Electric Motor Market to Hit $357.78B by 2034

The global electric motor market was valued at USD 179.07 billion in 2024 and is expected to grow to USD 357.78 billion by 2034. This represents a compound annual growth rate of 7.16% from 2025 to 2034. Growth is driven by increasing use of energy-efficient systems and the global shift towards renewable energy sources.

Electric motors are widely used in industries such as industrial machinery, electric vehicles, HVAC systems, and household appliances. The rising demand for electric vehicles, especially in developed countries focusing on sustainability, is boosting the need for high-performance motors. Smart motors with IoT capabilities are becoming popular as they improve energy efficiency, allow real-time monitoring, and support operational diagnostics. These features are important for industries like manufacturing, healthcare, and clean energy.

Rapid industrialization and urban growth in emerging economies, particularly in the Asia-Pacific region, also contribute to market expansion. Despite challenges such as high initial costs and dependence on rare earth materials, supportive government policies and advances in motor design are encouraging growth.

Asia-Pacific led the market in 2024 with a 52.40% revenue share. The motor vehicles segment contributed 35.20% of total revenue while AC motors held the largest share at 71.40%. Motors above 75 kW generated the highest revenue, and inner rotor motors were the most popular design type.

Smart electric motors with IoT technology are transforming performance management by enabling predictive maintenance and adaptive performance. These are used increasingly in manufacturing, renewable energy, and healthcare. Demand for electric motors in HVAC and home appliances is growing due to urbanization and higher living standards.

New technologies such as permanent magnet motors and brushless DC motors are improving power efficiency and durability while reducing maintenance. Electric motors are also gaining ground in agriculture to power irrigation pumps and other equipment, supporting precision farming.

Government incentives and energy efficiency standards are encouraging the use of high-efficiency motors across sectors, especially in electric mobility and renewable energy projects.

AC motors dominate due to their efficiency and versatility, used in conveyors, pumps, and HVAC systems. DC motors, especially brushless types, are favored for applications requiring precise speed control and are popular in electric vehicles and automation.

Motors under 5 kW are used in household appliances and small machinery. Those between 5 kW and 10 kW serve medium-scale industrial applications. Motors from 10 kW to 75 kW power heavy-duty equipment in manufacturing and mining. Motors above 75 kW are crucial for large industrial projects and renewable energy.

In terms of applications, electric motors are essential in industrial machinery, motor vehicles, HVAC systems, and electrical appliances. Other uses include agriculture, healthcare, and renewable energy.

Regionally, Asia-Pacific is the largest and fastest-growing market, driven by industrialization, EV adoption, and government support. North America follows with strong innovation and strict energy regulations. Europe focuses on sustainability and regulation-driven growth, especially in EV and industrial automation. The LAMEA region shows steady growth supported by industrialization and infrastructure development despite challenges.