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Electrification of the industrial and transportation sectors is witnessing better growth. As mentioned by U.S. Energy Information Administration (EIA) and International Energy Agency (IEA), with decarbonization and energy efficiency being the top world agenda, demand for electric motors is expected to skyrocket. Electric motors represent close to 45% of total global electricity consumption, and the attention of their operation must be prominently placed in the energy conservation efforts of all concerned nations.
Through its Advanced Manufacturing Office (AMO), the U.S. Department of Energy (DOE) promotes electric motor innovation by funding R&D in high-efficiency motor systems, especially for HVAC, industrial pumps, and electric vehicle (EV) traction motors. Similar programs have been initiated in India, with subsidies and policy directives of the Ministry of Heavy Industries (MHI) promoting high-efficiency electric motors in EVs and manufacturing under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, while the Chinese side has been taken up by MIIT.
In the EU, the EcoDesign Directive (2009/125/EC) mandates energy-efficient motors (IE3 and above) to be used in commercial and industrial applications in all member states. This mandate is supported by the European Environment Agency (EEA) and the Energy Directorate-General of the European Commission, which have allocated extensive funds for the replacement of old motor systems.
Motor installations are predominantly driven by automotive, HVAC, industrial automation, and renewable energy. The transition from ICE to EV-related dynamic changes in market dynamics are getting momentum with urbanization and electric mobility.
The government-backed sustainability programs and public and private initiatives offline are fostering this growth in North America, Europe, and Asia-Pacific. The synergy from the efficiency standards, emission mandates, and public investment in electrification programs are expected to carry the market momentum up to 2034.
Governments around the world are tightening efficiency regulations and mandates, which hasten the retirement of low-efficiency motors. The U.S. Department of Energy (DOE) estimates that electric motors account for around 70% of electricity consumed in U.S. manufacturing. Accordingly, the DOE has set up the Motor Challenge Program and funded the development of high-efficiency and variable-speed motor systems under the Advanced Manufacturing Office (AMO).
In the EU, the European Commission enforces energy efficiency labelling under Regulation (EU) 2019/1781, mandating compliance with IE3 or better efficiency classes for low-voltage induction motors on manufacturers' parts. The European Environment Agency (EEA) coordinates these rules as a means of curbing industrial emissions and enhancing grid load management.
The Bureau of Energy Efficiency (BEE) under the Ministry of Power instituted the Standards & Labelling (S&L) Programme with the intent of having star-rated motors that would serve to be applicable for industries, HVAC systems and water pumping in India. On the other hand, green manufacturing in China is being fostered through subsidizing efficient motor systems by MIIT and the National Energy Administration (NEA).
Under these policies, improvements are made on older motor technologies so that they can be replaced with more efficient new technology, thus supporting directly the electric motor manufacturing ecosystem across automotive, HVAC and processing industries.
Now, with this program, industries upgrade older motor systems replacing them with highly efficient new technologies, leaving them directly beneficial to the electric motor manufacturing ecosystem across automotive, HVAC and processing industries.
Electric mobility is a global phenomenon and the dominant force behind the rising demand for electric motors. According to the International Energy Agency (IEA), global electric car sales reached 14 million in 2023, effectively led by China, Europe, and the U.S. The driveline of electric vehicles utilizes traction motors mainly Permanent Magnet Synchronous Motors (PMSM) and AC Induction Motors.
The Vehicle Technologies Office (VTO) of the U.S. Department of Energy is funding R&D under the Electric Drive Technologies Program aimed at developing next-gen EV motors with higher torque density and lower rare-earth dependency. Tax incentives and subsidies are provided in India under the FAME II scheme and in Japan by the Ministry of Economy, Trade, and Industry (METI) for the domestic manufacturing of EVs and associated powertrain components, such as motors.
These synchronized government initiatives are providing a solid growth runway for the supply chain of electric motors, particularly for high-precision, low-noise, and temperature-resistant motors required for EVs and hybrid vehicles.
The rapid proliferation of electric motor adoption in smart factories and automation infrastructure is engrained in ongoing national-level drive toward industrial digitization. The U.S. Infrastructure Investment and Jobs Act (IIJA) and CHIPS and Science Act earmark funds for the modernization of industrial automation with energy-efficient components, inclusive of motors used in robotics, conveyors, and process machinery.
In Europe, the Digital Europe Programme (DEP) and Industry 5.0 framework highlighting smart and sustainable manufacturing have set aside billions in co-financing for automation and energy upgrades. Meanwhile, the integration of intelligent motor control systems, powered by AI and IoT, is being supported by China's Made in China 2025 and Germany's High-Tech Strategy 2030.
This government-backed transition to Industry 4.0 and beyond is creating a truly large opportunity for motor manufacturers to scale up production and innovate around smart, connected, and digitally tenable electric motors.
The electric motor sector is heavily reliant on critical raw materials; especially rare earth elements used in permanent magnet motors like neodymium and dysprosium. Today, over 80% of the global supply of rare earths is concentrated in China, according to the U.S. Geological Survey (USGS) and the European Raw Materials Alliance. This makes many countries vulnerable when they must import motor components.
Geopolitical tensions and pandemic-related slowdowns have caused global supply chain disruptions that delayed cycle production and increased costs. Localized motor components manufacturing and recycling programs for rare earths are what the U.S. Department of Commerce and European Commission have been emphasizing.
Until then, electric motor manufacturing worldwide continues to face a serious constraint because secondary sources for material, recycling technologies, or synthetic alternatives will not be available at cost-effective scales.
The global electric motor market, by motor type, is segmented into AC Motors, DC Motors, and Hermetic Motors.
The AC Motors are expected to command the market to a larger extent owing to their extensive application requirements of industrial machinery, HVAC systems, and home appliances because of their lower maintenance costs and ability to work directly from grid power. According to a decree by the U.S. Department of Energy (DOE), AC induction motors account for more than 60% of electric motor applications used in manufacturing. Further, government initiatives on smart grids and variable frequency drives (VFDs) have inevitably enhanced the efficiency and flexibility of AC motors, especially in the industrials of the EU and APAC.
Based on voltage, the market is segmented into Low Voltage (<1 kV), Medium Voltage (1–6.6 kV), and High Voltage (>6.6 kV).
These motors are debatable but given their wide-reaching applications in consumer electronics, the commercial HVAC industry, electric vehicles, and light industrial machinery, they hold the foremost position of market share. The International Energy Agency (IEA) stipulates that low-voltage motors are core to automation and building systems in the global transition to energy-efficient infrastructure. Awards of preference are given under government-backed smart city programs such as India’s Smart Cities Mission and EU’s Energy Performance of Buildings Directive (EPBD) to low-voltage motor-driven systems for achieving sustainability benchmarks.
By application, the market is segmented into Industrial Machinery, HVAC, Household Appliances, Transportation (including EVs), and Others.
The Industrial Machinery sector is leading in the heavy electrification of manufacturing sectors such as food processing, automotive, cement, textiles, and chemicals. According to the U.S. Census Bureau's Annual Survey of Manufactures (ASM), approximately 68% of energy used in U.S. industrial plants is attributed to motor-driven systems. Motors used for pumps, compressors, fans, and materials handling systems are now being replaced or upgraded to achieve energy efficiency levels set by national energy efficiency strategies in North America, China, and Germany.
Based on end user, the electric motor market is segmented into Industrial, Commercial, Residential, and Automotive & Transportation sectors.
The electrification concerning the specific areas of factory automation, robotic assembly, and process manufacturing is quite high; hence, presently, the industrial segment leads the market. Programs such as Germany's Industrie 4.0, Japan's Society 5.0, and the U.S. DOE's Better Plants Program are further futuristic moving toward the integration of the motor-driven systems within these smart industrial environments. On the other hand, government support in subsidies, tax-reliefs, and public R&D funding to improve efficiency and reliability of performance of motors all benefit industrial end users.
The United States is ahead in the electric motor industry in North America, thanks to the well-established manufacturing base and stringent regulations on energy efficiency and investments in technology on electric vehicles (EVs). The United States has programs with agencies such as the U.S. Department of Energy (DOE) and Environmental Protection Agency (EPA), such as the Motor Challenge Program and Energy Star for Industrial Motors, to help motivate industry and commercial use of efficient motors. The Vehicle Technologies Office (VTO) of the DOE is an important player in advancing motor technologies for electric vehicle propulsion, with a greater emphasis on improving performance and de-risking rare-earth dependence. Canada further reinforces this transition through Natural Resources Canada (NRCan), which promotes energy-efficient motor systems in industry under its ENERGY STAR for Products and ISO 50001 implementation programs.
Germany, France, and the Netherlands, among others, have gone ahead in adopting energy-efficient electric motors, which helped with the strong supportive regulatory frameworks and climate commitments in these countries. The European Commission mandated motor efficiency standards called in regulation (EU) 2019/1781-in this regulation viz the IE3 and the IE4 motor usage across all kinds of sector. Under Horizon Europe Programme and Digital Europe Program (DEP), funds are provided for smart motor development, automation technology, and industrial electrification. The High-Tech Strategy 2030 of Germany and ADEME (Agency for Ecological Transition) of France further boosts collaborative public private effort in production and deployment of smart motors. All these are in consonance with the European Green Deal which seeks net-zero emissions by 2050: the efforts place energy-efficient electric motors at the centre of industrial modernization.
Electric motors are manufactured in Asia-Pacific, which has the largest ecosystem of electric motor manufacturing in the world, thrust forward strong policy support, electrification mandates, domestic industrial growth, and other factors. Japan has the most advanced robotics and automation sector in the whole world, which supports the country in innovating the electric motor. The NEDO and METI of Japan bring the next-generation motors innovation on electric vehicles and industrial robotics. Among the initiatives that China, the world's largest producer and consumer of electric motors, sets are Skims localization of motor components under its Made in China 2025 initiative and subsidies from MIIT and NEA on motor-driven electric vehicles, smart factories, and energy-efficient appliances. In India, the Ministry of Heavy Industries and Bureau of Energy Efficiency, under the FAME scheme, are helping to promote electric motors for e-mobility and modernization in introduction to industry, with additional policies supporting indigenous and export-oriented manufacturing.
Countries such as Brazil and Mexico are still at the initial stages of adopting motor technology, yet they are showing promising regulatory movements toward industrial energy efficiency. The Brazilian National Electric Energy Agency (ANEEL) is very active in modernization programs for the grids with the inclusion of industrial motors and pumps. FINEP and CNPq, public institutions, have been providing support for local innovation in motor designs specifically in applications for agriculture and water management systems. Mexico, on the other hand, has initiated inter-institution programs by the Secretary of Energy (SENER) to promote efficient use of motors in commercial and manufacturing sectors particularly under national renewable energy building codes.
The Gulf Cooperation Council countries including both UAE and Saudi Arabia are investing into electrical motor systems installations in their large-scale infrastructural developments of HVAC transportation and other projects. Saudi Vision 2030 and UAE Energy Strategy 2050 were launched and promoted toward using high efficiency electric motors in public transportation and desalination plants and smart buildings. Meanwhile, in South Africa, DSI, NCPC-SA are running the programs of electrification and motors upgrade in the mining and water sectors and focusing sustainably on local production for making these actions effective.
The report will cover both qualitative and quantitative data on the Global Electric Motor Market. The qualitative data includes analysis of latest trends, key market players, market drivers, opportunities, regulatory frameworks, and technological developments. The quantitative data encompasses market size estimates and forecasts for every region, country, and market segment including by motor type, voltage, application, and end user for the forecast period 2025–2034.We can also deliver a customized report tailored to specific requirements across any industry vertical, including automotive, manufacturing, HVAC, energy, or transportation infrastructure.
Base Year | 2024 |
Estimated Forecast Year | 2025–34 |
Growth Rate | CAGR of 6.1% from 2025 to 2034 |
Unit | USD Billion |
By Motor Type |
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By Voltage |
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By Application |
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By End User |
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By Region |
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North America accounted for the highest xx% market share in terms of revenue in the Electric Motor market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Electric Motor. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Electric Motor companies in economies such as Japan and China.
The objective of the report is to present comprehensive analysis of Global Electric Motor Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.
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14 Jun 2022
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