Energy Efficient Motor Market

According to a research report "Energy Efficient Motor Market by Efficiency Level (IE1, IE2, IE3, IE4, IE5), Type (AC, DC), Power Output Rating (<1 kW, 1–2.2 kW, 2.3–375 kW, >375 kW), Application (HVACs, Fans, Pumps, Compressors), End User, and Region - Global Forecast to 2030" published by MarketsandMarkets, The global energy efficient motor market is projected to reach USD 72.06 billion by 2030 from an estimated USD 48.52 billion in 2025, registering at a CAGR of 8.2% from 2025 to 2030.

Browse 254 market data Tables and 60 Figures spread through 260 Pages and in-depth TOC on "Energy Efficient Motor Market by Efficiency Level (IE1, IE2, IE3, IE4, IE5), Type (AC, DC), Power Output Rating (<1 kW, 1–2.2 kW, 2.3–375 kW, >375 kW), Application (HVACs, Fans, Pumps, Compressors), End User, and Region - Global Forecast to 2030"
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The growing global emphasis on energy conservation and sustainable development has led to increased adoption of advanced technologies across industrial, commercial, and residential sectors. One such technology is the energy-efficient motor, which reduces overall power consumption, improves system performance, and supports carbon neutrality goals. Governments worldwide implement stricter energy efficiency regulations, while industries are proactively upgrading to meet compliance and reduce operational costs. An energy efficient motor is a type of electric motor designed to consume less electrical energy while providing the same level of output as a standard motor. Energy-efficient motors help achieve significant energy savings, reduce greenhouse gas emissions, and lower operating costs due to the longer lifespan of these motors.

Industrial segment is expected to hold a significant share of the energy efficient motor market from 2025 to 2030

In the industrial sector, energy-efficient motors are used in various applications, such as pumps, compressors, fans, conveyors, and processing equipment to achieve improved energy efficiency, lower operating costs, reduced downtime, enhanced performance, and increased system reliability. Many companies have been investing in energy efficient technologies to achieve their targets to minimize their greenhouse gas emissions. Moreover, with the rise of Industry 4.0, the integration of smart sensors and IoT-enabled motor systems enables real-time monitoring, predictive maintenance, and optimized energy consumption. This digital transformation further accelerates the shift toward energy-efficient motor adoption in sectors such as manufacturing, oil & gas, water treatment, and mining. Additionally, government subsidies, tax incentives, and mandatory efficiency standards reinforce the demand for high-efficiency motors in industrial operations.

By application, the HVAC segment is anticipated to exhibit the highest CAGR from 2025 to 2030

Energy-efficient electric motors are used in heating, ventilation, and air conditioning (HVAC) solutions, especially in commercial buildings, especially for maintaining good indoor air quality and providing thermal comfort. HVAC systems are based on the laws of thermodynamics, as well as the principles of fluid mechanics and heat transfer. The most commonly used motors in HVAC applications are induction motors; three-phase for commercial/industrial premises, and single-phase for certain smaller installations. The growth of the HVAC market is influenced by rapid industrialization and urbanization, which have enhanced the need to maintain air quality in indoor spaces, including offices and manufacturing units.

Europe is expected to record the second-highest CAGR in the energy efficient motor market between 2025 and 2030

Europe has been on the frontline in the process of adopting energy-efficient motor technologies due to the huge consumption of power by electric motors. The European Union has introduced an effective eco-design regulation that must be adopted by every manufacturer and supplier who wants to sell motors and drives in the European Union. This regulation must be observed to avoid environmental abuse and energy wastage. The new regulation, (EU) 2019/1781, was enforced on July 1, 2021, and the older (EC) No 640/2009 was repealed. This revised rule brought out a wider scope of coverage since it included single-speed, 50Hz, 60Hz, or 50/60Hz induction motors, having 2 to 8 poles, single-phase or three-phase input, and their output rated 0.12 kW and 1,000 kW, 50 V to 1,000 V, and designed to operate in continuous duty and direct on-line service. It also required IE2 and IE3 levels of efficiency based on power range, and in the first, variable speed drives (VSDs), a minimum rating of IE2 was required. A second phase, that came into force on July 1, 2023, extended the scope to cover single-phase motors with greater or equal to 0.12 kW and explosion-protected motors (Ex eb), which are required to at least achieve IE2 efficiency. Moreover, in the 75 kW upwards to 200 kW range of three-phase motors, it is now mandatory to be at the IE4 level of efficiency, which shows the EU’s move toward ultra-high-efficiency technologies.

In the future, the control will be actively reviewed, and consultations with stakeholders and impact assessments will be carried out until 2025-2027. In the meantime, the forthcoming Ecodesign for Sustainable Products Regulation (ESPR), due to come into force in July 2025, is likely to complete the above efficiency regulation with a wider definition of sustainability on motors and other industrial products based on such requirements as repairability, recyclability, and durability.

Some major players in the energy efficient motor market are Regal Rexnord Corporation (US), ABB (Switzerland), Siemens (Germany), Wolong Electric Group Co., Ltd (China), and Nidec Corporation (Japan). Major strategies adopted by these players include acquisitions, sales contracts, product launches, agreements, alliances, partnerships, and expansions.

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