As Allied Market Research points out in its “Electric Motor Market” report, this sector is an important enabler of the global energy transition, the electrification of mobility, and the automation of manufacturing. These are three of the most powerful economic megatrends of our era.
The global market size is projected to grow at a CAGR of 9.5% from 2023 to 2032. “The electric motor market forecast through 2032 – Allied Market Research explains – presents a compelling case for sustained, broad-based expansion. From a base of USD 142.2 billion in 2020, the market is on a trajectory to reach USD 373.9 billion by 2032, more than doubling in nominal value over the twelve-year period. This growth is not contingent on any single industry vertical or geography, but is instead distributed across multiple concurrent demand catalysts: EV adoption, industrial automation, HVAC efficiency upgrades, and infrastructure expansion in developing economies”.
AC motors dominate the market with over 75.5% of revenue in 2020, driven by the wide industrial applicability. Besides, the above 75 kW segment led in 2020 by revenue, while the 10 kW-75 kW segment is forecast to record the highest CAGR, reflecting growing mid-range industrial demand.
Asia Pacific dominates the market
As highlighted by Allied Market Research, Asia-Pacific is the undisputed leader of the global electric motor market, holding a revenue share exceeding 44.5% in 2020. China is the region’s most significant market, underpinned by its position as the world’s largest automotive market and manufacturing hub. China’s aggressive push toward EV dominance, backed by substantial state subsidies and ambitious production targets, has made it the single largest driver of traction motor demand in the electric motor market. Another significant area is India, which is growing rapidly, also thanks to the “Make in India” initiative. Besides, “Japan and South Korea contribute high-value demand through advanced robotics, precision manufacturing, and premium consumer electronics ecosystems – Allied Market Research says –. Taiwan and Singapore play strategic roles in the precision motor and semiconductor-driven motion control supply chains”.
As regards to North America, it represents a mature but high-value segment of the electric motor market. The United States are expected to grow at a CAGR of 9.3% from 2023 to 2032, supported by the re-shoring of manufacturing capacity, the IRA-driven acceleration of clean energy projects, and significant investment in EV infrastructure.
Europe, on the other hand, presents a nuanced picture. “The region – Allied Market Research states – is a global leader in energy efficiency regulation, and the European Green Deal’s aggressive decarbonization targets are translating into substantial motor replacement cycles. Germany, Europe’s industrial engine, drives demand through its world-class automotive and machine-tool manufacturing base. France and the UK contribute through commercial building retrofits, transportation electrification, and a growing offshore wind sector that relies on large electric drives. However, the economic fallout from the Russia-Ukraine conflict and elevated energy costs have created near-term headwinds for industrial capex, moderating growth compared to other regions”.
Considering, then, the LAMEA (Latin America, Middle East & Africa) area, it is emerging as the fastest-growing region in the electric motor market, with the manufacturing sector holding significant untapped potential.
The electric motor market by application
The automobile traction motor segment is both the revenue leader and the highest CAGR segment, according to Allied Market Research. The growth of EV adoption worldwide is fueling the demand. The HVAC sector represents the second most significant revenue contributor, while the industrial machinery and household appliances round out the high-volume segments. The latter benefit from the global expansion of the middle class and the growing penetration of energy-efficient white goods in developing markets. Finally, the medical equipment segment is also gaining strategic importance.
Key drivers of innovation
The latest technological innovations are bringing significant transformations to the world of electric motors. Let’s consider AI-driven predictive maintenance, for example. “Machine learning algorithms – Allied Market Research says – are being embedded in motor management systems to analyze real-time vibration, temperature, and current draw data, enabling predictive maintenance that can identify impending failures days or weeks before they occur. This capability dramatically reduces unplanned downtime and maintenance costs for industrial operators, creating a compelling value proposition that is accelerating smart motor adoption across the electric motor market”.
Other key drivers of innovation are advanced permanent magnet technologies, Wide-Bandgap semiconductor drives and digital twin technology. “Motor manufacturers and industrial operators – Allied Market Research states – are deploying digital twin models, virtual replicas of physical motor systems to simulate performance across operating conditions, optimize control algorithms, and accelerate product development cycles. This technology is enabling a shift from reactive to proactive motor system management”.
Four main trends
According to Allied Market Research, there are four main market trends. First of all, the design of increasingly lightweight and compact motors and the brushless DC motor diffusion. “BLDC motors – the market research firm explains – are rapidly gaining share across automotive, consumer electronics, and precision industrial applications. Their superior efficiency, reduced maintenance requirements, and compact form factor are displacing traditional brushed DC motors and even some AC motor applications in the electric motor market”.
Another trend concerns integrated motor-drive systems. “There is a clear trend toward factory-integrated motor and variable frequency drive (VFD) systems – Allied Market Research explains – which reduce installation complexity, improve performance, and enable seamless integration with industrial control networks. This trend is particularly evident in HVAC and industrial machinery segments of the electric motor market”.
Finally, the fourth trend is the servomotor adoption in robotics. As collaborative robots and industrial arms proliferate in factories, warehouses, and healthcare settings, demand for servomotor systems with sub-millisecond response times is growing rapidly.
