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An electric motor is an electrical machine that converts electrical energy into mechanical energy. Most modern electric motors operate through the interaction between the motor’s magnetic field and electric current in a wire winding to generate force in the form of torque applied to the motor’s shaft. Industrial, agricultural, and automotive sectors are the primary users of such motors, but the demand has significantly increased across commercial and residential sectors due to technological advancements and urbanization. Moreover, the heating and air conditioning (HVAC) sector has emerged as a rapidly growing segment for motor deployment.
Market Trends
The global electric motor market was valued at USD 128.35 billion in 2023 and is projected to grow from USD 137.12 billion in 2024 to USD 246.59 billion by 2032, exhibiting a CAGR of 7.61% during the forecast period. The Asia Pacific region dominated the market with a share of 35.97% in 2023.
The electric motor market has been experiencing robust growth, driven by the increasing adoption of electric motors across various industries. This growth is attributed to the rising demand for electrical equipment and machinery, coupled with advancements in motor technology and increased focus on energy efficiency.
Rapid Urbanization Promoting Market Growth
Increasing urbanization leads to high demand for various services, creating opportunities to deploy electric motors. For instance, growing construction activities boost the deployment of electric motors, as they are required during several construction processes. In the residential sector, the demand for motors increases for various household applications. The high power demand leads to growth in energy generation capacities. Additionally, crop cultivation impacts electric motor adoption in the agricultural sector, as motors are essential for crop irrigation purposes. These factors are expected to drive global electric motor market growth in the coming years.
Increasing Focus on Renewable Energy Vehicles
Automotive manufacturers are initiating projects to adopt alternatives to eliminate fossil fuel use in vehicles, leading to the development of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) powered by fuel cell reactions. For instance, in 2019, Toyota planned to increase its global production to 30,000 fuel cell stacks by 2020 and started deploying hydrogen forklifts, buses, and heavy trucks. In December 2018, Hyundai Motor Group introduced a plan to make 700,000 fuel cell systems annually, with 500,000 MW allocated for private and commercial FCEVs.
Drivers:
- Increasing demand for energy-efficient motors: Electric motors are significantly more energy-efficient than traditional combustion engines. This is a major factor driving the growth of the electric motor market, as governments around the world are implementing stricter regulations on energy efficiency.
- Rising adoption of electric vehicles: The electric vehicle market is growing rapidly, and this is driving demand for electric motors. Electric vehicles use several electric motors to power the vehicle, and the demand for these motors is expected to continue to grow in the coming years.
- Growing automation in various industries: Electric motors are used in a wide variety of industrial applications, such as robotics, automation, and material handling. The growth of automation in these industries is driving demand for electric motors.
The Surge in Permanent Magnet Motors: Driving the Future of Energy Efficiency
The global permanent magnet motor market is on an impressive growth trajectory, with an estimated market size of approximately US$ 49.2 billion in 2024. Projected to exhibit a compound annual growth rate (CAGR) of 10.40% over the forecast period, the market is set to reach a valuation of US$ 132 billion by 2034. This substantial expansion is fueled by the increasing adoption of electric vehicles (EVs) and hybrid vehicles, which rely heavily on permanent magnet motors for their propulsion systems.
Adoption of Electric and Hybrid Vehicles: The shift towards EVs and hybrid vehicles is a significant driver for the permanent magnet motor market. These vehicles benefit from the high efficiency and reliability of permanent magnet motors, making them essential components in the automotive industry.
Demand for Energy-Efficient Appliances: Permanent magnet motors offer superior energy efficiency compared to traditional motors, which is driving their adoption in various appliances and industrial equipment. This efficiency translates to reduced energy consumption and lower operational costs, appealing to both consumers and industries.
Renewable Energy Expansion: The expansion of renewable energy generation, particularly wind turbines and hydropower systems, is another critical factor propelling the market. Permanent magnet motors are integral to these renewable energy technologies, enhancing their performance and reliability
Technological Advancements: Ongoing advancements in technology have improved the performance and reliability of permanent magnet motors. These improvements make the motors more attractive across various industries, further boosting their adoption.
Favorable Government Policies: Governments worldwide are implementing policies and regulations that promote the use of sustainable and eco-friendly technologies, including permanent magnet motors. These policies support the market’s growth by encouraging industries to adopt cleaner and more efficient technologies.
Research and Development Investments: Significant investments in research and development aim to further enhance the efficiency and capabilities of permanent magnet motor technology. These investments are crucial in driving the market forward by fostering innovation and improving product offerings.
Restraining Factors
- High initial cost of electric motors: Electric motors can be more expensive than traditional combustion engines upfront. However, the long-term cost savings from energy efficiency often outweigh the initial cost.
- Lack of awareness about the benefits of electric motors: There is a lack of awareness about the benefits of electric motors in some industries. This can hinder the adoption of electric motors in these industries.
A significant factor restraining market growth is the high maintenance cost of electric motors. In some cases, the operational cost is also high, which can hamper customer adoption. For example, if a high-horsepower motor is used with a low load factor, the cost per hour of operation increases significantly. Additionally, some motors, such as induction motors, do not have self-starting torque, requiring auxiliaries to start single-phase motors. These factors may impede market growth.
Opportunities:
- Technological advancements: Technological advancements are making electric motors more efficient and affordable. This is expected to create new opportunities for the growth of the electric motor market.
- Growing focus on sustainability: There is a growing focus on sustainability around the world. This is driving demand for electric motors, as they are a more sustainable option than traditional combustion engines.
Advancements in Electric Motor Technology
Continuous research and development efforts are focused on enhancing the efficiency of electric motors. Advancements in motor design, materials, and manufacturing processes help reduce energy losses, resulting in higher overall efficiency and lower operating costs. The development of electric motors with higher power density allows for more compact designs without sacrificing performance. These high-power density motors are particularly valuable in applications where space is limited, such as automotive propulsion systems and industrial machinery.
In September 2022, Mitsubishi Electric Corporation announced the development of an electric motor design support system with Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) that incorporates Mitsubishi Electric’s Maisart AI technology. This system reduces the time required to generate electricity and achieves the same efficiency as conventional design methods used by experienced engineers by hand. TMEIC plans to introduce the system for internal work in the financial year 2024.
Increasing Adoption in HVAC Applications
The HVAC industry has expanded due to the growing demand for heating and cooling across residential, commercial, and industrial locations. This expansion has led to new construction activities considering HVAC equipment supply in buildings as an essential characteristic. Developing economies are major contributors to the HVAC industry’s growth, with commercial spaces increasing and the rising standard of living.
Market Segmentation Analysis
By Motor Type
AC Motors: Expected to hold a significant market share due to extensive use in various applications, from irrigation pumps to advanced industrial operations.
DC Motors: Expected to show considerable growth due to increasing applications in electric vehicles and the booming transportation sector.
Hermetic Motors: Widely deployed for compression, heating, and ventilation purposes, with high demand from developing economies.
By Power Output
Fractional Horsepower (Up to 1HP): Expected to lead the market due to growing deployment in small-scale industries such as paper & pulp, textile mills, and warehouses.
Integral Horsepower (Above 1HP): Investments will mainly come from large-scale industries.
By Voltage
Up to 1 kV: Currently holds the largest market share due to increasing demand from residential and commercial sectors.
1 kV-6.6 kV: Investments will primarily come from industrial and agricultural sectors, where high capacity motors are required.
By Application
Motor Vehicles: Expected to remain at the forefront due to increasing investment in electric vehicles and the automotive industry’s focus on reducing carbon emissions.
Industrial Machinery and HVAC Equipment: Growing investment in the industrial sector and demand for energy-efficient motors drive growth in these segments.
Electrical Appliances: Increasing deployment of electric motor-based products in the residential segment will boost growth.
By End-User
Transportation: Expected to see significant investment due to government policies promoting electric vehicle use to reduce carbon emissions.
Industrial, Commercial, Residential, and Agriculture: Growing demand for agricultural and industrial pumps and motors, as well as household appliances, will drive demand.
Regional Insights
Asia-Pacific
The Asia Pacific region is the largest market for electric motors, followed by North America and Europe. The region dominated the market in 2023, valued at USD 46.17 billion. Demand from industrial, automotive, and power sectors, coupled with rapid urbanization in China and India, drives growth. The growth of the market in the Asia Pacific region is driven by the increasing demand for electric motors in China and India. The electric vehicle market in these countries is growing rapidly, and this is driving demand for electric motors.
Europe
Projected to experience exponential growth due to a focus on renewable energy and green energy targets. The region aims to achieve a 40% reduction in greenhouse gas emissions by 2030 compared to 1990 levels.
North America
Increasing demand for electric vehicles and renewable energy targets will drive market growth.
Latin America and the Middle East & Africa
Expected to showcase exponential growth due to rising investments in the oil and gas sector and construction activities promoting residential and commercial sector growth.
Competitive Landscape
Key Players: ABB, AMETEK, Johnson Electric, Siemens, Rockwell Automation, GE, Nidec Motor Corporation, WEG, Toshiba Corporation, Hitachi, Mitsubishi Heavy Industries, TECO-Westinghouse Motor Company, Arc Systems Inc., DENSO, Regal Beloit Corporation.
Key Industry Developments
There have been a number of recent developments in the electric motor market. For example, in 2021, ABB launched a new line of high-efficiency electric motors. These motors are designed to save energy and reduce operating costs. In 2022, Siemens introduced a new line of electric motors that are designed for use in harsh environments. These motors are resistant to dust, dirt, and water.
- August 2023: WEG expanded operations to Eastern Europe and Southwest Asia with a new office in Turkey.
- May 2023: ABB India expanded production with a new range of drive modules at its Peenya plant in Bengaluru.
- February 2021: Schottel won a contract to supply main propulsion units to Western Pacific Maritime.
- February 2021: Lordstown Motors planned to start producing its all-electric Endurance pickup truck.
- December 2020: ABB launched the new M3BP motor range for industrial customers in India.
The Future of the Electric Motor Market
The electric motor market is expected to continue to grow in the coming years. The growth of the market will be driven by factors such as increasing demand for energy-efficient motors, rising adoption of electric vehicles, and growing automation in various industries. As electric motors become more efficient and affordable, they are expected to become increasingly popular in a wide range of applications.
Conclusion
The global electric motor market is poised for significant growth driven by urbanization, technological advancements, and a shift towards renewable energy sources. The market’s future looks promising with continuous innovation and supportive government policies fostering an environment for sustainable growth
The permanent magnet motor market is poised for significant growth, driven by the increasing demand for energy-efficient solutions in various industries and the adoption of renewable energy sources. As technological advancements continue and government policies favor sustainable practices, the market is set to thrive, leading the charge towards a more energy-efficient and environmentally friendly future.
