Electric motors work on the principle of electromagnetic induction and are devices that combine both electrical and mechanical components. Electric motors are utilized in industrial fans, machine tools, compressors, electric cars, home appliances, hard drives, etc., in various industries ranging from transportation to oil and gas.

In 2021, the market for the electric motor was worth USD 121.81 billion, and by 2030 it will reach USD 209.68 billion, growing at a 6.22% CAGR during the forecast period. 

Factors boosting market expansion are increasing environmental concerns and rising electrical energy consumption. The market is primarily growing due to the increase in industrial automation and advancements in technology. A growing trend in major industrial plants is replacing gas turbines with electric motors, increasing the demand for electric motors.

Market Dynamics

Drivers

The increase in industrial automation and technological advancements are the primary factors driving market growth.

Increased car demand, supported by growing living standards and consumer purchasing power, is another factor contributing to the market's growth. In addition, government initiatives to encourage the purchase of electric vehicles in order to lower carbon emissions are anticipated to enhance the electric vehicle market. In the past ten years, robotics and automation have made inroads into a number of industrial areas, including the production of electronics, the food and beverage industry, and the automobile industry. Additionally, spending on intelligent industrial automation has been gradually rising, particularly in major manufacturing facilities. With the growing use of automation and robotics technologies, there will be a higher demand for electric motors to power drive units.

Restraints

The high maintenance costs of motors constrain market growth. Customers might not embrace the motor because of its high operating expenses. The cost per hour rises when a motor with a high horsepower is coupled with a low load factor. Induction motors are one type of motor that lack self-starting torque. Single-phase motors sometimes need auxiliary devices to get going. These elements might prevent further market expansion.

Opportunity 

Globally, urbanization has increased along with population growth in new regions of nations. Over 79% of people in developed countries live in cities, making up 56% of the world's population, according to the U.N. In the upcoming years, this number is anticipated to increase. Rapid urbanization will result in a rise in demand for home and industrial goods.

Market Segmentation 

By Type

In 2021, the AC Motor segment held a major market share of 70.7% due to the growing use of AC motors in industrial applications. AC motors are widely used in modern robotics and irrigation equipment, which accounts for their dominant position. Due to their smaller size, lower cost, and convenience, they are also commonly utilized in HVAC equipment. The usage of electric AC motors has become increasingly common in the automotive sector due to the development of highly effective and affordable electronics and improvements in permanent magnetic characteristics.

By Output Power 

The fractional horsepower (FHP) segment had the biggest market share of 87.3% in 2021. Its numerous uses in home appliances, including hoovers, espresso makers, and coolers, are the cause of this substantial rise. Due to their effectiveness in a demanding industrial environment, they are also used in industrial machines. Just two of the advantages of such motors are their high starting torque and dependability under changing electric current conditions.

By Application 

The motor vehicle sector was the biggest market, with a revenue share of 40.5% in 2021 due to the expanding use of electric motors in the automotive industry. A typical car has about 40 electric motors with power levels ranging from low to high. The development of low-cost, high-efficiency technology and improvements in permanent magnetic materials are other key factors driving the automotive industry.

Regional Analysis 

In 2021, Asia Pacific had a 48.6% market share. The market is driven by expanding use of motor-powered electric cars and increased compliance with energy-efficient motors. With increasing concerns about the negative environmental effects of conventional energy like coal & natural gas, a growing number of individuals are opting for efficient energy usage. This shift in behavior will fuel the expansion of the electric motor industry.

Key players 

· Allied Motion Technologies, Inc.

· ABB Group

· Dunmore Corp.

· Ametek, Inc. 

· Franklin Electric

· Hitachi, Ltd.

· General Electric Company

· Hyosung Corp.

· Johnson Electric

· Hyundai Electric Co, Ltd. 

· Kirloskar Electric Company, Ltd.

· Nidec Motor Corp.

· Lincoln Electric Holdings, Inc.

· Robert Bosch GmBH

· Schneider Electric

· WEG SA.

· Regal Rexnord Corp.

· Rockwell Automation.

· Teco Westinghouse

· Siemens AG

· Toshiba Corp.

In 2021, the market for the electric motor was worth USD 121.81 billion, and by 2030 it will reach USD 209.68 billion, growing at a 6.22% CAGR during the forecast period. The consumers' growing awareness of green vehicles is a major factor boosting market growth.

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