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

The Global Electric Motor Market is projected to expand significantly, rising from a valuation of USD 144.33 Billion in 2025 to USD 252.36 Billion by 2031, registering a CAGR of 9.76%. Defined as electromechanical devices that transform electrical energy into mechanical energy, electric motors are essential for generating motion across residential, commercial, and industrial settings. This market growth is primarily underpinned by the escalating demand for industrial automation and the strict enforcement of energy efficiency mandates, which compel the replacement of outdated infrastructure. Furthermore, the widespread electrification of the automotive industry and the increasing need for heating, ventilation, and air conditioning systems in developing economies act as powerful catalysts for commercial development.

Despite these positive indicators, the market confronts significant obstacles stemming from fluctuating raw material costs, particularly regarding copper and rare earth magnets, which complicate both pricing strategies and supply chain management. This economic instability often disrupts long-term strategic planning and restricts the ability of manufacturers to scale production effectively. Highlighting the shift in energy usage patterns, the International Energy Agency reported in 2024 that electricity consumption within the transport sector grew by more than 8%, a rise attributed to the sustained adoption of electric vehicles.

Market Drivers

The rapid global uptake of electric vehicles serves as a dominant force propelling the electric motor industry, fundamentally reorienting manufacturing focus from internal combustion engines toward electric powertrains. This transformation encompasses not only private passenger vehicles but also public transport and commercial fleets, generating a continuous demand for advanced traction motors and auxiliary systems. Manufacturers are addressing this need by ramping up the production of motors designed for exceptional power density and thermal efficiency to meet the range and performance standards of modern transportation. As per the International Energy Agency's 'Global EV Outlook 2024' released in April 2024, global sales of electric cars were anticipated to hit roughly 17 million units that year, underscoring the sector's swift growth and its consequential influence on motor supply chains.

Concurrently, the rise of Industry 4.0 and industrial automation is reshaping market dynamics by intensifying the need for precision motors within smart manufacturing environments. Modern factories are increasingly deploying automated conveyor systems and advanced robotics that depend on stepper and servo motors for accurate speed control and positioning. According to the 'World Robotics 2024' report by the International Federation of Robotics in September 2024, the manufacturing sector installed 541,302 new industrial robots in 2023, requiring a matching volume of specialized motor units. This trajectory is bolstered by the necessity to modernize vast legacy infrastructure; ABB's 'Unlocking Energy Efficiency' report from September 2024 notes that over 300 million industrial electric motors are currently operational worldwide, presenting a massive opportunity for high-efficiency upgrades.

Market Challenges

The instability of raw material costs, particularly for rare earth magnets and copper, poses a significant barrier to the continued growth of the global electric motor market. This unpredictability regarding input prices fosters a challenging climate for manufacturers, making it difficult to maintain consistent pricing models for clients. Consequently, firms are often caught between absorbing these escalating costs, which diminishes profit margins, or passing them along to customers, a move that risks reducing competitiveness and stalling purchase orders. Such supply chain volatility disrupts the ability of companies to commit to long-term infrastructure projects or production scaling, rendering financial planning unreliable.

The industry's substantial dependence on these specific materials intensifies the consequences of price fluctuations. According to data from the International Copper Study Group, global refined copper consumption was projected to rise by 2.2 percent in 2024. This increasing volume of consumption underscores the market's acute vulnerability to raw material dynamics, implying that even slight shifts in pricing can disproportionately damage operational efficiency and impede the strategic planning necessary for future expansion.

Market Trends

The movement toward IE4 and IE5 Super-Premium efficiency standards is radically transforming the global electric motor sector, propelled by rigorous government mandates and the industrial need to lower operational energy expenses. Manufacturers are progressively replacing less efficient legacy units with advanced designs that employ optimized winding methods and superior magnetic materials to curb energy loss. This regulatory drive is especially pronounced in North America, where new rules are compelling a swift modernization of medium-voltage industrial machinery. As detailed in Nidec Motor Corporation's 'DOE Motor Rules' brochure from May 2024, the U.S. Department of Energy has finalized regulations requiring most 100 to 250 horsepower motors to achieve Super Premium efficiency, effectively establishing IE4 performance levels as a requirement for these vital industrial assets.

In parallel, the innovation of magnet-less and rare-earth-free technologies has arisen as a key strategic trend aimed at diminishing supply chain vulnerabilities and reliance on volatile raw material markets. Suppliers in the automotive and industrial sectors are allocating significant resources to Externally Excited Synchronous Motors (EESM) and induction-based architectures that function without dysprosium or neodymium, thereby enhancing sustainability and stabilizing production costs. This transition is gathering commercial speed through major partnerships designed to scale these solutions for high-performance uses. For instance, in an October 2024 press release titled 'Valeo and MAHLE expand their product range,' Mahle announced a joint development agreement for magnet-free electric axles designed for the upper EV segment with peak outputs ranging from 220 kW to 350 kW, targeting a carbon footprint reduction of more than 40% relative to permanent magnet motors.

Key Players Profiled in the Electric Motor Market

• General Electric Company
• ABB Ltd.
• Schneider Electric SE
• Siemens AG
• Rockwell Automation, Inc.
• Mitsubishi Electric Corporation
• Emerson Electric Co.
• Yaskawa Electric Corporation
• Toshiba Corporation
• Nidec Corporation

Report Scope

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

Electric Motor Market, by Type:

• AC Motors
• DC Motors and Hermetic Motors

Electric Motor Market, by Output Power:

• Above 1HP and Upto 1HP

Electric Motor Market, by End Use:

• Residential
• Commercial
• Industrial
• Transportation and Others

Electric 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 Electric 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).

This product will be delivered within 1-3 business days.