Electric Motor Market To Generate Revenue Worth $195.1 Billion in 2030
- Published: September 2021
The increasing compliance for energy-efficient electric motors, rising adoption of electric vehicles (EVs), and surging usage of electric motors for several applications, are the major growth drivers for the global electric motor market. Due to the aforementioned factors, the industry is projected to generate $195.1 billion revenue by 2030, advancing at a CAGR of 6.3% during the forecast period (2020–2030).
The COVID-19 pandemic has spread across the world and impacted the global economy and consumers' purchasing power. Also, the automotive, electronics, and other industrial component manufacturing and downstream industries have been suffered significantly, due to lockdown. The pandemic has also a significant impact on global supply chains, particularly on manufacturing entities. However, post lockdown, companies have started operations, and most of the economies will gain momentum and get back on the recovery trajectory. Moreover, diversified sourcing and digitization will be the key factors for constructing stronger, smarter supply chains and ensuring long-term recovery.
Transportation Category To Hold Largest Share in Coming Years
The electric motor market is categorized into transportation, industrial, medical, space, defense, commercial aerospace, marine, non-industrial robotics, and others, on the basis of application. Among these, the transportation category dominated the market during the historical period (2015–2020), and it is expected to retain its dominance during the forecast period as well. This is mainly due to the increase in demand for motor vehicles, which has led to a huge adoption of electric motors.
Moreover, the electric motor market is categorized into AC motor, DC motor, and hermetic motor, on the basis of type. Out of these, the AC motor category is expected to witness the fastest growth during the forecast period. This can be attributed to the capability of AC motors to operate at higher voltages, have greater torque and speed, and are energy efficient.
Globally, APAC was the largest contributor to the electric motor market in 2020. This is mainly attributed to the fact that the region has a large number of manufacturing facilities in developing countries like China, India, Bangladesh, and Indonesia. Furthermore, the growing rate of urbanization and rising adoption of EVs, supported by government policies, coupled with the rising integration of Industry 4.0 within the region are the some of the other key factors for the dominating share of the APAC market.
Mergers and Acquisitions Are Most-Effective Strategic Measures
Players in the electric motor industry have been involved in mergers and acquisitions to remain competitive in the market. For instance, in March 2021, AMETEK Inc. completed three acquisitions of Magnetrol International, Crank Software, and EGS Automation. The company spent approximately $270 million on the acquisition of these companies, which had combined annual sales of approximately $120 million. Through these acquisitions, Magnetrol International expands AMETEK’s level measurement solutions portfolio, Crank Software provides graphical user interface design capabilities to AMETEK, and EGS Automation enhances AMETEK’s automation solutions portfolio.
Similarly, in February 2019, WEG SA acquired the energy storage system business of Northern Power Systems Voting Ord Shs (NPS). Through this acquisition, WEG SA became the sole owner of NPS’s energy storage assets, including the portfolio of patents, know-how and related materials, such as drawings, projects, and specifications, and software used in designing and maintenance of battery energy storage systems.
The major players operating in the electric motor market are Nidec Corporation, Johnson Electric Holdings Limited, AMETEK Inc., Robert Bosch GmbH, Wolong Holding Group Co. Ltd., Toshiba Corporation Hitachi Ltd., maxon motor ag, WEG Equipamentos Elétricos S.A., ARC Systems Inc., FAULHABER MICROMO LLC, Hyosung Heavy Industries Co. Ltd. ABB Ltd., Mitsubishi Electric Corporation, Rockwell Automation Inc., Regal Beloit Corporation, Siemens AG, Allied Motion Inc., TECO Electric & Machinery Co. Ltd., Bühler Motor GmbH, Brook Crompton Holdings Ltd., YASKAWA Electric Corporation, BorgWarner Inc., DENSO CORP, and Valeo SA.