Electric Motor Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Electric Motors Market Analysis

The Electric Motor Market size is estimated at USD 146.50 billion in 2025, and is expected to reach USD 205.18 billion by 2030, at a CAGR of 6.97% during the forecast period (2025-2030).

The electric motor industry is experiencing significant transformation driven by technological advancements and industrial evolution. The emergence of advanced motor technologies, particularly axial flux motors, is revolutionizing the industry by offering increased power density and improved integration capabilities across various applications. These technological developments are enabling manufacturers to create more efficient and compact motor designs, leading to enhanced performance in applications ranging from industrial machinery to electric vehicles. The industry is also witnessing a shift towards more sustainable and energy-efficient solutions, with manufacturers investing heavily in research and development to meet increasingly stringent environmental regulations.

The industrial sector continues to be a major growth catalyst for the electric motor market, with increasing automation across manufacturing processes driving demand. The steel industry, a significant consumer of electric motors, has shown robust growth with global crude steel production maintaining steady levels, indicating sustained industrial demand. The integration of smart manufacturing technologies and Industry 4.0 principles is further accelerating the adoption of advanced industrial motors in industrial applications. Manufacturers are increasingly focusing on developing motors with improved efficiency ratings and digital connectivity features to meet the evolving requirements of modern industrial facilities.

The transportation sector is undergoing a paradigm shift with the rapid adoption of electric vehicles, creating new opportunities for electric motor manufacturers. The global electric vehicle market has witnessed exponential growth, with manufacturers developing specialized motor solutions to meet the unique requirements of electric powertrains. This transition is accompanied by innovations in motor components design, including the development of more compact and efficient motors specifically engineered for automotive applications. The industry is also seeing increased collaboration between motor manufacturers and automotive companies to develop customized solutions for next-generation electric vehicles.

Raw material dynamics and supply chain considerations continue to shape the market landscape. Fluctuations in the prices of key materials such as copper, steel, and rare earth elements have prompted manufacturers to explore alternative materials and design optimizations. The industry is witnessing a trend towards vertical integration, with major players establishing direct relationships with material suppliers to ensure stable supply chains. Additionally, manufacturers are investing in advanced motor manufacturing techniques and automation to optimize production processes and maintain competitive pricing despite raw material challenges. These strategic adaptations are crucial for maintaining market competitiveness while ensuring sustainable growth in the electric motor industry.

Electric Motors Market Trends

Growing Electric Vehicle Adoption

The rapid transition towards electric vehicles has emerged as a significant driver for the electric motor market, supported by stringent environmental regulations and government initiatives worldwide. The European Union's landmark announcement in October 2022 to ban the sale of new internal combustion engine (ICE) vehicles from 2035 in EU member states has accelerated the adoption of electric vehicles, consequently driving the demand for automotive electric motor solutions. This regulatory push is further complemented by various government incentives and subsidies offered to promote electromobility, alongside increasing environmental consciousness among consumers and rising fuel prices that make electric vehicles more attractive from an operational cost perspective.

The momentum in electric vehicle adoption is evidenced by Germany's remarkable growth in new electric car registrations, with 470,559 new electric cars registered in 2022, representing a substantial increase of 32.19% compared to the previous year. This trend is reinforced by similar initiatives across other major economies, with countries such as France, India, and the United Kingdom announcing plans to phase out petrol and diesel vehicles entirely before 2040. The automotive industry's structural transformation is further supported by manufacturers' increasing investments in battery and motor manufacturing facilities, creating a robust ecosystem for electric motor production and innovation.

Industrial Sector Expansion and Infrastructure Development

The expansion of industrial infrastructure and the development of new manufacturing facilities have created substantial demand for industrial motor applications across various sectors. In January 2023, significant investments in the steel sector were announced, including AMNS India's USD 4.68 billion steel plant project approval from the government of Odisha, demonstrating the scale of industrial development driving electric motor demand. These large-scale industrial projects require numerous electric motors for various applications, from basic operations to specialized processes, creating a sustained demand for both standard and custom-designed electric motors.

The petrochemical and refining sectors are also contributing significantly to the demand for electric motors, as evidenced by major projects like the Aramco-led joint venture's development of an integrated refinery and petrochemical complex in Northeast China's Panjin City, scheduled for operation by 2024 with a capacity of 300,000 BPD. Additionally, Nippon Steel Corporation's announcement in April 2023 to establish the world's largest steel plant facility in Odisha, India, with an investment of approximately INR 1.02 lakh crore, represents the scale of industrial expansion driving the electric motor market. These developments require extensive motor-driven systems for pumps, compressors, fans, and various other applications, creating substantial demand for electric motors across power ranges.

Increasing Industrial Automation and Energy Efficiency Requirements

The growing emphasis on industrial automation and the need for energy-efficient operations has become a crucial driver for the electric motor market, particularly in manufacturing and processing industries. Electric motors are integral components in automated systems, from basic material handling equipment to sophisticated robotics and precision control applications. The integration of these motors in modern industrial processes has become essential for achieving higher productivity, improved accuracy, and reduced operational costs, driving the demand for advanced motor control technologies across various industrial applications.

The focus on energy efficiency has led to the development and adoption of high-efficiency motors that comply with increasingly stringent energy standards. Industries are increasingly replacing older, less efficient motors with newer models that offer better performance and lower energy consumption. This transition is particularly evident in sectors such as petrochemical, mining, and manufacturing, where motors are used extensively in pumps, compressors, conveyor systems, and various other applications. The demand for energy-efficient motors is further driven by the need to reduce operational costs and meet environmental sustainability goals, making them essential components in modern industrial operations.

Segment Analysis: Motor Type

AC Motor Segment in Electric Motor Market

AC motors continue to dominate the global electric motor market, commanding approximately 72% market share in 2024. The segment's dominance can be attributed to their flexibility, efficiency, and quiet operation characteristics, making them ideal for a wide range of applications, including pumps, water heaters, lawn and garden equipment, ovens, and off-road motorized equipment. The increasing automation in various industrial processes and widespread use of AC motors in diverse applications such as healthcare, construction, automotive, and consumer goods have further strengthened their market position. Additionally, the rising demand for household appliances, growing deployment in HVAC applications, and government support for the development of high-efficiency electric AC motors in emerging economies have contributed significantly to maintaining AC motors' market leadership.

DC Motor Segment in Electric Motor Market

The DC motor segment is experiencing rapid growth in the electric motor market for the period 2024-2029, driven primarily by the exponential rise in electric vehicle adoption globally. DC motors are particularly advantageous due to their superior speed control capabilities over a wide range and their ability to develop high torque at low speeds, making them ideal for electric vehicle applications. The segment's growth is further propelled by their widespread use in portable power tools, toys, appliances, and industrial applications where precise speed control is crucial. The increasing construction activities worldwide and the growing demand for power tools have created additional growth opportunities for DC motors, while their simple design, ease of maintenance, and well-understood operational characteristics continue to make them an attractive choice for many applications.

Segment Analysis: Power Output

37.5 W-75 KW Segment in Electric Motor Market

The 37.5 W-75 KW segment dominates the global electric motor market in 2024, driven by its widespread applications across residential, commercial, and industrial sectors. This power range is extensively used in home appliances, pumps, compressors, electric vehicles, and fans. The segment includes various motor types like general-purpose single-phase induction motors, brushless permanent magnet motors, and DC/universal motors that are typically custom-made in large series to be integrated into specific machines or appliances. The growing consumer spending on home appliances, increasing adoption of electric vehicles, and development of construction and industrial equipment continue to fuel the demand for motors in this power range.

Less than 37.5 W Segment in Electric Motor Market

The Less than 37.5 W segment is witnessing rapid growth in the electric motor market from 2024-2029, primarily driven by the increasing demand for small motors in consumer electronics and appliances. These motors constitute about 90% of the global stock and are predominantly used in applications such as small appliances, small pumps, compressors, and fans. The segment's growth is further accelerated by the rising consumer spending on small appliances, coupled with increasing demand for small fans and pumps used in small equipment like hairdryers and pumping machines. DC motors are particularly prevalent in this segment as they are most suitable for custom-made or small applications, being very lightweight and easily fixable with minimal cost.

Remaining Segments in Power Output Segmentation

The 75KW-375 KW and Greater than 375 KW segments cater primarily to heavy industrial applications and specialized markets. The 75KW-375 KW range is particularly important in medium-sized industrial applications, responsible for about 68% of the electricity consumed by electric motors globally. The market is largely dominated by three-phase AC induction motors in this range. The Greater than 375 KW segment, while representing a smaller volume share, serves critical applications in large industrial operations, particularly in sectors like mining, steel production, and large manufacturing facilities. These segments feature highly specialized motors designed for specific applications with high-efficiency ratings.

Segment Analysis: Application

Industrial Sector Segment in Electric Motor Market

The industrial sector dominates the global electric motor market, accounting for approximately 53% of the total market share in 2024. This substantial share is driven by widespread applications across petrochemical, chemical, oil and gas, mining, metals, cement, steel, and other industrial sectors. The segment's dominance is reinforced by increasing automation in manufacturing processes, growing adoption of energy-efficient industrial motors in heavy industries, and rising investments in infrastructure development projects worldwide. The industrial sector's demand is particularly strong in emerging economies like China and India, where rapid industrialization and expansion of manufacturing capabilities continue to drive the need for electric motors in various applications, including pumps, compressors, fans, conveyor systems, and processing equipment.

Transportation Sector Segment in Electric Motor Market

The transportation sector is emerging as the fastest-growing segment in the electric motor market for the period 2024-2029, driven primarily by the accelerating adoption of electric vehicles globally. This growth is supported by stringent environmental regulations, government incentives for EV adoption, and increasing investments in charging infrastructure. The segment's expansion is further bolstered by the growing electrification of public transportation systems, including buses and trains, as well as the rising demand for electric motors in automotive applications such as power steering, window lifts, wipers, and HVAC systems. The development of more efficient and powerful motors for electric vehicles, coupled with advancements in motor technology for improved performance and range, continues to drive innovation and growth in this segment.

Remaining Segments in Application Market Segmentation

The residential and commercial sectors represent significant portions of the electric motor market, each serving distinct application needs. The residential sector's demand is primarily driven by the increasing adoption of home appliances, HVAC systems, and automated home solutions, particularly in developing regions with rising disposable incomes. The commercial motor sector's requirements are shaped by the growing need for electric motors in building automation systems, elevators, escalators, and HVAC equipment in office buildings, shopping malls, and other commercial establishments. Both segments are experiencing transformation through the integration of smart technologies and energy-efficient solutions, reflecting the broader trend toward sustainable and automated operations in buildings and facilities.

Electric Motor Market Geography Segment Analysis

Electric Motor Market in North America

North America represents a mature and technologically advanced electric motor market, holding approximately 19% of the global market share in 2024. The region's market is primarily driven by robust industrial infrastructure and high electricity consumption patterns across various sectors. The United States leads the regional market, supported by its extensive manufacturing base and increasing adoption of energy-efficient electric motors. The region's focus on industrial automation, coupled with stringent energy efficiency regulations, continues to shape the market dynamics. The automotive sector, particularly the growing electric vehicle segment, has emerged as a significant growth driver. Additionally, the region's strong presence in aerospace, healthcare, and data center industries contributes to sustained demand for advanced electric motors. The market is characterized by high-quality standards, innovative product developments, and a strong emphasis on after-sales service and support. The presence of major manufacturers and ongoing technological advancements in motor efficiency and control systems further strengthens North America's position in the global electric motor industry.

Electric Motor Market in Europe

The European electric motor market demonstrated robust growth, recording approximately 14% growth from 2019 to 2024, driven by the region's strong industrial base and commitment to energy efficiency. The market benefits from stringent environmental regulations and energy efficiency standards, particularly the EU's motor efficiency requirements. Germany maintains its position as a key market, supported by its strong manufacturing sector and technological innovation capabilities. The region's focus on industrial automation and Industry 4.0 initiatives continues to drive demand for advanced motor solutions. The market is characterized by significant investments in research and development, particularly in areas such as smart motors and integrated drive systems. The growing emphasis on renewable energy integration and sustainable manufacturing practices further shapes the market landscape. European manufacturers are increasingly focusing on developing high-efficiency motors and innovative solutions for emerging applications. The region's strong automotive sector, particularly the rapid growth in electric vehicle production, continues to create new opportunities for motor manufacturing.

Electric Motor Market in Asia-Pacific

The Asia-Pacific electric motor market is poised for substantial growth, with projections indicating approximately 35% growth from 2024 to 2029, making it the fastest-growing region globally. China continues to dominate the regional market, driven by its massive manufacturing sector and rapid industrial automation. The region's market dynamics are shaped by increasing industrial activities, rapid urbanization, and growing adoption of electric vehicles. Japan and South Korea contribute significantly through their advanced technological capabilities and focus on high-efficiency motors. The market benefits from ongoing infrastructure development, particularly in emerging economies like India and Southeast Asian nations. Manufacturing sector expansion, coupled with increasing investments in automation and robotics, drives sustained demand growth. The region's electric vehicle industry expansion creates substantial opportunities for motor manufacturers. Additionally, government initiatives promoting energy efficiency and industrial modernization further support market growth. The presence of both established manufacturers and emerging players creates a competitive and innovation-driven market environment.

Electric Motor Market in South America

The South American electric motor market continues to evolve, with Brazil leading the regional demand as the largest market. The region's market is characterized by growing industrial automation needs and increasing focus on energy-efficient solutions. Mining, oil and gas, and manufacturing sectors remain key demand drivers across the region. The market benefits from ongoing industrialization efforts and infrastructure development projects in major economies. Local manufacturers are increasingly focusing on developing cost-effective solutions while maintaining quality standards. The region's automotive sector transformation, particularly the growing interest in electric vehicles, creates new opportunities for motor manufacturers. Despite economic challenges, investments in industrial modernization and energy efficiency improvements continue to support market growth. The market also sees increasing adoption of advanced motor technologies in agricultural and mining applications. Regional integration efforts and improving trade relationships contribute to market development and technology transfer.

Electric Motor Market in Middle East & Africa

The Middle East & Africa electric motor market demonstrates growing potential, driven by diverse industrial applications and infrastructure development. The region's oil and gas sector remains a significant consumer of electric motors, particularly in Gulf Cooperation Council countries. Industrial diversification efforts in major economies create new opportunities for motor distribution. The market benefits from increasing investments in manufacturing capabilities and infrastructure projects. Growing focus on energy efficiency and industrial modernization drives demand for advanced motor solutions. The mining sector in African countries continues to be a key demand driver for heavy-duty industrial motors. The market sees increasing adoption of energy-efficient motors in building services and water management applications. Regional manufacturers are expanding their capabilities to serve local market needs more effectively. The growing focus on renewable energy projects and sustainable industrial practices creates new application areas for electric motors. The market also benefits from increasing investments in power generation and distribution infrastructure.