Industrial Motor Market

Industrial Motor Market Forecast and Outlook from 2025 to 2035

The global industrial motor industry is projected to grow significantly during the forecast period. Having a 3.9% CAGR from 2025 to 2035, the industry is expected to grow from USD 18.4 billion in 2025 to USD 27.0 billion in 2035. Growth will be spurred by escalating demand for the automation of the industrial segment as well as movement towards energy-efficient motors. Besides, innovations in smart motors through technologies like IoT connectivity and predictive maintenance capability will drive operational efficiencies and spur industry growth.

Key drivers of the industry are increasing industrial automation, an increase in the manufacturing sector, and growing demand for energy-efficient products. The food processing industry, the oil & gas industry, and the automotive industry are driving industrial motor uptake specifically. High initial costs associated with energy-efficient motors and skilled labor to manage sophisticated motor technology can act as a restraint to growth. The industry is also exposed to fluctuations in the price of raw materials, particularly copper and steel, employed in the production of motors.

Increased awareness of sustainability and clean energy is a future opportunity for the industry because manufacturers strive to integrate power-saving technology in response to environmental requirements. Integrating smart motor technology also brings future opportunities for growth and the introduction of new products. Geopolitics and supply chain disruptions threaten industry stability, though, particularly if economies heavily rely on the importation of motor components.

The industry for industrial motors is poised to grow exponentially between 2025 and 2035 at a steady CAGR of 3.9%. The demand for energy-saving solutions will be one of the major drivers in deciding the trend of the industry, and the growth in smart technologies also plays an important part. However, the industry has to overcome challenges such as high capital investment and supply chain vulnerabilities to achieve the estimated growth.

Key Metrics

Metric	Value
Industry Size (2025E)	USD 18.4 billion
Industry Value (2035F)	USD 27.0 billion
CAGR (2025 to 2035)	3.9%

Key Industrial Motor Industry Dynamics and Outlook

Technological Innovations to Spur Product Demand

The demand for automation in many industries, especially automobile and manufacturing, drives the industrial motor industry. Automation technology saves labor costs, and industrial motors are in demand more. Additionally, the growing demand for energy-efficient motors is further fueling this industry.

Technological advancements in motor operation and design, such as predictive maintenance and IoT connectivity, are revolutionizing the sector. These technologies improve performance, lower downtime, and improve operational efficiency; therefore, next-generation industrial motors are in greater demand. Their demand has prompted manufacturers to develop increasingly smart solutions.

Steep Cost of Motors May Impede Uptake

One of the largest constraints for the industry is the initial high cost of energy-efficient motors. As much as these motors are cost-effective in the long term, they may be costly in the short term. Moreover, the lack of a highly trained workforce can slow down deeper penetration in the industry for such advanced motor technologies.

The industrial motor industry is exposed to many risks, such as variations in the price of raw materials like steel and copper, which are critical to manufacturing motors. It also faces supply chain disruptions across the world as well as geopolitical conflict. Aside from this, heavily regulated use of energy can shape industry practice.

Rising Emphasis on Sustainability to Pave the Way

Opportunities for development are present, and there is a greater emphasis on sustainability and clean power. The push for clean energy creates demand for green motors and energy-efficient solutions, creating opportunities for suppliers to tap into new product development channels. In addition, technological developments in smart motor technology, such as IoT capabilities, offer opportunities for innovation within the sector to expand. Threats

Regulatory Landscape May Pose Challenges

Stringent energy efficiency standards across the world are weighing heavily on the industry. Governments are encouraging tighter regulations, particularly in developed economies, to lower carbon footprints. Adherence to such rules compels manufacturers to produce more energy-efficient motors, which in turn drives demand for sophisticated motor technologies in the industry.

Demand Analysis in the Industrial Motors Industry across Key End User Segments

In the industry, there is a varied set of stakeholders that are most pivotal in influencing the development of the sector and setting its direction. All these stakeholders have their functions to perform, and their movements, actions, and interactions fully influence the cumulative industry dynamics. Knowing these stakeholders is essential to establishing opportunities, solving problems, and achieving collaborative efforts for sustainable development.

Producers and manufacturers are the pillars of the industrial motor value chain. They need to design, manufacture, and supply motors with specific needs for different industries. Manufacturers have a direct impact on industry growth by propelling motor technology, such as through the implementation of energy-saving technologies and smart features like IoT and predictive maintenance. They are significantly affected by regulatory reforms and the demand for greater sustainability.

For example, changing energy efficiency rules compel manufacturers to redesign their product lines repeatedly. Raw material dependency, like copper and steel, also poses a risk, especially in terms of price uncertainty. Building relations with regulators and raw material suppliers is essential to maintaining stable supply lines and sustaining compliance with environmental regulations.

Technology providers are a key component in the innovation and perpetual revolutionizing of industry motors. These stakeholders, including IoT solution companies and predictive analytics companies, allow smart technologies to be integrated into motors. They help by providing solutions that improve operating efficiency, reduce downtime, and enhance motor performance.

Their influence on industry growth is significant, given that they assist manufacturers in product differentiation, making products more attractive to end users who seek high-performing solutions. These technology firms also collaborate closely with manufacturers to integrate the newest technologies into their motor products, driving innovation in the value chain. Strategic partnerships between technology firms and manufacturers can drive the uptake of next-generation solutions, including artificial intelligence in motor diagnostics.

Industrial Motors Industry Analysis by Top Investment Segments

The industry is segmented by application into compressors, pumps & fans, conveyors, crushers, extruders, and other applications. In terms of efficiency, the industry is divided into IE1, IE2, IE3, IE4, and DC, and other categories. In terms of motor type, the industry is divided into DC brushed motors, DC brushless motors, stepper motors, and traction motors. The end-use vertical includes commercial HVAC, F&B manufacturing, mining, utilities, and other sectors. Geographically, the industry is distributed across North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.

Industrial Motor Market Analysis by Top Investment Segments

By Application

Between 2025 and 2035, the most profitable application segment would be pumps & fans due to rising industrial automation and energy-efficient system needs. The segment is also expected to grow at a CAGR of about 5.5% between 2025 and 2035, compared to the total industry growth rate of 4.3%.

Fans and pumps are used in HVAC, utility, and manufacturing applications, where high performance and reliability are required. With cost reduction and sustainability having equally competing priorities with companies, low maintenance and energy-efficient motor demand for fans and pumps will increase significantly.

By Efficiency

IE4 will be the highest revenue efficiency segment between 2025 and 2035, as driven by rising regulatory pressures and industry segment requirements for energy-efficient alternatives. The segment is anticipated to record a CAGR of around 6.4% during 2025 to 2035, up from the industry-wide average of 4.3%.

With more global environmental regulations, more energy-efficient IE4 motors are becoming popular among the manufacturing, commercial air-conditioning and heating, and utility industry segments. Adoption of IE4 motors will continue to gather steam as companies attempt to adhere to energy norms and reduce the costs of operation. Additionally, ongoing innovation in motor technologies and the ability to drive automation also benefit the growth of IE4.

By Motor Type

DC brushless motors will be the most lucrative motor type segment from 2025 to 2035 because of their enhanced performance, lower maintenance, and increasing applications in automation and robotics. The DC brushless motors industry will grow at a CAGR of approximately 7.1% between the forecast period of 2025 to 2035, which will be higher than the overall industry growth rate of 4.3%.

They are finding growing use in precision-based industries such as robotics, electric cars, and high-tech manufacturing. Their reliability and efficiency, along with improvements in motor control technologies, are driving adoption rates.

By End-Use Vertical

In 2025 to 2035, commercial HVAC is expected to be the most lucrative end-use vertical. The commercial HVAC industry is expected to expand at a CAGR of approximately 5.9% during 2025 to 2035, which is above the overall industry growth rate of 4.3%.

The growing demand for energy-efficient and eco-friendly HVAC systems in commercial and residential structures is promoting the application of high-end motors that deliver the best performance at lower energy consumption. With governments and organizations promoting green building certifications and energy efficiency, commercial HVAC systems are now more inclined to embrace high-efficiency motors in order to meet these standards.

Analysis of Top Countries, Producing, Using, and Distributing Industrial Motors

United States

Fact.MR predicts that the industrial situation in the U.S. will grow steadily at a rate of 5.2% CAGR from 2025 to 2035. The U.S. remains an IT and infrastructure development center. The country's focus on sustainable processes and energy efficiency is fueling demand for highly sophisticated motor technologies. With a robust industrial base, the U.S. is going to witness giant growth in commercial HVAC, utility, and manufacturing sectors.

Strong demand for automation across industries like automotive and aerospace, which is being supported by government policies that encourage green energy ventures, will drive energy-efficient solutions to increased adoption rates. Additionally, increased demand for electric vehicles and premium robots is presenting potential opportunities for the sector, with long-term growth prospects.

France

As per Fact.MR, the industry in France is expected to expand at a CAGR of 4.6% during the period 2025 to 2035. The industrial sector in France is experiencing a revolutionary shift, driven by the government's focus on sustainability and decarbonization. Energy transition policies in France will drive the demand for high-efficiency motors in applications such as commercial HVAC, manufacturing, and utilities.

France also has plans to digitalize its manufacturing process with scope for leader motor solutions in robotics and automation. Increasing innovation in renewable energy and electric vehicles is likely to increase the demand for performance motors over the next decade as well.

Italy

Fact.MR also envisions the industry in Italy achieving a CAGR of 4.3% during 2025 to 2035. Being in its ideal position as one of the most populous manufacturing hubs of Europe, Italy will witness higher demand for energy-efficient motor products in the food and beverage, machinery manufacturing, and automotive industries.

The country's emphasis on streamlining industry processes and decreasing carbon footprints is pushing the uptake of next-generation motor technologies. Italy's increasing interest in green technology and sustainability will also continue to generate new business opportunities for energy-efficient motor solutions, especially within industrial automation and HVAC applications.

United Kingdom

The U.K. industrial motor sales are expected to increase at a compound annual growth rate (CAGR) of 4.5% from 2025 to 2035, according to estimates. The U.K. is focusing on energy-efficient solutions as part of its regulatory policies and climate targets. Industry applications such as the manufacturing of food and beverages, utilities, and construction will increasingly require automation, thus boosting the demand for sophisticated motor technology.

In addition, the country's push for net-zero emissions and green infrastructure is also set to spur the application of green technologies to industrial processes. The U.K.'s strong tech sector also offers opportunities for innovation in industrial motor solutions.

Germany

Fact.MR forecasts that the industry in Germany will grow at a CAGR of 4.9% during the forecast period of 2025 to 2035. Renowned for its engineering prowess, Germany is still a world leader in the manufacturing sector. It has a high rate of adoption of automation technology in industries such as automobiles, industrial machinery, and power.

Its focus on sustainability and energy efficiency fits the growing demand for energy-efficient motors for commercial HVAC applications as well as industrial applications. Moreover, the presence of Germany among the front-ranking members of the European Union ensures that the regulatory environment is friendly towards the embrace of energy-efficient technology, which gives another stimulus to long-term industry expansion.

India

The industry in India is projected by Fact.MR will grow dramatically, with an anticipated CAGR of 6.4% during the period 2025 to 2035. Urbanization and rapid industrialization in the country are likely to fuel the uptake of energy-efficient motor systems.

India's growing emphasis on green industrial processes, particularly in manufacturing, construction, and HVAC appliances, offers the best opportunity for the use of high-performance motors. Initiatives such as "Make in India" and "Atmanirbhar Bharat" are promoting indigenous manufacturing, which will spur demand for motors. Furthermore, the development of the renewable energy sector and an emphasis on electric transport will give the industry another boost.

China

Fact.MR forecasts that the sector in China will expand at a 6.8% CAGR from 2025 to 2035. China's fast industrial growth, especially in manufacturing, is likely to propel the need for energy-saving and efficient motors. Being the largest producer of machinery and electrical products, China is quickly embracing automation and digitalization, thereby increasing the need for upgraded motors.

Besides, the government's resolve to decrease carbon emissions and adopt green energy is likely to drive the adoption of energy-efficient motors, especially in sectors like HVAC, manufacturing, and mining. China's huge investment in smart manufacturing and infrastructure construction is also likely to drive the growth of the industry enormously.

South Korea

Fact.MR anticipates sales in South Korea will increase at a CAGR of 5.1% between 2025 and 2035. South Korea is a leader in the adoption of the latest technologies in electric vehicles, automation, and robotics. The automobile and electronics manufacturing sector is generating enormous demand for high-performance motors.

South Korea's strong research and development infrastructure, combined with the government's firm commitment to green energy and technology, will lead to sustainable growth. Furthermore, the nation's focus on energy efficiency and sustainability is consistent with the increasing use of advanced motor systems in industry.

Japan

Fact.MR anticipates that the landscape in Japan will expand at a 4.8% CAGR from 2025 to 2035. Japan is renowned for its cutting-edge industrial automation and technological innovations. With an enormous emphasis on energy efficiency, Japan is applying sophisticated motor technologies to an increasing number of applications like robotics, automobile manufacturing, and renewable energy.

Its graying population is also driving industries towards automation, and that's in turn causing the need for cheap motors. Moreover, Japan's ongoing focus on clean technology and the requirement to reduce carbon emissions put it at the vanguard of the global push for green industrial methods.

Australia-New Zealand

Fact.MR estimates that the sales in Australia and New Zealand will have a CAGR of 5.0% between 2025 and 2035. The two nations also give major importance to sustainability, with Australia being more focused on renewable energy and cutting down its carbon footprint.

Demand for energy-efficient products across industries like mining, agriculture, and utilities will continue to increase steadily, fueled by these countries' green energy policies. Another driving factor will be the booming mining industry of Australia and the precision agriculture focus of New Zealand. The integration of high-efficiency motors in the sectors will further drive industry growth.

Leading Industrial Motor Companies and their Market Share

Siemens (25-30% industry share) led the list in 2024 with leadership in the industrial motor industry through energy-efficient system innovation and smart motor solutions. ABB (20-25%) becomes increasingly competitive by enhancing its automation capabilities and developing green energy application motor products, particularly for renewable energy firms. Schneider Electric (15-18%) is best placed with end-to-end energy management solutions and packaged motor system solutions for industrial use, catering to the increased demand for green solutions.

Mitsubishi Electric (10-12%) is gaining industry share with performance motors tailored to robotics and automation. Nidec Corporation (8-10%) has focused on building up its list of electric and hybrid automobile motors to drive global industry expansion. General Electric (GE) (6-8%) is pushing industrial and commercial drive technology using digital technology and network motor systems, offering tailored solutions for end-integrated applications.

WEG Industries (4-6%) is also gaining a foothold in emerging economies and Latin America with the use of its cost-effective and reliable motors for industrial applications. The "Others Combined" segment (10-14%) consists of local and niche players with specialized motor solutions for specific countries and industries, which contributes to overall industry growth through localized presence and specialization in certain industry segments.

Company Name	Estimated Industry Share (%)
Siemens	25-30%
ABB	20-25%
Schneider Electric	15-18%
Mitsubishi Electric	10-12%
Nidec Corporation	8-10%
General Electric (GE)	6-8%
WEG Industries	4-6%
Others Combined	10-14%

Key Strategies of Industrial Motor Manufacturers, Suppliers, and Distributors

In the industry, producers are opting for a few strategies in order to stay competitive with evolving industry trends. Corporations such as Siemens and ABB have been emphasizing product development, i.e., on energy-efficient motors, owing to the growing demand for industrial sustainability.

Companies are investing heavily in R&D to develop high-performance motors that not only save energy but are also well compatible with automation systems. Along with this, they are employing end-customer bases and technology supplier partnerships to develop customized solutions for verticals such as green energy, robotics, and HVAC solutions. Geographic expansion is the primary strategy, especially in emerging industries such as South America and Southeast Asia, where manufacturing growth is accelerating.

Investors, mostly private equity firms and venture capital investors, are also interested in capital inflows to startups and mid-industry firms developing such disruptive technologies as IoT-enabled motors and high-end drive systems. They are looking for growth opportunities in the industries where digital transformation and automation are gaining popularity.

They are also backing strategic transactions to put them in touch with new space sectors or leading-edge technology, such as EV motors or intelligent-grid platforms. Investors are looking closely at regulatory guidance, particularly on energy efficiency and emissions restrictions, and placing portfolios in those companies closely aligned with sustainability goals.

Regulators are pushing the industry forward by putting aggressive energy efficiency steps and sustainability regulations in place. Regulatory authorities, such as the European Union and North America, are increasingly rendering industrial motor systems more efficient in their consumption of energy, compelling manufacturers to devise motor technology innovations at a faster pace.

Such regulators' priorities to reduce emissions are also propelling investment in motors that will aid green energy schemes. At the same time, regulators are taking a more active role in promoting policies favoring a level playing field for established motor manufacturers and new green-tech start-ups.

End-users in industries like manufacturing, utilities, and commercial HVAC are changing their approach to deal with the greater focus on cost savings and sustainability. These industries are favoring smart motor solutions that play nicely with their overall automation platforms.

End-users would also like long-term savings in cost through energy-efficient motors, given the fact that energy and running costs continuously increase. End-users for mission-critical applications such as food and beverage manufacturing desire partnerships with motor suppliers who can provide customized, high-performance solutions suited to their own operational needs.

Key Success Factors Driving the Industry

Among the major drivers for the industry's success are technology, innovation, and energy efficiency. As companies everywhere look to achieve sustainability, the energy-efficient motor has become yet another differentiating competitive advantage.

Companies investing in cutting-edge motor technologies such as IoT-enabling systems and predictive maintenance via artificial intelligence are also best positioned to ride the demand for intelligent connected products. Improvements in motor design are at the heart of competitiveness in an increasingly sustainability- and cost-aware industry by reducing energy consumption, minimizing environmental impact, and increasing performance.

Strategic collaborations and alliances on the value chain are another main driver. Increasingly, manufacturers are entering collaborations with technology suppliers, end-users, and regulators to design tailor-made solutions for evolving industry needs. These collaborations facilitate better access to new industries, product differentiation, and regulation management. Apart from that, geographic expansion to high-growth regions, particularly in developing economies, presents significant opportunities for companies to benefit from the rapid industrialization and increasing automation in these industries, further fueling industry success.

Other Key Players

• ABB Limited
• Siemens Aktiengesellschaft
• WEG SA
• TECO Electric & Machinery Co., Ltd.
• Toshiba Corporation
• Hyosung Corporation
• Nidec Corporation
• Regal Beloit Corporation
• CG Power and Industrial Solutions Limited
• Schneider Electric
• Mitsubishi Electric
• General Electric (GE)
• Dynapar Corporation
• Parker Hannifin
• Emerson Electric

Key Industrial Motor Market Segmentation and Study across Changing Consumer Preferences

• By Application :

  • Compressors
  • Pumps & Fans
  • Conveyors
  • Crushers
  • Extruders
  • Other Applications

• By Efficiency :

  • IE1
  • IE2
  • IE3
  • IE4
  • DC and others

• By Motor Type :

  • DC Brushed motor
  • DC Brushless motor
  • Stepper motor
  • Traction Motor

• By End Use Vertical :

  • Commercial HVAC
  • F&B Manufacturing
  • Mining
  • Utilities
  • Other Sectors

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)