The global Electric Motor market was valued at USD 142.1 Billion in 2022 and is projected to reach USD 238.84 Billion by 2030, registering a CAGR of 7.7% for the forecast period 2023-2030.
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Market Definition
Electric motors are machines that use electromagnetic interactions to transform electrical energy into mechanical energy. They work on electromagnetic principles, using a magnetic field and current-carrying conductors to generate motion. Electric motors, which are typically made up of a stationary component called the stator and a spinning component called the rotor, operate on the interaction of their magnetic fields. When an electric current flow through the wires wrapped around the stator, a magnetic field is created that interacts with the magnetic field of the rotor, forcing it to rotate and perform mechanical work. These motors are classified as AC (alternating current) motors, such as induction motors and synchronous motors, or DC (direct current) motors, such as brushed and brushless DC motors. They are widely used in a variety of products and sectors, ranging from domestic appliances like refrigerators and fans to industrial gear, vehicles, robotics, and more. Electric motors are vital in modern technology due to their efficiency, dependability, and versatility, and they fuel continual developments in electric vehicle propulsion, renewable energy systems, and automation.
Market Size:
- 2022: USD 142.1 billion
- 2030: USD 238.84 billion
- CAGR (2023-2030): 7.7%
Electric Motor Market Dynamics
Drivers Propelling the Demand for Electric Motor include:
Growing need for energy efficient motors is driving the market:
The growing need for energy-efficient motors is the result of a collective effort toward sustainability, cost-cutting, and environmental awareness. Governments around the world are enacting rigorous laws and standards to minimize energy use and greenhouse gas emissions. As a result, companies and consumers alike are increasingly choosing energy-efficient electric motors. These motors are more efficient, transforming more electrical input into mechanical output while minimizing energy losses due to heat or friction. As a result, they reduce running expenses significantly and contribute to a lower carbon footprint. This need is pushing advancements in motor technology, resulting in more efficient designs, materials, and control systems. Manufacturing, automotive, and HVAC (heating, ventilation, and air conditioning) industries are actively looking for these motors to fit with sustainability goals and comply with standards while boosting their bottom line through lower energy bills during the motor's lifespan. As a result of these combined causes, the market for energy-efficient motors continues to rise fast, fostering a trend toward greener and more cost-effective technology.
For instance, in September 2023, Rockwell Automation and Infinitum announced agreement for making high-efficiency low voltage drives and motors available for energy-intensive industrial applications. This solution will significantly save energy and cut costs for industrial customers globally, while helping them reduce their carbon footprint and become more sustainable.
Recent Developments
In May 2023, Hitachi Ltd. announced that it will merge its domestic power grids business with Hitachi Energy to provide significant assistance for the early attainment of a carbon-neutral society and the development of Japan's resilient electricity network. Hitachi will also leverage its domestic market expertise, as well as leading technologies and solutions based on Hitachi Energy's global market knowledge and experience, to contribute to Japan's Green Transformation (GX) by providing new values such as asset life cycle improvement with existing electricity network maintenance and services, and supporting flexibility, stability, and security of power grids.
In August 2022, ABB announced the signing of an agreement to acquire Siemen's low-voltage NEMA motor division. This acquisition includes a well-regarded product range, a long-standing North American client base, and an experienced operations, sales, and management team, with manufacturing facilities in Guadalajara, Mexico.
Restraint
Fluctuations in raw materials prices may hamper the market growth:
Raw material pricing fluctuations offer a substantial barrier to the electric motor sector. These motors are made from a variety of materials, including copper, steel, aluminum, and rare earth elements. The price volatility of these raw materials has a direct impact on the production costs of electric motors. Copper, for example, is a critical component in motor windings, and price changes can have a significant impact on manufacturing costs. Similarly, rare earth elements such as neodymium, which is utilized in the manufacture of magnets for high-performance motors, frequently face price fluctuation due to supply chain restrictions and geopolitical issues. Unpredictability in raw material prices causes uncertainty for manufacturers, making cost estimation, profit margins, and overall market stability difficult. Manufacturers frequently try to offset these issues by experimenting with different materials or design ideas, but these solutions are not always easily available or cost-effective, slowing innovation and reducing market competitiveness. Overall, volatile raw material prices continue to be a stifling factor influencing the growth and stability of the electric motor market.
Challenges
Lack of charging infrastructure can put up various challenges:
The lack of charging infrastructure is a key barrier to the broad adoption of electric vehicles (EVs) and, as a result, the demand for electric motors utilized in these cars. The success of electric vehicles is primarily reliant on a well-developed and easily accessible charging network. Potential EV buyers experience range anxiety due to a lack of charging stations, particularly in some regions or places with less urban development. This limitation impedes the growth of the electric motor market since it directly affects consumer willingness to migrate from internal combustion engine vehicles to electric vehicles. Furthermore, the lack of a solid charging infrastructure affects not just consumer confidence but also business decisions to invest in electric fleets, impeding the overall expansion of the electric vehicle market and demand for the motors that power these vehicles. Addressing this challenge will necessitate significant investments in the development of charging infrastructure, such as fast-charging stations, increased accessibility in residential areas, and the integration of charging facilities in public spaces, which will drive market demand for electric motors.
Opportunities
Emerging robotics technology creating new opportunities for the Electric Motor market:
Emerging robotics technology is expected to significantly increase demand for electric motors in a variety of industries. Electric motors are significantly used in robotics for actuation and mobility. As robotics advances, there is an increasing demand for more precise, efficient, and powerful motors to power these devices. Electric motors, particularly brushless DC motors and servo motors, are critical components in robotic systems, providing the torque, speed control, and accuracy required for complex movements and jobs. As businesses progressively incorporate robots into manufacturing, healthcare, logistics, and even domestic applications, the demand for specialized electric motors designed specifically for these robotic systems grows. Furthermore, the move toward collaborative robotics or cobots, which are designed to work alongside humans, necessitates quieter and more energy-efficient motors, resulting in even more innovation in the electric motor sector. As robots becomes increasingly prevalent throughout industries, demand for electric motors that power these machines is predicted to skyrocket, spurring innovation and diversification in motor technology.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 142.1 Billion |
| Market Forecast in 2030 | USD 238.84 Billion |
| Compound Annual Growth Rate (CAGR) | 7.7 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Motor Type, By Component, By Power Rating, By Voltage, By Rotor Type, By Output Power, By End-User, & By Region |
| By Motor Type |
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| By Component |
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| By Power Rating |
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| By Voltage |
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| By Rotor Type |
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| By Output Power |
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| By End-User |
|
| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Electric Motor Market
The Electric Motor’ market is segmented by motor type, by component, by power rating, by voltage, by rotor type, by output power, by end-user, & by region.
By Motor Type
The Electric Motor market based on the segment motor type is classified into dc, ac. The DC segment is expected to grow at highest growth rate during the forecast period. DC motors provide accurate speed control, making them perfect for variable speed operations in robotics, automation, and certain industrial processes. Furthermore, the growing demand for electric and hybrid vehicles relies on DC motors for a variety of functions such as powering electric power steering, pumps, and auxiliary systems. Furthermore, developments in brushless direct current (BLDC) motors have increased their popularity, particularly in industries seeking higher efficiency, cheaper maintenance, and improved reliability. The growing interest in renewable energy sources like as wind and solar power also helps to drive the expansion of DC motors, which are used in these industries due to their compatibility with direct current systems. Overall, the versatility, efficiency, and technological advances in DC motor designs are propelling this industry to significant growth across a wide range of industries.
By Component
The Rotor segment dominated market in 2022:
Based on the Component segment the market for Electric Motor is classified into end-bracket, bearings, frame, stator, rotor, and others. The rotor segment dominated the market in 2022 the segments dominance can be attributed as the rotor is the rotating component of an electric motor, and advances in rotor design have greatly improved motor efficiency, performance, and reliability. Different types of rotors, such as squirrel cage and wound rotors in induction motors or permanent magnet rotors in brushless DC motors, have significant advantages for specific applications. Permanent magnet rotor designs have gained popularity, particularly in high-efficiency motors, due to their superior performance in terms of power density and energy efficiency. Furthermore, advancements in magnet materials and manufacturing processes have boosted these rotors' capabilities, making them increasingly popular in applications such as electric vehicles, industrial machinery, and renewable energy systems. The improvements and diversity of rotor designs continue to push their dominance in the electric motor market as industries seek improved efficiency and performance.
Regional Analysis
Asia-Pacific holds the largest share during the forecasted period:
The Asia-Pacific to be the largest and fastest growing market during the forecasted period. Rapid industrialization and urbanization in nations such as China, India, Japan, and South Korea have increased demand for electric motors in a variety of industries, including manufacturing, automotive, and consumer electronics. These countries are seeing rapid infrastructure development, which increases the demand for electric motors in construction, HVAC systems, and transportation. Furthermore, government activities in the region supporting the adoption of electric vehicles and renewable energy sources have increased demand for electric motors used in EVs, wind turbines, and solar power systems. Furthermore, the growing emphasis on energy efficiency and rigorous laws aimed at decreasing carbon emissions have spurred market growth for electric motors in Asia Pacific, positioning it as a critical region in the global electric motor market landscape.
List of the prominent players in the Electric Motor Market :
- AMETEK
- GE
- WEG
- ABB
- Siemens
- Johnson Electric
- Rockwell Automation
- Nidec Motor Corporation
- Mitsubishi Heavy Industries
- Hitachi
- DENSO
- Regal Beloit Corporation
- Toshiba Corporation
Segmentation Analysis of the Electric Motor Market
By Motor Type
- DC
- AC
- End-bracket
- Bearings
- Frame
- Stator
- Rotor
- Others
- Less than 1 kW Motors
- 1–2.2 kW Motors
- 2.2–375 kW Motors
- Others
- Low Voltage Motors
- Medium Voltage Motors
- High Voltage Motors
- Inner Rotor
- Outer Rotor
- Less than 1 HP
- More than 1 HP
- Industrial
- Agriculture
- Residential
- Commercial
- Transportation
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Electric Motor Market:
The COVID-19 epidemic has had a significant impact on the electric motor business in a variety of ways. Initially, global supply chain disruptions created manufacturing delays and raw material shortages, hurting electric motor production schedules. Lockdowns and restrictions implemented to stop the spread of the virus resulted in reduced industrial activity, impacting demand for motors in industries such as automotive, manufacturing, and construction. Uncertainty about the economic situation encouraged firms to be more cautious with their expenditure, impacting investments in machinery and equipment, especially electric motor-driven systems.
However, as companies adapted to remote work and digital solutions, there was a heightened push toward automation and electrification, boosting demand for motors in industries such as healthcare, logistics, and e-commerce. Furthermore, the pandemic highlighted the necessity of resilience and sustainability, resulting in greater interest in energy-efficient motors and electric vehicle technologies, creating prospects for long-term market recovery and growth.
