The Global Electric Motor Market is Trending Due to Increasing Automation
Electric Motor Market
The global electric motor market includes a wide array of products that are used to convert electric energy into mechanical energy through the interaction of magnetic fields and current-carrying conductors. Electric motors are used across industries in various equipment and machinery to power fans, hard disks, pumps, compressors, power tools and other appliances. They provide reliable and efficient operation along with easy maintenance.
The global electric motor market is estimated to be valued at US$ 130 billion in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024-2030.
Key Takeaways
Key players operating in the electric motor market are ABB Ltd., Siemens AG, General Electric Company, Nidec Corporation, Denso Corporation. Electric motors are found across industries like manufacturing, commercial buildings, residential buildings, transportation, and agriculture.The growing demand for energy-efficient equipment is propelling the electric motor market. Manufacturers are focusing on developing innovative and customized electric motors to meet diverse industrial requirements.
Key players in the electric motor market
are focusing on new product developments and strategic partnerships to expand their global footprint. For instance, in 2022, Nidec Corporation unveiled its new cylindrical motor designed to be highly efficient in industrial applications like conveyors and pumps. ABB Ltd. partnered with Larsen & Toubro to distribute the complete portfolio of ABB electric motors in India.
The growing Electric Motor Market for electric vehicles and focus on smart construction is fueling the global expansion of the demand. Rising installation of renewable energy plants is also augmenting the usage of electric motors in various end-use industries. Countries like China, the US, Germany, Japan and India are the major markets providing significant opportunities for electric motor manufacturers globally.
Market Key Trends
One of the prominent trends in the electric motor market is the increasing focus on energy efficiency. With rising energy costs and carbon emission norms, industries are actively adopting premium efficient motors that reduce operating costs without compromising productivity. Motor efficiency standards like IEC 60034-30 and National Electric Manufacturers Association (NEMA) premium efficiency are shaping the development of next-generation energy-efficient motors. This trend is expected to significantly contribute to market revenues over the forecast period.
Porter's Analysis
Threat of new entrants: The electric motor market requires high initial capital investments for manufacturing plants and R&D facilities which makes the threat of new entrants moderate.
Bargaining power of buyers: There are numerous buyers for electric motors including automotive, industrial machinery, and appliance manufacturers. This gives buyers higher bargaining power against electric motor suppliers.
Bargaining power of suppliers: Majority of components used in electric motor manufacturing such as copper and steel have global suppliers. This limits the bargaining power of suppliers.
Threat of new substitutes: Emerging alternative technologies for motion control such as linear motors and ultrasonic motors pose minimal threat currently to electric motors which are reliable and cost-effective.
Competitive rivalry: The electric motor market is consolidated with top players competing on the basis of product quality, pricing and innovation to gain market share.
Geographical Regions
Asia Pacific accounts for the largest share of the global electric motor market value owing to a well-established manufacturing sector and rapidly growing industrialization in China and India. Countries such as China, Japan and South Korea are major manufacturing hubs for automotive as well as industrial electric motors.
The electric motor market is projected to witness the fastest growth in the Middle East and Africa region driven by ongoing infrastructure development projects and a rising focus on industrial automation across sectors in countries such as Saudi Arabia, South Africa and Egypt. The need for reliable, efficient and durable electric motors is surging the adoption in the region.
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Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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