Electric Motors Market

[439 Pages Report] The global electric motors market in terms of revenue was estimated to be worth $152.2 billion in 2024 and is poised to reach $206.4 billion by 2029, growing at a CAGR of 6.3% from 2024 to 2029. As the world population grows and economies expand, the demand for energy, particularly oil and gas, continues to rise. Increasing demand for HVAC (Heating, Ventilation, and Air Conditioning) systems among residential, commercial, and industrial end-users, industries shift towards energy-efficient electric motors due to lowered energy utilization and operational costs in manufacturing industries are some of the major driving factors for the electric motors market.

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Electric motors Market Dynamics

Driver: Increased demand for HVAC systems

Heating, ventilation, and air conditioning (HVAC) systems provide thermal comfort and ensure the air quality in indoor spaces. They are one of the core building blocks of modern infrastructures, especially for large office buildings or shopping malls. Electric motors are essential components in HVAC systems, powering fans, compressors, pumps, and blowers. As the demand for HVAC systems grows, so does the need for these motors, which are crucial for the operation of the entire system. Rapid urbanization and the construction of residential, commercial, and industrial buildings have increased the need for HVAC systems to provide climate control. This expansion directly correlates with a higher demand for electric motors that are integral to these systems. Electric DC motors are widely used in HVAC systems to achieve high efficiency in airflow systems and maximize their life and power. The demand for HVAC systems is increasing in Asia Pacific, especially in China and India, owing to the continuous growth in their industrial and commercial sectors.

Companies 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.

Restraint: Fluctuating prices of raw materials

Fluctuations in prices of key raw materials, such as permanent magnets, steel bars, copper wires, and precision thin metals, could affect the market growth. Prices of these materials can fluctuate due to global supply and demand imbalances. For instance, any disruption in copper mining or steel production can lead to sudden price increases. Similarly, geopolitical tensions or trade restrictions can impact the availability and price of rare earth metals. Fluctuating raw material prices represent a significant challenge for the market, affecting everything from production costs to pricing strategies and market competitiveness.

Opportunities: Transition in the global automotive industry toward electric vehicles

Electric mobility is making a huge transition in the global automobile industry. The proactive efforts for the decarbonization of society in Europe are driven by the ever-increasing share of electric motors in the market. Advancements in battery technologies have reduced costs of batteries and improved the charging speed of the batteries. The increase in government support by providing redemptions on tax and incentives for promoting eco-friendly electric vehicles through electric motors are also acts of opportunities for the growth of the market of electric motors. As per the IEA, it is revealed that 50% of global passenger electric vehicles should come from China in the year 2025.

Many governments worldwide are implementing policies and incentives to promote the adoption of electric vehicles as part of efforts to reduce greenhouse gas emissions and combat climate change. These policies include subsidies for EV purchases, tax incentives, and stricter emissions regulations, all of which are accelerating the transition to electric mobility and, consequently, increasing demand for electric motors. The rapid growth of the EV market has led to the construction of new manufacturing facilities dedicated to producing electric vehicles and their components, including electric motors. Major automakers and new EV startups are investing heavily in scaling up production, which includes securing a reliable supply of electric motors. the growing demand for electric vehicles is a major driver of demand for electric motors. The transition to electric mobility, driven by technological advancements, government policies, and consumer preferences, is creating a significant and expanding market for electric motors across a wide range of vehicle types and applications. As the EV market continues to grow, the demand for efficient, powerful, and innovative electric motors will remain strong.

Challenges: Shortage of components and supply chain issues leading to higher product cost

The largest near-term impact on electric motors that are already contracted and are in the manufacturing process will come through the supply chains. The slow deliveries and the delays in construction coming from a mixture of lower growth in the global economy, higher inflation, and continued volatile energy prices present the most significant concern to industry executives. A fair proportion of many components and parts for manufacturing electric motors come from China, the US, and a few parts of Europe. Moreover, slowdowns in both the U.S. and China could leave overall growth in the market basically flat for a year or two into the future.

The more important aspect currently is that the local currencies of many countries may have depreciated due to either inflation or the economic crisis. It leads to a mismatch of supply and demand, and there are monetary losses occurring for just the component/part that was being manufactured. Major components used in the manufacturing of electric motors are mostly procured in US dollars, which generally translates into a higher cost of the components.

Electric Motors Market Ecosystem

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

DC electric motors segment, by type, is expected to grow at the highest CAGR during the forecast period

These DC motors have excellent starting torque capability with good speed regulation. growth of DC electric motors is driven by their essential role in electric vehicles and other applications. Technological advancements, increasing emphasis on energy efficiency, and supportive government policies further bolster this trend, making DC motors a critical component in the future of various industries. DC motors are mainly brushless DC motors and brushed DC motors. Brushless DC motors provide exceptional efficiency and reliability, making them cost-effective for a wide range of applications, including window lifters, air conditioners, sunroof actuators, etc.

By output power, the < 1 HP motors segment is expected to be the largest during the forecast period

This report segments the electric motors market based on output power into two types: <1 hp motors (fractional horsepower) and >1 hp motors (integral horsepower). The <1 HP motors are utilized in a lot of industries and vast areas of application. The electric windows, powered seats, wing mirrors, central locking systems, roof, and trunk openers make the major contribution of these motors to the development in the automobile sector. The <1 HP motors are used in small applications to drive the pump and compressors in pump motors, vertical thrust handling motors, and hazardous location motors.

“Asia Pacific: The largest and fastest electric motors market”

Asia Pacific is expected to dominate the electric motors market between 2024–2029, followed by Europe and North America. The urban population growth drives demand for infrastructure, including commercial buildings, residential complexes, and public utilities, all of which rely heavily on electric motors for HVAC systems, elevators, water treatment, etc are the reasons for the region's significant market size.

Key Market Players

The 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, strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the market.

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Scope of the Report

This research report categorizes the electric motor 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 it has completed its acquisition of the 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 it provides an even stronger platform from which ABB can better serve its global customers.
• In April 2023, Siemens Mobility is expanding 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, today announced its partnership with Nidec Motor Corporation, a leading manufacturer of commercial, industrial, and appliance motors and controls, to develop the motor 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 has 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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