Electric Motor Sales Industry Overview
The global electric motor sales market size was valued at USD 142.7 billion in 2020 and is expected to reach USD 232.5 billion by 2028, registering a CAGR of 6.4% over the forecast period.
An increase in awareness regarding green vehicles among customers has been a key factor driving the market. Besides this, a rising number of government incentives to encourage sales of green vehicles for safeguarding the environment from carbon emissions is expected to provide a fillip to the market. Electric motors have been observing several advancements in technology over the past few years, owing to which its demand is gaining traction. Additionally, the advent of better insulation materials has improved operational efficiency and the product’s life, which has subsequently driven the market. The market is estimated to witness noteworthy growth over the forecast period owing to an increase in automobile production over the forecast period.
Gather more insights about the market drivers, restrains and growth of the Global Electric Motor Sales Market
The product is used in fans, pumps, compressors, machine tools, domestic appliances, electric cars, HVAC applications, power tools, and automated robots. These high-efficiency motors are gaining importance, owing to various factors. These include long operating life, low maintenance, energy consumption, and a high tolerance for fluctuating voltages, thus enabling cost savings. Countries such as Brazil, the U.S., Argentina, China, and India are major markets, with a high adoption rate for energy-efficient products in both the industrial and agricultural sectors.
The demand for energy-efficient motors is driven by rising electricity prices and stringent electricity consumption standards. Additionally, stringent manufacturing and designing standards for improving their efficiency are further mandating manufacturers to develop efficient products. The market is gradually shifting towards the adoption of efficient motorized systems. However, lack of awareness about their advantages and high initial purchase cost are keeping the market from realizing its utmost potential.
Environmental benefits offered by electric motors are boosting their implementation in electric vehicles. These machines aid in augmenting a device’s efficiency, as compared to standard ones, and saving costs related to energy consumed. Moreover, rising responsiveness towards environmental changes and the greenhouse effect is anticipated to shift consumers’ focus towards electric type, which is projected to bolster the demand. The need for low power consumption and improved efficiency products is poised to fuel the demand for the product over the next few years.
Electric Motor Sales Market Segmentation
Based on the Motor Type Insights, the market is segmented into AC, DC and Hermetic Motor.
In terms of revenue, the AC motor segment dominated the electric motor market and accounted for the largest revenue share of 70.7% in 2020. Growing sales of electric vehicles and the subsequent scope of the machine type are also expected to spur the segment’s growth over the forecast period.
Brushless DC motors are widely used owing to their low cost of maintenance, thus, generating higher revenue in the DC segment.
However, the hermetic type is estimated to witness the highest CAGR of 7.0% from 2021 to 2028, owing to ease of handling, less maintenance, and easy transportation. The segment’s growth can also be attributed to increasing demand from HVAC system manufacturers backed by suitability in such applications.
Based on the Power Output Insights, the market is segmented into Integral HP Output and Fractional HP Output.
In terms of revenue, the Fractional Horsepower (FHP) output segment dominated the market and accounted for the largest revenue share of 87.3% in 2020.
The Integral Horsepower (IHP) output segment is expected to witness the highest CAGR from 2021 to 2028. The high growth of this segment is attributable to the increasing demand for these motors for industrial applications.
Based on the Application Insights, the market is segmented into Industrial Machinery, Motor Vehicles, HVAC Equipment, Aerospace & Transportation, Household Appliances and Others.
In terms of revenue, the motor vehicles segment dominated the electric motor sales market and accounted for the largest revenue share of 40.5% in 2020.
The HVAC equipment, such as commercial and industrial air conditioners, relies heavily on electric motors. The segment is poised to experience the fastest growth at a CAGR of 8.0% from 2021 to 2028. Rising applications of electric motors in various residential and office buildings, hotels, and warehouses, are likely to encourage the growth of the segment.
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Asia Pacific dominated the electric motor market and accounted for the largest revenue share of 48.6% in 2020. This is attributable to advancements in the agriculture sector and enormous investments in industrialization in countries, including China, India, South Korea, and Australia.
Europe and North America region held a high market share in 2020 and are witnessing rising demand for the product. These regions are the largest market for premium efficiency motors, which are used in HVAC, industrial applications, and electric cars.
Growth opportunities for the market in Latin America and the Middle East and Africa are projected to rise soon, owing to increasing government funding.
Market Share Insights
March 2020: Wolong Electric, a subsidiary of Wolong, acquired GE’s small industrial motors business for USD 160 million. In reference to market share, this procurement is anticipated to assist Wolong gain a leading position.
February 2020: The two new traction motor systems i.e., the 200 kW Ni200Ex and 50 kW Ni50Ex, launched by Nidec Corporation, based on the company’s original 150 kW E-Axle (fully integrated traction motor system with an electric motor, reduction gearbox, and inverter).
Key Companies Profile:
The market comprises several small and large-sized players worldwide. Companies are increasingly focusing on research and development projects to increase the efficiency of their offerings. Some of the prominent players in the electric motor sales market include,
Baldor Electric Company, Inc.
Franklin Electric Co., Inc.
Asmo Co., Ltd.
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