United States Electric Motors Market Segmented By Motor Type (AC Motor and DC Motor), By Output Power (Integral Horsepower and Output & Fractional Horsepower), By Application (Industrial, HVAC, Medical Equipment, Industrial Machinery, Home Appliances and Others), By Voltage Rating (Low Voltage (Up to 690V), Medium Voltage (691V - 3300V) and High Voltage (Above 3300V)), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 39.27 Billion
CAGR (2026-2031)	6.45%
Fastest Growing Segment	Output & Fractional Horsepower
Largest Market	Midwest
Market Size (2031)	USD 57.14 Billion

Market Overview

The United States Electric Motors Market will grow from USD 39.27 Billion in 2025 to USD 57.14 Billion by 2031 at a 6.45% CAGR. Electric motors are electromechanical devices designed to convert electrical energy into mechanical energy, serving as critical components in industrial machinery, HVAC systems, and transportation equipment. The United States market is fundamentally supported by two primary drivers: the intensifying adoption of industrial automation which necessitates precision motors for robotics, and stringent Department of Energy efficiency regulations that compel the replacement of aging units with premium-efficiency models. These structural factors provide a sustained demand baseline that is distinct from transient technological trends.

Despite this robust foundation, the sector faces potential headwinds. According to the National Electrical Manufacturers Association, in 2025, the Electroindustry Business Confidence Index for current conditions rebounded to a reading of 68.8, indicating strong optimism among manufacturers regarding demand and production activity. However, a significant challenge impeding broader market expansion is the volatility of the global supply chain, particularly regarding the cost and availability of critical raw materials such as electrical steel and copper. Geopolitical tensions and trade barriers continue to disrupt procurement strategies, creating pricing uncertainty that can delay manufacturing schedules and affect profitability.

Key Market Drivers

The Reshoring of Industrial Manufacturing Operations is fundamentally reshaping the United States electric motors market, driven by the imperative to immunize supply chains against geopolitical volatility and leverage domestic incentives. This localization trend precipitates substantial capital inflows into new production facilities, directly increasing the demand for industrial motors used in assembly lines, conveyors, and automated systems. Manufacturers are responding by expanding domestic capacity to serve this growing industrial base. According to ABB, March 2025, in the 'ABB to invest $120 million to expand US manufacturing' press release, the company allocated $120 million to upgrade facilities in Tennessee and Mississippi to meet rising demand from the utility and data center sectors. This robust investment environment is further underscored by broader industry movements; according to Drives & Controls, in 2025, Siemens committed to boosting its U.S. investments in manufacturing and AI infrastructure to over $10 billion.

Concurrently, the Implementation of Stricter DOE Energy Efficiency Regulations is forcing a structural upgrade of the installed motor base, compelling end-users to retire legacy units in favor of premium-efficiency models. These regulatory mandates have expanded their scope to cover a wider range of motor configurations, thereby accelerating the replacement cycle across commercial and industrial applications. This regulatory pressure ensures a consistent revenue stream for manufacturers capable of meeting advanced performance benchmarks. According to Control.com, February 2025, in the 'DOE Adopts New Energy Standards for Expanded Scope Electric Motors' report, the Department of Energy finalized updated conservation standards for expanded scope electric motors that became effective in April 2025. These rules necessitate the adoption of advanced motor technologies, driving value growth within the sector despite broader economic fluctuations.

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Key Market Challenges

The volatility of the global supply chain, particularly regarding the cost and availability of critical raw materials such as electrical steel and copper, presents a substantial barrier to the growth of the United States Electric Motors Market. This unpredictability in procurement disrupts manufacturing schedules and complicates the pricing strategies necessary for maintaining competitive margins. When producers cannot secure a reliable flow of these essential inputs due to geopolitical tensions or trade barriers, they are forced to extend lead times, which directly impedes their ability to capitalize on the rising demand for industrial automation.

Such operational instability fosters a cautious environment that discourages necessary capital investment and capacity expansion. The inability to forecast material costs accurately forces manufacturers to temper their long-term growth strategies. This hesitation is quantified by industry sentiment regarding the market outlook. According to the National Electrical Manufacturers Association, in August 2025, the Future Conditions component of the Electroindustry Business Confidence Index declined to a reading of 72.7, reflecting a dampening of optimism among industry leaders directly linked to these persisting supply chain uncertainties.

Key Market Trends

The Integration of IIoT and Smart Sensors for Predictive Maintenance is transforming U.S. electric motors into intelligent nodes capable of real-time health monitoring and asset optimization. By embedding advanced sensors to track vibration, temperature, and magnetic flux, manufacturers enable end-users to predict equipment failures before they occur, a capability that is becoming essential for mission-critical applications in data centers and automated facilities. This technological evolution is driving significant capital allocation toward digital resilience and R&D. According to MetalForming Magazine, September 2025, in the 'ABB Announces $110 million U.S. Investment for R&D and Manufacturing' article, the company allocated an additional $110 million to expand its U.S. operations, specifically to support the high-reliability power needs of artificial intelligence infrastructure and grid modernization.

The Development of Rare-Earth-Free Switched Reluctance and Synchronous Reluctance Motors represents a strategic shift to immunize production against the price volatility and geopolitical risks associated with critical magnet materials. This trend prioritizes motor topologies that deliver premium efficiency without relying on imported neodymium or dysprosium, effectively aligning technical performance with supply chain security and corporate sustainability mandates. The commercial viability and accelerating adoption of these resource-efficient designs are evident in the financial performance of major industry players. According to i40today.com, September 2025, in the 'WEG releases Integrated Annual Report, reinforcing its commitment to sustainability' article, the company reported that 73.3 per cent of its 2024 revenue was derived from sustainable products, underscoring the growing market preference for material-optimized motor technologies.

Segmental Insights

The Fractional Horsepower output segment represents the fastest-growing category within the United States Electric Motors Market. This robust expansion is primarily driven by the increasing integration of compact motors in residential appliances, HVAC systems, and automotive components. Furthermore, the United States Department of Energy has established rigorous energy conservation standards specifically for small electric motors, compelling industries to upgrade to compliant, energy-efficient technologies. This regulatory pressure, combined with the rising demand for precision automation in the manufacturing sector, ensures that fractional horsepower units remain a critical and expanding component of the national market.

Regional Insights

The Midwest region holds the dominant position in the United States electric motors market due to its extensive industrial and automotive manufacturing infrastructure. States such as Michigan and Ohio generate substantial demand for motors used in heavy machinery, vehicle production, and heating, ventilation, and cooling systems. The agricultural sector further contributes to this growth through the requirement for motors in irrigation and processing equipment. Additionally, adherence to efficiency standards mandated by the Department of Energy encourages the continuous integration of compliant motor technologies, solidifying the region's status as a primary commercial hub.

Recent Developments

• In July 2024, Nidec Motor Corporation announced a strategic collaboration and investment in Eve Air Mobility to produce electric propulsion systems for electric vertical take-off and landing aircraft. This partnership focused on developing high-performance motors specifically designed for the urban air mobility market, leveraging the company's extensive manufacturing expertise. The agreement aimed to scale the production of electric propulsion technologies, supporting the decarbonization of the aviation industry. This move represented a significant expansion of the company's portfolio into the advanced air mobility segment, positioning it as a key supplier in this emerging transportation sector.
• In June 2024, ABB released its SP4 Super Premium efficiency electric motors with severe duty enclosures in the United States market. These motors were engineered to exceed upcoming federal efficiency regulations, offering substantial energy savings for industrial users. The new product line featured a robust construction designed to withstand harsh environments and hazardous locations, ensuring cooler operation and extended equipment life. This launch reinforced the company's commitment to supporting the transition toward more sustainable and energy-efficient industrial operations, specifically addressing the needs of the North American manufacturing and processing sectors.
• In February 2024, Infinitum launched the next generation of its Aircore EC electric motor system tailored for commercial and industrial applications in the United States. The updated motor featured an integrated variable frequency drive and a patented printed circuit board stator, which eliminated the heavy iron core found in traditional motors. This design innovation resulted in a system that was significantly smaller, lighter, and more efficient, with reduced copper usage. The launch specifically targeted energy-intensive sectors such as data centers and HVAC, providing a solution to lower electricity consumption and minimize carbon footprints.
• In January 2024, Magna unveiled its next-generation 800V eDrive solution at the CES trade show in Las Vegas, marking a significant advancement in the electric vehicle component sector. This new electric motor system achieved a substantial reduction in weight and size while delivering enhanced performance and driving range compared to previous models. The technology featured a unique design that allowed the drive to rotate 90 degrees around the axis, facilitating better integration into various vehicle architectures. The product demonstrated up to 93% efficiency in real-world driving conditions, setting a new standard for power-to-weight ratio and torque density in the market.

Key Market Players

• Regal Beloit Corporation
• Nidec Motor Corporation
• Baldor Electric Company
• WEG Motors
• Siemens Industry Inc.
• TECO Westinghouse Electric Company
• Toshiba International Corporation
• GE Motors
• Rockwell Automation/Allen‑Bradley
• Leroy‑Somer

By Motor Type	By Output Power	By Application	By Voltage Rating	By Region
AC Motor DC Motor	Integral Horsepower Output & Fractional Horsepower	Industrial HVAC Medical Equipment Industrial Machinery Home Appliances Others	Low Voltage (Up to 690V) Medium Voltage (691V - 3300V) High Voltage (Above 3300V)	Northeast Midwest South West

Report Scope:

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

• United States Electric Motors Market, By Motor Type:

• AC Motor
• DC Motor

• United States Electric Motors Market, By Output Power:

• Integral Horsepower
• Output & Fractional Horsepower

• United States Electric Motors Market, By Application:

• Industrial
• HVAC
• Medical Equipment
• Industrial Machinery
• Home Appliances
• Others

• United States Electric Motors Market, By Voltage Rating:

• Low Voltage (Up to 690V)
• Medium Voltage (691V - 3300V)
• High Voltage (Above 3300V)

• United States Electric Motors Market, By Region:

• Northeast
• Midwest
• South
• West