Electric AC Motor Market Trends and Forecast
The future of the global electric AC motor market looks promising with opportunities in the industrial machinery, motor vehicle, hvac equipment, aerospace & transportation, and household appliances markets. The global electric AC motor market is expected to grow with a CAGR of 6.6% from 2025 to 2031. The major drivers for this market are the rising adoption of electric vehicles & industrial automation, the growing focus on energy efficiency & sustainability, and the increasing investments in infrastructure & hvac systems.
• Lucintel forecasts that, within the type category, induction AC motor is expected to witness higher growth over the forecast period.
• Within the end use category, industrial machinery is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Electric AC Motor Market
The electric AC motor market is changing due to the global emphasis on energy efficiency, the growth of smart technologies, and the growing electrification across sectors.
• Increased Use of High-Efficiency Motors (IE3, IE4, IE5): A major upcoming trend is the increasing use of high and ultra-premium efficiency motors (IE3, IE4, and even the new upcoming IE5 standards). With a push from aggressive regulations and a need to cut energy usage and operating expenses, industries are finding it more necessary to replace existing, less efficient motors with these newer models. This change results in significant energy savings and lower carbon footprint across applications.
• Smart Features and IoT Connectivity Integration: Integration of sensors, communication modules, and IoT platforms into electric AC motors is a major upcoming trend. Smart motors can offer real-time performance, temperature, vibration, and energy consumption data, allowing predictive maintenance, remote monitoring, and integration with industrial automation systems. This connectivity improves operational efficiency, minimizes downtime, and optimizes energy consumption.
• Rising Demand for Permanent Magnet Synchronous Motors: Permanent Magnet Synchronous Motors (PMSMs) are picking up strong momentum because of their high efficiency, high power density, and accurate control potential. Developments in magnet materials and motor design are propelling their use across industrial equipment, robotics, HVAC systems, and electric vehicles. The performance benefits and energy-saving potential of PMSMs are fueling their growing usage.
• Design of Compact and Light-Weight Motors: There are increasing needs for electric AC motors with high power density, leading to compact and light-weight motors. This is of particular relevance to applications where space and weight are important considerations, including robotics, aerospace, and portable industrial equipment. The evolution of materials, cooling methods, and motor topologies is allowing for the creation of these high-performance, small-footprint motors.
• More Customization and Application-Specific Motor Solutions: With industries becoming more specialized, there is growing demand for custom electric AC motor solutions designed to meet the unique needs of individual applications. Companies are now providing motors with unique torque-speed profiles, environmental protection levels, and mounting options to maximize performance and efficiency for distinct industrial processes and equipment.
These trends are redesigning the electric AC motor industry by creating competition to lead through higher energy efficiency, added intelligence and interconnectedness, superior operational characteristics, light and compact form factors, and more application-specific solutions to varied industrial demands. The priority given to sustainability as well as embracing digital technology are the top driving forces of change.
Recent Development in the Electric AC Motor Market
The market for electric AC motors is witnessing relentless innovation aimed at enhancing energy efficiency, performance, and integration. Following are five of the recent developments:
• Variable Frequency Drive (VFD) Technology Advancements: There have been tremendous advancements in Variable Frequency Drive (VFD) technology, which are allowing for more accurate and efficient control of AC motors. Latest VFDs provide better energy efficiency algorithms, better communication protocols for smooth integration with automation systems, and smaller and stronger designs, resulting in increased adoption and energy savings.
• Advancement of Highly Magnetic Materials: Research and development in magnetic materials, such as neodymium magnets and amorphous metal, are resultantly creating increasingly powerful and more efficient AC motors. The innovative materials allow increased torque-to-weight ratios, efficient energy conversion, and minimized motor size, raising overall performance levels.
• Introduction of Integrated Motor-Drive Units: There is a growing trend towards the development and adoption of integrated motor-drive units, where the motor and the VFD are combined into a single compact package. This integration simplifies installation, reduces wiring complexity, improves electromagnetic compatibility, and can offer cost savings, making it an attractive solution for various applications.
• Emphasis on Digital Twins and Predictive Maintenance: Rising application of digital twins and predictive maintenance approaches is affecting the AC motor industry. Digital models of motors, with sensor information and analytics, enable real-time performance monitoring, pre-emptive detection of probable failure, and maintenance scheduling, cutting downtime and prolonging motor life.
• Efforts for Higher Efficiency Classes to be Standardized: Regulatory agencies and industry organizations are always looking to define and promote higher standards of energy efficiency for AC motors, including the current IE4 and upcoming IE5. The efforts at standardization encourage motor manufacturers to think creatively and innovate more efficient motors, while promoting end-users toward more energy-aware buying choices as well.
These advances are making a major impact on the electric AC motor market by allowing for more accurate and efficient motor control through high-end VFDs, enhancing motor performance with innovative magnetic materials, streamlining system integration with integrated units, boosting reliability with digital twins and predictive maintenance, and driving the uptake of higher efficiency motors through standardization.
Strategic Growth Opportunities in the Electric AC Motor Market
The electric AC motor market offers varied strategic growth opportunities across different application segments, fueled by the growing need for automation, energy efficiency, and electrification.
• Industrial Automation and Robotics: The growing usage of industrial automation and robotics in manufacturing plants provides considerable growth opportunities for high-performance AC motors, especially servo motors and PMSMs, with accurate motion control and high efficiency in robotic arms, automated guided vehicles (AGVs), and other automatic equipment.
• Hybrid Electric Vehicles (HEVs) and Electric Vehicles (EVs): The fast-expanding electric vehicle market is a significant growth opportunity for dedicated AC traction motors, especially PMSMs and induction motors, with high power density and efficiency for automotive propulsion systems. The expanding production and use of EVs and HEVs will continue to propel demand in this market.
• HVAC (Heating, Ventilation, and Air Conditioning) Systems: The HVAC industry is progressively embracing high-efficiency AC motors, primarily PMSMs and ECMs, with VFDs, to minimize energy usage in compressors, pumps, and fans of residential and commercial buildings, supported by energy efficiency policies and cost efficiency.
• Pumps and Compressors: Most industries depend on compressors and pumps, and energy-efficient AC motor demand to power this equipment is increasing. PMSMs and high-efficiency induction motors, usually with VFDs, provide huge energy savings in a wide range of applications from manufacturing and agriculture to oil and gas and water treatment.
• Renewable Energy Systems (Wind Turbines and Solar Tracking): AC electric motors have key functions in renewable energy systems, including pitch and yaw control in wind turbines and solar panel tracking systems. The expanding installation of renewable energy infrastructure across the globe is propelling demand for efficient and dependable AC motors for these purposes.
These growth opportunities through strategic growth across prominent applications are affecting the electric AC motor market by pushing innovation in motor design and control technologies customized to meet the individual needs of each industry. The growing emphasis on automation, electrification, and energy efficiency is fueling strong demand for sophisticated AC motor solutions.
Electric AC Motor Market Driver and Challenges
The market for electric AC motors is shaped by a multifaceted interaction of technological, economic, and regulatory forces that spur its development while posing some barriers to its global spread and innovation.
The factors responsible for driving the electric AC motor market include:
1. Energy Efficiency Regulations: Rigorous energy efficiency regulations and government standards that impose higher energy efficiency levels for electric motors are one of the chief drivers of the market, driving manufacturers to introduce and consumers to use more efficient motors (IE3, IE4, IE5).
2. Increasing Emphasis on Automation and Industrialization: The rising use of automation and robots in production and other sectors requires the utilization of accurate and effective electric AC motors, especially servo motors and PMSMs, fueling market development in such industries.
3. Increasing Energy Expenses: The rise in the price of electricity increases the economic incentive for end-users to adopt energy-efficient motors and motor control systems such as VFDs, and thus these products experience more demand to offset operational costs.
4. Transportation and Other Sectors Electrification: The increasing trend of electrification in transportation (EVs, HEVs) and other applications (e.g., electric pumps, compressors) is generating huge demand for high power density and efficient specialized AC motors.
5. Motor and Control Technologies Advancements: Ongoing advancements in motor design, magnetic material, power electronics for use in VFDs, and intelligent control systems are enhancing electric AC motor performance, efficiency, and features, thus making them more attractive for expanded applications.
Challenges in the electric AC motor market are:
1. High Capital Expenditure of Premium Efficiency Motors and VFDs: Although promising longer-term energy cost savings, the premium initial capital expenditure of premium efficiency motors and VFDs may prove inhibitive, particularly for smaller organizations or in sensitive price markets.
2. Integration and Retrofitting Complexity: Merging sophisticated motor control systems and high-efficiency motors with existing industrial apparatus or building structures may be complicated and expensive at times, thus impeding large-scale retrofitting and upgrades.
3. Unawareness and Skilled Labor: Inadequate awareness among certain end-users regarding the advantages of high-efficiency motors and the absence of skilled installers for commissioning, installation, and maintenance of sophisticated motor control systems may retard market adoption.
Overall, the electric AC motor market is dominated by energy efficiency regulations that are stringent in nature, rising emphasis on automation and industrialization, increasing cost of energy, the trend towards electrification, and technological improvements. Nevertheless, issues pertaining to high upfront expenses, integration complexity, and poor awareness and talent pool must be overcome for the market to see its full potential growth.
List of Electric AC Motor Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies electric AC motor companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the electric AC motor companies profiled in this report include-
• ABB
• TOSHIBA CORPORATION
• Siemens
• Johnson Electric Holdings Limited
• Allied Motion
• Rockwell Automation
• AMETEK
Electric AC Motor Market by Segment
The study includes a forecast for the global electric AC motor market by type, power output, end use, and region.
Electric AC Motor Market by Type [Value from 2019 to 2031]:
• Synchronous Ac Motor
• Induction Ac Motor
Electric AC Motor Market by Power Output [Value from 2019 to 2031]:
• Integral Hp Output
• Fractional Hp Output
Electric AC Motor Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Electric AC Motor Market
The electric AC motor market is going through tremendous change fueled by growing demand for energy efficiency, automation, and electrification of several industries. Current trends are marked by innovation in motor design, materials, and control technologies to enhance performance and minimize energy use. The addition of intelligent features and connectivity is also becoming more popular. In addition, the rise in energy efficiency laws and the increasing use of variable frequency drives (VFDs) are profoundly influencing market conditions in various regions, impacting manufacturing and usage trends.
• United States: The United States electric AC motor market is experiencing a predominant focus on energy efficiency due to regulatory guidelines and the expanding use of VFDs in industrial and commercial purposes. Recent trends have involved the introduction of high-efficiency premium and super-premium (IE3 and IE4) motors and incorporation of sensors and communication interfaces for predictive maintenance and smart factory solutions. The trend is also to demand bespoke motor solutions tailored to particular industrial processes.
• China: China is the biggest electric AC motor market in the world, driven by its enormous manufacturing base. Recent trends have seen a significant thrust towards production and use of high-efficiency motors to fulfill national energy-saving targets. The market is also witnessing fast development and production of permanent magnet synchronous motors (PMSMs) for industrial and electric vehicle applications. In addition, motor integration with industrial automation systems is growing.
• Germany: The German electric AC motor market is dominated by an emphasis on technologically advanced, high-quality, and energy-efficient motors. Advances include advancements in motor design to deliver higher power density and smaller sizes, along with the addition of advanced control systems for optimum motion control and energy efficiency. There is also an emphasis in the market on using sustainable manufacturing processes and materials for motor construction.
• India: The Indian electric AC motor market is growing strongly with rising industrialization and infrastructure construction. Recent trends involve a high demand for energy-efficient motors as a means to save energy expenditure and meet changing efficiency requirements. The market also sees a higher uptake of VFDs and a slow trend towards more complex motor technologies for industrial and farming applications.
• Japan: The Japanese electric AC motor market is dominated by the trend of small, high-performance, and energy-efficient motors. New trends have seen improvement in motor design for robotics, automation, and consumer electronics with an emphasis on accuracy and efficiency. There is also great focus on the creation and application of permanent magnet motors for their high efficiency and small size in applications.
Features of the Global Electric AC Motor Market
Market Size Estimates: Electric AC motor market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Electric AC motor market size by type, power output, end use, and region in terms of value ($B).
Regional Analysis: Electric AC motor market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, power outputs, end uses, and regions for the electric AC motor market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the electric AC motor market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for electric AC motor market?
Answer: The global electric AC motor market is expected to grow with a CAGR of 6.6% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the electric AC motor market?
Answer: The major drivers for this market are the rising adoption of electric vehicles & industrial automation, the growing focus on energy efficiency & sustainability, and the increasing investments in infrastructure & hvac systems.
Q3. What are the major segments for electric AC motor market?
Answer: The future of the electric AC motor market looks promising with opportunities in the industrial machinery, motor vehicle, hvac equipment, aerospace & transportation, and household appliances markets.
Q4. Who are the key electric AC motor market companies?
Answer: Some of the key electric AC motor companies are as follows:
• ABB
• TOSHIBA CORPORATION
• Siemens
• Johnson Electric Holdings Limited
• Allied Motion
• Rockwell Automation
• AMETEK
Q5. Which electric AC motor market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, induction AC motor is expected to witness higher growth over the forecast period.
Q6. In electric AC motor market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the electric AC motor market by type (synchronous AC motor and induction AC motor), power output (integral HP output and fractional HP output), end use (industrial machinery, motor vehicles, HVAC equipment, aerospace & transportation, household appliances, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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