for engineers and technicians on how to install and maintain energy efficient motors, as well as public awareness campaigns to promote their use. Through Energy efficiency programs, Governments can establish energy efficiency programs that provide technical assistance and resources to businesses and individuals looking to adopt energy efficient technologies. These programs can help identify energy-saving opportunities, provide guidance on selecting the right motor for a particular application, and offer financing options to help cover the upfront costs of the new equipment.

Restraints: High Price of energy efficient motors

Energy efficient motors often require higher quality materials, more advanced manufacturing processes, and additional testing and certification to ensure their efficiency. This can increase the production costs for manufacturers, which in turn results in a higher price for the end user. Generally, energy efficient motors cost an average 20% more than standard motors, but it depends on the specific motor manufacturer and market competition. It is often possible to obtain a lower price premium when purchasing a large quantity of energy efficient motors. Some buyers may not be aware of the benefits of energy efficient motors and may be hesitant to pay a premium price for a technology they don't fully understand.

Opportunities: Rising industrialization and decarbonization initiatives

The growing industrialization across the globe has increased the demand for energy efficiency motors. As more industries are established and existing ones expand, the need for motors that can reduce energy consumption and operating costs has become paramount. Energy efficiency motors offer higher efficiency and reduced energy loss, which translates to significant cost savings over the lifetime of the motor. This has led to a surge in demand for energy efficiency motors in various sectors, including manufacturing, agriculture, construction, and transportation. Also, the global push towards decarbonization has also contributed to the growth of the energy efficiency motors market. Governments and organizations around the world are implementing policies and initiatives to reduce carbon emissions and combat climate change. Energy efficiency motors play a crucial role in achieving these goals by reducing the energy consumption and carbon footprint of industrial processes. The use of energy efficiency motors is also seen as an important step towards achieving the energy transition, which involves shifting away from fossil fuels towards renewable energy sources. the rising industrialization and decarbonization initiatives have created a favorable market for energy efficiency motors. The market is expected to continue its growth trajectory as more industries adopt energy-efficient practices and the push towards decarbonization intensifies. This presents a significant opportunity for companies operating in the energy efficiency market size to expand their business and contribute to a more sustainable future.

Challenges: Lack of awareness of benefits of energy efficient motors

Currently, there is lack of awareness about energy efficient motors among various end users; however, the situation is expected to change positively in the coming years. End users lack sufficient information regarding the potential of these motors to save energy and the cost incurred by excessive energy consumption. Another reason for the lack of awareness is the lack of information and education on the topic. Many consumers and businesses may not be aware of the different types of energy efficient motors available, their benefits, and how they can be integrated into their operations. Without this knowledge, it can be difficult for them to make informed decisions about which motors to use.

Energy Efficient Motor Market Trends

To know about the assumptions considered for the study, download the pdf brochure

Pumps segment, by application, is expected to be the largest market during the forecast period

The Pumps segment is expected to be the largest market during the forecast period. Three-phase alternating current (AC) induction motors are commonly used for commercial and industrial applications. Due to strict energy efficiency standards in developed countries focus on smart water and wastewater systems, and increasing power generation capacities across the world is likely to increase the adoption of energy efficient motors in pumps.

By power rating, >375 kW segment is expected to be the fastest market for the global energy efficient motor market during the forecast period

By power rating, the market has been segmented into <1 kW, 1 – 2.2 kW, 2.2 – 375 kW, >375 kW. >375 rated motors are specifically engineered to withstand heavy loads and to function efficiently in challenging environments. Given their high levels of reliability and efficiency, they are well-suited for use in critical applications where any amount of downtime is unacceptable.

“Asia Pacific: The largest energy efficient motors market”

Asia Pacific is expected to be the largest market region for the global energy efficient motor market size between 2023-2028, followed by North America and Europe. Governments of several countries in Asia Pacific, including Australia, China, Japan, and Singapore, have implemented minimum energy performance standards or labeling programs for electric motors, which have boosted demand for energy efficient motors.  Asia Pacific is the most populated region in the world and is expected to become the largest energy-consuming region globally. It comprises several developing nations and requires more energy for its development. According to the Asian Development Bank (ADB), the region’s share of global energy consumption is expected to increase to 56% by 2035 from 34% in 2010. The industrial sector in China is contributing more than 50% of its GDP, and the growth of this sector has tremendously increased power production and consumption in the country. These factors have made China one of the most lucrative markets for the power industry, consequently resulting in heightened demand for electric motors. Similar trends are also being followed in other countries.

Key Market Players

The market is dominated by a few major players that have a wide regional presence. The major players in the energy efficient motor market are ABB (Switzerland), Siemens (Germany), Regal Rexnord Corporation (US), Wolong Electric Group Co., Ltd (China), Nidec Corporation (Japan). Between 2018 and 2022, the companies adopted growth strategies such as sales contracts to capture a larger share of the market.

Want to explore hidden markets that can drive new revenue in Energy Efficient Motor Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the market by type, technology, component, communication, end user, and region

On the basis of by type, the energy efficient motor market has been segmented as follows:

• AC motors
• DC motors

On the basis of power output rating, the market has been segmented as follows:

• < 1 kW
• 1–2.2 kW
• 2.2–375 kW
• > 375 kW

On the basis of efficiency level, the market has been segmented as follows:

• IE1
• IE2
• IE3
• IE4
• IE5

On the basis of application, the market has been segmented as follows:

• HVAC
• Pumps
• Fans
• Compressors
• Refrigeration
• Material Handling
• Material Processing

On the basis of end user, the market has been segmented as follows:

• Residential
• Commercial
• Industrial
• Automotive
• Agriculture
• Aerospace & Defense

On the basis of installation type, the market has been segmented as follows:

• Open Drip Proof (ODP) Motors
• Totally Enclosed Fan Cooled (TEFC) Motors

On the basis of region, the market has been segmented as follows:

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

Recent Developments

• In April 2022, Nidec Corporation introduced SynRA motors for usage in commercial pumping and HVAC equipment with IE4 and IE5 ratings.
• In August 2022, ABB announced that it will purchase Siemens low voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this acquisition provides a well-regarded product portfolio, a longstanding North American customer base, and an experienced operations, sales, and management team.
• In March 2022, Siemens invested in existing and new sites in Texas and California that develop electrical equipment for critical infrastructure systems, including EV charging, data centers, and industrial installations. This investment advances the company’s commitment to supporting the next generation of American infrastructure.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst