Electric Motor Market Size, Share & Trends Analysis Report By Motor (AC, DC, Hermetic), By Power Output (Integral HP Output, Fractional HP Output), By Application, By Region, And Segment Forecasts, 2025 - 2030

Electric Motor Market Size & Trends

The global electric motor Market size was valued at USD 197.78 billion in 2024 and is projected to grow at a CAGR of 8.5% from 2025 to 2030. The growth of this market is primarily driven by the growing demand for home appliances such as refrigerators, dryers, vacuum cleaners, grinders, mixers, and others, the increasing inclination towards the utilization of green vehicles, and government support and encouragement for the adoption of electric vehicles. In addition, rising awareness regarding sustainability and the significance of reduced carbon emissions is adding to the growth of this market.

According to the U.S. Energy Information Administration, the combined sales of plug-in hybrid electric vehicles, battery electric vehicles (BEVs), and hybrid vehicles grew from 17.8% in the first quarter of the financial year 2024 to 18.7% in the second quarter. The 30.7% year-over-year increase in the sale of hybrid vehicles mainly influenced this growth. The growing use of electric motor-driven cars in developed countries, such as the U.S. and others, is projected to assist the growth of this market in the approaching years.

The product is used in fans, pumps, compressors, machine tools, domestic appliances, electric cars, HVAC applications, power tools, and automated robots. These high-efficiency motors are gaining importance due to various factors. These include long operating life, low maintenance, energy consumption, and a high tolerance for fluctuating voltages, thus enabling cost savings. Countries such as Brazil, the U.S., Argentina, China, and India are major markets, with a high adoption rate for energy-efficient products in both the industrial and agricultural sectors.

Electric motors' environmental benefits are boosting their implementation in electric vehicles. These machines augment a device's efficiency compared to standard ones and save costs related to energy consumed. Moreover, rising responsiveness to environmental changes and the greenhouse effect is anticipated to shift consumers' focus towards electric vehicles, which is projected to bolster the demand. The need for low-power consumption and improved efficiency products is poised to fuel the market over the next few years.

In addition, there is a growing demand for smart offices, smart buildings, and commercial spaces equipped with advanced HVAC systems or heating, ventilation, and air conditioning systems. Growing awareness regarding energy efficiency and the role of electric motors is also contributing to the growth in demand. Furthermore, the emergence of modern technologies and the integration of these technologies with different appliances, lighting panels, and other integral systems has offered enhanced control and convenience, resulting in the growing use of electric motors.

The transition of the global automotive industry and the increased focus of multiple brands on reducing carbon footprint through offering electric vehicles, hybrid passenger cars, and other vehicles driven by electric motors are expected to add to the growth opportunities for this market. Rising automation of manufacturing processes in multiple industries has also driven the demand for electric motors. In addition, new launches and portfolio expansions are projected to drive the electric motors market growth market during the forecast period. For instance, Danfoss, one of the prominent companies in engineering and technology, added Editron EM-PMI540B to its extensive portfolio, designed to ensure an uninterrupted power supply for electric machinery.

Motor Insights

Based on motors, the AC motors segment dominated the global market with a revenue share of 71.2% in 2024. This high share is attributable to AC motors' extensive applications, ranging from irrigation pumps to modern-day robotics. Furthermore, they are smaller, cheaper, lighter, and extensively used in HVAC equipment. The adoption of electric AC motors in the automotive industry has increased exponentially, owing to the advent of highly efficient and low-cost electronics, accompanied by improvements in permanent magnetic materials. Increasing demand for them in various industries, including chemicals, paper and pulp, cement, and wastewater treatment, is likely to further contribute to the segment's growth. Growing sales of electric vehicles and the subsequent scope of the machine type are also expected to spur the segment's growth over the forecast period.

The hermetic motors segment is projected to grow at the fastest CAGR of 8.9% from 2025 to 2030. Hermetic motors are mainly used in various applications such as centrifugal chillers, commercial air conditioning units, household and commercial refrigerators, aircraft engines, and industrial operations. Rising demand for advanced commercial cooling solutions in large enterprises, spacious commercial buildings, and households is primarily driving the growth of this segment. In addition, the increasing use of cold storage by the retail and food industry also contributes to hermetic motors' growth opportunities.

Power Output Insights

Fractional HP output segment held the largest revenue share of this market in 2024. The growth of this segment is mainly influenced by factors such as its wide array of use cases in all household appliances, ranging from vacuum cleaners to coffee machines and refrigerators. It is also used in industrial equipment as it proves suitable for operations in a heavy industrial environment. These motors have numerous advantages, including high starting torque and stability over electric current fluctuations. In addition, the energy efficiency provided by FHP motors is higher than that of its counterparts, which is poised to translate into greater demand from industrial users willing to replace existing machines with more efficient ones.

Integral HP output segment is projected to grow at fastest CAGR from 2025 to 2030. The increasing demand for these motors in industrial applications primarily drives the growth of this segment. IHP motors are commonly used in centrifugal pumps, power air and gas compressors, pneumatic systems, refrigeration systems, conveyors, material handling equipment, etc. The growing adoption, increasing automation of manufacturing processes in multiple businesses, and availability of advanced industrial machinery are anticipated to drive the demand for IHP output electric motors.

Application Insights

Based on application, the motor vehicles segment dominated the global electric motor market in 2024. This is attributed to multiple aspects, such as the growing focus of governments on reducing the carbon footprint of motor vehicles and developing sustainable transportation and mobility solutions. The focus of multiple automotive industry brands on launching their advanced products in global and regional markets adds to the growth of this segment. For instance, in October 2024, Bentley Motors, one of the prominent companies in the automotive industry, announced the extension of the company’s Beyond100 strategy initiative, now referred to as Beyond100+, from 2030 to 2035. The announcement also included confirmation from the brand regarding the launch of the first fully electric car in 2026. It also plans to build only fully electric vehicles from 2035 onwards.

The HVAC equipment segment is expected to experience the fastest CAGR from 2025 to 2030. This segment is mainly driven by growing demand from commercial buildings, increasing companies' focus on delivering advanced products, rising inclination towards changing traditional workplaces into smart commercial spaces, and growing market and utilization of co-working spaces. Furthermore, an increase in the use of HVAC systems in industrial settings for energy efficiency, maintaining air quality, and compliance requirements regarding the work environment is projected to add growth potential to this segment during the forecast period.

Regional Insights

Asia Pacific electric motor market dominated the global industry, with a revenue share of 51.2% in 2024. The growing adoption of electric vehicles primarily influenced this market, and China made a significant contribution to it. According to the U.S. International Trade Commission, approximately 1.60 million electric vehicles were exported from China in 2023. In addition, increasing demand for HVAC systems by industrial users, growing adoption of automation systems in multiple manufacturing businesses, and government support to shift dependence from other sources to energy-efficient electric motors are expected to drive more growth in the coming years.

China held the largest revenue share of the regional industry in 2024. This market is mainly influenced by the growth in demand for electric vehicles, the increasing focus of industrial users on the adoption of advanced automation, the growing focus of multiple businesses on the inclusion of energy-efficient solutions, and the increase in awareness regarding the environmental impact of other energy sources.

North America Electric Motor Market Trends

North America electric motor market is expected to experience substantial growth during the forecast period. This market is mainly influenced by factors such as growing demand for the automotive industry, increasing trend of automation in various manufacturing facilities, rise in the inclusion of industrial and commercial HVAC systems, and the presence of various key companies in the region. In addition, increasing awareness regarding the reduction of carbon footprint and enhanced efforts by organizations and governments to include energy-efficient solutions are adding to the growth opportunities.

The U.S. electric motor market dominated the regional industry with the largest revenue share in 2024. The U.S. is home to multiple businesses operating in industries such as automotive, manufacturing, food and beverages, consumer electronics, construction, and more. The increasing inclination towards the adoption of automation systems and the growing utilization of electric vehicles primarily influence this market.

Europe Electric Motor Market Trends

Europe was identified as a lucrative region for the electric motor market. The growth of this market is driven by several factors, including government initiatives that support incentives and regulations promoting clean transportation, which lead to the adoption of electric vehicles and motors. Focusing on reducing carbon emissions and developing charging infrastructure also contributes to Europe's electric motor market growth. The demand for electric motors in the European market is primarily fueled by key countries such as the U.K., Germany, and France.

Germany electric motor market dominated the regional industry in 2024 owing to the robust manufacturing industry and automotive businesses in the country, growing focus of manufacturers from various sectors such as automotive parts, food & beverages, consumer goods, and others on the adoption of automation, and increasing demand for advanced HVAC driven by urbanization and sustainability initiatives.

Key Electric Motor Company Insights

Some key companies operating in the electric motor market are ABB, Johnson Electric Holdings Limited, Schneider Electric, ABB, AMETEK.Inc., and others. Increasing demand from various industries and a rise in competition have stimulated multiple key players to adopt strategies such as new launches, industry-specific portfolio additions, expansions, collaborations and partnerships, and more.

• Johnson Electric Holdings Limited, also referred to as Johnson Electric, is one of the prominent companies in the motion solution industry and offers a range of products, solutions, and services for the mobility segment and industrial, professional, and consumer segment. Its portfolio includes AC motors (shaded pole motors, synchronous motors, universal motors), DC motors (automotive compact DC motors, automotive cooling fan motors, automotive DC motors, industry compact DC motors, industry DC motors), EC motors (automotive, industry), and others.

• Siemens, a major market participant in the technology and innovation industry, provides products and offerings associated with multiple markets, including digital industries, smart infrastructure, mobility, end-to-end digital transformation, healthcare technology, etc. Its motor portfolio includes low-voltage, high-voltage, and motors for motion control.

Recent Developments

• In October 2024, ABB, a major market participant declared that the company had signed an agreement with Aurora Motors, one of the key companies in vertical pump motors. The acquisition is projected to enhance ABB’s existing portfolio and strengthen its global footprint.

• In September 2024, WEG, one of the key companies in the motors market announced that it had signed an agreement to acquire a Turkish manufacturing company of commercial and industrial electric motors, Volt Electric Motors ("Volt"). The acquisition will enable WEG to control over 290,000 square feet of facility. The deal is also expected to facilitate WEG's plans to strengthen its position in the European and Asian markets with its Izmir, Türkiye location, which has access to large ports and the potential to offer faster transit times.

• In May 2024, ABB, one of the prime companies operating in multiple markets, such as electrification, motion, process automation, robotics, and others, added the AMXE250 motor and HES580 inverter to its extensive portfolio, specially tailored for modern mobility solutions and electric buses. A compact newly introduced AMXE250 is a permanent magnet synchronous motor with improved efficiency. 

Electric Motor Market Report Scope

Global Electric Motor Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, grand view research has segmented the global electric motor market report based on motor, power output, application, and region:

• Motor Outlook (Revenue, USD Billion,  2018 - 2030)

  • AC Motor

    • Synchronus AC Motor

    • Induction AC Motor

  • DC Motor

    • Brushed DC Motor

    • Brushless DC Motor

  • Hermetic Motor

• Power Output Outlook (Revenue, USD Billion, 2018 - 2030)

  • Integral HP Output

  • Fractional HP Output

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Industrial Machinery

  • Motor Vehicles

  • HVAC Equipment

  • Aerospace & Transportation

  • Household Appliances

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • UAE

    • KSA

    • South Africa