Electric motors are electromechanical devices that convert electrical energy into mechanical energy to impart motion. They find applications in a wide range of industrial and commercial equipment such as HVAC systems, factory automation machines, agriculture equipment, household appliances, vehicles, and more. The growth of industries such as manufacturing, construction, automotive, and food & beverages is fueling the demand for electric motors globally. Additionally, the shift towards electric vehicles and growing focus on energy efficiency is augmenting the electric motor market growth.
The global Electric Motor Market is estimated to be valued at US$ 144.44 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
In countries like India and China, rapid industrialization is propelling the installation of production machinery powered by electric motors in various sectors including oil & gas, mining, automotive, and construction. The rising industrial manufacturing in developing Asian economies is driving the demand for electric motors from the industrial sector. Manufacturers are likely to gain profits by offering customized electric motor solutions as per the evolving needs of diverse end-use industries. They can also increase their foothold in developing markets by strengthening distribution channels and offering competitive pricing and financing options.
Porter’s Analysis
Threat of new entrants: The electric motor market requires high R&D investments and established distribution networks making it difficult for new companies to enter. However, new technological developments are lowering entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, electric motor has few substitute options offering performance advantages.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the fragmented nature of suppliers and availability of substitutes. However, integration across the supply chain increases their power.
Threat of new substitutes: Substitutes like hydraulic motors offer competition. However, electric motors offer better efficiency and control making threats relatively low.
Competitive rivalry: The market is competitive due to many global and regional players. Companies compete based on product quality, reliability, technology, and pricing.
SWOT Analysis
Strengths: Electric motors offer high reliability, efficiency, and precise controllability. Growing demand for automation and industrialization is driving market growth.
Weaknesses: High costs of development, production and maintenance. Dependency on rare earth materials increases supply risks.
Opportunities: Rising adoption of IoT and industry 4.0 creates opportunities. Government initiatives for electric vehicles and renewable energy expand the market.
Threats: Economic slowdowns reduce capital investments. Growing environmental regulation increases compliance costs.
Key Takeaways
The Global Electric Motor Market Size is expected to witness high growth due to rising industrial automation and adoption of electric vehicles. The market size for 2024 is projected to reach US$ 144.44 billion, growing at a CAGR of around 10% during the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific dominates the global market currently, accounting for over 45% of the global market share in 2023. China is the largest market followed by Japan and India. Key factors supporting the region’s growth are rising industrialization, growing electronics sector and government focus on renewable energy and e-mobility. North America is the second largest market for electric motors driven by industrial automation. Europe is also a major market experiencing growth due to rapid adoption of electric vehicles.
Key players operating in the electric motor market are Leidos Holdings Inc., SAAB AB, Nuctech Company Limited, Thales Group, OSI Systems Inc., Leonardo SpA, Smiths Group PLC, Elbit Systems Ltd., Kongsberg Gruppen ASA, Airbus SE, Westminster Group PLC, BAE Systems PLC, and Terma AS. Major players are focused on new product development and expansion in growing regions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it