Germany AC Motor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1 Billion |
| Market Size (2029) | USD 1.18 Billion |
| CAGR (2024 - 2029) | 3.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany AC Motor Market Analysis
The Germany AC Motor Market size is estimated at USD 1 billion in 2024, and is expected to reach USD 1.18 billion by 2029, growing at a CAGR of 3.5% during the forecast period (2024-2029).
- The demand for AC motors in Germany will witness high growth due to substantial investment in infrastructure development and industrialization, increased focus on expansion of the production sector, and continued energy investments.
- The country plays a crucial role in harnessing automation technologies to improve manufacturing productivity, as evidenced by the Industry 4.0 initiative, which aims to provide resources and finance to build smarter factories. Additionally, increasing adoption of HVAC systems, infrastructure upgrades, and growth in the power and energy sector are expected to play a key role in the market growth.
- Also, the industries with high processing needs and the need to increase or decrease the process flow are driving the demand for AC motors in the country. The oil and gas, wastewater, food, chemical, and heavy machinery industries are among the prime end-user industries for these motors. Thus, there is an increasing demand for automated and efficient systems, which help improve and reduce the power costs with each unit produced.
- Germany is the most significant production and processing center and is considered one of the most competitive countries in the world. The industry is characterized primarily by the small and medium enterprise SME sector, which includes nearly 6,000 companies. The country is home to major national and international players, including the Südzucker, Dr. Oetker Group, Mondelēz Deutschland, Arla, Nestlé, and Cargill.
- Typically, food processors in Germany source ingredients from local manufacturers or importers. Only large processors import raw materials directly from foreign suppliers. Rising consumer spending on food and beverage products is expected to boost demand for AC motors for filling and packaging machines in the country's F&B sector.
- Moreover, the higher initial investment in purchasing and installing AC motors continues to be one of the vital, challenging factors for the growth of the market studied. Also, despite recent developments, the power consumption of AC motors continues to be one of the critical issues that will challenge the growth of the market in Germany.
Germany AC Motor Market Trends
Induction Motors Hold Significant Market Share
- An industrial induction AC motor is known for its reliability, low cost, and ability to provide high starting torque as it is operated on the principle of electromagnetic induction, where the electromagnetic induction from the magnetic field generated by the stator produces an electric current in the rotor.
- These motors are generally less expensive than other motors, making them a cost-effective choice for industrial applications. They are commonly used in pumps for water supply, irrigation, and wastewater treatment systems. These motors are used in industrial fans and blowers for ventilation, cooling, and air circulation.
- Also, the increasing water consumption in various verticals, like agriculture, irrigation, public supply, domestic use, and energy production, in Germany will likely drive the growth of the market.
- Also, Germany is one of the classic European mining regions with a long tradition in the extraction and processing of minerals. The country's mining industry has traditionally been focused on extracting lignite, coal, and other minerals. Moreover, Germany plans to increase investment in mining for the future innovation economy and aims to provide the necessary resources for industrial growth.
- Also, the government is focusing on making investments to support the country's mining sector, further supporting the market growth. For instance, in April 2023, the German government announced plans to invest up to EUR 2 billion (USD 2.19 billion) to support mining activities of critical raw materials necessary for the country's green transition, thus driving the demand for AC motors during the projected timeline.
The Power Generation Industry is Expected to Grow Significantly
- The power generation industry deals with the production and distribution of electricity. AC motors are mainly deployed in these industries to meet the need for power transmission efficiency and waste reduction.
- The demand for AC motors will increase in the power generation industry as they are widely used in cooling systems and steam cycle pumps, exhaust system fans, fuel supply, environmental systems, and various support systems such as compressed air.
- The country has been the global pioneer in applying renewable energy and environmental technologies. Germany aims to cut CO2 emissions by 80% and increase the share of renewable energy in total energy consumption to 60% by 2050. The country continuously invests in grid expansion, offshore wind, photovoltaics, and energy storage projects, along with the implementation of a new, smart energy infrastructure that can balance the fluctuating supply of renewable sources.
- Moreover, the rising government initiative and investment to expand the country's renewable energy sector will further drive the market growth. For instance, in August 2023, the German government announced the construction of hydrogen and gas-fired power plants while offering government incentives, as the government aims for 80% of the electricity consumed in Germany to come from renewable sources by 2030. The European Commission will approve the subsidies.
- Additionally, the rising investment in power plant projects is expected to create opportunities for the market. For instance, RWE, a German utility, announced increased capital expenditure on green projects by investing EUR 55 billion (USD 59.2 billion) across renewable energy (RE), batteries, flexible generation, and hydrogen projects worldwide by 2030.
Germany AC Motor Industry Overview
The German AC motor market is competitive with various large, medium, and small players. The United States AC motors industry players are introducing new innovative products to cater to the growing consumer demands. Major players in the market include Siemens AG, Nidec Corporation, WEG Germany GmbH, TECO Electric Europe Ltd, and ABB Limited. Technological advances in various industries, including healthcare, energy, and infrastructure, will boost the market growth.
In September 2023, WEG announced the acquisition of the industrial electric motors and generators business of Regal Rexnord Corporation, a global manufacturer of electromechanical equipment. The acquisition will support the ongoing growth of the WEG Group in the industrial electric motors and generators markets by incorporating recognized brands and a product line that complements the Group's current portfolio.
In July 2023, Siemens AG announced that it would invest EUR 1 billion (USD 1.10 billion) in Germany to boost the country's innovative strength. Through this investment, the company will expand its development and manufacturing capacities, further enabling Siemens to accelerate its overall growth, drive innovation, and increase its resilience.
Germany AC Motor Market Leaders
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ABB Ltd.
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Siemens AG
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Nidec Corporation
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Teco Electric Europe Ltd.
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WEG Germany GmbH
*Disclaimer: Major Players sorted in no particular order
Germany AC Motor Market News
- July 2023: Siemens AG announced the launch of Innomotics, a new leading motors and large drives company. Under this brand, the company will combine its business activities in geared motors, medium-voltage converters, low- to high-voltage motors, and motor spindles. The portfolio includes a digitalization portfolio, innovative solutions, and broad service offerings.
- June 2023: ABB Ltd announced the introduction of its latest generation AMI 5800 NEMA modular induction motor that offers exceptional reliability and energy efficiency in demanding applications such as extruders, fans, compressors, pumps, extruders, crushers, and conveyors. The AMI 5800 motor is an actual NEMA design that builds on ABB’s technology leadership and meets both mechanical mounting standards and electrical performance requirements.
Germany AC Motor Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.4 Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 The Growing Manufacturing Sector in Germany Will Drive the Market Growth
5.1.2 Demand for Energy Efficiency Owning to Government Regulations
5.2 Market Challenges
5.2.1 High Initial Cost
6. MARKET SEGMENTATION
6.1 Induction AC Motors
6.1.1 Single Phase
6.1.2 Poly Phase
6.2 Synchronous AC Motors
6.2.1 DC Excited Rotor
6.2.2 Permanent Magnet
6.2.3 Hysteresis Motor
6.2.4 Reluctance Motor
6.3 By End-user Industry
6.3.1 Oil and Gas
6.3.2 Chemical and Petrochemical
6.3.3 Power Generation
6.3.4 Water and Wastewater
6.3.5 Metal and Mining
6.3.6 Food and Beverage
6.3.7 Discrete Industries
6.3.8 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 ABB Ltd
7.1.2 Siemens AG
7.1.3 Nidec Corporation
7.1.4 WEG Germany GmbH
7.1.5 Johnson Electric Holdings Limited
7.1.6 Fuji Electric Co. Ltd
7.1.7 TECO Electric Europe Ltd
7.1.8 MENZEL Elektromotoren GmbH
7.1.9 Dunkermotoren
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Germany AC Motor Industry Segmentation
An electric motor is a machine that converts an alternating current to a mechanical motion. The applications of an AC motor include industrial bulk energy conversion from electrical to mechanical and household small power conversion.
The German alternating current (AC) motor market is segmented by type (induction AC motors (single phase and poly phase) and synchronous AC motors (DC excited rotor, permanent magnet, hysteresis motor, and reluctance motor)), end-user industry (oil and gas, chemical and petrochemical, power generation, water and wastewater, metal and mining, food and beverages, and discrete industries). The report offers market size and forecasts for all the above segments in value (USD).
| Induction AC Motors | |
| Single Phase | |
| Poly Phase |
| Synchronous AC Motors | |
| DC Excited Rotor | |
| Permanent Magnet | |
| Hysteresis Motor | |
| Reluctance Motor |
| By End-user Industry | |
| Oil and Gas | |
| Chemical and Petrochemical | |
| Power Generation | |
| Water and Wastewater | |
| Metal and Mining | |
| Food and Beverage | |
| Discrete Industries | |
| Other End-user Industries |
Germany AC Motor Market Research FAQs
How big is the Germany AC Motor Market?
The Germany AC Motor Market size is expected to reach USD 1 billion in 2024 and grow at a CAGR of 3.5% to reach USD 1.18 billion by 2029.
What is the current Germany AC Motor Market size?
In 2024, the Germany AC Motor Market size is expected to reach USD 1 billion.
Who are the key players in Germany AC Motor Market?
ABB Ltd., Siemens AG, Nidec Corporation, Teco Electric Europe Ltd. and WEG Germany GmbH are the major companies operating in the Germany AC Motor Market.
What years does this Germany AC Motor Market cover, and what was the market size in 2023?
In 2023, the Germany AC Motor Market size was estimated at USD 0.96 billion. The report covers the Germany AC Motor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany AC Motor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Germany AC Motor Industry Report
Statistics for the 2024 Germany AC Motor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany AC Motor analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
