IE5 Efficiency Motors Market Report 2026

The IE5 efficiency motors market size has grown rapidly in recent years. It will grow from $2.6 billion in 2025 to $2.99 billion in 2026 at a compound annual growth rate (CAGR) of 14.8%. The growth in the historic period can be attributed to rising industrial electricity consumption, increasing adoption of energy efficient motor standards, growth in manufacturing automation systems, regulatory push for minimum energy performance standards, expansion of HVAC and pump system installations.

The IE5 efficiency motors market size is expected to see rapid growth in the next few years. It will grow to $5.23 billion by 2030 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period can be attributed to increasing demand for ultra high efficiency industrial motors, expansion of electric mobility infrastructure, growth in smart factories and Industry 4.0 adoption, rising focus on carbon emission reduction targets, increasing integration of IoT based motor monitoring systems. Major trends in the forecast period include high efficiency motor adoption in industrial automation systems, IE5 motors integration in HVAC energy optimization applications, advanced rare earth magnetic material utilization for motor efficiency, predictive maintenance enabled smart motor systems, compact high torque density motor design optimization.

The growing focus on reducing carbon emissions is anticipated to propel the growth of the IE5 efficiency motors market in coming years. Reducing carbon emissions refers to efforts aimed at lowering the release of greenhouse gases, particularly carbon dioxide, into the atmosphere to mitigate climate change. The focus on reducing carbon emissions is rising due to increasingly strict government regulations that mandate lower greenhouse gas emissions to combat climate change. Focus on reducing carbon emissions supports the adoption of IE5 efficiency motors as industries shift toward ultra-high efficiency technologies that minimize energy consumption and significantly lower greenhouse gas emissions during industrial operations. For instance, in March 2024, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, the expansion of clean energy has helped curb the growth of global emissions, which rose by only 1.1% in 2023. Therefore, the growing focus on reducing carbon emissions is driving the growth of the IE5 efficiency motors market.

Leading companies operating in the IE5 efficiency motors market are focusing on developing innovative products such as liquid-cooled synchronous reluctance motors (SynRM) to enhance energy efficiency, reduce operational costs, and support industrial decarbonization. Liquid-cooled synchronous reluctance motors (SynRM) are advanced electric motors that utilize a magnet-free rotor design along with a liquid cooling system to minimize energy losses and improve heat dissipation, helping industries achieve higher efficiency, lower operating costs, and more reliable performance compared to conventional air-cooled induction motors. For example, in February 2024, ABB Ltd., a Switzerland-based electrification and automation company, launched its liquid-cooled IE5 SynRM motor, an innovative product in the IE5 efficiency motors segment. This motor features a magnet-free rotor design that removes dependency on rare earth materials while still achieving efficiency levels exceeding IE5 standards. It incorporates advanced liquid cooling channels that effectively dissipate heat, enabling continuous operation under high loads and improving overall system performance. The compact design enhances space utilization, while reduced energy consumption and lower operating temperatures contribute to extended equipment lifespan and reduced maintenance requirements. The motor is particularly suitable for demanding applications such as chemical processing, marine industries, and heavy-duty manufacturing.

In July 2023, Esautomotion S. r. l., an Italy-based manufacturing enterprise, completed the acquisition of Sangalli Servomotori S. r. l. for a value of $11 million. Through this acquisition, Esautomotion S. r. l. sought to enhance its supply chain integration, broaden its range of high-efficiency electric motors, and speed up expansion into green automation and electric mobility sectors while improving its capability to deliver complete automation solutions and reach new international clients. Sangalli Servomotori S. r. l. is an Italy-based manufacturing firm specializing in the production of high-performance electric motors.

Major companies operating in the ie5 efficiency motors market are Siemens Aktiengesellschaft, ABB Ltd., Toshiba Infrastructure Systems & Solutions Corporation, Nidec Corporation, Hyundai Electric & Energy Systems Co. Ltd., Fuji Electric Co. Ltd., WEG S. A., SEW-Eurodrive India Pvt. Ltd., Wolong Electric Group Co. Ltd., TECO Electric & Machinery Co. Ltd., Lenze SE, Getriebebau NORD GmbH & Co. KG, Sanyo Denki Co. Ltd., Kirloskar Brothers Limited, Bonfiglioli Riduttori S. p. A., Oriental Motor Co. Ltd., Kirloskar Electric Company Limited, Danfoss A/S, EMOD Motoren GmbH, XEMC Group Co. Ltd., WEG Industries (WEG S. A.), Hanning Elektro-Werke GmbH & Co. KG, Boneng Electric Motor Co. Ltd.

Asia-Pacific was the dominating region in the IE5 efficiency motors market in 2025. Asia Pacific is expected to be the rapidly expanding region during the forecast period. The regions covered in the IE5 efficiency motors market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the IE5 efficiency motors market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The IE5 efficiency motors market consists of sales of standard IE5 motors, high-torque IE5 motors, permanent magnet synchronous IE5 motors, low-voltage IE5 motors, and high-voltage IE5 motors. Values in this market are ‘factory gate’ values, meaning the value of goods sold by the manufacturers, whether to distributors, wholesalers, system integrators, or directly to end customers. The market value also includes related services provided by manufacturers, such as installation support, technical guidance, and maintenance assistance.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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