The Electric Motors Market is to Touch $169 Billion by 2030; Rising adoption of electric vehicles (EVS) and rising demand for energy efficiency Propels Market Growth.

The Electric Motors Market size is estimated to reach $169 Billion by 2030, growing at a CAGR of 5.6% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Electric Motors Market – By Product Type (AC Motor (Induction Motor, Synchronous Motor, Servo Motor, Stepper Motor, Others), DC Motor (Brushed DC Motor, Brushless DC Motor, Servo Motor, Series Motor, Stepper motor, Compound Motor, Others)), By Product Category (Permanent Magnet, Non-Permanent Magnet), By Phase (Single Phase, Three Phase), By Power Rating (Below 0.5W, 0.5W-1W, 1W to 100W, 100W to 1KW, 1KW to 10KW, 10KW and Above), By Efficiency (IE1, IE2, IE3, IE4), By Application (Commercial (Automated Doors, Elevators & Escalators, Blowers, Electric Sweepers, Hand Dryers, Data Center & UPS, Pumps, Power Tools, Water Coolers, Camera PTZ Control, Drones, Others), Consumer Products (Pumps, Hair Dryers, Lawn Mowers, Boilers, Dishwashers, Vacuum Cleaners, Washing Machine, Blenders & Mixers, Fans & Chimneys, Desktop & Laptops, Smartphones, Refrigerators, Others), Automotive (Body Control motors, EPS Motors, Brake Booster BLDC Motor, Seat Adjustment, Belt Tensioner, Car Window Motor, Door Lock Motors, Wiper Motor, Others), Medical & Healthcare (Diagnostic Equipment (CT Scanners, MRI, Biopsy Systems, Diagnostics Analyzers, Ultrasound Transducers, X-Ray, Others), Medical Centrifuges, Medical Pumps, Blowers and Compressors, Surgical Instruments (Saws, Drills, Surgical Robots, Others), Dental CAD/CAM Milling Machines, Exoskeleton & Prosthetics, Microscopes, Wheelchairs & Scooters, Stair Lifts, Hospital Beds & Exam Tables, Others), Others), By Geography – Global Opportunity Analysis & Industry Forecast, 2024-2030”

Growing Adoption of Fuel Cell Electric Vehicles (FCEVs) and Rising Demand for Hydrogen Infrastructure are fueling the growth of the Electric Motors industry during the forecast period.

Asia-Pacific region is accounted for the largest market share of 53% in 2023 driven by its robust industrial base, rapid urbanization, and growing focus on energy efficiency. Countries such as China, India, and Japan have emerged as key players in the market due to their strong manufacturing capabilities, particularly in industries like automotive, electronics, and consumer appliances, all of which rely heavily on electric motors. China, being the largest producer and consumer of electric vehicles (EVs), has significantly boosted the demand for electric motors, especially high-efficiency ones like permanent magnet synchronous motors (PMSMs). In November 2024, a WEG S.A. announced an investment plan of approximately US$ 62 million to expand electric motor production capacity at its manufacturing site in Rugao, China. This plan aims to meet growing market demand and increase the company's presence in the region. The plan includes the construction of a 30,000 m² (323,000 ft²) factory for the manufacturing of high-voltage electric motors, expected to be completed in 2026. Additionally, government initiatives promoting the adoption of renewable energy and energy-efficient technologies, such as IE3 and IE4-rated motors, have further accelerated market growth in the region.

 Energy efficiency is one of the primary drivers for the electric motors market. As industries and residential sectors alike face increasing energy costs, there is a growing emphasis on reducing energy consumption without sacrificing performance. Electric motors, particularly those with higher efficiency ratings such as IE3 and IE4, have become essential in achieving these goals. These motors significantly reduce energy wastage and offer better performance while consuming less power, which is particularly crucial in energy-intensive industries like manufacturing, HVAC systems, and pumps. In addition, governments and regulatory bodies around the world are introducing stringent energy efficiency regulations, urging manufacturers and industries to adopt more energy-efficient solutions. These regulations, combined with the long-term savings in energy costs, are accelerating the transition towards high-efficiency electric motors. In 2023, ABB India’s IEC LV motors witnessed notable progress in the adoption of energy-efficient motors, with ~50% of orders being attributed to the supply of higher efficiency IE3 and IE4 motors. ABB India's focus on energy-efficient motors is further demonstrated by the impressive growth in the quantity of IE4 motor sales which witnessed over 100% year-on-year increase. This surge in demand for IE4 motors not only contributes to substantial energy savings but also aligns with ABB's mission to enhance performance while minimizing environmental impact. The adoption of energy-efficient motors not only helps in reducing operational costs but also contributes to environmental sustainability by lowering carbon emissions. As energy efficiency becomes a focal point for industries across various sectors, the demand for electric motors continues to grow, making energy efficiency a major driver of market expansion.

The electric vehicle (EV) revolution is one of the most significant trends driving the electric motors market. As the automotive industry increasingly shifts towards electrification, the demand for electric motors, especially those used in EVs, is soaring. Electric motors are the heart of EV propulsion systems, and as more manufacturers enter the EV market and governments incentivize the transition from combustion engines to electric propulsion, the demand for efficient and high-performance motors is growing exponentially. The global push towards reducing carbon emissions and the growing popularity of EVs in countries like China, the United States, and Europe are further driving the need for high-performance electric motors in automotive applications. According to Elaina Farnsworth, Co-founder & CEO, SkillFusion, in January 2025, EVs have increased in popularity, with more than 3.3 million of them on the road in the United States alone. However, for EVs to make it to mainstream adoption, the battle between the Combined Charging System (CCS) and the North American Charging System (NACS) will need to be decided. Additionally, the development of next-generation EVs, including electric trucks and buses, is expected to further fuel the demand for electric motors, contributing to the market’s growth.

Key companies profiled in the Electric Motors Market are ABB Ltd., AMETEK, Inc., Johnson Electric Holdings Limited, Siemens AG, Rockwell Automation, Toshiba Corp., Hitachi Ltd., Nidec Corporation, ARC Systems Inc., WEG Industries and others.