The global energy efficient motor market is estimated to grow from USD 48.52 billion in 2025 to USD 72.06 billion by 2030, at a CAGR of 8.2% during the forecast period. The escalating demand for energy-efficient and high-performance motors in electric vehicles, industrial automation systems, and HVAC systems contributes to the market growth. Sector-wise adoption also gains pace due to technological improvements and tightening energy regulations. Sector-wise deployment is also gaining momentum due to rapid advancements in motor design, integration of IoT and smart sensors for predictive maintenance, and increasingly stringent global energy efficiency regulations. Moreover, the shift toward renewable energy and sustainable manufacturing practices continues to drive investments in energy-efficient motor solutions.
The IE3 segment is projected to grow at a significant rate from 2025 to 2030.
The IE3 segment is anticipated to grow at a considerable CAGR in the energy efficient motor market during the forecast period. Rotor losses in IE3 motors are reduced considerably by using copper as the conductor material in the squirrel cage rather than aluminum, which leads to the reduction of the slip under load conditions. The reduction in air gaps and thinner laminations made of better-quality steel ensures higher efficiency than traditional motors.
These technological modifications in the IE3 efficiency level motors are pushing the market. Additionally, favorable regulatory frameworks mandating the adoption of IE3 motors in several countries, rising demand from industries such as manufacturing, water treatment, and oil & gas, and increasing focus on lifecycle cost savings further boost the segmental growth. The enhanced performance, lower operational costs, and reduced carbon emissions associated with IE3 motors make them an attractive option for end users aiming to improve energy efficiency and sustainability.
Commercial is likely to be the second-largest segment in the energy efficient motor market from 2025 to 2030.
The end user segment is categorized as industrial, commercial, residential, automotive, agriculture, and aerospace & defense. The commercial segment is expected to be the second-largest end user in the energy-efficient motor market during the forecast period. This growth is primarily due to the increasing demand for HVAC systems, elevators, escalators, refrigeration units, and building automation solutions in commercial buildings, such as offices, shopping malls, hospitals, hotels, and educational institutions. Energy-efficient motors help reduce operational costs and support sustainability goals by minimizing energy consumption and carbon emissions. Moreover, the implementation of green building codes and energy performance standards across various countries further accelerates the adoption of high-efficiency motors in commercial applications.
North America is likely to be the second-largest market between 2025 and 2030.
North America is projected to be the second-largest energy efficient motor market due to the high uptake in industrial automation, electric cars, and HVAC systems. The area already has an established industrial sector, heavy investment in energy-efficient equipment, and favorable government policy toward clean energy and electrification. Furthermore, the major automotive and manufacturing firms in the US and Canada are becoming more aggressive in the inclusion of permanent magnet motors to achieve performance and sustainability objectives, enhancing the demand in the region.
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:
Research Coverage:
The report defines, describes, and forecasts the global energy efficient motor market, by Installation type, type, power output rating, application, end user, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the energy efficient motor market.
Key Benefits of Buying the Report
The IE3 segment is projected to grow at a significant rate from 2025 to 2030.
The IE3 segment is anticipated to grow at a considerable CAGR in the energy efficient motor market during the forecast period. Rotor losses in IE3 motors are reduced considerably by using copper as the conductor material in the squirrel cage rather than aluminum, which leads to the reduction of the slip under load conditions. The reduction in air gaps and thinner laminations made of better-quality steel ensures higher efficiency than traditional motors.
These technological modifications in the IE3 efficiency level motors are pushing the market. Additionally, favorable regulatory frameworks mandating the adoption of IE3 motors in several countries, rising demand from industries such as manufacturing, water treatment, and oil & gas, and increasing focus on lifecycle cost savings further boost the segmental growth. The enhanced performance, lower operational costs, and reduced carbon emissions associated with IE3 motors make them an attractive option for end users aiming to improve energy efficiency and sustainability.
Commercial is likely to be the second-largest segment in the energy efficient motor market from 2025 to 2030.
The end user segment is categorized as industrial, commercial, residential, automotive, agriculture, and aerospace & defense. The commercial segment is expected to be the second-largest end user in the energy-efficient motor market during the forecast period. This growth is primarily due to the increasing demand for HVAC systems, elevators, escalators, refrigeration units, and building automation solutions in commercial buildings, such as offices, shopping malls, hospitals, hotels, and educational institutions. Energy-efficient motors help reduce operational costs and support sustainability goals by minimizing energy consumption and carbon emissions. Moreover, the implementation of green building codes and energy performance standards across various countries further accelerates the adoption of high-efficiency motors in commercial applications.
North America is likely to be the second-largest market between 2025 and 2030.
North America is projected to be the second-largest energy efficient motor market due to the high uptake in industrial automation, electric cars, and HVAC systems. The area already has an established industrial sector, heavy investment in energy-efficient equipment, and favorable government policy toward clean energy and electrification. Furthermore, the major automotive and manufacturing firms in the US and Canada are becoming more aggressive in the inclusion of permanent magnet motors to achieve performance and sustainability objectives, enhancing the demand in the region.
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:
- By Company Type: Tier 1 - 45%, Tier 2 - 30%, and Tier 3 - 25%
- By Designation: C-level Executives - 35%, Directors - 25%, and Others - 40%
- By Region: North America - 27%, Europe - 20%, Asia Pacific - 33%, Middle East & Africa - 12%, and South America - 8%
- Note: The tiers of the companies are defined based on their total revenues as of 2024. Tier 1: >USD 1 billion, Tier 2: USD 500 million to USD 1 billion, and Tier 3:
Research Coverage:
The report defines, describes, and forecasts the global energy efficient motor market, by Installation type, type, power output rating, application, end user, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the energy efficient motor market.
Key Benefits of Buying the Report
- Analysis of key drivers (Lower life cycle costs than traditional motors), restraints (High price of energy-efficient motors), opportunities (Rising industrialization and decarbonization initiatives), and challenges (Limited awareness about benefits of energy-efficient motors) influences the growth of the energy efficient motor market.
- Market Development: In May 2025, ABB launched a new range of IE5 permanent magnet motors for industrial automation and HVAC systems. The motors offer higher energy efficiency and compact design, aligning with the rising demand for sustainable, high-performance motor solutions.
- Product Innovation/Development: The permanent magnet motor market saw notable product innovation, with advanced motors featuring rare-earth-efficient designs and smart control integration. These developments aim to enhance performance, reduce dependency on critical materials, and meet rising efficiency standards across various end users.
- Market Diversification: In April 2025, Nidec Corporation diversified its energy efficient motor portfolio by entering new sectors such as agriculture, renewable energy, and medical devices, aiming to expand beyond its core automotive and industrial markets.
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players in the energy efficient motor market, such as ABB (Switzerland), Siemens (Germany), WOLONG Electric (China), Rega Rexnord Corporation (US), and NIDEC CORPORATION (Japan).
Table of Contents
1 Introduction
2 Research Methodology
4 Premium Insights
5 Market Overview
6 Energy-Efficient Motor Market, by Efficiency Level
7 Energy-Efficient Motor Market, by Installation Type
8 Energy-Efficient Motor Market, by Type
9 Energy-Efficient Motor Market, by Power Output Rating
10 Energy-Efficient Motor Market, by Application
11 Energy-Efficient Motor Market, by End-user
12 Energy-Efficient Motor Market, by Region
13 Competitive Landscape
14 Company Profiles
15 Appendix
List of Tables
List of Figures
Companies Mentioned
- Abb
- Siemens
- Weg
- Wolong Electric Group Co., Ltd
- Nidec Corporation
- Rockwell Automation
- Cg Power & Industrial Solutions Ltd.
- Regal Rexnord Corporation
- Toshiba Corporation
- Bharat Bijlee
- Kirloskar Electric Company
- Hoyer Motors
- Ome Motors
- Ec Fans and Drives
- Integrated Electric Co., Pvt. Ltd.
- Elektrim Techtop Motors Pte Ltd.
- Shanghai Electric
- Menzel Elektromotoren
- Zcl Electric Motor Technology Co., Ltd.
- Hindmotors
- Amber Engineering Enterprise
- Mitsubishi Electric Corporation
- Havells
- Teco Corporation
- Elcen
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 261 |
| Published | August 2025 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value in 2025 | 48.52 Billion |
| Forecasted Market Value by 2030 | 72.06 Billion |
| Compound Annual Growth Rate | 8.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 25 |
