Synchronous Motor Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Synchronous Motor Market Trends and Insights

Stringent IE3/IE4 Energy-Efficiency Mandates

Efficiency regulations anchored in IEC 60034-30-1 and codified into European Union Ecodesign Regulation 2019/1781 have tightened procurement specifications, pushing buyers toward synchronous technologies that readily achieve IE4 and IE5 grades without copper-rotor complexity^{[1]Source: International Electrotechnical Commission, “IEC 60034-30-1: Efficiency Classes of Line Operated AC Motors,” IEC.CH}. China enacted a parallel leap under GB 18613-2020 during 2025, spurring local OEM capacity expansions and accelerating the replacement of legacy induction stock^{[2]Source: ABB Ltd., “ABB Expands IE5 SynRM Motor Production to Meet Growing Demand,” ABB.COM} . Utility and industrial operators with energy expenditures above 40% of total operating cost now see compliance-driven retrofits delivering sub-three-year paybacks, fueling recurrent upgrade cycles across water utilities and petrochemical plants. Market-wide, these mandates lift the synchronous motor market by expanding both baseline volumes and premium-efficiency price points.

Expansion of HVAC and Industrial Automation

Building-code revisions such as ASHRAE Standard 90.1-2022 compel variable-speed control on motors above 10 horsepower, positioning synchronous motors as the preferred choice for rooftop units and chillers that run at part-load most of the year. Equipment launched by Danfoss and Trane in 2025 integrates synchronous reluctance rotors with intelligent drives, documenting 15%–25% electricity savings in field pilots. Parallel gains in factory automation emerge through servo-grade synchronous motors that enable rapid acceleration, regenerative braking, and predictive health analytics via edge-connected drives like Siemens Sinamics S210. These combined HVAC and automation pull-through effects widen the synchronous motor market footprint in both commercial buildings and discrete manufacturing.

Surge in Electric Vehicle and Traction Motor Demand

Automotive electrification is the fastest-growing vector, elevating propulsion-specific design requirements in the synchronous motor market. BorgWarner’s 800-volt permanent-magnet traction platform, awarded by a top Chinese automaker in 2024, typifies the move toward higher-voltage stacks that slim copper cross-sections and enable rapid charging. Concurrently, IEEE-published studies confirm that ferrite-assisted synchronous reluctance rotors achieve 92%-plus drive-cycle efficiency, removing rare-earth constraints without ceding performance. NASA’s 2025 validation of SynRM for regional e-aircraft underscores cross-sector synergies that accelerate R&D investments and volume scaling. As electric vehicles, rail, and marine applications align around high-torque, low-weight architectures, they create multi-year ordering visibility and raise the design-complexity barriers for new entrants.

Rare-Earth-Free Synchronous Reluctance Motor Momentum

Chinese export controls on neodymium and dysprosium compounds tightened in 2024, triggering material-cost spikes and extended lead times that eroded the cost advantage of permanent-magnet machines. European Parliament assessments flagged rare-earth dependence as a strategic vulnerability, promoting investment in ferrite-based or magnet-free rotors. ABB and WEG responded by scaling IE5-rated synchronous reluctance lines across Finland, India, and Brazil, with ABB investing INR 140 crore (USD 17 million) in 2025 capacity. Adoption momentum now spans pumps, fans, and compressors where reluctance rotors offer quick procurement and stable pricing, sustaining double-digit growth inside the synchronous motor market.

High Up-Front Cost of Permanent-Magnet Rotors

Permanent-magnet synchronous units carry a 20%–40% price premium over induction counterparts, magnified in emerging markets where capital budgets are tight, and payback expectations hover under three years^{[3]Source: London Metal Exchange, “Rare Earth Prices,” LME.COM}. Volatile spot prices for neodymium-praseodymium oxide, ranging from USD 48,000–68,000 per metric ton in 2025, translate into USD 8–12 per kilogram of sintered magnet and elevate bill-of-materials costs for every high-end motor. Municipal utilities and small manufacturers therefore defer replacements despite long-run energy savings, slowing near-term volume expansion in the synchronous motor market.

Rare-Earth Supply Volatility

Export-license regimes enacted by China in 2024 introduced supply-chain uncertainty for neodymium, dysprosium, and terbium, pressuring motor OEMs reliant on these inputs. The European Critical Raw Materials Act sets ambitious diversification targets, yet few mining projects have reached scale, keeping supply tight and prices erratic. While this volatility accelerates the pivot to reluctance architectures, the interim redesign costs and performance compromises weigh on profitability and adoption timing within the synchronous motor market.

Segment Analysis

By Rotor Construction: Reluctance Designs Accelerate Amid Supply-Chain Hedging

Permanent-magnet rotors retained 47.80% share of 2025 revenue, anchoring high-torque and traction roles where their density justifies cost. However, reluctance designs are forecast to grow at a 11.80% CAGR, driven by ABB’s IE5 and forthcoming IE6 lines and WEG’s 2025-launched W50 platform, which incorporates Regal Rexnord intellectual property. Europe’s regulatory push toward IE5, combined with the scarcity of rare earths, is driving demand for magnet-free or ferrite-assisted options in pumps, fans, and compressors. DC-excited machines remain relevant in hydro-pumped storage and marine propulsion because their field-winding flexibility provides reactive power and voltage support. Hysteresis rotors remain niche, serving precision lab equipment and timing devices where ultra-smooth torque is prized.

Reluctance adoption momentum is especially sharp in Asia-Pacific and Europe, where OEMs report reduced lead times and 20%-plus unit-cost savings versus permanent-magnet equivalents. IEEE research during 2024 confirmed ferrite-assisted synchronous reluctance efficiencies topping 94%, narrowing any practical gulf with neodymium designs and slicing material costs by about one-third. As traction vehicles, HVAC OEMs, and food processors validate these systems, rotor-type balances will realign by 2031, driving fresh competition and technical road-maps inside the synchronous motor market.

Note: Segment shares of all individual segments available upon report purchase

By Power Rating: Sub-Megawatt Growth Signals Distributed Adoption

The 1-10 megawatt band dominated with 38.50% of 2025 installations, aligning with centrifugal compressors, chiller drives, and mid-scale industrial automation projects. Yet the sub-1 megawatt class is projected to post a 10.40% CAGR, fueled by distributed manufacturing, modular water treatment, and food processing upgrades, where right-sizing motors trims energy waste. Schneider Electric’s 2024 Altivar Process drive, coupled with 0.75–500 kilowatt synchronous motors, brings cloud-based predictive analytics that help plant managers slash downtime.

Industrial users participating in the United States Better Buildings Initiative logged 15%–30% power savings when oversized induction units were swapped for optimized synchronous machines, with rebate programs pulling payback under two years. While motors exceeding 10 megawatts stay entrenched in wind turbines and large hydro units, the swelling sub-megawatt base indicates that small-horsepower innovation will underpin the next leg of expansion for the synchronous motor market size.

By End-User Industry: EV OEMs Overtake Traditional Heavy Industry Momentum

Oil and gas held 24.30% of 2025 demand, sustained by compressor and pump fleets along pipelines and liquefied natural-gas plants. Electric-vehicle OEMs, however, represent the fastest rising customer pool with a 13.50% CAGR, mirroring global passenger-EV penetration and 800-volt drivetrain architectures. Chemicals, water utilities, and metals together comprise roughly one-third of revenue, exploiting variable-speed synchronous motors for agitators, blowers, and grinding mills.

Food and beverage plants increasingly specify stainless-steel IP-rated synchronous units for hygienic conveyors and refrigeration compressors. Discrete manufacturing, especially automotive and electronics assembly, deploys servo-grade synchronous motors across robotic arms and CNC stages, guided by Mitsubishi Electric and Yaskawa control ecosystems. This diverse uptake underscores that the synchronous motor market is no longer monolithic, but rather a mosaic of high-growth e-mobility users and steady-state industrial stalwarts.

Note: Segment shares of all individual segments available upon report purchase

By Application: Traction and Propulsion Outpace Stationary Loads

Pumps remained the largest slice at 29.10% in 2025, reflecting massive installed bases in water utilities and chemical processing. Yet traction and propulsion applications are accelerating at a 14.20% CAGR, driven by electric cars, e-buses, rail, and marine electrification. Siemens Mobility’s Velaro Novo high-speed train employs permanent-magnet drives that cut traction power by 30% while retrieving up to 15% energy during braking. Fans, blowers, compressors, and material-handling equipment together anchor roughly half of total installations.

Marine adopters favor synchronous podded drives for cruise ships and ferries, citing tighter maneuverability and silent operation advantages. As mobile use cases spread, rotor topology, cooling systems, and integration software are tuned for lighter, thermally-efficient assemblies, further diversifying the synchronous motor market.

Geography Analysis

Asia-Pacific, holding 34.80% of 2025 revenue, is on track for a 12.10% CAGR through 2031 as China, India, and Southeast Asian nations raise minimum efficiency thresholds and expand factory automation. Chinese producers such as Wolong Electric funneled CNY 500 million (USD 70 million) into Zhejiang facilities in 2025 to scale IE3 and above units, while India’s Production-Linked Incentive scheme spurred Kirloskar Electric’s new Maharashtra plant capable of 50,000 high-efficiency motors annually. Japan’s Nidec posted 18% synchronous revenue growth in fiscal 2024, benefitting from traction-motor design wins in China and Europe.

North America and Europe combined to capture about 45% of 2025 value. In the United States, Industrial Assessment Centers documented that motor-system upgrades accounted for 22% of recommended efficiency projects, with synchronous equipment specified in more than one-third of replacements. Europe’s Green Deal Industrial Plan earmarked EUR 3 billion (USD 3.3 billion) to back domestic clean-tech manufacturing, financing new motor lines in Poland and Spain. The Middle East pursues large synchronous pump motors for desalination, yet regional share stays below 5%.

South America centers on Brazil, where WEG’s Jaraguá do Sul complex produced more than two million units in 2024, increasingly synchronous as energy costs bite. African demand skews toward mining clusters in South Africa and the Copperbelt, leveraging ABB and Siemens high-horsepower solutions for grinding mills and ventilation. Across regions, the synchronous motor market tracks a two-tier pattern: mature economies retrofit for higher efficiency, while developing markets leapfrog directly to premium-grade synchronous options amid new industrialization.