Induction Motors Market Size, Share & Trends Analysis Report By Product Type (Single Phase Induction Motors, Three-Phase Induction Motors), By End-User (Industrial, Commercial, Residential), By Application (Pumps, HVAC Fans, Material Processing, Compressed Air, Material Handling , Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Induction Motors Market Size

The global induction motors market size was valued at USD 19.2 billion in 2023. It is projected to reach from USD 20.5 billion in 2024 to USD 36 billion by 2032, registering a CAGR of 7.2% during the forecast period (2024-2032). The growing utilization of renewable energy systems such as wind turbines stimulates the global demand for induction motors.

An induction motor, called an AC electric motor, generates torque by the interaction between a magnetic field produced in the stator and the current generated in the rotor coils. Most machines primarily favor this type of motor over conventional ones. It possesses more potency and exhibits a higher level of environmental friendliness than traditional alternatives. Its high endurance makes it a suitable choice for industries such as automotive and manufacturing, as it requires less maintenance. The increasing popularity of this product can be attributed to its ability to function effectively under diverse weather situations.

The changing preferences for automated production and process control systems increase the demand for dependable and effective induction motors. Furthermore, there has been an increase in the utilization of induction motors in a wide range of food machinery, including mixers, grinders, and conveyors. The market is being favorably influenced by increased consumption of processed and ready-to-eat (RTE) food products, driven by factors such as rising urbanization, busy schedules, and the growing spending power of consumers. In addition, the market is experiencing substantial expansion due to the automotive industry's notable growth, the rising demand for hybrid and luxury vehicles, and the growing requirement for improved vehicle convenience and safety features.

Highlights

• Single-phase induction motor generates the highest revenue share based on type.
• Industrial generates the highest revenue share based on end users.
• HVAC fans generate the highest revenue share based on application.

Induction Motors Market Growth Factors

Increased production of electric vehicles

The electric car market has rapidly expanded due to ongoing progress in the automotive industry and favorable government policies, including grants, subsidies, and tax incentives. Three-phase induction motors, especially in electric vehicles, are commonly utilized because of their notable efficiency, effective speed control, and absence of commutators, which are considered crucial drivers for market expansion. Furthermore, in the context of electric cars, these motors can replace permanent magnets. Therefore, the growing production of electric vehicles is anticipated to drive the global market.

In 2019, Ford allocated USD 1.45 billion towards enhancing its Detroit plants in the United States. This investment aims to manufacture electric, autonomous, and sports utility cars, with the primary goal of increasing output. Consequently, this will significantly impact the demand for induction motors. In 2019, Toyota disclosed its intention to allocate USD 749 million towards expanding its manufacturing facilities in the United States, aiming to augment the production capacity of electric and hybrid automobiles. In 2020, General Motors pledged to increase its electric vehicle production by investing over USD 7 billion.

Moreover, several nations' governments have made substantial financial commitments to the progress of electric vehicles. In 2019, the German government committed to allocating approximately USD 3 billion towards developing the electric vehicle industry in the region. Hence, these investments and developments are expected to be the main catalysts for the expansion of the electric vehicle industry and, subsequently, the induction motor market.
Increasing Manufacturing and Industrial Activities

Additionally, induction motors are utilized in several industrial applications that enhance the firm's productivity. These motors are commonly employed in pumps, hoists, lifts, electric shavers, cranes, crushers, and other oil extraction equipment due to their affordability, durability, lack of maintenance requirements, and ability to function in any environment. Anticipated manufacturing and industrial activity growth is projected to increase demand for induction motors. UNIDO reports that global industrial production grew by 4.2 percent in the first quarter of 2022. In October 2022, there was a 3.3% year-on-year increase in industrial output in the United States, higher than the 2.4% growth observed in manufacturing. Increased industrial and manufacturing production would drive the need for induction motors, leading to overall market expansion in the projected timeframe.

Restraining Factors

Easy availability of low-quality induction motors

The market for induction motors is characterized by a high degree of fragmentation, with a substantial presence of domestic and international players. Product quality is a critical factor for distinguishing products in this market. The structured sector in the market primarily caters to industrial consumers and upholds exceptional product quality, whereas the unorganized sector provides cost-effective alternatives to access local markets. Most domestic producers of Induction Motors focus on the unorganized sector and compete fiercely with international providers in their particular marketplaces. Prominent industry participants face fierce competition from unorganized suppliers offering cheap and substandard Induction Motors. This poses a significant obstacle to the market's expansion.

Market Opportunities

Increasing use of squirrel cage motors

Squirrel cage motors are a subset of induction motors that utilize electromagnetism to move. Squirrel cage induction motors are widely preferred in the induction motor market due to their affordability, ease of maintenance, high efficiency, effective heat regulation, and safety characteristics. NEMA and the IEC have established standardized categories for squirrel cage motors, determined by their speed-torque characteristics. This allows for using interchangeable motors from different manufacturers, making motor replacement easier. The NEMA standard frames facilitate the selection of the appropriate motor by only considering the operational features of the project. Squirrel cage motors of Class A are the predominant type. Their initial torque and current are within the usual range, and their slip is less than 5% of the synchronous speed. Typical applications include fans, compressors, conveyors, and other devices with low inertial loads that necessitate rapid motor acceleration.

Product launches

Several product launches and advancements occur in the induction motor market throughout the projected timeframe. In October 2023, Renesas Electronics Corporation, a prominent worldwide semiconductor solutions firm, introduced inductive position sensor (IPS) technology. This technology is utilized in motor position sensor ICs for precise measurement in robots and numerous industrial applications. Renesas IPS technology utilizes sensing elements consisting of copper coils engraved on a printed circuit board (PCB) to detect the position of metallic targets.

Similarly, Nidec Corporation introduced SynRA (Synchronous Reluctance Motor with Aluminum Cage Rotor) in June 2022. SynRA is a high-efficiency motor that combines the concepts of a synchronous reluctance (SR) motor with an induction motor coupled with an aluminum cage rotor. This motor was specifically developed for the US market. When Nidec's SynRA is activated, it functions as an induction motor and demonstrates superior efficiency to the cage-type induction motor while minimizing energy loss.

Regional Insights

Asia-pacific dominant region with 7% growth rate

Asia-Pacific is the most significant global market shareholder and is estimated to grow at a CAGR of 7% over the forecast period. The Asia-Pacific region is expected to make the most significant contribution to the growth of the induction motor market in the forecast period. This is primarily owing to a rise in investment aimed at automating various processing processes across multiple sectors. Furthermore, the growing use of induction motors in electric vehicles has substituted DC motors because of their enhanced efficiency and reduced weight.

Additionally, the region's oil and gas, automotive, mining and metal, and construction sectors are seeing consistent expansion, presenting significant growth prospects for international induction motor companies. Southeast Asia has abundant hydrocarbon resources, such as natural gas and petroleum. China, in 2021, emerged as the dominant oil producer in the region, contributing approximately 4 million barrels of oil per day, according to British Petroleum. In May 2022, China's National Energy Agency established a goal to raise domestic crude oil production to over 1.5 billion barrels in 2022, following the government's emphasis on the significance of crude oil exploration and production.

Moreover, the automobile sector in the Asia-Pacific area is currently experiencing a notable change, as many governments are actively encouraging the use of electric vehicles. Favorable government legislation is also a pivotal factor in fostering the expansion of the electric car industry. For example, the Chinese government has established a target of achieving a 40 percent share of electric vehicles (EVs) in total car sales by 2030.

North america: fastest growing region with 7.9% growth rate

North America is estimated to grow at a CAGR of 7.9% over the forecast period. The growth of the induction motor market in North America is linked to the rising use of induction motors in various sectors such as HVAC, automotive, consumer electronics, and industrial applications. This is due to their capability to provide consistent torque at rated speeds. The growing number of applications and continuous technical advancements in the manufacturing industry are driving the induction motor market in the area. The induction motor market in North America is experiencing significant expansion due to the increasing demand for induction motors in various sectors, such as large-scale industrial manufacturing, aerospace, military, and automotive industries. Alongside the growing demand for electric vehicles in the United States, the Prevalence of Induction motors is also experiencing expansion in North America.

Europe is a growing market with various essential elements propelling the expansion of the global market. The growing acceptance of electric vehicles is a significant catalyst, as induction motors are preferred for their high efficiency and cost-effectiveness in EVs. Furthermore, a significant and growing need for energy-efficient solutions in several sectors, such as industrial and residential, is driving the market's growth. Technological progress and breakthroughs in motor designs are also playing a vital role. Moreover, strict laws targeting energy efficiency enhancement in electrical appliances and machines are driving the market's progress.

Induction Motors Market Segmental Analysis

By product type

Based on the product type, the market is segmented into Single Phase Induction Motors and Three Phase Induction Motors. The three-phase segment dominated the market in 2023. Three-phase induction motors are extensively utilized as AC motors for generating mechanical power in industrial settings. Approximately 70% of the machinery used in industrial applications employs three-phase induction motors due to their cost-effectiveness, durability, lack of maintenance requirements, and ability to function in any environmental setting. The expansion of three-phase induction motors is also driven by increased awareness of environmental protection across industries, as these motors have a low emission rate. Furthermore, the transition towards industrial automation, rising consumer confidence, and attractive investment plans stimulate the need for three-phase induction motors in industrial applications.

The single-phase induction motors segment is the fastest growing. Single-phase induction motors are frequently utilized in low-power settings, such as domestic appliances, tiny pumps, and fans. They are appropriate for applications with a power requirement of less than five horsepower (HP). Their operation depends on a single-phase alternating current (AC).

By end user

Based on the end-user, the market is segmented into Industrial, Commercial, and Residential. The industrial segment dominated the market in 2023. Induction motors are frequently employed in manufacturing processes, heavy machinery, and automated systems within the industrial sector. These motors are especially favored for applications that need high levels of power and efficiency. These applications often choose three-phase induction motors because of their superior efficiency and torque capabilities. Industries frequently require robust and resilient motors that can operate for extended durations, and induction motors typically fulfill these requirements.

The commercial segment is the fastest growing. Induction motors find application in various equipment in the business sector, including elevators, escalators, and commercial HVAC systems. Additionally, they are employed in office equipment such as photocopiers and retail environments for conveyor systems. Induction motors, whether single-phase or three-phase, are used based on the specific power demands and operational requirements. In the business sector, the emphasis is typically placed on ensuring reliability and minimizing the need for frequent maintenance.

The residential segment is the second largest. Single-phase induction motors are primarily utilized in the residential sector. These are used in domestic appliances such as washing machines, refrigerators, and tiny fans. The motors used in this industry often have low power ratings and are engineered explicitly for shorter operational durations in contrast to their counterparts employed in industrial and commercial settings. The primary focus is achieving a small size, reducing noise levels, and ensuring cost.

By application

Based on application, the market is segmented into Pumps, HVAC Fans, Material Processing, Compressed Air, Material Handling, and Others. The HVAC fans segment dominated the market in 2023. The HVAC fans sector primarily dominated the global market in 2022. HVAC fans are designed to facilitate air movement inside heating, ventilation, and air conditioning (HVAC) systems. They are a vital element of air management systems that bring or extract fresh air into buildings. HVAC fans can be installed on an outside wall as a ventilation unit or above the ceiling as a plenum fan. Alternatively, they can be incorporated into a ducted system as a duct fan. An electric motor rotates the fan or blower, generating a unidirectional airflow. Frequently, the air is pre-warmed or cooled.

The pump segment is the fastest growing. Pumps substantially impact propelling the expansion of the global market. Induction motors are extensively utilized in pump applications across diverse sectors because of their high efficiency, dependability, and capability to manage loads with high inertia. The growing need for water and wastewater treatment and the expansion of agricultural and industrial sectors drive the requirement for solid pump systems powered by induction motors. These applications, especially in areas experiencing rapid industrialization and urbanization, play a vital role in enhancing the overall market expansion for induction motors.

Recent Developments

• May 2024– Regal Rexnord Corp., a maker of electric motors, expanded its Leeson brand by incorporating the Marathon NEMA AC induction motors with frame sizes below 182T into the Leeson product catalog.
• February 2024- AIR, a manufacturer of eVTOLs (electric vertical takeoff and landing aircraft) for consumers, partnered with Nidec Motor Corporation, a prominent manufacturer of motors and controls for commercial, industrial, and appliance applications. The collaboration aims to develop the engine for AIR's two-seater eVTOL aircraft, AIR ONE, which will be produced for the market. The two businesses will collaborate to create and deliver a motor tailored explicitly for mid-sized electric vertical takeoff and landing (VTOL) aircraft, thereby addressing a gap in the rapidly growing advanced air mobility (AAM) sector.