|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 27.63 Billion
|
|
Market Size (2030)
|
USD 43.95 Billion
|
|
CAGR (2025-2030)
|
7.88%
|
|
Fastest Growing Segment
|
Industrial Machinery
|
|
Largest Market
|
Germany
|
Market Overview
Europe Electric Motor Market was
valued at USD 27.63 Billion in 2024 and is expected to reach USD 43.95 Billion by 2030 with a
CAGR of 7.88% during the forecast period.
An electric motor is a device that converts electrical
energy into mechanical energy through the interaction of magnetic fields and
electric current. It operates based on the principle of electromagnetism, where
an electric current flowing through a coil generates a magnetic field that
interacts with a fixed magnetic field, producing rotational motion.
Electric motors are widely used in various
applications, from household appliances to industrial machinery and electric
vehicles. They come in different types, including AC (alternating current)
motors and DC (direct current) motors. AC motors, such as induction and
synchronous motors, are commonly used in industrial applications, while DC
motors, including brushed and brushless types, are preferred for applications
requiring precise speed control.
The key components of an electric motor include the
stator (the stationary part), the rotor (the rotating part), and the commutator
(in some DC motors) that helps control current direction. The efficiency and
performance of an electric motor depend on factors such as power supply,
design, and load conditions.
Electric motors are crucial in modern technology,
offering efficient and eco-friendly alternatives to internal combustion
engines. With advancements in materials and electronics, they continue to
improve in efficiency, reliability, and sustainability.
Key Market Drivers
Industrial
Automation and Smart Manufacturing
Europe is experiencing a rapid shift towards
industrial automation, with industries increasingly adopting robotics, conveyor
systems, and automated machinery that rely on electric motors. This
transformation is driven by the need for higher productivity, efficiency, and
reduced operational costs.
Many European countries, including Germany, France,
and the UK, are investing in Industry 4.0, which emphasizes smart manufacturing
through automation, IoT-enabled devices, and artificial intelligence. Electric
motors play a crucial role in this landscape, as they power everything from
robotic arms in manufacturing plants to high-speed automated sorting systems in
warehouses. Furthermore, energy efficiency regulations encourage industries to
replace older, less efficient motors with advanced models such as permanent
magnet synchronous motors (PMSM) and brushless DC motors (BLDC). These motors
offer higher efficiency, lower maintenance costs, and improved performance,
making them ideal for modern automated systems. 80%+ of European
manufacturers are integrating IoT-enabled electric motors for real-time
monitoring and predictive maintenance.
In addition, demand for electric actuators,
compressors, and pumps in industrial processes further propels the electric
motor market. With increased digitalization and smart monitoring systems,
industries are optimizing motor usage for energy savings and predictive
maintenance, leading to sustained growth in this sector. 20% CAGR growth
expected in collaborative robotics (cobots) and automated electric motor-driven
systems in logistics and production lines.
Renewable Energy Integration
The transition towards renewable energy sources is
another significant driver of the Europe electric motor market. As European
nations commit to reducing carbon footprints, there is a strong push for wind,
solar, and hydroelectric power generation, all of which depend heavily on
electric motors.
Wind turbines, for example, require generator motors
to convert kinetic energy into electrical energy. With large-scale investments
in offshore and onshore wind farms, the demand for high-efficiency motors has
grown substantially. Similarly, solar tracking systems use electric motors to
adjust panel angles for maximum sunlight absorption, improving energy
generation efficiency. EU targets 42.5% renewable energy share by 2030,
increasing the demand for high-efficiency electric motors in power
infrastructure.
The European Union's Green Deal and Fit for 55
initiative aim to cut greenhouse gas emissions by at least 55% by 2030,
promoting increased adoption of renewable energy solutions. Countries like
Germany, Denmark, and the Netherlands are leading the shift towards wind and
solar energy, further expanding the market for electric motors used in
renewable energy applications. Additionally, energy storage systems (ESS) and
grid infrastructure enhancements require motors for cooling, compression, and
power conversion, ensuring stable and efficient energy distribution. With
continued investments in clean energy, the electric motor market is set to
benefit significantly from the region’s renewable energy transition. 50%
increase in demand for electric motors in solar PV tracking systems, enhancing
energy output and efficiency.
Stringent Energy Efficiency Regulations
Europe has some of the world's most stringent energy
efficiency regulations, which directly impact the electric motor industry. The
EU's Ecodesign Directive and Minimum Energy Performance Standards (MEPS)
require manufacturers to develop and use high-efficiency electric motors in
industrial and commercial applications.
To meet these regulations, companies are shifting
towards IE3, IE4, and even IE5 efficiency class motors, which consume
significantly less electricity compared to traditional motors. This trend is
particularly important in HVAC systems, water treatment plants, and
manufacturing industries, where energy consumption is a major operational cost.
Additionally, carbon neutrality goals and corporate sustainability initiatives
drive industries to adopt electric motors with advanced control systems,
variable frequency drives (VFDs), and optimized designs to minimize energy
wastage. Governments also offer financial incentives for companies adopting
energy-efficient technologies, further encouraging the use of next-generation
electric motors. IE4 and IE5 motors are expected to become the new standard
by 2025, further reducing energy losses in industrial applications.
With the European market prioritizing green
technologies and sustainable manufacturing, the demand for high-efficiency,
low-carbon electric motors is expected to continue rising. As regulatory
standards become even more stringent in the coming years, manufacturers will
increasingly focus on developing energy-saving and eco-friendly electric
motors, further driving market growth.
Download Free Sample Report
Key Market Challenges
High Production Costs and Supply Chain Disruptions
One of the major challenges
facing the Europe electric motor market is the high production costs associated
with manufacturing energy-efficient and advanced electric motors. The cost of
raw materials, such as copper, rare earth metals, and aluminum, has been rising
due to supply chain disruptions and increasing global demand. These materials
are essential for producing efficient electric motors, especially those used in
electric vehicles (EVs), industrial automation, and renewable energy
applications.
The reliance on rare earth
elements like neodymium and dysprosium, which are primarily sourced from China,
poses a significant risk to European manufacturers. Any trade restrictions,
geopolitical tensions, or export limitations can lead to supply shortages and
increased costs. This dependency makes it difficult for European companies to
maintain a stable and cost-effective production process for electric motors.
Additionally, logistics challenges and semiconductor shortages have disrupted
supply chains in recent years. The COVID-19 pandemic and geopolitical
conflicts, such as the Russia-Ukraine war, have caused delays in
transportation, shortages of essential components, and increased manufacturing
costs. Many companies face longer lead times and higher expenses in sourcing
critical components, impacting their ability to meet growing market demand.
European manufacturers must
also comply with stringent environmental and labor regulations, which further
increase production costs compared to manufacturers in low-cost regions.
Compliance with EU Ecodesign regulations requires companies to develop high-efficiency
motors that meet energy-saving standards, adding to R&D expenses and
production complexity.
To overcome these
challenges, manufacturers are investing in localized supply chains, recycling
initiatives for rare earth materials, and alternative motor designs that reduce
dependency on costly components. However, until these solutions are widely implemented,
high production costs and supply chain issues will continue to be a significant
challenge for the Europe electric motor market.
Competition from Low-Cost Asian Manufacturers
Another major challenge for
the Europe electric motor market is the intense competition from low-cost manufacturers in
Asia, particularly from China, India, and South Korea. These countries have
cost advantages due to lower labor expenses, economies of scale, and government
incentives for industrial production. As a result, they can produce electric
motors at a significantly lower price than European manufacturers.
Asian manufacturers dominate the global electric motor
supply chain, particularly in standardized, mass-produced motors used in
industrial applications, HVAC systems, and small household appliances. European
companies often struggle to compete on price, especially when bidding for
large-scale contracts in the automotive and industrial sectors. Additionally,
some Asian manufacturers compromise on quality and efficiency standards to
reduce costs, making their products more attractive to cost-sensitive customers.
While European regulations mandate high energy efficiency standards (such as
IE3, IE4, and IE5 motors), many markets outside the EU do not have such strict
requirements. This allows low-cost competitors to sell less efficient but
cheaper motors, putting European
companies at a disadvantage in global markets.
To remain competitive,
European manufacturers must focus on innovation, automation, and premium-quality motor
solutions. Investing in next-generation motor technologies, such as brushless
DC motors (BLDC), permanent magnet synchronous motors (PMSM), and smart
connected motors, can help them differentiate their products. Additionally,
strong branding, after-sales service, and compliance with energy efficiency
regulations can give European firms an edge over lower-cost competitors.
Despite these efforts, the challenge remains
significant, as many European buyers—especially in price-sensitive
industries—prefer cheaper alternatives from Asian suppliers. European
manufacturers must continuously adapt, optimize production processes, and
leverage government support to stay competitive in an increasingly globalized
market.
Key Market Trends
Growing Demand for High-Efficiency and Energy-Saving
Motors
One of the most significant trends in the Europe
electric motor market is the increasing demand for high-efficiency and
energy-saving motors. With stricter energy regulations and rising electricity
costs, industries and consumers are prioritizing motors that consume less power
while delivering superior performance. The European Union has enforced
stringent energy efficiency standards, such as the Ecodesign Directive and
Minimum Energy Performance Standards (MEPS), which require manufacturers to
develop motors that meet IE3, IE4, and IE5 efficiency classes. These
regulations aim to reduce carbon emissions and promote sustainable industrial
practices.
As a result, industries such as manufacturing, HVAC, water
treatment, and transportation are transitioning from traditional induction
motors to advanced motor technologies like permanent magnet synchronous motors
(PMSM), brushless DC motors (BLDC), and switched reluctance motors (SRM). These
motors offer higher efficiency, lower maintenance costs, and longer lifespans,
making them ideal for modern industrial and commercial applications.
Variable frequency drives (VFDs) are gaining
popularity as they allow electric motors to adjust their speed based on demand,
significantly reducing energy consumption. Smart and connected motors equipped
with IoT sensors and predictive maintenance capabilities are also emerging,
enabling real-time monitoring and efficiency optimization. This shift towards
eco-friendly and intelligent motor solutions aligns with Europe’s commitment to
achieving carbon neutrality and enhancing industrial productivity.
The increasing investments in renewable energy
projects also contribute to this trend. High-efficiency motors are widely used
in wind turbines, solar tracking systems, and hydroelectric plants, ensuring
maximum energy conversion and minimal power losses. As sustainability becomes a
top priority, the demand for energy-efficient electric motors will continue to
grow across Europe.
Expansion of Electric Vehicle (EV) and Automotive
Electrification
The rapid expansion of electric vehicles (EVs) and
automotive electrification is another key trend shaping the Europe electric
motor market. With the European Union’s push towards zero-emission
transportation and the planned ban on new petrol and diesel cars by 2035,
automakers are heavily investing in electric drivetrains, which require
advanced electric motors for propulsion. This shift is driving significant
demand for high-performance traction motors, including permanent magnet motors,
induction motors, and axial flux motors.
European countries such as Germany, France, and the
Netherlands are leading EV adoption, supported by government subsidies, tax
incentives, and extensive investments in EV charging infrastructure. As
automakers scale up their production of battery electric vehicles (BEVs) and
plug-in hybrid electric vehicles (PHEVs), the demand for efficient,
lightweight, and high-torque electric motors is accelerating.
Advancements in motor design and manufacturing are
improving the efficiency, power density, and thermal management of EV motors.
Technologies such as hairpin winding, silicon carbide inverters, and integrated
motor-drive systems are enhancing motor performance, reducing energy losses,
and extending the driving range of EVs. Some manufacturers are also exploring
rare-earth-free motor alternatives, such as switched reluctance motors (SRM),
to reduce dependency on China-dominated rare earth materials and create more
sustainable supply chains.
The trend of vehicle electrification is not limited to
passenger cars; it is also expanding into buses, trucks, two-wheelers, and
off-highway vehicles such as construction and agricultural machinery. As
governments introduce stricter emission norms and urban low-emission zones, the
need for electric motors in commercial and public transport vehicles will
continue to rise.
Automotive electrification extends beyond propulsion
to include electric motors in power steering systems, cooling fans, pumps, and
HVAC systems, making electric motors an essential component of modern vehicles.
With continuous innovation in EV technology and increasing consumer acceptance,
the electric motor market in Europe is poised for strong growth in the coming
years.
Segmental Insights
Product Type Insights
The AC Motors held the largest market share in 2024. AC motors dominated the Europe electric motor market
due to their versatility, efficiency, and widespread industrial applications.
They are extensively used in manufacturing, transportation, HVAC systems, and
renewable energy sectors, making them the preferred choice for various
industries.
One of the primary reasons for their dominance is
their energy efficiency and compliance with EU regulations. The European Union
has implemented strict energy efficiency standards, such as IE3, IE4, and
IE5-class motors, to reduce energy consumption and carbon emissions. AC
induction motors and synchronous motors meet these efficiency standards, making
them highly desirable for industries seeking cost-effective and environmentally
friendly solutions. Additionally, AC motors require less maintenance and have a
longer lifespan compared to DC motors. Induction motors, for example, have a
simple and robust design, eliminating the need for frequent servicing. This
makes them ideal for applications in factories, automation systems, and water
treatment plants, where reliability and durability are essential.
The rapid growth of electric vehicles (EVs) and
renewable energy projects also contributes to the increasing demand for AC
motors. Synchronous motors are widely used in wind turbines and solar tracking
systems, while AC traction motors power electric and hybrid vehicles due to
their high efficiency, torque capabilities, and regenerative braking features.
The expansion of industrial automation and smart
manufacturing (Industry 4.0) in Europe has led to higher adoption of AC motors
equipped with variable frequency drives (VFDs). These motors enable precise
speed control and energy savings, making them essential for modern industrial
processes.
Download Free Sample Report
Country Insights
Largest Country
Germany held the largest market share in
2024. Germany holds a dominant position in the Europe electric motor market
due to its strong industrial base, advanced manufacturing capabilities, and
leadership in automotive and automation technologies. The country is home to
major industrial and automotive giants, including Siemens, Bosch, BMW,
Volkswagen, and Continental, which drive demand for high-performance electric
motors in sectors such as automotive, robotics, renewable energy, and
industrial automation.
One of the key factors behind Germany’s dominance is
its leadership in electric vehicle (EV) production. As a hub for automotive
innovation, Germany has heavily invested in electric drivetrains and battery
technology, increasing demand for traction motors in EVs, hybrid vehicles, and
e-mobility solutions. Government incentives and stringent EU emission
regulations have further accelerated the country’s transition to electrified
transportation, boosting the market for high-efficiency motors.
Germany is a pioneer in Industry 4.0, which emphasizes
automation, robotics, and smart manufacturing. The widespread adoption of
automated machinery, conveyor systems, and IoT-enabled motors in German
factories has contributed significantly to electric motor market growth. The
country’s focus on energy efficiency and compliance with Ecodesign Directive
regulations has also driven the demand for IE3, IE4, and IE5-class motors in
industrial applications, HVAC systems, and power generation.
Emerging Country
The Netherlands is rapidly emerging as a key player in
the Europe electric motor market due to its strong focus on sustainability,
renewable energy adoption, and electric vehicle (EV) expansion. The Dutch
government has implemented strict energy efficiency regulations and carbon
reduction policies, driving demand for high-efficiency electric motors across
industries.
One of the major factors contributing to the growth of
the electric motor market in the Netherlands is the country’s commitment to
renewable energy. The Netherlands is investing heavily in wind and solar power
projects, both of which require advanced electric motors for energy generation,
storage, and distribution. The development of offshore wind farms in the North
Sea has particularly increased the demand for generator and turbine motors that
enhance energy conversion efficiency. Additionally, the Netherlands is a
leading hub for electric vehicle (EV) adoption in Europe. The Dutch government
offers strong incentives, subsidies, and tax benefits to promote EVs, leading
to rising demand for electric traction motors used in cars, buses, and
commercial vehicles. The expansion of EV charging infrastructure further
accelerates the need for efficient motor technologies.
The country’s emphasis on industrial automation and
smart manufacturing also fuels the demand for energy-efficient motors in
robotics, conveyor systems, and HVAC applications. Dutch industries are
transitioning towards IE4 and IE5-class motors, aligning with EU energy
efficiency regulations to minimize power consumption and operational costs.
The Netherlands serves as a logistics and technology
hub, attracting global electric motor manufacturers and research investments.
With its strong focus on innovation, sustainability, and automation, the
Netherlands is poised to become a key growth center in the European electric
motor market.
Recent Developments
- In September 2024, Equipmake
unveiled its next-generation electric motor for heavy-duty vehicles, delivering
twice the continuous power of previous models. Engineered for enhanced
efficiency and durability, the new motor offers higher performance, reduced
energy consumption, and improved reliability. Designed for applications in
buses, trucks, and commercial EVs, it supports the transition to sustainable
transportation. With advanced thermal management and lightweight construction,
Equipmake’s innovation sets a new benchmark in electric propulsion for
high-performance heavy-duty vehicles.
- On 5th March 2025, Ultraviolette
launched its first electric scooter, marking a major step in its EV expansion
plans. The company aims to introduce 10 new electric mobility products over the
next three years, focusing on innovation, performance, and sustainability. With
cutting-edge battery technology and smart features, Ultraviolette’s e-scooter
is designed for urban commuters seeking a high-performance ride. This launch
reinforces its commitment to advancing electric mobility and reshaping the
two-wheeler EV market with futuristic and energy-efficient solutions.
Key Market Players
- ABB
Ltd.
- Siemens
AG
- Nidec
Corporation
- Toshiba
Corporation
- Schneider
Electric SE
- Rockwell
Automation, Inc.
- Emerson
Electric Co.
- Mitsubishi
Electric Corporation
|
By Product Type
|
By Application
|
By Country
|
- AC Motors
- DC Motors
- Hermetic Motors
|
- Aerospace & Transportation
- Industrial Machinery
- Motor Vehicles
- HVAC Equipment
- Household Appliances
- Others
|
- Norway
- United Kingdom
- Italy
- Denmark
- Germany
- Netherland
- Poland
- Rest of Europe
|
Report Scope:
In this report, the Europe Electric
Motor Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Europe
Electric
Motor Market, By Product Type:
o AC Motors
o DC Motors
o Hermetic Motors
- Europe
Electric
Motor Market, By Application:
o Aerospace & Transportation
o Industrial Machinery
o Motor Vehicles
o HVAC Equipment
o Household Appliances
o Others
- Europe
Electric Motor Market, By Country:
o Norway
o United Kingdom
o Italy
o Denmark
o Germany
o Netherland
o Poland
o Rest of Europe
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Europe Electric Motor Market.
Available Customizations:
Europe Electric Motor Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Europe Electric Motor Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]