Industrial Motors Market Size, Share & Trends Analysis Report By Type of Motor (Alternating Current Motor (AC) Motors, Direct Current (DC) Motors, Other Types of Motors (Servo and Electronically Commutated Motors (EC))), By Voltage (High Voltage, Medium Voltage, Low Voltage), By Efficiency (IE1, IE2, IE3, IE4), By Phase (Single Phase, Three Phase), By Product Category (Permanent Magnet, Non-Permanent Magnet), By End-User (Oil and Gas, Power Generation, Mining and Metals, Water and Wastewater Management, Chemicals and Petrochemicals, Discrete Manufacturing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global industrial motors market size was valued at USD 6.7 Billion in 2023 and reached USD 7.0 Billion in 2024. It is expected to reach USD 9.0 Billion in 2032, growing at a CAGR of 3.3% over the forecast period (2024-32).

An electromechanical machine, often known as an industrial motor, is employed in substantial industrial businesses worldwide. Electrical energy is converted into mechanical energy by industrial motors. Industrial motors are highly durable and convenient. They create a linear or rotary force. Electric motors can be powered by direct current (DC) sources such as batteries. However, they are more frequently driven by alternating current (AC) sources such as generators or the power grid. The industrial motors market share is classified into the type of motor, voltage, end-user, and regions.

Market Dynamics

Top industrial motors market drivers

• Growing shift toward smart motors

Since its existence, the industrial motors market trends has experienced phenomenal evolution. The designs and installation of traditional motors have evolved dramatically since the advent of smart technologies. This feature drives the development of the industrial motors market share. Through the integration of digital technology, motors have become more competent and versatile. Motors can be integrated with intelligent motor controllers and advanced communication capabilities to improve performance and obtain operational economies. Smart motors enable predictive machine diagnostics, reducing downtime and improved process efficiency.

The industrial internet of things (IIoT), which offers a higher return on investment than traditional motors, has led to the substitution of conventional machinery with smart machinery. This aspect encourages the usage of smart motors. Due to technological advancements, vendors may now design smart motors that use less energy and have higher efficiency at lower costs. Vendors of smart motors claim that energy consumption can be reduced by 40%. The need for industrial motors is growing as a result of this aspect.

For example, smart motor technology is now available on Siemen's low-voltage motors. All included a smart box with built-in sensors, a Wi-Fi communication module, and a power supply mounted on top of the motor. This can be connected to MindSphere, allowing for a low-cost cloud connection. Analysis of the motor's status data and predictive maintenance are advantages. Also, MindApp is used to visualize all user data.

• Demand for energy efficiency owing to government regulations

Electric motors may be developed for a wide range of industries, including automotive, construction, agricultural, and other industrial sectors, given the significant technological advancements in the modern era. Nowadays, every production company's principal strategy is to enhance production efficiency. Consumption of electricity by motors can strain a company's operational budget, as industrial engineers are well aware. 

Approximately half of the power consumed in the industrial sector is used to operate motors such as pumps, fans, conveyors, and compressors, according to the US Energy Information Administration. The bulk chemicals, petroleum, food, coal products, primary metals, and paper industries account for around two-thirds of this machine-driven demand. 

Based on the price of power per kilowatt-hour, operating the motor is between 70% and 90% of the entire life-cycle cost of the motor. The cost of an electric motor's life cycle is heavily influenced by its energy consumption. An electric motor's average lifespan is 20 years; during this time, its energy consumption covers roughly 90% of the overall life-cycle cost. 

The energy consumption increases as it ages, resulting in higher operating costs. This mandates the replacement of outdated motors with new energy-efficient motors, rising demand for industrial motors. As a result, the adoption of energy-efficient motors can assist corporations in lowering costs and increasing productivity, thereby creating market potential. In March 2021, for example, ABB pushed industry and government to accelerate the use of high-efficiency motors and other technologies to tackle climate change, claiming that they can reduce world electricity consumption by 10%.

Emerging industrial motors market restraints

• High initial investments for procuring new equipment and upgrading existing equipment

Many constraints hamper the adoption of energy-efficient motors. The significant spending for most motors is the initial purchase cost, energy expenses, and maintenance costs. The total cost of ownership estimate supports a company in selecting the most cost-effective motor. Although the initial cost is relatively expensive, a review of the life cycle suggests that high-efficiency motors can assist reduce expenses in most circumstances.

Energy efficiency initiatives have a low priority compared to a company's critical investments. The higher initial cost of more efficient motors, the cost of upgrading motor systems, and the cost of enhancing motor repair facilities are all financial limitations. When considering the type of M2M connections used, the slow adoption rate of industrial IoT technologies can be attributed to the higher costs of maintaining their connections. Furthermore, frequent changes in technology and networking entail high prices, which are frequently more significant than the initial investment. This is a stumbling block to adoption.

What are future opportunities industrial motors market?

• Emerging product development opportunity for key players

With exponential improvements in the energy and utility segments, the industry is transforming with the emerging trend of Industry 4.0. At the same time, laws aimed at reducing energy consumption, lowering carbon dioxide (CO2) emissions and ensuring reliable power supply systems boost demand in the global industrial motors market share. Efficient motors contribute to lower energy costs and CO2 emissions. 

According to ABB, electrical motors account for about 65% of the electricity consumed in industrial applications. As a result, the industries' energy-saving potential is significant. Due to the expanding industrial internet of things (IIoT) application, users of production equipment have switched their focus toward a lifetime approach while investing in vital equipment to achieve the best return on investment (RoI). Therefore, robust research and the adoption of Industry 4.0 standards in products will likely provide lucrative opportunities for the established key players to build a solid product portfolio and gain dominance in the global market. 

For example, a Genteq Ensite motor, designed by Regal Beloit Corporation, is an electronically commutated motor designed for furnace applications. It lets end users meet the criteria of the US DOE Fan Energy Rating regulation framework. With Electron wand compatibility, superior Blak Box motor testing technology, and Near Field Communication capabilities, the motor provides Internet of Things (IoT) and predictive maintenance capabilities at a low cost.

Regional Analysis

Supremacy of asia-pacific over others

The global industrial motors market share has been segregated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

With a market value of USD 7.45 billion in 2021, Asia-Pacific is the largest market for industrial motors. Smart manufacturing initiatives are also expected to drive the adoption of industrial motors in China. According to the Ministry of Industry and Information Technology, the country has started several smart manufacturing pilot projects. The government also wants to develop its intelligent manufacturing system and complete the primary industries transformation by 2025 as per the 13th Smart Manufacturing five-year plan.

The market is likely to see demand for industrial motors due to the Chinese Oil Ministry's announcement in October 2019 on the spending of USD 118 billion in the oil and gas exploration sector and the establishment of natural gas infrastructure in China over the following several years. Thus, the demand for industrial motors in Asia-Pacific is likely to soar over the forecast period.

With a market value of USD 5.88 billion in 2021, Europe is the second-largest market for industrial motors. In February 2021, a rise in export demand brought industrial activity in Germany to a 36-month high, but lockdown measures to curb COVID-19 pushed the services sector into a more profound decline.

By 2025, 84% of German manufacturers intend to invest EUR 10 billion per year in smart manufacturing technologies, including the automotive industry (1.2 billion per year), machinery, equipment, and plant engineering and construction (1.5 billion), electronics and microelectronics industry (817 million per year), and metalworking industry (817 million per year). In most industries, 75% of German companies have implemented digital solutions, and the advanced manufacturing industries in Germany employ 15 million people directly and indirectly. Thus, the investment intentions of German manufacturers to set up various domain industries are likely to boost the demand for industrial motors over the forecast period.

Segmental Analysis

The global industrial motors market has been classified based on the type of motor, voltage, end-user, and regions.

The industrial motors market has been segmented into alternating current (AC) motors, direct current (DC) motors, and other types of motors based on motor type. The alternating current (AC) motors market was valued at USD 16.46 billion in 2021, and it is projected to reach USD 22.05 billion by 2030, registering a CAGR of 3.38% during the forecast. 

The need for AC motors is being driven by companies with high processing needs and the need to increase or decrease the flow of the process according to demand and supply. Food, chemical, oil and gas, wastewater, and heavy machinery are just a few industries that use these motors. As a result, there is a growing demand for automated and efficient systems that aid in the improvement and reduction of power costs with each unit produced is the factor driving the need for AC motors.

Based on voltage, the industrial motors market has been segmented into high, medium, and low. The low voltage motors segment was valued at USD 14.31 billion in 2021, and it is projected to reach USD 19.08 billion by 2030, registering a CAGR of 3.33% during the forecast.

Low voltage (LV) motors offer a wide range of applications in various industries. Low voltage motors are used in multiple industries, including the midstream and downstream oil and gas industry, water and wastewater treatment, food and beverage processing, etc. LVs, on the other hand, have a significant advantage in terms of maintenance activities, as replacement and refurbishment costs are significantly lower, making them suitable for large-scale applications. Thus, the demand for LVs is growing.

The industrial motors market has been segmented into oil and gas, power generation, mining and metals, water and wastewater management, chemicals and petrochemicals, discrete manufacturing, and others. The oil and gas segment was valued at USD 3.43 billion in 2021, and it is projected to reach USD 4.53 billion by 2030, registering a CAGR of 3.25% during the forecast.

Industrial motors are an essential part of the oil and gas industry, and they're used in various applications, from drilling rigs to refinery pumps. These motors have been made explosion-proof and more efficient to meet industry standards. With increased investment in the upstream and midstream sectors of the oil and gas industry, demand for industrial motors is anticipated to soar.

Based on efficiency, the global industrial motors market is bifurcated into IE1, IE2, IE3, and IE4.

IE3 motors dominate the global industrial motors market due to their high energy efficiency and regulatory compliance. Established through stringent energy efficiency standards set by organizations like the International Electrotechnical Commission (IEC), IE3 motors provide significant energy savings and lower operational costs. Governments worldwide have mandated IE3 efficiency levels to reduce carbon footprints, driving their adoption in various industries. IE3 motors' robust performance, cost-effectiveness, and reduced greenhouse gas emissions make them the preferred choice for industries seeking sustainable and efficient motor solutions. This dominance is further supported by ongoing advancements and widespread availability in the market.

Based on phase, the global industrial motors market is bifurcated into a single phase and three phases.

Three-phase motors dominate the global industrial motors market due to their superior efficiency, higher power capacity, and reliability. These motors are established in the market through their widespread use in industrial applications requiring heavy loads and continuous operation. Industries such as manufacturing, construction, and mining prefer three-phase motors for their ability to deliver consistent power, reduced maintenance costs, and improved performance over single-phase motors. The dominance of three-phase motors is reinforced by their compatibility with high-power equipment, leading to increased adoption and integration into various industrial processes worldwide. This preference is driven by the need for efficient and robust motor solutions in demanding environments.

Based on product category, the global industrial motors market is bifurcated into permanent magnets and non-permanent magnets.

Permanent magnet motors dominate the global industrial motors market due to their high

efficiency, compact size, and superior performance. Established through advancements in magnetic materials and increasing demand for energy-efficient solutions, these motors are widely used in industries such as automotive, manufacturing, and renewable energy. Permanent magnet motors offer improved torque, reduced energy consumption, and lower maintenance costs compared to non-permanent magnet motors. Their dominance is driven by the growing focus on sustainability and stringent energy regulations, making them the preferred choice for applications requiring precise control and efficiency. This preference is reinforced by continuous innovation and integration into modern industrial systems.

Impact of covid-19

COVID-19 had a detrimental influence on the industrial motors market growth, owing to a halt in discrete manufacturing operations. Manufacturing sales declined 2.10% to USD 57.10 billion in April 2021, according to the Government of Canada's Monthly Survey of Manufacturing, 2021, to lower sales in 11 of 21 industries. Lower sales of transportation equipment and petroleum and coal commodities contributed significantly to the fall. The industrial machinery business, followed by the wood products and chemical industries, saw the most growth in sales.

On the supply side, the COVID-19 outbreak's quarantine measures and economic disruptions have caused a global slowdown in output and mobility, resulting in a significant decline in global oil demand. According to the International Energy Agency (IEA), the market was down 30% from a year ago in April 2020, reaching a low not seen since 1995.

With oil demand beginning to dwindle as lockdowns took effect, OPEC+ ultimately agreed to limit production on April 12th, 2020. As oil and gas production facilities were shut down, such occurrences reflected a decline in industrial motors usage in the sector. The drop in Asia-Pacific was the highest of all global regions in March 2020, at 5.40%. India recorded the most significant monthly production loss of any country in the world in April 2020, at 15.90%. Thus, the volatility in the demand and supply side during the COVID-19 pandemic hampered the market growth of industrial motors.

Market Recovery Timeline and its Future Challenges

The post-pandemic period will be crucial for the global industrial motors market growth. The recovery can be hindered by manufacturing operations, which will affect the market dynamics and product prices. Furthermore, unfavorable financial conditions and ascended expenses due to production halt and quarantine restrictions may pose challenges for the global industrial motors market. Also, limited production, support operations, labor shortages, and constraints for other end-user sectors, suppliers, and vendors may fail to meet the consumer demand. Overall, the recovery will be challenging for the global industrial motors market growth.

Recent Developments

• January 2021- Franklin Electric Co. Inc. stated that it had acquired USD 27.9 million in cash for Lubbock, Texas-based Gicon Pumps & Equipment Inc. The acquisition aims to broaden its geographic reach while expanding its distribution network of water-related products such as motors and pumps.
• January 2021- Nidec Corporation announced new factories opening in Novi Sad, Serbia, to make industrial motors.
• February 2021- Johnson Electric Holdings Limited launched a new range of Low Voltage DC (LVDC) motors for smart furniture. Actuators in smart recliners, height-adjustable desks, hospital beds, and other smart furniture products utilize LVDC motor solutions. The new LVDC motor platforms use JE advanced motor technology to provide high torque, a 17% longer life, and low operation noise (48dBA) in a small footprint.
• February 2020- Shell Nederland Chemie BV hired GE to deliver a variable-speed drive system (VSDS) and an e-house to a petrochemical complex. The VSDS from GE, consisting of a high-speed induction motor and a variable speed drive, can consistently achieve over 90% energy efficiency in the compressor train.
• September 2020- In India, ABB introduced a new line of M3BP motors for its industrial customers. It is available in frame sizes ranging from 280 to 355 mm, with 75 to 560 kW outputs. The output of these dependable made-in-India motors exceeds the set standards for motors of the same frame size.