Global Alternating Current (AC) Motor Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Global Alternating Current (AC) Motor Market is segmented by By Type (Induction AC Motors (Single Phase, Poly Phase) and Synchronous AC Motors (DC Excited Rotor, Permanent Magnet, Hysteresis Motor, Reluctance Motor)), By End-user Industry (Oil & Gas, Chemical & Petrochemical, Power Generation, Water & Wastewater, Metal & Mining, Food & Beverage, Discrete Industries) and by Geography.

Market Snapshot

Global Alternating Current (AC) Motor Market
Study Period: 2022-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: Asia-Pacific
CAGR: 6.1 %

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Market Overview

Global Alternating Current (AC) Motor Market is expected to register a CAGR of 6.1% during the forecast period (2022 - 2027). The growing use of electric alternating current motors in infrastructure development and growth in the global industrial sector drives the market growth. Electric alternating current motors are used in various industries, including consumer goods, automotive, construction, healthcare, and agriculture. The growth of these industries globally is expected to supplement the market growth.

  • Increasing awareness regarding the use of energy-efficient motors and the growing adoption of electric vehicles is expected to support the market growth during the forecast period. The rising construction activities, especially in developing economies, will further accelerate the adoption of electric AC motors. Growing demand from emerging economies and technological advancements are expected to provide numerous growth opportunities in the electric AC motors industry.
  • Various developments and initiatives are being taken across industries that augment the demand for the AC motor in the market. For instance, in December 2021, JSW Group unveiled a new green initiative for its employees, offering incentives for electric vehicle purchases, free charging stations, and separate parking facilities at offices. Such developments will drive the AC motor demand across the globe.
  • Concerning energy consumption and carbon emissions levels, companies are providing green solutions for their technologies and processes in response to the growing population, rising environmental problems, and emerging energy shortage. The reduction of carbon dioxide emissions in energy-efficient motors, as well as the provision of a healthier environment, are key forces expected to drive the market.
  • Various government standards and regulations in multiple areas, combined with certain parameters defined by associations such as IEA and NEMA, may encourage the replacement of existing standard motors in various sectors, further stimulating market demand. Furthermore, government incentives to implement high and premium efficiency AC motors to reduce the financial burden on consumers and governments are expected to bolster the market growth.
  • The COVID-19 pandemic has had a significant impact on the market. Several countries, including Germany, Italy, and India, imposed stringent restrictions on the movement of individuals and hampered industrial activities. As a result, construction projects were halted, resulting in a drop in sales of new electric motors. Moreover, the automobile industry experienced a significant decline during Covid-19.

Scope of the Report

Global Alternating Current (AC) Motor Market is segmented by By Type (Induction AC Motors (Single Phase, Poly Phase) and Synchronous AC Motors (DC Excited Rotor, Permanent Magnet, Hysteresis Motor, Reluctance Motor)), By End-user Industry (Oil & Gas, Chemical & Petrochemical, Power Generation, Water & Wastewater, Metal & Mining, Food & Beverage, Discrete Industries) and by Geography.

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Key Market Trends

Growing Demand in Electric Vehicles

  • Stringent designing and manufacturing standards to improve motor efficiency may encourage global manufacturers to develop energy-efficient motors, fueling the market significantly. Moreover, the growing production of home appliances, motor vehicles, and other motor-driven systems may favorably impact market expansion.
  • The Indian electric motor market is expected to propel over the coming years. The anticipated growth in the market can be attributed to the country's growing number of industries and construction activities, as well as the government's increasing emphasis on adopting energy-efficient motors.
  • For instance, in June 2021, the Chairman of Tata Motors stated that the company would aggressively push its presence in electric vehicles (EVs) and launch ten new battery-electric vehicles by 2025 across India.
  • The electric vehicle market is witnessing growth globally, with consumers and the government spending significant amounts on the adoption of electric vehicles. For instance, in 2021, according to the International Energy Agency (IEA), consumer spending on Electric Vehicles stood at USD 249 billion, while government spending stood at USD 28 billion. Moreover, consumer spending witnessed a significant rise in 2021, increasing from USD 125 billion in 2020.
  • Additionally, governments across various countries are providing subsidies and incentives that encourage the sales of electric vehicles. For instance, the US government offers a federal tax credit of up to USD 7,500 on purchasing an electric vehicle.
Global Alternating Current (AC) Motor Market

Asia Pacific to Hold Significant Market Share

  • The Asia-Pacific region is expected to hold a significant global AC Motor Market share. The regional market is driven by rising demand for electric motors in manufacturing industries and rising awareness about energy efficiency. Also, the rising energy costs are expected to accelerate the adoption of synchronous electric motors in various industries. Due to the presence of many electric motor manufacturers in countries such as China and India, the region is expected to maintain a considerable market share during the forecast period.
  • The industrial sector in Asia-Pacific is also expected to grow dramatically due to government initiatives such as "Make in China 2025" and "Make in India," which may encourage the use of AC electric motors, thereby driving the region's growth.
  • According to the World Bank, China's industrial output is expected to fall by 22.6 % from the previous year. COVID-19 containment measures can be seen in data on Chinese industrial production, which fell by 13.5 % in January and February compared to the previous year.
  • Furthermore, Oil and gas projects worth INR 1 lakh crore have been approved for Northeast India and are expected to be completed by 2025, according to the Union Minister of Petroleum and Natural Gas. In keeping with its goal of rapidly transforming the region, the Government of India has launched several key initiatives to improve infrastructure and accelerate economic development.
Global Alternating Current (AC) Motor Market

Competitive Landscape

The AC motor market is competitive with various large, medium, and small players. The players in the AC Motors industry are introducing new innovative products to cater to the growing consumer demands. Major players in the market include Siemens AG, Kirloskar Electric Company, Johnson Electric, Rockwell Automation, Inc., Franklin Electric Co. Inc., and ABB Limited. Technological advances in a variety of industries, including healthcare, energy, and infrastructure, among others, will boost the market growth. ABB Group has the market's second-highest revenue.

  • June 2022 - Nidec and its subsidiary Nidec Sankyo have collaborated on developing an AC servo motor with Zignear, a position detection technology that can be used in industrial robots to replace encoders. The motor is designed for industrial robots and automated guided vehicles.
  • February 2022 - Renault Group, Valeo, and Siemens Automotive signed a Memorandum of Understanding (MoU) to form a strategic partnership for the design, co-development, and manufacturing in France of a new-generation automotive electric motor that does not use rare earth elements. The three partners will pool their knowledge and recognized expertise to create a one-of-a-kind electric powertrain system unrivaled worldwide, delivering more power with less energy and without using rare earth elements.

Recent Development

  • January 2022 - BMW developed a magnet-free-fifth-generation motor, which operates as a three-phase AC synchronous motor and will be used to power BMW iX m60. The motor will provide a solution that combines sensibility with high-tech EV technology to improve efficiency without using rare earth minerals.
  • October 2021 - Piech Automotive, a swiss electric car start-up, started testing its GT electric sports car. The car is powered by three-synchronous motors, one at the front and a tow at the rear axle, which are said to have a system output of 450 kW.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porters Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Need for High Energy Efficiency

      2. 5.1.2 Rise in Industrial Automation

    2. 5.2 Market Challenges

      1. 5.2.1 High initial cost

  6. 6. SEGMENTATION

    1. 6.1 Induction AC Motors

      1. 6.1.1 Single Phase

      2. 6.1.2 Poly Phase

    2. 6.2 Synchronous AC Motors

      1. 6.2.1 DC Excited Rotor

      2. 6.2.2 Permanent Magnet

      3. 6.2.3 Hysteresis Motor

      4. 6.2.4 Reluctance Motor

    3. 6.3 By End-user Industry

      1. 6.3.1 Oil & Gas

      2. 6.3.2 Chemical & Petrochemical

      3. 6.3.3 Power Generation

      4. 6.3.4 Water & Wastewater

      5. 6.3.5 Metal & Mining

      6. 6.3.6 Food & Beverage

      7. 6.3.7 Discrete Industries

      8. 6.3.8 Other End-user Industries

    4. 6.4 Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 Germany

        3. 6.4.2.3 Italy

        4. 6.4.2.4 France

        5. 6.4.2.5 Russia

        6. 6.4.2.6 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 India

        3. 6.4.3.3 Japan

        4. 6.4.3.4 South Korea

        5. 6.4.3.5 Australia & New Zealand

        6. 6.4.3.6 Rest of Asia-Pacific

      4. 6.4.4 Latin America

        1. 6.4.4.1 Brazil

        2. 6.4.4.2 Mexico

        3. 6.4.4.3 Rest of Latin America

      5. 6.4.5 Middle-East and Africa

  7. 7. VENDOR MARKET SHARE

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Company Profiles

      1. 8.1.1 Rockwell Automation Inc.

      2. 8.1.2 Siemens AG

      3. 8.1.3 Johnson Electric

      4. 8.1.4 Nidec Corporation

      5. 8.1.5 ABB Ltd.

      6. 8.1.6 Franklin Electric Co.Inc.

      7. 8.1.7 WEG Electric Corporation

      8. 8.1.8 Yaskawa Electric Corporation

      9. 8.1.9 Kirloskar Electric Co. Ltd.

      10. 8.1.10 Baldor Electric

      11. 8.1.11 Regal Rexnord Corporation

      12. 8.1.12 SEVA-tec GmbH

    2. *List Not Exhaustive
  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OF THE MARKET

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Frequently Asked Questions

The AC Motor Market market is studied from 2022 - 2027.

The AC Motor Market is growing at a CAGR of 6.1% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Rockwell Automation Inc., Siemens AG, Johnson Electric , Nidec Corporation, ABB Ltd. are the major companies operating in AC Motor Market.

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