Electric Motor Market Size Worth USD 181.89 Billion, Globally, by 2028 at 7.0% CAGR
Fortune Business Insights
8 min read
Fortune Business Insights
The global electric motor market size to grow from USD 113.14 billion in 2021 to USD 181.89 billion by 2028, growing at CAGR of 7.0% during forecast period. Factors such as the increase in use of electric motor in HVAC sector is driving the growth of the electric motor industry. New technologies such as high-efficiency motors, permanent magnet motors, and variable frequency drives are propelling the growth of electric motor market globally.
India, Pune, Jan. 18, 2023 (GLOBE NEWSWIRE) -- The electric motor market size was valued USD 106.45 billion in 2020 and USD 113.14 billion in 2021 respectively. The global market size for electric motor is predicted to grow significantly, reaching USD 181.89 billion by 2028, and is expected to grow at a CAGR of 7.0% over the forecast period of 2022 to 2028. This information is provided by Fortune Business Insights, in its report, titled, “Electric Motor Market, 2022-2028.”
According to analysts, the increased adoption of electric cars, which rely largely on electric motors, is fueling the expansion of the electric motor sector. Increased output of renewable energy sources such as wind and solar power, which require electric motors for power generation, is also driving the growth of electric motor market.
Increasing Demand from Commercial & Residential Sector to Promote Growth
Rising Government Programs to Achieve Emission-free Vehicles Will Boost Growth
DRIVING FACTORS
Increasing Demand from Commercial & Residential Sector to Promote Growth
According to the International Energy Agency, the energy-related CO2 emissions fell by around 5.8% worldwide in 2020 due the reduced energy demand. The coronavirus led to lockdown measures announced by the government agencies that led to limited mobility and halted industrial applications. However, the problem of vehicular emissions still exists and the growing concerns regarding the depleted air quality has propelled the manufacturers to adopt renewable energy sources.
This has led to the increasing demand for electric motors across the automotive sector to attain emission-free levels. Moreover, rapid-paced urbanization has led to the higher adoption of HVAC applications such as vacuum cleaners, washing machines, and others. This is expected to contribute to the global electric motor market growth during the forecast period.
Rising Government Programs to Achieve Emission-free Vehicles Will Boost Growth
The demand for electric vehicles has abruptly increased since the past few years because of the rising government awareness programs to attain emission-free vehicles. Therefore, several industry giants are investing huge sums in expanding the automobile sector and developing their industries. It would rapidly increase the demand for electric vehicles, which, in turn, would further augment the electric motor market growth during the forecast period. Additionally, the companies are investing persistently in the automotive industry that would propel growth.
Rising Development in Industrialization & Commercialization to Favor Growth in Asia Pacific
The market is geographically segregated into the Middle East and Africa, Asia Pacific, Europe, Latin America, and North America. Amongst these regions, the electric motor market size of Asia Pacific was USD 38.51 billion in 2018. The region is set to experience robust growth throughout the forthcoming years owing to the increasing development in commercialization and industrialization in countries such as Indonesia, Australia, Japan, India, and China. China is expected to upsurge its investment and enhance the electric vehicle deployment plans to curb the emission of greenhouse gases and meet the global target.
The country, for instance, has formulated numerous regulations and policies, namely, next-generation artificial intelligence development plan, Internet plus strategy, made in China 2025, and intelligent manufacturing plan 2016–2020 to allow the growth of the industrial sector. These factors are set to accelerate the growth of the market in this region.
Key Players Focus on Investment & Acquisition to Increase Sales
The market is occupied by various enterprises of all sizes. They are aiming to increase sales and create a robust position in the market by investing huge sums in the development and acquiring other companies. Below are a couple of the latest developments:
April 2019: Nidec, a leading manufacturer of electric motors, headquartered in Japan, announced that it is planning to invest around USD 500 million in a new factory in China. The factory would manufacture electric-vehicle motors and double the high hopes for growth.
February 2017: Nidec declared that it has completed acquiring the motors, drives, and electric power generation businesses of Emerson, an American multinational corporation. This acquisition would help Nidec in reinforcing and broadening its commercial and industrial businesses to fulfill the transforming consumer needs.
December 2020 - Tata Motors Ltd delivered 26 electric buses to Brihanmumbai Electric Supply and Transport (BEST), which runs a fleet of buses for the commuters in Mumbai, India. The buses were delivered as a part of a huge order consisting of 340 electric buses under the government’s FAME II initiative.
Asia-Pacific – The region stood at USD 37.77 billion in 2020 and is expected to hold the highest position in the market during the forecast period. This is attributable to the increasing demand for electric power due to rapid-paced urbanization in countries such as India and China.
Europe – The market in the region is expected to showcase considerable growth backed by the growing demand for electric vehicles that will propel the adoption of advanced electric motors in the region between 2021 and 2028.
COMPETITIVE LANDSCAPE:
Facility Expansion by Prominent Companies to Brighten Their Market Prospects
The market is consolidated by the presence of major companies such as GE and ABB that are focusing on expanding their electric motor production facilities to cater the growing industrial demand. In addition to this, other key players are striving to maintain their presence by adopting strategies such as collaboration, partnership, and merger and acquisition that will bode well for the market growth.
Market Segmentation:
Based on motor type, the market is divided into AC motor, DC motor, and Hermetic motor.
Based on motor type, the AC motor segment held a global electric motor market share of about 57.9% in 2020 and is anticipated to showcase considerable growth in the forthcoming years. This is ascribable to factors such as the increasing adoption of AC motors for several industrial applications such as irrigation pumps globally.
By Motor Type
AC Motors
DC Motors
Hermetic Motors
By Power Output
Fractional Horsepower (Up to 1HP)
Integral Horsepower (Above 1HP)
By Voltage
Up to 1 kV
1 kV-6.6 kV
Above 6.6 kV
By Application
Industrial Machinery
Motor Vehicles
HVAC Equipment
Electrical Appliances
Others
By End-User
Industrial
Commercial
Residential
Agriculture
Transportation
What does the Report provide?
The global market for electric motor report provides a detailed qualitative and quantitative analysis of the market and focuses on crucial aspects such as materials, leading companies, applications, and products. Also, the report offers insights into latest trends and highlights key industry developments. The report further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest dynamics and opportunities that will impact the market growth between 2021 and 2028.
Fortune Business Insights™ offers expert corporate analysis and accurate data, helping organizations of all sizes make timely decisions. We tailor innovative solutions for our clients, assisting them to address challenges distinct to their businesses. Our goal is to empower our clients with holistic market intelligence, giving a granular overview of the market they are operating in.
