The global electric motor market stood at $118.2 billion in 2019, and it is expected to reach $195.2 billion in 2030. On account of the increasing production of electric vehicles globally, with China being the largest producer, the demand for electric motors posted positive growth during the historical period (2014–2019). During the same period, the production of electric vehicles displayed a CAGR of around 50%, whereas that of nonelectric vehicles displayed a CAGR of around 3%.
Due to the current coronavirus crisis, the electric motor market growth has witnessed a dip in 2020. Several governments around the world have imposed nationwide lockdowns to curb the spread of the virus. Due to this, the supply chain is disrupted on a global level, which has further affected the supply of raw materials and components, while the manufacturing of finished products has also ceased to a large extent. There is a steep decline in the interest of people for non-essential goods, in order to reduce their expenses during this crunch time.
AC Motor Category To Hold Largest Market Share till 2030
The AC motor category is expected to continue its domination throughout the forecast period. This can be attributed to the higher torque and speed and ability to operate at higher voltages of these motors, compared to hermetic and DC variants Additionally, AC motors are comparatively easier to maintain. Further, based on AC motor, the induction motor category accounts for the larger revenue share of the market, owing to the wide application of such models in the industrial sector.
The application of electric motors in motor vehicles generated the highest revenue during the historical period, and it is expected to also witness the highest CAGR during the forecast period. The adoption of electric vehicles will be supported by the increasing fuel prices and global warming, due to the emission of carbon dioxide (CO2).
Asia-Pacific (APAC) will be the fastest-growing region during the forecast period, owing to the increasing demand for electric vehicles in China, due to the favorable government policies and stringent environmental regulations in the country. Similarly, the incentives offered by Government of India for electric vehicles, under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-India) scheme, and rising demand for heating, ventilation, and air conditioning (HVAC) equipment from the real estate sector in the country are predicted to drive the market growth during the forecast period.
Product Launch Ranks High among Important Strategic Developments
In recent years, companies in the electric motor market have focused on launching new and improved products to remain the frontrunners, as well as grab a larger share of the overall revenue pie. Such measures further help strengthen the position, geographical reach, and customer base in the market.
For instance, in January 2020, Johnson Electric Holdings Limited launched a low-voltage direct current (LVDC) motor solution, NF143G, for outdoor smart cabinet locks. These compact motors can operate under low current.
On similar lines, in November 2019, Regal Beloit Corporation announced the production of a redesign to the LEESON Extreme Duck Ultra motor and was debuted on January 2020 in International Production and Processing Expo. It will feature a smooth stainless-steel enclosure and improved independently welded foot mounting. These exterior enhancements are said to eliminate the crevices where contaminants can collect, thus making them ideal for the food processing, pharmaceutical, beverage, and bottling industries, where strict sanitation requirements must be met.
ABB Ltd., Nidec Corporation, Johnson Electric Holdings Limited, Mitsubishi Electric Corporation, AMETEK Inc., Regal Beloit Corporation, Franklin Electric Co. Inc., Siemens AG, Robert Bosch GmbH, Asmo Co. Ltd., and Mitsuba Corporation are the major global electric motor market players.