The global electric motor sales market size was estimated at USD 107.5 billion in 2016 and is expected to grow significantly, owing to their increased usage across a broad range of commercial, industrial, and residential applications in elevators, fans, refrigerators, compressors, pumps, and various other systems. They have high endurance (toward fluctuating voltages), low maintenance, low energy consumption, and longer operating life and are gaining much importance.
Electric motors are extensively used in material handling equipment, household appliances, and so on. An unmitigated rise in fuel prices and the need to reduce air pollution have generated an inimitable preference for these vehicles in various countries. This is further anticipated to upsurge the demand over the forecast period.
North America electric motors market by motor type, 2014 - 2025 (USD billion)
They offer various features, such as high reliability, to facilitate the development of energy-efficient buildings. Therefore, are used for various residential & office buildings, warehouses, and hotels applications. Further, with the evolving agriculture sector (through efficient irrigation practices and technology transfer), the scope for market growth of these products is expected to increase over the coming years.
Electric motors have incorporated major technological advancements over the past few years, owing to which, their current demand is gaining traction. The market is shifting toward espousal of efficient motor systems. The need for low power consumption and improved efficiency is expected to generate continuous demand motors demand over the next few years.
The environmental advantages offered by them make them acceptable in electric vehicles. These motors aid in increasing the efficiency of a device, as compared to standard motors and save costs related to energy consumed. Moreover, increasing responsiveness toward greenhouse effect is estimated to shift the consumers’ focus towards electric type, which is expected to spur the demand.
The demand for energy-efficient motors is driven by the rising electricity prices and stringent electricity consumption standards. Additionally, stringent manufacturing and designing standards for improving their efficiency are further mandating manufacturers to develop efficient products. However, lack of awareness about their advantages and high initial purchase cost are obstructing the industry growth.
Motor Type Insights
Electric motors are mainly classified as AC, DC, and hermetic. AC motors are relatively lighter, cheaper, and smaller and are commonly used in industrial & home appliances, HVAC equipment, and manufacturing facilities. In 2016, the AC segment accounted for the largest share. Increasing electric vehicle sales and ensuing demand for AC type in the same are anticipated to drive the segment’s growth over the coming years.
DC types are used for variable speed control applications in industrial machinery and equipment, electronic toys, and so on. Brushless DC motors are widely used owing to their low-cost of maintenance, thus, generating higher revenue in the DC segment.
Hermetic type is estimated to witness the fastest growth with a CAGR exceeding 3% over the forecast period, which is owing to its increasing demand from HVAC manufacturers. The hermetic type is very easy to handle, and requires low maintenance also it is highly portable and can be moved easily from one place to the other place. All these factors are anticipated to drive its adoption over the coming years.
Power Output Insights
Based on power output capacity, electric motors are categorized as Integral Horsepower (IHP) and Fractional Horsepower (FHP). The FHP segment held the largest revenue share in 2016 with over USD 50 billion and are mostly used for low-power applications and household appliances ranging from vacuum cleaners, coffee machines to refrigerators. The market for fractional horsepower motors is increasing and is anticipated to witness steady growth ascribed to their environmentally-friendly levels of power generation efficiency.
The integral horsepower segment is expected to emerge as the fastest-growing segment by 2025. Advantages, offered by energy-efficient motors and stringent electricity consumption standards, are encouraging industrial users to retrofit their plants with these motors. This is estimated to positively drive the demand for the IHP segment over the coming years.
In 2016, the motor vehicles segment accounted for more than 35% of the revenue share. The segment is anticipated to remain the largest application segment over the forecast period, owing to the robust demand for hybrid and electric vehicles.
The rising fuel prices and pollution has led to an increasing demand for electric vehicles in developed and emerging economies such as Germany, the U.S., China and Japan. Moreover, the adoption of electric motors in the automotive industry has risen considerably owing to the advent of low-cost and highly efficient electronics coupled by improvements in permanent magnetic materials.
Asia Pacific electric motors market share by application, 2016 (%)
However, the HVAC equipment segment is expected to witness the fastest growth by 2025. The HVAC industry depends heavily on the electric motor. In HVAC, motors are used in fans, compressors and pumps. With increasing commercial and residential construction globally, the demand for electric motors is expected to catapult over the forecast years as advanced motor technologies help to reduce overall energy consumption in these sectors.
Electric motors are widely being used in heavy industrial equipment as well as agricultural machineries and vehicles. Countries, such as Brazil, Argentina, India and others have a majority population relying on agriculture. Therefore, the demand for low-cost and energy-efficient electric motors is increasing in such countries.
The Asia Pacific region emerged as largest as well as the fastest-growing region in 2016. Further, in the same year, it accounted for over 30% of the overall revenue. Continuous increase in the production of motor driven systems, such as industrial, HVAC equipment, and household appliances, in major countries, such as Singapore, India, China, South Korea, and Indonesia, is expected to largely contribute towards the regional market growth.
Europe and North America are expected to witness a growing preference for these products, owing to the rising espousal of motor vehicles in these regions. However, both the regions are estimated to witness slow growth in the future, owing to the shift of plants of several electronic appliances and motor vehicles to countries, such as India and China, in Asia.
Additionally, growth in Latin America & Middle East regions is expected to be driven by continuing development of the mining industry in Latin American countries, and growing market for hydrocarbon processing machinery in oil & gas sectors of Middle East & Africa. The market opportunities in these regions are anticipated to rise in the near future owing to the rise in demand in the oil and gas (O&G) industry coupled by increasing government funding in these regions.
The industry comprises many small- and large-sized players, worldwide. Some major players in the global market include Baldor Electric Company, Inc., Ametek Inc., Franklin Electric Co., Inc., Asmo Co., Ltd., and others.
The companies are increasingly focusing on research and development projects to increase the efficiency of the motors manufactured. Intense competition has led manufacturers to invest in product developments to better serve the customers’ requirements.
Base year for estimation
Actual estimates/Historic data
2014 - 2016
2017 - 2025
Revenue in USD Billion & CAGR from 2016 to 2025
North America, Europe, Asia Pacific, and Latin America and Middle East & Africa (LAMEA)
Revenue forecast, company share, competitive landscape, growth factors, and trends
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Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends, from 2014 to 2025, in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the electric motor sales market based on motor types, power outputs, applications, and regions:
Motor Type Outlook (Revenue, USD Billion; 2014 - 2025)
AC Motor (Revenue, USD Billion, Volume Billion Units; 2014 - 2025)
Synchronous AC Motor
Induction AC Motor
DC Motor (Revenue, USD Billion, Volume Billion Units; 2014 - 2025)
Brushed DC Motor
Brushless DC Motor
Power Output Outlook (Revenue, USD Billion; 2014 - 2025)
Integral HP Output
Fractional HP Output
Application Output Outlook (Revenue, USD Billion; 2014 - 2025)
Aerospace & Transportation
Regional Outlook (Revenue, USD Billion; 2014 - 2025)
Latin America and The Middle East & Africa (LAMEA)
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