Industrial Motors Market Size, Share, Analysis (2025 - 2030)

Industrial Motors Market Analysis

The Industrial Motors Market size is estimated at USD 22.31 billion in 2025, and is expected to reach USD 28.21 billion by 2030, at a CAGR of 4.8% during the forecast period (2025-2030).

The industrial motors landscape is experiencing significant transformation driven by technological advancements and sustainability initiatives. According to the Industrial Energy Accelerator, approximately 70% of all electrical energy consumed by industry is utilized by the millions of industrial electric motors installed worldwide, highlighting the critical importance of motor efficiency in industrial operations. This has led to an increased focus on developing smart motors that manufacturers claim can reduce energy consumption by up to 40% over a two-year span, while also offering enhanced performance monitoring and predictive maintenance capabilities through IoT integration.

The oil and gas sector continues to be a major growth catalyst for industrial motors, with OPEC projecting crude oil demand to increase from 8.1 million barrels per day to 12 million barrels per day by 2045. This trajectory has spurred significant investments in motor technology development, exemplified by ABB's introduction of the new generation AMI 5800 NEMA modular induction motor in June 2023, specifically designed for high-demand applications in the chemical, oil, and gas sector with power outputs up to 1750 HP.

Manufacturing sector modernization is driving substantial investments in motor technology and production capabilities. In July 2023, Mitsubishi Electric Corporation announced an investment of approximately JPY 3.1 billion in India for a new factory focused on producing inverters and factory automation control system products. Similarly, WEG announced plans to invest BRL 660 million to expand its industrial and electric traction motors production capacity in Brazil, aiming to increase production capacity by 25% by early 2024.

The industry is witnessing a surge in strategic partnerships and acquisitions aimed at technological advancement. In September 2023, Rockwell Automation and Infinitum entered an exclusive agreement to develop and distribute a new category of integrated low-voltage drive and motor technology. Additionally, Iron Path Capital's strategic partnership with TruTech Servo Motors & Systems, announced in September 2023, demonstrates the growing private equity interest in industrial motion control technologies, indicating strong future growth potential in the sector.

Industrial Motors Market Trends

Growing Emphasis on Energy-Efficient Motors

The increasing industrialization worldwide has created an unprecedented demand for energy-efficient motors as industries seek to lower energy consumption and operating costs. Energy-efficient motors provide improved efficiency and reduced energy loss, resulting in substantial cost savings throughout their lifespan. According to the US Energy Information Administration, nearly half of the electricity consumed in the manufacturing sector is used for powering motors, such as fans, pumps, conveyors, and compressors, with about two-thirds of this consumption occurring in bulk chemicals, food, petroleum and coal products, primary metals, and paper industries.

The American Council for an Energy-Efficient Economy's 2022 report revealed that the United States invested approximately USD 7.7 million in energy efficiency projects, with around 80% allocated to electricity programs. This emphasis on energy efficiency is further reinforced by government regulations and international standards. For instance, the United States Department of Energy announced final energy efficiency rules for 16 product categories in May 2023, which are expected to help Americans save USD 570 billion in utility bills and reduce greenhouse gas emissions by more than 2.4 billion metric tons over 30 years. Specifically, these new rules on electrical motors are projected to reduce annual energy bills for US businesses by about USD 464 million.

Increasing Automation Levels Across Various Industries

Automation systems are revolutionizing various sectors, including manufacturing, engineering, construction, power generation, and other essential processes that drive the economy. The integration of cutting-edge technologies like artificial intelligence (AI), cloud computing, big data, and the Internet of Things (IoT) has significantly enhanced the capabilities of industrial automation. Smart motors are increasingly being deployed in numerous industrial plants for processes such as manufacturing, testing, tooling, assembly operations, and load control, offering benefits such as energy efficiency, reduced cabling costs, and simplified installation.

The Industrial Internet of Things (IIoT) is having a transformative impact on machinery condition monitoring (MCM), particularly through the implementation of wireless sensors that communicate digitally with cloud-based data management resources. These systems utilize artificial intelligence technologies to analyze various parameters such as vibration, temperature, and electric motor current. For instance, Siemens has equipped its low-voltage motors with smart motor technology, including a smart box with integrated sensors, a Wi-Fi communication module, and a power supply mounted atop the motor. This can be connected to MindSphere, enabling cloud connectivity and facilitating the analysis of motor status data and predictive maintenance through the MindApp visualization platform.

Segment Analysis: By Type of Equipment

AC Motors Segment in Industrial Motors Market

The industrial AC motors segment continues to dominate the industrial motors market, commanding approximately 82% market share in 2024. This significant market position is primarily attributed to AC motors' high reliability, low maintenance requirements, and superior performance characteristics compared to other motor types. The segment's dominance is particularly evident in critical industries such as oil & gas, power generation, and manufacturing, where these motors are extensively used for driving pumps, compressors, conveyors, and various other industrial applications. Within the AC motors category, induction motors hold the largest share, as they offer exceptional durability and cost-effectiveness for general industrial applications. The segment's strong market position is further reinforced by the increasing emphasis on energy-efficient motors and the growing automation levels across various industries.

ED Motors Segment in Industrial Motors Market

The Electronically Dependent (ED) Motors segment is experiencing substantial growth in the industrial motors market, with a projected growth rate of approximately 3% during 2024-2029. This growth is primarily driven by the increasing adoption of automation and Industry 4.0 technologies across manufacturing sectors. ED motors, which include industrial servo motors, switched reluctance motors, industrial stepper motors, and industrial brushless motors, are gaining popularity due to their precise control capabilities and enhanced efficiency in advanced industrial applications. The segment's growth is particularly notable in applications requiring high precision movement control, such as robotics, CNC machines, and automated production lines. The rising demand for smart manufacturing solutions and the need for motors with superior control capabilities are expected to further accelerate the adoption of ED motors in various industrial applications.

Remaining Segments in Industrial Motors Market by Type of Equipment

The industrial DC motors segment, while smaller in market share, continues to serve specific industrial applications where precise speed control and high starting torque are essential. This segment includes both permanent magnet and separately excited DC motors, each serving distinct industrial needs. Despite facing competition from newer motor technologies, DC motors maintain their relevance in specialized applications such as mining equipment, paper mills, and certain types of machine tools. The segment's evolution is characterized by ongoing technological improvements in motor design and control systems, though its overall market impact is relatively modest compared to AC and ED motors. The continued use of DC motors in legacy systems and specific industrial processes ensures their sustained presence in the industrial motors landscape.

Segment Analysis: By Voltage

Medium Voltage Segment in Industrial Motors Market

The medium voltage segment has established itself as the dominant force in the industrial motors market, commanding approximately 61% of the total market share in 2024. This substantial market presence can be attributed to the segment's widespread application across various industries, including but not limited to renewable energy applications and the growing adoption of variable frequency drives (VFDs). Medium voltage motors, operating within the voltage range of 250V to 650V, have gained significant traction due to their exceptional reliability, longevity, and energy efficiency capabilities. The incorporation of permanent magnets into the production of medium voltage motors has resulted in reduced energy consumption and improved overall performance, making them particularly attractive for industrial applications requiring robust and dependable power solutions.

Low Voltage Segment in Industrial Motors Market

The low voltage segment is emerging as the fastest-growing category in the industrial motors market, projected to grow at approximately 4% from 2024 to 2029. This growth trajectory is primarily driven by the increasing emphasis on Industry 4.0 and the rising adoption of industrial automation across manufacturing sectors. The segment's expansion is further supported by the implementation of sophisticated controllers and advanced communication capabilities, enabling enhanced performance and operational efficiencies. Manufacturers are actively developing innovative solutions in this space, with several vendors introducing high-efficiency, low-voltage electric motors designed specifically for industrial applications. The segment's growth is also bolstered by the rising demand in the oil and gas sector, where low-voltage electric motors are increasingly being utilized in offshore drilling operations.

Remaining Segments in Voltage Segmentation

The high voltage segment represents a crucial component of the industrial motors market, catering to specialized industrial applications requiring substantial power output. These motors, operating at voltages exceeding 650V to 33,000V, are particularly vital in power plants, steel plants, industrial facilities, and heavy machinery applications. The segment's significance is underscored by its ability to deliver massive power outputs, ranging from thousands to potentially millions of kilowatts, while maintaining lower current requirements compared to low-voltage counterparts. This segment continues to evolve with technological advancements, focusing on enhanced reliability, mechanical rigidity, and reduced noise levels to meet specific application requirements across various industries.

Industrial Motors Market Geography Segment Analysis

Industrial Motors Market in North America

North America represents a mature industrial motors market, driven by extensive industrial automation and the push towards energy-efficient manufacturing processes. The region's market is characterized by strong technological adoption, particularly in sectors like oil and gas, manufacturing, and renewable energy. Both the United States and Canada are witnessing significant developments in industrial automation and motor efficiency standards, supported by stringent regulatory frameworks and an increasing focus on reducing carbon emissions.

Industrial Motors Market in United States

The United States dominates the North American industrial motors landscape, holding approximately 88% of the regional market share in 2024. The country's market is driven by substantial investments in industrial automation, particularly in sectors such as manufacturing, oil and gas, and water treatment. The implementation of energy efficiency regulations and the growing emphasis on Industry 4.0 initiatives have significantly influenced motor adoption patterns. The Department of Energy's recent energy efficiency rules for various product categories, including electric motors, demonstrate the country's commitment to sustainable industrial development.

Industrial Motors Market in Canada

Canada emerges as the fastest-growing market in North America, with a projected growth rate of approximately 5% during 2024-2029. The country's industrial motors market is experiencing rapid expansion due to increasing investments in manufacturing automation and the growing adoption of energy-efficient motors across various industries. Canada's strong focus on renewable energy projects and sustainable industrial practices has created significant opportunities for advanced motor technologies. The country's robust mining and oil & gas sectors continue to drive demand for industrial motors, particularly in harsh environment applications.

Industrial Motors Market in Europe

Europe represents a significant market for industrial motors, characterized by stringent energy efficiency regulations and a strong focus on sustainable manufacturing practices. The region's market is driven by countries like Germany, the United Kingdom, and France, each contributing significantly to the overall market dynamics. The European Union's Eco-design Directive and various other regulatory frameworks have been instrumental in shaping the market landscape, particularly in promoting the adoption of energy-efficient motors across various industrial sectors.

Industrial Motors Market in Germany

Germany maintains its position as the largest market in Europe, commanding approximately 32% of the regional market share in 2024. The country's dominance is attributed to its robust manufacturing sector and significant investments in Industry 4.0 initiatives. The implementation of the Industrial Strategy 2030 and the strong presence of automotive and machinery manufacturing sectors have created substantial demand for advanced industrial motors. The country's commitment to energy transition and focus on decarbonization has further accelerated the adoption of energy-efficient motors across various industries.

Industrial Motors Market in United Kingdom

The United Kingdom emerges as the fastest-growing market in Europe, with a projected growth rate of approximately 4% during 2024-2029. The country's industrial motors market is experiencing significant transformation driven by increasing investments in manufacturing automation and the growing emphasis on energy-efficient technologies. The UK's Industrial Energy Technology Fund and various other initiatives supporting industrial decarbonization have created favorable conditions for market growth. The country's focus on developing advanced manufacturing capabilities and upgrading industrial infrastructure continues to drive demand for innovative motor solutions.

Industrial Motors Market in Asia-Pacific

The Asia-Pacific region represents the largest market for industrial motors globally, driven by rapid industrialization, increasing manufacturing activities, and growing investments in automation across various sectors. The region encompasses major industrial economies including China, Japan, and India, each contributing significantly to market growth. The increasing focus on energy efficiency, coupled with government initiatives promoting industrial automation, has created a robust environment for market expansion.

Industrial Motors Market in China

China maintains its position as the dominant force in the Asia-Pacific industrial motors market. The country's market leadership is driven by extensive manufacturing capabilities, rapid industrial automation, and significant investments in technological advancement. The government's emphasis on industrial upgrading through initiatives like "Made in China 2025" has accelerated the adoption of advanced motor technologies. The presence of major manufacturing facilities and the continuous expansion of industrial infrastructure further strengthen China's position in the regional market.

Industrial Motors Market in India

India emerges as the fastest-growing market in the Asia-Pacific region. The country's industrial motors market is experiencing rapid expansion driven by increasing industrialization, growing manufacturing activities, and significant investments in infrastructure development. The government's push towards manufacturing through initiatives like "Make in India" and the increasing focus on energy efficiency have created substantial opportunities for market growth. The rapid expansion of sectors such as automotive, textiles, and food processing continues to drive demand for industrial motors. The size of the electric motor market in India is expected to grow significantly, reflecting the country's industrial growth trajectory.

Industrial Motors Market in Rest of the World

The Rest of the World region, encompassing Latin America and the Middle East & Africa, represents an emerging market for industrial motors with significant growth potential. Latin America emerges as the largest market in this region, driven by substantial investments in manufacturing and mining sectors, particularly in countries like Brazil. The region's industrial motors market is characterized by increasing automation in manufacturing processes and a growing emphasis on energy-efficient solutions. The Middle East & Africa region, while smaller in market size, shows promising growth potential driven by investments in oil & gas infrastructure and increasing industrial automation. Latin America leads in market size while also maintaining the highest growth rate in this region, supported by ongoing industrialization and modernization efforts across various sectors.