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

US Electric Motor Market Trends and Insights

EV manufacturing surge

Passenger BEVs captured one quarter of new-vehicle sales in 2025, and domestic automakers responded by scaling motor production footprints in Michigan, Ohio, and Tennessee. Automakers specified traction motors that deliver three times the power density of legacy units, prompting a pivot toward permanent-magnet synchronous and axial-flux topologies. General Motors filed axial-flux patents targeting sub-compact EVs, while Schaeffler invested USD 230 million in Ohio to build e-axles that integrate motors and power electronics. Localized component sourcing reduced exposure to foreign rare-earth supply risk and shortened logistics lead times. As platform volumes rose, cost parity with imported units improved, strengthening the US electric motor market.

Industrial automation and IIoT retrofits

Modernization programs replaced legacy drives with intelligent systems that embed sensors and edge computing. Rockwell Automation documented predictive maintenance rollouts that cut unplanned downtime 55% and trimmed energy use 18%^{[1]Rockwell Automation Staff, “8 Key Industrial Automation Trends in 2025,” rockwellautomation.com}. The retrofit cycle gained urgency because motor-driven equipment consumed about 53% of industrial electricity, making efficiency an immediate cost lever. Variable-frequency drives became default specifications, and demand for premium-efficiency IE5 motors increased despite higher upfront prices. Industrial hubs in Texas and North Carolina emerged as early adopters, reflecting dense manufacturing footprints and supportive state incentives.

HVAC efficiency upgrades in commercial real estate

Building owners raced to comply with state and city climate rules that mandate lower greenhouse-gas intensity. California utilities offered rebates that shortened retrofit paybacks to less than three years. Case studies such as Wells Fargo’s retrofit of switched-reluctance motors demonstrated 70% HVAC energy savings. IE5 motors paired with integrated drives reported 10% energy reduction versus IE3 equivalents. The American Innovation and Manufacturing Act accelerated refrigerant transitions, and variable refrigerant flow systems lifted demand for electronically commutated motors able to modulate speed precisely.

Federal clean-energy tax incentives

The Inflation Reduction Act offered credits up to USD 40,000 for qualified commercial clean vehicles and extended manufacturing credits to facilities producing high-efficiency electrical equipment. ArcelorMittal secured USD 280.5 million in credits to fund a USD 1.2 billion electrical steel plant in Alabama, tightening domestic supply loops for motor laminations. Credit certainty improved board-level confidence for capital expenditure, and incremental demand rippled into motor OEM order books. State programs layered additional rebates, further enhancing project economics for fleet operators and industrial retrofits.

Copper and rare-earth price volatility

Copper averaged USD 8,800-9,500 per ton in 2025 and faced a projected 70% increase by 2050 as electrification raised structural demand. Rare-earth export policies tightened permanent-magnet supply, exposing motor OEMs to price spikes and delivery risk. Firms responded by hedging, redesigning rotors to use ferrite materials, and expanding recovery of metals from end-of-life products. ZF’s 220 kW separately-excited design illustrated a path to eliminate magnets while preserving performance. Smaller domestic manufacturers without scale or long-term contracts bore the highest cost pressure, which diluted margins and slowed capacity expansions.

Semiconductor shortages for drive electronics

Lead times for motor control chips lengthened from 12 to 26 weeks in 2024 as automotive and consumer electronics absorbed fab capacity. Variable-frequency drive lines were hit hardest because they rely on power management ICs fabricated at mature nodes still in short supply. GlobalFoundries and other foundries ramped US hiring but flagged skilled workforce shortages despite CHIPS Act incentives. OEMs revised PCB layouts to accept multiple controller options, yet performance compromises persisted. Extended inventory holding raised working-capital needs and forced some distributors to allocate units to strategic customers.

Segment Analysis

By Motor Type: AC induction leadership persists while PMSM gains scale.

AC induction units retained 63.4% share in 2024, giving the segment the largest slice of the US electric motor market. The design’s rugged construction and mature supply base kept pricing competitive, so adopters in pulp and paper or water utilities continued to favor it for constant-speed pumps and compressors. However, permanent-magnet synchronous motors expanded at an 11.2% CAGR through 2030 because EV traction and high-precision automation prioritized power density and efficiency. PMSMs remove rotor I²R losses, permitting compact housings that meet stringent vehicle packaging envelopes. Brushless DC solutions addressed servo applications that demand fine speed control, whereas hermetic motors stayed relevant in sealed refrigeration circuits. Research into synchronous reluctance designs, including ribless rotor prototypes that raised torque by 22.1%, signalled future competitive pressure for magnet-based machines^{[2]University of Nottingham Researchers, “A Novel Concept of Ribless Synchronous Reluctance Motor,” nottingham.ac.uk}.

The US electric motor market size for PMSMs is estimated to rise from USD 6.5 billion in 2025 to roughly USD 11.2 billion by 2030, underpinning broader drivetrain electrification. Automakers’ shift to axial-flux variants combated rare-earth risk and shaved curb weight. Conversely, induction products continued to dominate harsh environments because they tolerate voltage spikes and harmonics that damage magnet rotors. OEM roadmaps suggested a gradual portfolio mix shift rather than a rapid displacement. Motor-rewind service revenues supported the legacy installed base, ensuring aftermarket cash flows for large industrial suppliers.

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

By Power Output: Medium-voltage motors accelerate amid plant upgrades

Fractional horsepower products represented 54.4% of shipments in 2024 and spanned domestic appliances, small pumps, and office equipment, cementing a broad but price-sensitive foundation for the US electric motor market. Rising minimum-efficiency standards nudged appliance makers toward electronically commutated variants that delivered 65-75% electrical efficiency compared with 30% for shaded-pole units. Nonetheless, the headline growth story emerged in the 250-3,000 HP band, where medium-voltage motors are forecast to compound at 10.2% through 2030. Mining, metals, and large water infrastructure owners replaced multiple smaller drives with one high-capacity synchronous reluctance machine, cutting lifecycle maintenance costs.

The US electric motor market size for medium-voltage systems was valued near USD 5.9 billion in 2025 and is projected to top USD 9.6 billion by 2030. Policy support under the Infrastructure Investment and Jobs Act financed water-treatment and grid projects that specify premium-efficiency MV drives. Users highlighted reduced cable losses and improved power-factor correction. Integral horsepower motors ≥ 1 HP remained workhorses in conveyors and fan arrays, especially when bundled with smart drives featuring condition-monitoring analytics. Service organizations gained revenue by upgrading legacy MV starters to solid-state soft-starters that limit inrush current during ramp-up, extending switchgear life.

By Application: Industrial machinery anchors demand, EV drivetrains outpace

Industrial machinery and automation held 28.2% revenue share in 2024, representing the single largest end-use pool within the US electric motor market. Investment cycles at chemical plants, food processors, and semiconductor fabs kept replacement volumes steady. Predictive maintenance platforms such as Regal Rexnord’s Perceptiv captured vibration and thermal signatures, cutting downtime events by more than half. In contrast, EV drivetrains logged a 17.4% CAGR due to federal fleet electrification incentives and consumer adoption momentum. Each battery-electric light vehicle required two to three traction motors plus auxiliary pumps, swelling total unit demand.

HVAC and refrigeration formed a highly regulated niche that leveraged IE5 motors to satisfy emerging refrigerant and building code mandates. Aerospace and defense embraced high power-density solutions such as H3X’s 8-12 kW/kg machines for electric aircraft prototype programs h3x.tech. Household appliances matured but added incremental volume from smart-home integrations that relied on brushless DC drives for silent operation. The US electric motor market share attributed to EV drivetrains is predicted to climb toward 14% by 2030, narrowing the gap with industrial machinery as automakers completely new assembly capacity.

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

By Technology: Conventional induction steadies, axial-flux innovation scales

Conventional induction architecture still captured 72.5% share in 2024 because of entrenched manufacturing capacity and cost leadership. OEMs offered premium-grade induction frames certified to NEMA Premium efficiency levels, extending relevance in regulated markets. However, axial-flux designs grew at a 14.8% CAGR and promised triple power density, making them attractive for high-end passenger cars and compact HVAC blowers. Mercedes-Benz confirmed AMG models would employ axial-flux rotors that trimmed weight and improved transient response.

The US electric motor market size attributed to axial-flux solutions was under USD 800 million in 2025 but could surpass USD 1.8 billion by 2030. Infinitum’s PCB-stator topology cut core losses and simplified manufacturing. Synchronous reluctance adoption widened in motion-control lines that need precise torque without magnet costs, and switched reluctance gained prominence in harsh-environment pumps because it tolerated elevated temperatures without demagnetization. Patent filings for Halbach-array variants hinted at future breakthroughs for space or desert duty, where magnetic field shaping boosts thrust without added mass.

Geography Analysis

Demand mapped closely to regional industrial strengths. The Great Lakes corridor anchored by Michigan and Ohio attracted more than USD 4 billion in announced EV motor and component investments between 2024 and 2025. The region benefited from skilled labor and union-negotiated training programs that addressed winding and assembly bottlenecks. Tennessee and Alabama added electrical steel and e-axle plants, reinforcing a vertically integrated supply chain that tightened regional content for automakers.

Western states led adoption in building electrification. California’s Title 24 energy code pushed premium-efficiency motor sales for HVAC and water pumping, while data-center growth in Arizona and Nevada pushed high-reliability fan demand. Texas became a production hotspot after Linear Labs announced a 500,000-square-foot facility in Fort Worth backed by USD 68.9 million in incentives. Renewable project developers in the Southwest ordered yaw and pitch motors for onshore wind farms and tracking drives for large solar arrays.

The Northeast saw a retrofit wave triggered by New York City Local Law 97, which penalized inefficient buildings beginning 2027. Co-op boards installed heat-pump systems powered by permanent-magnet motors to avoid fines^{[3]ArcelorMittal Press Office, “To Move Forward with Electrical Steel Facility,” corporate.arcelormittal.com}. Defense spending concentrated in Virginia, Maryland, and California drove procurement of rugged motor-generator sets for naval vessels and tactical hybrid vehicles. Across all regions, Infrastructure Investment and Jobs Act funds were earmarked for water and transit projects that specify NEMA Premium motors, thereby standardizing high-efficiency demand nationwide.