Electric Motor Market - Forecast(2025 - 2031)

Electric Motor Market Overview:

Electric Motor Market Size is valued at $169 Billion by 2030, and is anticipated to grow at a CAGR of 5.6% during the forecast period 2024 -2030. An electric motor converts electrical energy into mechanical energy through electromagnetic principles. It is widely used across applications such as automotive, industrial machinery, HVAC systems, and household appliances. 
Key trends include the rising adoption of energy-efficient motors, integration with IoT for predictive maintenance, and growing demand in electric vehicles (EVs) and renewable energy systems. The development of compact, high-performance motors, coupled with stringent energy regulations, is shaping market dynamics. Additionally, advancements in materials and technologies, such as lightweight components and AI-driven motor optimization, are revolutionizing the industry, enabling higher efficiency and reduced environmental impact.

Market Snapshot: 

Electric Motor Market - Report Coverage:

The “Electric Motor Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Electric Motor Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

•    The COVID-19 pandemic disrupted the electric motor market, causing supply chain interruptions and delayed manufacturing due to lockdowns and restrictions. Key industries, including automotive and industrial equipment, experienced reduced demand, stalling market growth. However, the pandemic also accelerated trends like digital transformation and automation, driving demand for electric motors in robotics and smart systems. The shift towards renewable energy during the crisis boosted demand for electric motors in wind and solar applications. As economies reopened, the market recovered, supported by increasing investments in energy-efficient systems and sustainable technologies. The pandemic highlighted the need for resilient supply chains and innovative production strategies.

•    The Russia-Ukraine war significantly affected the electric motor market by disrupting global energy supply chains and inflating raw material costs, especially for metals like copper and steel used in motor production. The conflict drove up energy prices, pressuring manufacturers to adopt energy-efficient motors to offset costs. Additionally, Europe’s pivot towards renewable energy and reduced reliance on Russian gas accelerated investments in electric motors for wind turbines and green energy infrastructure. Supply chain disruptions highlighted the need for regional diversification in sourcing and production. These geopolitical tensions underscored the importance of sustainable technologies, fostering innovation in energy-efficient motor designs.

Key Takeaways:

•    DC Motor Segment is the Fastest-Growing Product Type in the Electric Motor Market

The DC motor segment is projected to grow at a robust CAGR of 7.6% during 2024-2030, driven by the increasing adoption of brushless DC motors across diverse industries. These motors are replacing traditional brushed DC and AC induction motors in applications like home appliances due to their higher efficiency and durability. In the automotive sector, DC motors are pivotal in electric vehicles, supporting non-traction applications such as window regulators and cooling fans, aligning with the global shift toward sustainable transportation. The rising demand for electric vehicles further amplifies the need for reliable DC motors. Moreover, DC motors play a vital role in industrial automation, powering conveyor systems, robotics, and precision manufacturing equipment. Their ease of control enables accurate, regulated movements essential for automated processes. As industries continue to adopt energy-efficient solutions, the DC motor segment is poised for significant growth, supported by advancements in technology and expanding application areas.

•    Medical and Healthcare Sector Recorded Significant Growth in the Electric Motor Market

The medical and healthcare sector is anticipated to grow at a  CAGR of 8.5% from 2024 to 2030, driven by increasing investments and advancements in medical devices and equipment. Electric motors are integral to advanced medical technologies, including surgical robots, imaging equipment like MRI and CT scanners, and prosthetics. These high-performance motors ensure precise movements and accuracy in diagnostic imaging, enhancing patient care. They are also utilized in critical healthcare systems, such as infusion pumps, patient monitoring devices, and mobility aids like electric wheelchairs and patient lifts, improving accessibility and operational efficiency. Electric motors further support laboratory automation and robotic surgical systems, advancing healthcare techniques. As the medical sector evolves with innovative, technology-driven solutions, the demand for electric motors continues to rise. This trend underscores their importance in enabling the precision and reliability required in modern healthcare applications, driving further innovations and adoption within this critical industry.

•    Rising Demand for Electric Motors is driven by the Growing Adoption for Electric Vehicles

The rising demand for electric vehicles (EVs) is significantly transforming the automotive industry, fueled by supportive government policies, subsidies, and tax incentives. Major automakers, including General Motors, Toyota, and BMW, plan to introduce over 400 EV models worldwide, anticipating sales to reach 25 million units by 2025. In March 2022, Ford pledged $50 billion for EV development by 2026, while in March 2023, Volkswagen aimed to invest $131 billion in EVs and digital technologies by 2028. This surge in EV production is paralleled by an increased demand for electric motors, which are essential for both traction and auxiliary systems in these vehicles. The robust growth trajectory of electric motors is closely linked to the global boom in electric vehicles, indicating a strong future for both sectors. As the market matures and competition intensifies, the integration of advanced technologies into EVs will further enhance their appeal and adoption rates across diverse markets. This trend underscores the significant role of electric motors in supporting the transition to sustainable transportation solutions.

•    Electric Motor Market is Negatively Impacted by the Easy Availability of Low-Quality Electric Motors

The electric motor market is highly fragmented, with numerous domestic and international manufacturers competing for market share. While the organized sector primarily targets industrial buyers by offering high-quality products, the unorganized sector dominates local markets by providing low-cost, inferior alternatives. These low-quality electric motors are produced by small-scale local manufacturers who prioritize affordability over performance, making them attractive to cost-conscious buyers. This creates a significant challenge for leading market players, as the unorganized sector disrupts pricing structures and erodes profitability. The influx of low-quality motors impacts consumer trust and leads to potential inefficiencies in industrial operations, undermining the benefits of high-performance motors. Additionally, the lack of stringent quality regulations in certain regions further facilitates the proliferation of substandard motors. As competition intensifies, global players face mounting pressure to differentiate through innovation and quality assurance to maintain their position against this growing challenge in the market.
 
Key Market Players: 

Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Electric Motor Market. The top 10 companies in this industry are listed below:
1.    ABB Ltd.
2.    AMETEK, Inc.
3.    Johnson Electric Holdings Limited
4.    Siemens AG
5.    Rockwell Automation
6.    Toshiba Corp.
7.    Hitachi Ltd.
8.    Nidec Corporation
9.    ARC Systems Inc.
10.    WEG Industries

Scope of the Report: