Fractional Horsepower Motor Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Fractional Horsepower Motor Market is projected to expand from USD 13.87 Billion in 2025 to USD 18.24 Billion by 2031, reflecting a CAGR of 4.67%. Defined as electric motors with a continuous power rating of less than one horsepower, these units are engineered to operate mechanisms within appliances, HVAC systems, and automotive auxiliaries. The market's momentum is primarily driven by the growing global requirement for heating, ventilation, and air conditioning infrastructure, along with the increasing electrification of vehicle components like power windows and seat adjusters. Furthermore, the steady rise in consumer white goods production serves as a foundational driver, guaranteeing consistent procurement volumes regardless of wider technological shifts.

However, the market faces a significant obstacle due to persistent volatility in raw material prices, particularly copper and electrical steel, which complicates pricing strategies and compresses manufacturer profit margins. Despite these cost challenges, recent industrial figures confirm the sector's resilience and steady demand. According to the Indian Electrical and Electronics Manufacturers' Association, the rotating machines segment achieved a 3.6 percent growth rate in the fiscal year ending 2024, while the low tension motor category specifically registered an 8 percent increase.

Market Drivers

The increasing adoption of industrial automation and robotics serves as a primary growth engine for the global fractional horsepower motor market. As manufacturing facilities transition toward automated workflows to improve precision and throughput, the demand for compact, high-efficiency motors to operate robotic arms, grippers, and conveyor systems has surged. These motors are essential for maintaining the precise control required in modern smart factories. Highlighting this trend, the International Federation of Robotics stated in its 'World Robotics 2024' report from September 2024 that the global operational stock of industrial robots reached a record 4,281,585 units in 2023, indicating a vast installed base that necessitates ongoing motor procurement for both new deployments and maintenance.

Concurrently, the rising electrification of automotive systems is reshaping market dynamics by increasing the number of auxiliary motors needed per vehicle. Beyond the main traction motor, electric vehicles utilize numerous fractional horsepower units for battery thermal management, electronic braking, and advanced cabin features, significantly exceeding the count found in traditional internal combustion engines.

The International Energy Agency's 'Global EV Outlook 2024' from April 2024 reported that global electric car sales neared 14 million in 2023, creating a parallel surge in demand for compatible automotive motors. Additionally, demand in core sectors remains robust; the Air-Conditioning, Heating, and Refrigeration Institute noted in its October 2024 report that U.S. shipments of central air conditioners and air-source heat pumps totaled 975,841 units in August 2024, underscoring sustained volume in established applications.

Market Challenges

The ongoing instability of raw material prices, particularly regarding copper and electrical steel, poses a substantial barrier to the stability of the global fractional horsepower motor market. Since these metals constitute a major portion of total production costs, unpredictable price shifts make it difficult for manufacturers to establish consistent pricing for customers in the automotive and appliance sectors. When input costs rise unexpectedly, producers are often forced to absorb these expenses to protect their market share, which directly erodes profit margins and reduces the financial flexibility needed to scale operations.

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

Market Trends

The rapid transition toward Brushless DC (BLDC) motor architectures is fundamentally reshaping the fractional horsepower market, fueled by strict 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. This structural shift is evidenced by the financial resilience of major manufacturers; according to Nidec Corporation's January 2025 report for the period ending December 31, 2024, net sales for the Appliance, Commercial, and Industrial products segment rose 14.2 percent year-on-year to 496.02 billion yen, reflecting the accelerating adoption of high-efficiency technologies.

Simultaneously, the emergence of smart motors equipped 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. Highlighting this industry-wide focus, ebm-papst announced in July 2025 during its 'Annual Press Conference 2025' that 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.

Key Players Profiled in the Fractional Horsepower Motor Market

• 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

Report Scope

In this report, the Global Fractional Horsepower Motor Market has been segmented into the following categories:

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
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Fractional Horsepower Motor Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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