Energy Efficient Motor Market by Efficiency Level (IE1, IE2, IE3, IE4, and IE5), Type(AC, DC), Power Output Rating (< 1 kW, 1 - 2.2 kW, 2.2 - 375 kW, and > 375 kW), Application (HVAC, Fans, Pumps, Compressors), End User Region - Global Forecast to 2028
[214 Pages Report] The global energy efficient motor market 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.
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Energy Efficient Motors Market 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 motors market 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.
Market Trends
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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 energy efficient motor 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 between 2021–2028, 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 energy efficient motor market is dominated by a few major players that have a wide regional presence. The major players in the energy efficient motors 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 energy efficient motors market.
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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 energy efficient motor 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 energy efficient motor market has been segmented as follows:
- IE1
- IE2
- IE3
- IE4
- IE5
On the basis of application, the energy efficient motor market has been segmented as follows:
- HVAC
- Pumps
- Fans
- Compressors
- Refrigeration
- Material Handling
- Material Processing
On the basis of end user, the energy efficient motor market has been segmented as follows:
- Residential
- Commercial
- Industrial
- Automotive
- Agriculture
- Aerospace & Defense
On the basis of installation type, the energy efficient motor market has been segmented as follows:
- Open Drip Proof (ODP) Motors
- Totally Enclosed Fan Cooled (TEFC) Motors
On the basis of region, the energy efficient motor 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):
What is the current size of the energy efficient motors market?
The current market size of the global energy efficient motors market is USD 41.7 Billion in 2023.
What are the major drivers for the energy efficient motors market?
The growth of the energy efficient motors market can be attributed to the supportive government regulations pertaining to decarbonization
Which is the fastest-growing region during the forecasted period in the energy efficient motors market?
Asia Pacific is expected to be the largest market region for the global energy efficient motor market between 2021–2028, 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 is the fastest-growing segment, by application during the forecasted period in the energy efficient motors market?
By application, Pumps 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.
Which is the fastest-growing segment, by power rating during the forecasted period in the energy efficient motors market?
By power rating, >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.
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The study involved major activities in estimating the current size of the energy efficient motor market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the global energy efficient motor market. The other secondary sources included annual reports, press releases, and investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The energy efficient motor market comprises several stakeholders such as energy efficient motor manufacturers, manufacturers of components of energy efficient motor infrastructure, technology providers, and technology support providers in the supply chain. The demand side of this market is characterized by the rising demand for energy efficient motor in the nations to reduce the energy consumption and move towards the goal of decarbonization. The supply side is characterized by rising demand for contracts from the industries, and mergers and acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the energy efficient motor market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Energy efficient motor Market Size: Bottom-up Approach
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Objectives of the Study
- To define, describe, segment, and forecast the energy efficient motor market size, by installation type,type, power output rating, efficiency level, end user, application
- To provide detailed information on the major drivers, restraints, opportunities, and industry-specific challenges influencing the growth of the market
- To strategically analyze the energy efficient motor market with respect to individual growth trends, prospects, and contributions of each segment to the market
- To analyze market opportunities for stakeholders and provide a detailed competitive landscape for market leaders
- To forecast the revenue of the market segments with respect to five main regions (along with countries), namely, North America, Europe, Asia Pacific, South America, and the Middle East & Africa
- To strategically profile key players and comprehensively analyze their market ranking and core competencies
- To track and analyze competitive developments such as new product developments, contracts & agreements, investments & expansions, and mergers & acquisitions in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
- Detailed analyses and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Energy Efficient Motor Market
Hello, I hope this finds you well. I am exploring research on two-digit frame size electric motors in the range of less than 1 hp, to 5 hp. As such, I have some follow-up questions related to the Markets and Markets Energy Efficient Motors Market Study: 1. To what level of detail does the research report categorize AC and DC induction and synchronous motors? E.g., how does Markets and Markets disaggregate motor products beyond the following products: (Synchronous (Reluctance, Permanent Magnet), Asynchronous (Squirrel Cage, Wound Rotor), DC Motor (Brushless, Brushed)). 2. Does Markets and Markets publish a related study, just concentrated on the U.S. Market? If not, is it possible to only purchase select chapters related to the U.S. Market? 3, Are market shipments data provided in dollar investment value or in quantity? 4. Does the study include further analyses on each motor product, e.g. pole configuration, enclosure type? 5. What are the major sources that Markets and Markets references to make analyses? Many thanks, Erica
Hello, I want to buy a study on technical analysis of kinds of motors with various power loads and what is the market potential of these motors for different power. Also, let me know if you can cover comparative information of performance of these energy efficient motors with v.f.d.s with respect to that with conventional motors.
We have specific interest of Line Start IE4 Motors as per IEC 60034-30-1 July14. I would like to know who are the manufacturers of these motors and what are its types? I am keen to understand the compliance requirement in APAC region for industrial motors, especially for harsh environment.
I'd like a sample (and chart) from the report for publishing on our news site - something of interest to energy managers who want to find energy efficient motors. The market opportunity in number, trends, and key player sample data will be helpful for understanding your report structure.
We are trying to penetrate the industrial market in China with motors specific to manufacturing plants. Will this report help us understand the opportunity in China? But We haven't established the company and have no income from the region. Could we get the partial data from the report as we are low on budget? Thanks for your time. Best regards.