Electric Motor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (AC Motors, DC Motors and Hermetic Motors), By Output Power (Above 1HP and Upto 1HP), By End Use (Residential, Commercial, Industrial, Transportation and Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 144.33 Billion
CAGR (2026-2031)	9.76%
Fastest Growing Segment	Above 1HP
Largest Market	Asia Pacific
Market Size (2031)	USD 252.36 Billion

Market Overview

The Global Electric Motor Market will grow from USD 144.33 Billion in 2025 to USD 252.36 Billion by 2031 at a 9.76% CAGR. An electric motor is an electromechanical device designed to convert electrical energy into mechanical energy, generating motion for diverse industrial, commercial, and residential applications. The market is fundamentally supported by the rising demand for industrial automation and the rigorous implementation of energy efficiency regulations that necessitate the replacement of aging infrastructure. Additionally, the extensive electrification of the automotive sector and the growing requirement for heating, ventilation, and air conditioning systems in developing regions serve as distinct, robust drivers of commercial expansion.

Nevertheless, the market faces a substantial challenge regarding the volatility of raw material costs, specifically for copper and rare earth magnets, which complicates supply chain management and pricing strategies. This instability often hinders long-term planning and can impede production scalability for manufacturers. According to the International Energy Agency, in 2024, electricity consumption in the transport sector increased by over 8% due to the continued uptake of electric vehicles.

Key Market Drivers

The accelerated global adoption of electric vehicles serves as a primary driver for the electric motor industry, fundamentally shifting manufacturing priorities from internal combustion engines to electric powertrains. This transition extends beyond personal passenger cars to commercial fleets and public transport, creating a sustained surge in demand for high-performance traction motors and auxiliary systems. Manufacturers are responding by scaling production of motors that offer superior power density and thermal management to accommodate the range and efficiency requirements of modern transport. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales were projected to reach approximately 17 million units in 2024, reflecting the rapid expansion of this sector and its direct impact on motor supply chains.

Simultaneously, the proliferation of industrial automation and Industry 4.0 is reshaping the market by increasing the requirement for precision motors used in smart manufacturing ecosystems. Factories are integrating advanced robotics and automated conveyor systems that rely heavily on servo and stepper motors for exact positioning and speed control. According to the International Federation of Robotics, September 2024, in the 'World Robotics 2024' report, the global manufacturing sector installed 541,302 new industrial robots in 2023, necessitating a corresponding volume of specialized motor units. This trend is further supported by the vast existing infrastructure that requires modernization; according to ABB, September 2024, in the 'Unlocking Energy Efficiency' report, there are over 300 million industrial electric motors in operation globally, representing a significant installed base for potential high-efficiency upgrades.

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Key Market Challenges

The volatility of raw material costs, specifically for copper and rare earth magnets, presents a substantial obstacle to the sustained expansion of the global electric motor market. This unpredictability in input prices creates a difficult environment for manufacturers, who struggle to establish stable pricing structures for their clients. Consequently, companies often face the dilemma of absorbing increased costs, which erodes profit margins, or passing them on to customers, which can reduce competitiveness and delay purchase orders. Such instability in the supply chain hinders the ability of organizations to commit to long-term infrastructure investments and production scalability, as financial planning becomes unreliable.

The industry's heavy reliance on these materials exacerbates the impact of these cost fluctuations. According to the International Copper Study Group, in 2024, global refined copper consumption was projected to increase by 2.2 percent. This rising volume of consumption highlights the market's deep exposure to raw material dynamics, meaning that even minor price shifts can have a magnified negative effect on operational efficiency and the strategic planning required for future market growth.

Key Market Trends

The transition to IE4 and IE5 Super-Premium efficiency standards is fundamentally reshaping the global electric motor market, driven by stringent government regulations and the industrial imperative to reduce operational energy costs. Manufacturers are increasingly phasing out lower-efficiency legacy units in favor of advanced designs that utilize superior magnetic materials and optimized winding techniques to minimize energy loss. This regulatory push is particularly evident in North America, where updated mandates are forcing a rapid upgrade of medium-voltage industrial equipment. According to Nidec Motor Corporation, May 2024, in the 'DOE Motor Rules' brochure, the U.S. Department of Energy finalized new regulations requiring the majority of 100 to 250 horsepower motors to meet Super Premium efficiency standards, effectively mandating IE4 performance levels for these critical industrial assets.

Simultaneously, the development of rare-earth-free and magnet-less technologies has emerged as a critical strategic trend to mitigate supply chain risks and reduce dependency on volatile raw material markets. Automotive and industrial suppliers are investing heavily in Externally Excited Synchronous Motors (EESM) and other induction-based architectures that eliminate the need for neodymium and dysprosium, thereby stabilizing production costs and improving sustainability profiles. This shift is gaining commercial momentum through high-profile collaborations aimed at scaling these technologies for high-performance applications. According to Mahle, October 2024, in the press release 'Valeo and MAHLE expand their product range', the companies announced a joint development agreement for magnet-free electric axles targeting the upper EV segment with peak outputs between 220 kW and 350 kW, aiming to reduce the carbon footprint by over 40% compared to permanent magnet motors.

Segmental Insights

The Above 1HP segment is emerging as the fastest-growing category in the global electric motor market, driven by the increasing integration of heavy-duty machinery across the industrial and automotive sectors. This rapid expansion is heavily influenced by stringent energy efficiency regulations introduced by the International Electrotechnical Commission, which necessitate the replacement of inefficient units with premium alternatives. As industries strive to minimize operational expenditures and comply with these rigorous environmental standards, the adoption of motors exceeding one horsepower for applications such as compressors and industrial pumps continues to accelerate significantly.

Regional Insights

Asia Pacific holds the leading position in the global electric motor market, driven by expansive industrial manufacturing and a rapidly growing automotive sector. Countries such as China and India function as central production hubs, generating high demand for motors in industrial machinery and electric vehicles. This market strength is further supported by government mandates aiming to reduce power consumption. For instance, adherence to efficiency classifications established by the International Electrotechnical Commission encourages the adoption of energy-saving motors across various industries, thereby securing the region's strong market performance.

Recent Developments

• In May 2025, Schaeffler launched a new series of 800-volt liquid-cooled heavy-duty electric motors specifically engineered for the electrification of off-highway vehicles, such as construction machinery. These new motors were designed to deliver high torque and a power-to-weight ratio of approximately 5 to 7 kW/kg, achieving maximum efficiencies of over 97%. The company emphasized that the low energy losses of these drive systems were critical for ensuring long operating times between charging cycles for heavy equipment. This product launch expanded the company's portfolio in the construction sector, offering a modular solution to meet diverse power requirements for electrified industrial applications.
• In October 2024, Mahle and Valeo announced a strategic collaboration to jointly develop a new generation of magnet-free electric axles for upper-segment electric vehicles. The partnership combined Mahle's magnet-free contactless transmitter (MCT) technology with Valeo's expertise in motor control and power electronics to create an electric motor system that eliminates the need for rare earth magnets. This innovation was designed to reduce the carbon footprint of the motor by more than 40% while delivering high power density and efficiency. The companies aimed to test the first prototypes by the end of 2024, targeting a revolution in the sustainability of automotive electric drives.
• In September 2024, WEG entered into a definitive agreement to acquire Volt Electric Motors, a leading Turkish manufacturer of industrial and commercial electric motors, for an enterprise value of US$ 88 million. This strategic acquisition was aimed at expanding the company's manufacturing capacity and strengthening its presence in key markets across Eastern Europe, the Middle East, and Central Asia. The Managing Director of Industrial Motors at WEG noted that integrating the Turkish facility, which has a production capacity of one million motors annually, would enhance logistical efficiency and product availability. The move represented a significant step in the company's global growth strategy within the electric motor sector.
• In June 2024, ABB unveiled the world's first magnet-free Synchronous Reluctance Motor (SynRM) designed to achieve IE6 hyper-efficiency, a level that significantly exceeds current energy standards. This breakthrough technology was developed to offer a sustainable alternative to permanent magnet motors by eliminating the need for rare earth materials while reducing energy losses by approximately 20% compared to IE5 counterparts. The Division President of IEC Low Voltage Motors at ABB highlighted that this innovation would allow industrial customers to future-proof their operations against fluctuating energy costs. The launch underscored the company's commitment to decarbonizing industries through advanced, eco-friendly motor solutions.

Key Market Players

• General Electric Company
• ABB Ltd
• Schneider Electric SE
• Siemens AG
• Rockwell Automation, Inc.
• Mitsubishi Electric Corporation
• Emerson Electric Co.
• Yaskawa Electric Corporation
• Toshiba Corporation
• Nidec Corporation

By Type	By Output Power	By End Use	By Region
AC Motors DC Motors and Hermetic Motors	Above 1HP and Upto 1HP	Residential Commercial Industrial Transportation and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electric Motor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electric Motor Market, By Type:

• AC Motors
• DC Motors and Hermetic Motors

• Electric Motor Market, By Output Power:

• Above 1HP and Upto 1HP

• Electric Motor Market, By End Use:

• Residential
• Commercial
• Industrial
• Transportation and Others

• Electric Motor Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE