Electric Motor Market size was valued at USD 140.62 billion in 2024 and is expected to reach USD 355.72 billion by 2037, registering around 7.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of electric motor is assessed at USD 148.94 billion.
The reason behind the growth is the increasing demand for energy-efficient motors. According to the International Energy Association (IEA) published in the year 2023, the primary cause of the decreased global energy intensity improvement rate is the 1.7% increase in energy demand in 2023, as opposed to the 1.3% increase in the previous year.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.4% |
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Base Year Market Size (2024) |
USD 140.62 billion |
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Forecast Year Market Size (2037) |
USD 355.72 billion |
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Regional Scope |
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Type {Alternate Current (AC), Direct Current (DC)}
In electric motor market, alternative current (AC) segment is projected to hold revenue share of over 70% by the end of 2037. This high market share will be attributed to wide applications of alternative current (AC) covering a range from irrigating pumps to modern-day robotics.
For instance, according to the National Library of Medicine published in May 2023, the yearly energy available to run the WPS is 23502 kWh, while the annual PV array virtual energy at MPP of the planned photovoltaic system is 33342 kWh. Ohmic wiring losses and module array mismatch are 298.83 kWh and 374.16 kWh, respectively. The alternate current (AC) motor is used in photovoltaic irrigation.
Application (Industrial Machinery, HVAC, Transportation, Household Appliances, Motor Vehicles, Aerospace, Marine, Robotics)
By 2037, industrial machinery segment is set to hold electric motor market share of more than 39% and will notice constant growth. The increasing automation and progression in the industrial sector will be the primary reason behind the exponential growth of this segment.
As per the World Economic Forum published in April 2021, the 2020 launch of SpaceX represented a significant advancement in automation as it made it possible for people to securely dock onto the International Space Station with zero effort. Electric motors are an integral part of these recent developments in industrial automation as these industrial types of machinery are solely dependent on electric motors.
Voltage (Low Voltage Electric Motors, Medium Voltage Electric Motors, High Voltage Electric Motors)
Low-voltage electric motors segment is expected to dominate electric motor market share of around 46% by the end of 2037. The expansion of this segment will be noticed by the need for low-voltage motors for the majority of electrical equipment and gadgets used in daily life, including tiny machines, pumps, fans, and appliances.
Nearly 70% of industrial power demand and 60% of industrial electricity consumption worldwide are attributed to electric motor systems as found in the survey of Research Nester in 2023. Electric motors power auxiliary systems including compressed air generation, ventilation, and water pumping in addition to central industrial operations like presses and rolls.
Our in-depth analysis of the global electric motor market includes the following segments:
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Type |
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Output Power |
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Rotor Type |
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End-User |
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Application |
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Voltage |
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Rated Power |
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Magnet Type |
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Weight |
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Speed |
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APAC Market Statistics
Asia Pacific industry is anticipated to account for largest revenue share of 38% by 2037, Moreover, the electric motor industry will increase immensely from 2023 to 2037 and will reach around USD 137 billion.
Rapid industrialization will drive the market expansion of electric motors. Taking into consideration the survey done in October 2020 by East Asia’s Paths to Industrialization and Prosperity: Lessons for India and Other Late Comers in South Asia; the Asia Pacific’s global GDP along with Japan has increased from 10% to 20% in the last decade. Developing Asia's share of the global GDP increased significantly between 1960 and 2018, rising from 4.1% to 24.0%.
Electric motors are especially in actual demand in China, driven by the increasing demand for HVAC systems. International Energy Association published in 2019 stated that over the last 20 years, China has had the highest rise in the world in terms of energy demand for space cooling in buildings. Since 2000, the country's electricity consumption has increased by 13% annually, reaching approximately 400 terawatt-hours (TWh) in 2017.
In Japan, electric motors will encounter massive growth because of the advancement in the agricultural sector. As stated in the survey made in December 2020 by the United States Department of Agriculture (USDA) for the eighth year in a row, Japan set a record with its combined yearly exports of food, forestry, and fishery goods totaling JP¥ 912.1 billion (USD 8.79 billion).
The electric motors sector will have a significant expansion in South Korea due to the massive investment in industrialization in this country. As noticed in the survey of the Federal Reserve Bank of St. Louis done in 2018, the advancement in businesses and policies of incentivizing investment in the latest innovation is driving the expansion of industrialization in South Korea.
North American Market Analysis
The North America region will encounter massive growth in the sector of the electric motor market during the anticipated period. This rapid growth in the electric motor market will be noticed due to the rising government initiatives to reduce carbon emissions. As stated in the study by the United States Environmental Protection Agency in the year 2021, in terms of carbon dioxide equivalents, North American greenhouse gas emissions came to 6,340 million metric tons (14.0 trillion pounds).
The electric motors market has expanded in the U.S. as a result of the presence of some prominent automobile companies in this country. For instance, in April 2024 Tesla, Inc. launched the New Model 3 Performance the newest generation of performance drive units, which increases torque, power, and efficiency.
The Canadian electric motor sector will grow mainly due to the rising demand of electric vehicles in this country. As stated in the Electric Vehicles and the Demand for Electricity published in the year 2024 the EV sales are increasing, but they still make up a small portion of the car market overall. From less than 1% of sales in 2017 to 9.1% in the last quarter of 2022, this is despite continued legislative measures.
Prominent industry participants are making significant R&D investments to broaden their product offerings, hence contributing to the further expansion of the electric motor market. Some major participants in the industry are:
Author Credits: Abhishek Verma
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