Electric Motor Market By Motor Type (AC Motors {Induction Motors, Synchronous Motors}, DC Motors {Brushed DC Motors, Brushless DC Motors}, Hermetic Motors), By Application (Industrial Machinery, HVAC Equipment, Household Appliances, Electric Vehicles, Aerospace & Transportation, Robotics & Automation), By Voltage Range (Low Voltage, Medium Voltage, High Voltage), By End-user (Oil & Gas, Power Generation, Water & Wastewater, Manufacturing, Mining, Agriculture, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape the Electric Motor Market in the coming years?

The Electric Motor Market accounted for USD 198.65 Billion in 2024 and USD 215.75 Billion in 2025 is expected to reach USD 492.8 Billion by 2035, growing at a CAGR of around 8.61% between 2025 and 2035. The Electric Motor Market describes the business of producing and selling motors that transform electrical energy into mechanical energy, employed in such diverse usages as household appliances and industrial equipment, electric cars, and heating, ventilating, and air conditioning systems. In the years to come, the market will be shaped by such tendencies as the speedy spread of electric vehicles, the rise of industrial automation, and the required energy-saving motors.

The motor control systems incorporating IoT and AI are also becoming popular. Moreover, the carbon reduction, which the government is encouraging through the use of government regulations, is driving the industries towards high-efficiency motors. As long as there are further developments in materials and motor designs, the future outlook of the electric motor market is robust, particularly in the transportation industry, renewable energy, and manufacturing industries. 

What do industry experts say about the Electric Motor Market trends?

"Electric motors are among the most efficient and reliable machines for converting electrical energy into mechanical motion. Modern advancements in materials, power electronics, and control systems have significantly improved their performance, making them indispensable in applications ranging from industrial automation to electric vehicles.”

• Dr. John A. Smith, National Institute of Electromechanical Systems

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Electric Motor Market?

How is EV adoption boosting demand for high-performance electric motors?

The potential of the Electric Motor Market is transforming hugely due to the increased pace of electrification of mobility, and more so due to the emergence of industrial robotics. An electric vehicle (EV) is showing an increased demand for a lightweight and high-efficiency motor, such as PMSMs and axial flux motors, where the auto manufacturers are focusing on maximizing the battery range, torque density, and thermal efficiency. This is encouraged by slopes on every continent toward zero-emission objectives and internal combustion being eliminated.

At the same time, industrial robotics is turning into a significant end-use segment, and a singular robot will commonly be driven by 4 to 6 electric motors to handle exact joint motions and gripper operation. Tesla Gigafactories are located in China, and Indian EV startups are getting part of their innovation strategies from motors. In the meantime, policy overhauls and government subsidies in the developing markets are pushing domestic motor production. Coupled with automation, EV adoption is growing the dimensions and complexities of motor technologies in the global market.

Why is industrial automation accelerating electric motor installations across sectors?

The Electric Motor Market is changing with the Fourth Industrial Revolution, where automation is revolutionizing the role of industrial automation. With the transition of the factory to smart manufacturing and robotics, precision motors with advanced control of speed and torque are in huge demand. Automated material handling, conveyors, computer-numerically controlled machines, and robotic arms need compact, powerful electric motors to work well. The Electric Motor Market is therefore experiencing an uptick in demand in some of the industries, such as automobiles, food processing, textiles, and logistics. In addition, IoT sensors on the motors provide real-time monitoring and predictive maintenance, thus optimizing operational uptime.

There are others like Germany, Japan, and South Korea investing massively in automation-driven sectors of industry, adding to motor consumption further. Even in emerging markets, SME are incorporating motor-driven systems in their operations motor-driven systems in order to enhance the quality of their output and their cost effectiveness. The value propositions of energy savings and digital control are compelling reasons for end-users to avail themselves of a traditional system. The need to have adaptive motor solutions can only increase, especially with the role played by AI and machine learning, which is making industrial systems smarter than before.

What impact do high initial costs have on motor adoption rates?

The Electric Motor Market is also on an upward rise, but the cost of the advanced motors remains a limitation since they are very expensive and thus a constraint. Energy-efficient motors and those that have smart sensors or variable frequency drives (VFDs) installed are usually more expensive than regular ones. It is expensive to install in SMEs, especially where they are in developing regions. This is especially so when it comes to sectors where there is a low budget capital or where there is no guarantee of returns on investment. Although long-term savings on energy costs and reduced maintenance costs, the short-term financial outlay proves to be a deterrent to adoption.

The price of the Electric Motor Market is also threatened by imported low prices that tend to cause value versus cost conflict for the price-conscious customers. Also, retrofitting costs or training of personnel may constitute a disincentive to switching. Stakeholders in such cost-sensitive fields as textiles, small-scale manufactories, or even agriculture may still maintain the use of outdated legacy systems. Although this barrier can be eased with financial assistance programs and energy-efficiency incentives, not all regions are equally prepared to resort to such methods.

How can smart motor technologies drive predictive maintenance in industries?

The Smart Motor technologies will be a game-changer in the Electric Motor Market. Motors with IoT sensors, real-time diagnostics, and predictive analytics are becoming popular as industries, especially those that require minimal downtime and highly cost-efficient operation, seek to optimize their operations with technologies that can maintain uptime and predict the most efficient way to operate. Such intelligent motors can identify an oddity, quantify performance variations, and notify operators before failure. The Electric Motor Market is now spreading more than hardware-based outside the box into the digital space, where analogy platforms and cloud dashboards are plugged in along with motor systems by the vendors. This generates additional sources of income in the form of repeated software and maintenance classifications.

Applications where unplanned downtimes will cost a company hefty losses, such as oil & gas and manufacturing industries, and power generation plants, have become early adopters and users of predictive (motor) technologies. Because of the introduction of AI and machine learning capabilities, smart motors will be able to learn how to work over an extended period of time, thus enhancing the effectiveness of maintenance predictions and overall system performance. Also, these smart solutions facilitate remote surveillance, becoming more crucial in other industrial configurations that are decentralized. Such advanced motor systems are where governments and enterprises active in achieving Industry 4.0 goals are making investments.

What role will renewable energy projects play in the motor market expansion?

The trend toward renewable energy all over the world is creating major opportunities for growth in the Electric Motor Market. The property of motors also plays a vital role in wind turbines, solar tracking systems, and hydroelectric plants, allowing power generation and rotation of critical mechanical components. With states rushing to achieve climate targets, wind and solar projects are also multiplying, and this is the direct engine of motor demand. A new installation is not the only opportunity enjoyed by the Electric Motor Market, as the industry also enjoys the benefits that come with retrofitting the old renewable infrastructure.

An example is that motors deployed in solar panel tracking devices help in harnessing more energy because they keep the solar panels following the sun’s direction to maximize the available energy. Motors in wind turbines need qualities of high reliability and have to work in extreme conditions, stimulating innovation in motor design dedicated to this operation. This escalating variance of applications is pushing the suppliers to increase their renewable-specific portfolios. Also, compact modular motors are becoming common with the rising popularity of the microgrid and the distributed generation new model. The presence of grants, feed-in tariffs, and tax incentives in different countries all over the world is also boosting the attractiveness of the market.

What are the key market segments in the Electric Motor industry?

Based on the Motor Type, the Electric Motor Market has been classified into AC Motors, DC Motors, and Hermetic Motors. The Marketplace is characterized by the dominance of the AC motors attribute with regard to the motor type segments due to their extensive installation and usage within industrial-based, commercial, and residential sectors. The largest share is owned by induction motors (part of the AC motors) because they are rugged, of low cost, and require little maintenance.

Synchronous motors, despite being more accurate, are preferred when there are specific applications, with the need for constant speeds at variable loads. In contrast, DC motors, and notably the brushless DC motors (BLDC), are proving to be a force to reckon with in various industries, such as automotive and consumer electronics, due to efficiency and small size. Hermetic motors are usually niche applications and are mostly applied in fridges and HVAC systems. All in all, due to the change in pursuit of high efficiency and automation of industries, AC motors remain at the forefront when it comes to influencing the dynamics of the market.

Based on the Application, the Electric Motor Market has been classified into Industrial Machinery, HVAC Equipment, Household Appliances, Electric Vehicles, Aerospace & Transportation, and Robotics & Automation.  The leadership position of the Market is taken by the industrial machinery segment, which has a lot of demand share. Such motors are a part of pumps, compressors, conveyors, and machine tools that are the main systems in most fields of the manufacturing business.

Another major application area is HVAC equipment, which has been driven by urban infrastructural development and climate control systems. Meantime, the electric vehicle (EV) market is seeing rapid growth with the trends of electrification in the world and government incentives. There is also development of household applications, robotics, and aerospace uses, but with a much smaller market share. Since industrial automation is increasing all over the world, the role of industrial machines will not fall considerably in this segment.

Which regions are leading the Electric Motor Market, and why?

Asia-Pacific Electric Motor Market takes the dominant position because of its active industries, as well as urbanization, and the escalating consumer electronics and automobile industries. Nations such as China, India, Japan, and South Korea are the major manufacturing centers with huge demand for electric motors in servicing purposes like HVAC, auto, and factory automation industries.

The Chinese producers, which alone contribute a considerable share of world motor production, are supported by the low-cost production and large supply chain. Moreover, favorable government policies that encourage the use of energy-efficient methods add to the demand in the regions. As long as the investments in infrastructure and renewable energy continue to be made, the Asia-Pacific region is likely to continue enjoying its leadership in the foreseeable future.

The North American Electric Motor Market is rapidly becoming one of the major regions of the Electric Motor Market, driven mostly by the current increase in demand for these electric cars, as well as by the usage of smart motor technology, and due to the increase in automation in various types of industries. The U.S. is the strongest in the region, with businesses spending a lot of money on sustainable power, digital fabrication, and new generation HVAC systems.

Increased usage of motor vehicles is being driven by government financial incentives for clean energy and electrification, particularly in the transportation and power generation sectors. In addition, the high interest in R&D and industrial modernization of North America is an emerging opportunity for high-efficiency and IoT-enabled motors. Such a growth trend should continue to be high in the next 10 years.  

What does the competitive landscape of the Electric Motor Market look like?

The Electric Motor Market landscape is that of a duality between global giants and regional players, with the presence of global leaders due to their power of innovation and cost efficiency. Larger companies like ABB, Siemens, Nidec Corporation, WEG, Toshiba, and Mitsubishi Electric are leading the pack, and they can do this because their global supply chain and depth of R&D stand to keep them on top of the market. These companies are paying more attention to the creation of intelligent, connected motors that would be connected with the IoT and AI to enable predictive maintenance and distant observation.

Mergers, acquisitions, and strategic alliances are widely used strategies to boost product portfolio and access new areas of application, specifically electric automobiles and industrial automation. To name but a few, ABB and Siemens are investing in digital motor systems, and Nidec is investing aggressively in EVs and robots. Energy efficiency is one of the themes that the companies are congruent with, as they strive to ensure that they offer products that are compliant with the worldwide standards of how energy should be used. Also, companies are expanding into fast-growing regions such as Latin America and Southeast Asia in order to capture the emerging demand.

Electric Motor Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Electric Motor industry?

• In May 2025, ABB set a new world record in motor efficiency, achieving 99.13% energy efficiency in a large synchronous electric motor designed for a steel plant in India. This achievement delivers substantial energy savings and rapid ROI under its Top Industrial Efficiency initiative.
•  In January 2025, Nidec Motor Corporation launched the PrecisionFlow™ electronically commutated motor (ECM) at IPPE in Atlanta, offering up to 85% efficiency, about 30% higher than standard PSC motors

Report Coverage:

By Motor Type

• AC Motors
  • Induction Motors
  • Synchronous Motors
• DC Motors
  • Brushed DC Motors
  • Brushless DC Motors
• Hermetic Motors

By Application

• Industrial Machinery
• HVAC Equipment
• Household Appliances
• Electric Vehicles
• Aerospace & Transportation
• Robotics & Automation

By Voltage Range

• Low Voltage
• Medium Voltage
• High Voltage

By End-user

• Oil & Gas
• Power Generation
• Water & Wastewater
• Manufacturing
• Mining
• Agriculture
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• ABB
• Siemens
• Nidec Corporation
• WEG
• Toshiba Corporation
• Johnson Electric
• Regal Rexnord Corporation
• Rockwell Automation
• Bosch Rexroth
• Mitsubishi Electric
• TECO Electric & Machinery
• Allied Motion Technologies
• Emerson Electric Co.
• Hitachi Ltd.
• Schneider Electric

Frequently Asked Questions (FAQs)