Servo Motor Market Size, Share & Trends Analysis Report By Application (Industrial Machinery, Motor Vehicles, Household Appliances), By Type (AC Motor, DC Motor), And Segment Forecasts, 2018 - 2025

Report Overview

The global servo motor market was valued at USD 8.8 billion in 2017 and is anticipated to exhibit a CAGR of 6.4% over the forecast period. Servo motors are the most sophisticated motion control devices. They incorporate advanced design methods, high-force magnet materials, and precise dimensional tolerance. Although not a specific class of motors, these electrical devices are designed and intended to be used in motion control applications that involve exceptional performance, quick reversing, and high accuracy positioning. In addition, they offer easy installation and involve no maintenance cost, thus driving their demand over the forecast period.

Rapid growth and advancements in automation, coupled with increasing adoption of international energy-efficient standards, are some of the substantial drivers influencing market growth. Stringent electricity utilization standards, rising electricity prices, and need to replace outdated low-efficient electric motors with highly efficient servo motors are anticipated to boost their demand over the forecast period.

Growing demand for high-performance motors, increasing vehicle production worldwide, and positive outlook of manufacturing industries are major factors responsible for market stabilization and growth. The market has been expanding into a broader range of industries and applications to increase its resilience to any single sector downturn.

Servo motors serve the purpose of automation, which is the key factor driving the market. Advancements in technology used in servo systems have resulted in increased end-user interest. These electrical devices have varied application areas, which include automobile manufacturing, packaging machines, food processing, semiconductors, and healthcare industries.

Future markets are expected to rely heavily on servo systems over other motor technologies such as stepper motors owing to their high accuracy and speed. Features such as higher torque, lightweight, increased speed, and reduced size are unfolding new market opportunities. In addition, reduction in prices of these devices has enabled manufacturers to shift their focus on improving production techniques, advanced designs, and production time. All these factors are expected to propel market growth by 2025.

Type Insights

The market is majorly classified on the basis of type into AC and DC motors. While both are widely used in servo systems, the AC type endures higher current and is often used in in-line manufacturing, robots, and other industrial applications where high precision and repetition are required.

In 2017, the AC segment held the largest market share and is anticipated to dominate the market over the forecast period. Increasing sales of electric vehicles are expected to drive the segment through 2025. AC motors are relatively lighter and smaller and are commonly used in HVAC equipment, industrial and home appliances, and manufacturing facilities. Moreover, they are cost-effective as they incur negligible or no maintenance cost. Due to their construction, they do not include accessories such as brushes, slip rings, or commutators.

The DC segment is also anticipated to witness healthy growth in the servo motor market, registering a CAGR of 6.0% by 2025. These are used for variable speed control applications in electronic toys, industrial machinery, and equipment, among others.

Application Insights

In 2017, the motor vehicles segment contributed to over 30% of the overall revenue owing to high demand for electric and hybrid vehicles. Increasing fuel prices and pollution have resulted in rising demand for electric vehicles in developed and emerging economies such as Japan, China, Germany, and the U.S. Furthermore, adoption of these motors has increased exponentially in the automotive industry due to development of low-cost and highly efficient electronics.

Growing demand for vehicles in developing nations such as India, South Korea, and China is a key factor driving the global market. These countries are turning into automotive manufacturing hubs, which is further estimated to propel regional markets over the forecast period.

The industrial machinery segment is expected to witness the highest growth by 2025, registering a CAGR of over 7.0% over the forecast period. In the industrial segment, these motors are used in material handling, packaging, factory automation, machine tools, assembly lines, and other demanding applications such as robotics, CNC machinery, and automated manufacturing.

The aerospace and transportation segment accounted for a considerable market share in 2017 and is anticipated to witness healthy growth over the forecast period. Servo motors are used in the aerospace industry in hydraulic systems, which contain system hydraulic fluid. Implementation of automation tools in application industries has further resulted in cost-savings and reduced operation time in manufacturing and inventory processes. Significant advancements in technology, such as integration of hardware and software, has expanded the scope of these motors.

Regional Insights

Asia Pacific accounted for the largest market share in 2017. Increasing industrial activities, coupled with need for fast and accurate motors for higher production output, is driving demand in this region. Additionally, rising need for energy-efficient production processes is catapulting market growth. Increasing machine tool production and other sectors related to production of automobiles and smartphones, which includes semiconductor machinery, electronics assembly, and customized robots for several applications, are some of the other factors anticipated to drive demand in Asia Pacific.

Growing industrialization in developing countries is a major growth driver for the market. Factors such as availability of low-cost skilled workforce, administrative setup, favorable business landscape, and attractive foreign policies have enabled manufacturers to shift their processes to Asia Pacific. This shift is also expected to boost the APAC market over the forecast period.

Key Companies & Market Share Insights

The market is highly fragmented due to the presence of numerous large and small vendors. Major players included in the study are General Electric Company; Nidec Corporation; Allied Motion Technologies, Inc.; Ametek, Inc.; Siemens AG; Schneider Electric; Rockwell Automation Inc.; ABB; and WEG, among others. Large vendors in this market have a strong presence in both high-end and low-end drives segments. Since most vendors are vertically integrated, they offer consumers end-to-end solutions and products.

Players undertake several initiatives such as partnerships, investments, and mergers and acquisitions to maintain their position in the market. The most significant acquisitions and divestitures in 2016-2017 include acquisitions by ABB, Omron, and Allied Motion. Major players are also increasingly focusing on innovation in production technologies to improve the efficiency and shelf life of motors.

Servo Motor Market Report Scope

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 in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global servo motor market report on the basis of motor type, application, and region:

• Motor Type Outlook (Revenue, USD Million, 2014 - 2025)

  • AC

  • DC

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Industrial Machinery

  • Motor Vehicles

  • HVAC Equipment

  • Aerospace & Transportation

  • Household Appliances

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • Middle East & Africa (MEA)