Electric Motor Market to Reach USD 303.0 Bn by 2035, Expanding at a CAGR of 5.8% | Transparency Market Research

Rising demand for energy efficiency, growth in HVAC applications, and electrification of transport are fueling market expansion

WILMINGTON, DE, UNITED STATES, October 3, 2025 /EINPresswire.com/ -- The global electric motor market is poised for steady growth through the next decade. Valued at US$ 163.4 Bn in 2024, the market is projected to expand at a CAGR of 5.8% between 2025 and 2035, reaching US$ 303.0 Bn by the end of 2035. Demand is being driven by industrial automation, energy transition, clean transport solutions, and widespread adoption in HVAC systems and consumer appliances.

With increasing urbanization and the push for electrification across industries, electric motors are emerging as a cornerstone technology for sustainable development. Their durability, efficiency, and low maintenance make them indispensable across multiple sectors, from robotics and renewable energy to vehicles and smart home appliances.

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Market Overview

The electric motor market encompasses AC motors, DC motors, and specialized motor types widely deployed across industrial, commercial, and residential applications.

AC motors—particularly induction motors—dominate the landscape due to their low cost, reliability, and widespread use in HVAC systems, pumps, compressors, and conveyors.

DC motors, especially brushless DC (BLDC) types, are witnessing rapid growth driven by adoption in electric vehicles, drones, and medical devices.

High-efficiency models (IE3, IE4, IE5) are gaining traction as industries move toward energy savings and stricter environmental regulations.

Electric motors are a critical component of next-generation technologies, enabling electrification of transport, industrial automation, and integration into renewable energy systems.

Analyst Viewpoint

According to Transparency Market Research analysts, the electric motor market is expanding on the back of automation, clean energy adoption, and vehicle electrification. AC induction motors continue to dominate due to cost-effectiveness and reliability, while BLDC motors are the fastest-growing sub-segment in applications such as EVs, consumer electronics, and medical devices.

Manufacturers are emphasizing R&D, product customization, and strategic alliances to stay competitive. Innovations such as hairpin winding technology, IoT-enabled motors, and AI-integrated systems are setting new industry benchmarks.

However, challenges persist in terms of high initial costs for advanced motors and reliance on raw materials for large-scale manufacturing.

Key Drivers of Market Growth

1. Increasing Adoption of HVAC Applications

Electric motors are at the core of HVAC systems—powering compressors, fans, and pumps. Growing demand for air quality, comfort, and climate control across residential, commercial, and industrial settings is significantly boosting motor adoption. Energy-efficient HVAC equipment, particularly those using brushless DC motors and VFD-based systems, is replacing traditional models.

2. Rising Demand for Energy Efficiency

With electric motors accounting for 45% of global electricity consumption (IEA), efficiency gains directly reduce energy demand. Global policies mandating high-efficiency classes (IE3–IE5) are accelerating adoption in manufacturing, utilities, and transport.

3. Government Policies and Sustainable Growth Initiatives

Policy efforts worldwide—including India’s National Manufacturing Mission (2025–26) and U.S. energy-efficiency mandates—are fueling innovation and adoption of high-performance motors.

4. Electrification of Transport and Industry Automation

Electric vehicles, robotics, and renewable energy infrastructure are driving the need for advanced motor solutions. BLDC and synchronous motors are critical in high-performance, precision applications.

Segment Analysis

By Product Type

AC Motors (Induction, Synchronous): Market leaders due to cost-efficiency, reliability, and scalability across small appliances and industrial machines.

DC Motors (Brushless, Brushed): Growing rapidly in EVs, drones, and medical devices. Brushless DC motors dominate due to longevity and low maintenance.

By Power Rating

Segments include <1 kW to >300 kW, with rising demand for high-power motors in heavy industry and electric transport.

By Application

HVAC, pumps, compressors, turbines, elevators, vehicles, aerospace, consumer appliances and others. HVAC and electric vehicles are among the fastest-growing segments.

Regional Insights

North America leads the market due to advanced manufacturing, EV adoption, and strong regulatory frameworks supporting energy efficiency. The U.S. remains a major contributor with applications in aerospace, HVAC, and automotive industries.

Europe follows with demand driven by industrial automation and renewable energy integration.

Asia Pacific is the fastest-growing region, led by mass production in China, rising EV demand in India, and technological innovation in Japan and South Korea.

Latin America and Middle East & Africa are emerging markets, showing gradual adoption in industrial and infrastructure projects.

Key Players in the Electric Motor Market

The competitive landscape features global giants investing in R&D, acquisitions, and technological innovation. Key players include:

• Nidec Corporation
• Siemens AG
• ABB Ltd.
• Bosch Electric
• Johnson Electric Holdings Ltd.
• WEG S.A.
• TECO-Westinghouse
• Rockwell Automation
• Regal Beloit Corporation
• AMETEK, Inc.
• DENSO Corporation
• Wolong Electric Group
• Arc Systems Inc.
• Regal Rexnord

Recent Developments

• TECO-Westinghouse (June 2025): Unveiled next-generation Hairpin Motor Technology, improving efficiency, power density, and thermal performance.
• ABB (May 2025): Introduced Battery Energy Storage Systems-as-a-Service (BESSaaS) to accelerate energy transition without upfront CapEx.

Opportunities and Challenges

• Opportunities: Growth in EVs, renewable energy, automation, and IoT-enabled smart motors; expansion in emerging economies.
• Challenges: High initial costs of advanced motors, raw material price fluctuations, and affordability barriers in developing regions.

Market Trends

• Integration of IoT and AI into motor systems.
• Adoption of high-efficiency IE4/IE5 motors.
• Rising demand for BLDC motors in EVs and consumer devices.
• Shift toward hairpin winding and advanced design technologies.
• Growing home appliance and HVAC applications in urban centers.

Future Outlook

The electric motor market is set for strong, long-term growth through 2035. Advances in design, digital integration, and sustainability are expected to reshape industry dynamics. Key factors include:

• Growing demand for energy efficiency
• Rising adoption in EVs and industrial automation
• Expansion in renewable energy and smart grids
• Ongoing government initiatives supporting green technologies

Why Buy This Report?

• Comprehensive market size forecasts and CAGR analysis through 2035
• Detailed segmentation by product type, power rating, application, end-use, and region
• Profiles of major players with strategies and recent developments
• Regional insights into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• In-depth coverage of emerging trends, opportunities, and challenges shaping the market

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