Fractional Horsepower Motor Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Motor Type (AC, DC), By Product Type (Brushed, Brushless), By Application (Automotive, HVAC, Medical Equipment, Home Appliance, and Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.87 Billion
CAGR (2026-2031)	4.67%
Fastest Growing Segment	Brushless
Largest Market	North America
Market Size (2031)	USD 18.24 Billion

Market Overview

The Global Fractional Horsepower Motor Market will grow from USD 13.87 Billion in 2025 to USD 18.24 Billion by 2031 at a 4.67% CAGR. Fractional horsepower motors are electric motors with a continuous power rating of less than one horsepower, designed to drive mechanisms in appliances, HVAC systems, and automotive auxiliaries. The market is primarily propelled by the expanding global demand for heating, ventilation, and air conditioning infrastructure, alongside the intensifying electrification of vehicle components such as power windows and seat adjusters. Additionally, the consistent growth in the production of consumer white goods acts as a fundamental driver, ensuring sustained procurement volumes independent of broader technological trends.

However, a significant challenge that could impede market expansion is the persistent volatility in raw material prices, specifically copper and electrical steel, which complicates pricing strategies and squeezes manufacturer profit margins. Validating the steady demand within the broader motor sector, recent industrial figures highlight resilience. According to the Indian Electrical and Electronics Manufacturers' Association, in the fiscal year ending 2024, the rotating machines segment recorded a growth rate of 3.6 percent, while the low tension motor category specifically saw an 8 percent increase.

Key Market Drivers

The accelerating adoption of industrial automation and robotics acts as a primary catalyst for the global fractional horsepower motor market. As manufacturing facilities increasingly transition toward automated workflows to enhance precision and throughput, the requirement for compact, high-efficiency motors to actuate robotic arms, grippers, and conveyor systems has surged. These motors are critical for ensuring the precise movement and control required in modern smart factories. According to the International Federation of Robotics, September 2024, in the 'World Robotics 2024' report, the operational stock of industrial robots globally reached a record 4,281,585 units in 2023, reflecting a massive installed base that necessitates continuous motor procurement for both new deployments and maintenance.

Simultaneously, the rising electrification of automotive systems fundamentally reshapes market dynamics by expanding the number of auxiliary motors per vehicle. Beyond the main traction motor, electric vehicles require numerous fractional horsepower units for battery thermal management pumps, electronic braking systems, and advanced cabin comfort features, significantly surpassing the motor count found in traditional internal combustion engines. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global sales of electric cars reached nearly 14 million in 2023, creating a parallel surge in demand for compatible automotive motors. Furthermore, demand remains robust in established segments; according to the Air-Conditioning, Heating, and Refrigeration Institute, October 2024, in the 'August 2024 U.S. Heating and Cooling Shipment Data' report, total shipments of central air conditioners and air-source heat pumps reached 975,841 units for the month, underscoring sustained volume in core applications.

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Key Market Challenges

The persistent volatility in raw material prices, specifically regarding copper and electrical steel, presents a substantial barrier to the stability of the global fractional horsepower motor market. These metals represent a major component of the total production cost, and unpredictable price shifts make it difficult for manufacturers to establish consistent pricing for automotive and appliance customers. When input costs rise unexpectedly, producers are often forced to absorb these expenses to preserve market share, which directly erodes profit margins and reduces the financial flexibility needed to scale operations.

This uncertainty regarding material costs further hampers the market by disrupting supply chain planning and delaying high-volume production schedules. High raw material valuation strains the working capital of motor producers, limiting their ability to fulfill large orders efficiently. Illustrating this cost pressure, according to the International Copper Study Group, in May 2024, the average cash price for copper reached 10,146 US dollars per tonne, a level that significantly impacts the procurement strategies for essential motor components. This financial unpredictability restricts the overall growth potential of the sector.

Key Market Trends

The rapid transition to Brushless DC (BLDC) motor architectures is fundamentally reshaping the fractional horsepower market, driven by stringent energy efficiency regulations and the demand for compact actuation in consumer appliances. Unlike traditional AC induction units, BLDC motors offer superior power density and variable speed control, making them indispensable for modern, energy-conscious applications such as inverter-driven air conditioners and home appliances. This structural shift is evidenced by the financial resilience of major component manufacturers even amidst broader economic fluctuations. According to Nidec Corporation, January 2025, in the 'Financial Results for Fiscal Third Quarter and Nine Months Ended December 31, 2024', net sales for the Appliance, Commercial and Industrial products segment increased 14.2 percent year-on-year to 496,027 million yen, reflecting the accelerating adoption of high-efficiency motor technologies in core end-use sectors.

Simultaneously, the emergence of smart motors with embedded drive electronics is transforming simple electromechanical devices into intelligent endpoints capable of predictive maintenance. Manufacturers are increasingly integrating sensors and control logic directly into motor housings to monitor vibration and temperature, thereby preventing costly system failures in critical HVAC and service workflows. This strategic pivot toward digitalization is driving significant capital allocation into engineering and software development to ensure connectivity and intelligent operation. Highlighting this industry-wide focus, according to ebm-papst, July 2025, in the 'Annual Press Conference 2025', the company invested 140 million euros in research and development during the 2024/25 fiscal year, specifically to enhance the digital intelligence and resource efficiency of its global product portfolio.

Segmental Insights

The brushless segment is currently recognized as the fastest-growing category within the Global Fractional Horsepower Motor Market. This accelerated expansion is primarily driven by strict energy efficiency mandates established by organizations such as the International Electrotechnical Commission. Industries are increasingly adopting brushless direct current technology to minimize power consumption and reduce maintenance requirements compared to traditional brushed alternatives. Consequently, manufacturers are prioritizing these motors to comply with evolving environmental standards and ensure long-term operational reliability, thereby sustaining the strong upward trajectory of this market segment.

Regional Insights

North America holds a dominant position in the global fractional horsepower motor market, driven by substantial demand within the automotive, HVAC, and industrial manufacturing sectors. This leadership is largely sustained by the widespread adoption of automated systems and energy-efficient appliances across the United States. Additionally, rigorous efficiency mandates established by the U.S. Department of Energy necessitate the use of compliant motor technologies, fostering consistent market activity. These regulatory standards, combined with a strong manufacturing infrastructure, ensure the region remains a primary hub for motor development and deployment.

Recent Developments

• In August 2025, Faulhaber announced the expansion of its miniature drive systems with the release of new motors, gearheads, and encoders, all complying with a sixteen-millimeter diameter standard. The launch included the new GXR and SXR motor families, which were designed to provide optimal efficiency and dynamic performance for demanding applications in robotics and medical technology. The new brushed motors featured copper-graphite commutation and were capable of handling varying voltage requirements. The company emphasized that these matched components would allow for precise integration in space-constrained environments, offering a seamless solution for industrial automation equipment.
• In May 2025, Portescap introduced the 40EC-Pro PowerTool, a new brushless slotless motor specifically developed for the industrial power tool market. This motor was released in two length options, with the larger model featuring an integrated fan to actively cool the unit and significantly increase continuous power output. The design utilized a specialized assembly process to optimize costs while maintaining high performance, achieving speeds of up to thirty thousand revolutions per minute. The company stated that this compact, lightweight motor was engineered to support the miniaturization of battery-powered hand tools such as nut runners and staplers.
• In November 2024, Maxon expanded its precision drive portfolio with the launch of the ECX PRIME 16 L, a new addition to its high-performance motor series. This brushless motor features an ironless winding and a four-pole rotor design, which together provide exceptional speed rigidity and high torque capabilities. The company engineered this sixteen-millimeter diameter drive to be sterilizable, making it particularly suitable for handheld medical devices. Alongside this motor, the manufacturer also released a new miniaturized servo controller and updated software, aiming to offer enhanced control performance and integration flexibility for complex motion control applications.
• In January 2024, Nidec Motor Corporation showcased its latest advancements in high-efficiency motor technology for the heating, ventilation, and air conditioning industry. During a major trade event, the company introduced the Neptune Hybrid, a unique solution that combines a high-efficiency brushless permanent magnet motor with a standard induction motor and an integrated control system. This innovation was designed to deliver significant energy savings and meet evolving regulatory efficiency standards. The product launch highlighted the manufacturer's focus on providing versatile, easy-to-integrate motor solutions for original equipment manufacturers and aftermarket applications in the residential and commercial sectors.

Key Market Players

• Toshiba International Corporation
• Rockwell Automation, Inc.
• Allied Motion, Inc.
• AMETEK, Inc.
• ABB Ltd
• NIDEC Corporation
• DENSO Corporation
• BorgWarner Inc.
• Johnson Electric Holdings Limited
• Robert Bosch GmbH

By Motor Type	By Product Type	By Application	By Region
AC DC	Brushed Brushless	Automotive HVAC Medical Equipment Home Appliance and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Fractional Horsepower Motor Market , By Motor Type:

• AC
• DC

• Fractional Horsepower Motor Market , By Product Type:

• Brushed
• Brushless

• Fractional Horsepower Motor Market , By Application:

• Automotive
• HVAC
• Medical Equipment
• Home Appliance
• and Others

• Fractional Horsepower 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