The Electric Motor Market is estimated to be valued at US$ 144.44 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
An electric motor is a machine that generates torque with the help of electric energy. It uses electricity to operate and produce mechanical power to run different types of machines. Electric motors are commonly used in household appliances, industrial machinery, aerospace systems, automobiles, and other equipment. Their advantages include high reliability, affordability, and low maintenance.
Market key trends:
One of the key trends spurring growth in the electric motor market is the induction of high efficiency motors. Stringent energy efficiency regulations across countries have prompted manufacturers to develop more efficient motor variants. For instance, the International Efficiency Marking Protocol for Frame Size 56 and larger AC squirrel cage induction motors and NEMA Premium Efficiency requirements have led to wider acceptance of high-efficiency motors in the market. These motors help lower operating costs for end-users through reduced power consumption. Their growing demand from industries like HVAC, pumps, fans, and compressors is likely to drive the electric motor market during the forecast period.
Threat of new entrants: The threat of new entrants is moderate as the electric motor market requires high initial investments in R&D, technology, and production facilities. However, new players can enter the market by offering niche products or targeting specific applications.
Bargaining power of buyers: The bargaining power of buyers is high as the electric motor market has many established players providing substitutable products. Buyers can negotiate on price and demand value-added services from suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as major raw materials such as steel, copper, and electronics are commoditized and available from multiple global suppliers. Suppliers have less influence over buyers.
Threat of new substitutes: The threat of substitutes is low as electric motors have widespread applications and no direct replacements. However, alternative technologies can impact certain motor applications over the long run.
Competitive rivalry: Intense due to the presence of global automakers competing on product innovation, pricing, and customer service.
Strengths: Growing demand from industrial automation and rising focus on energy efficiency are driving market growth. Established distribution networks of key players.
Weaknesses: High R&D and manufacturing costs pose challenges for small players. Supply chain disruptions affect just-in-time production.
Opportunities: Adoption in electric vehicles and investments in smart infrastructure will boost the market. Developing regions like Asia Pacific will push future sales.
Threats: Trade disputes and geopolitical tensions affect global supply chains. Stringent environmental regulations increase compliance costs.
The global Electric Motor Market Growth is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing investments in industrial automation and focus on energy efficiency. The market size is projected to reach US$ 244.30 Bn by 2030 from US$ 144.44 Bn in 2023.
Asia Pacific dominates the global market with over 40% share due to strong manufacturing sector growth in China, India, and Southeast Asian countries. The region is expected to remain the fastest growing market during the forecast period owing to rising industrialization and infrastructure development efforts.
Europe is the second largest electric motor market supported by stringent emission norms and electrification of transportation. Government initiatives to promote renewable energy generation will further aid the regional market expansion.
Key players operating in the electric motor market are Nidec Corporation, AMETEK Inc., ABB Ltd., Hitachi Ltd., Regal Rexnord Corporation, Robert Bosch GmbH, Johnson Electric Holdings Limited, Weg SA, Siemens AG, Toshiba Corp., Rockwell Automation Inc., and TECO-Westinghouse Motor Company.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it