The electric motor market is expected to grow at a CAGR of over 7% during the forecast period of 2020 – 2025. Factors such as rising environmental concerns and increasing demand for electrical energy are expected to be major drivers driving the market. The rising demand for efficient energy usage over concerns of environmental impact of energy generation from conventional sources such as coal and natural gas, is expected to help grow the electric motor market. However, general lack on awareness in small and medium enterprises towards smart motors usage and their benefits have somewhat hampered the growth of the market.
- Automotive sector is expected to witness a significant growth in forecast period, owing to various factors such as increase in sales of electric vehicles due to rising concerns over greenhouse gases emissions, and favorable government policies in countries such as Norway, China, etc.
- The increasing demand for electrical energy to sustain global development requires consistent heavy investments in power supply generation. This has helped the market for electric motors grow significantly in recent and is expected to do so in forecast period. Electric motor applications make up approximately 40% of global energy demand.
- Asia Pacific is expected to dominate the market growth with majority of the demand coming from the countries such as the China and India, owing to the factors like economic growth in the emerging nations, increasing penetration of electric vehicles, and rising industrial activities.
Key Market Trends
Automotive Sector to Dominate the Market
- With Electric Vehicle sales hitting 2 million units in 2018, the market for EV is expected to grow rapidly in the forecast period, owing to growing consumer demand for greener vehicles, and favorable government policies.
- Reduced taxes and high subsidies on Electric vehicles in countries such as China and Norway have led to a rapid increase in sales and have paved a growing path for electric motors in automotive sector.
- In 2018, a total fleet of 5.1 million EV saved about 36 Mt of CO2-eq compared to an equal no of internal combustion engine fleet.
- With the electric motor manufacturing costs dropping significantly in recent years, increase in efficiency and the adoption at an all-time high, the analogy between the two seems even more apt.
- Therefore the aforementioned factors are expected to help grow the market during the forecast period.
Asia Pacific to Dominate the Market Growth
- Asia-Pacific has dominated the electric motor market growth in 2018 and is expected to continue its dominance in the coming years as well. The region has seen an unprecedented increase during the past few years and is expected to increase further during the forecast period.
- Industries, such as automotive, chemical, fertilizers and petrochemical are witnessing steady growth in the region, which is expected to offer tremendous growth opportunity for the global electric motor players
- With the rising pollution concerns across the world due to industrialization, especially in Asia-Pacific, the shift towards clean energy generation from energy-efficient electric motors has gained considerable momentum.
- Sales of electric vehicles in China has witnessed a tremendous increase owing to favorable government policies and is expected to witness similar growth in the coming years, which is expected to spur the demand for electric motors in the country. China is the biggest market for EVs, globally. China’s EV market share increased from 25% in 2015 to 45% in 2018, with over 2.31 million units deployed by end of 2018.
- Moreover, there has been a rise in usage of smart and efficient electric motors in recent years. Also, the drop in prices of both electric motor and after sales services, are expected to be the major driving factors for electric motor market during the forecast period.
The electric motor market is partially fragmented with a lot of active players. Some of the major companies are ABB Ltd. AMETEK, Inc., Johnson Electric Holdings Limited, Siemens AG, Rockwell Automation, Toshiba Corp., Hitachi, Ltd., Toshiba Corp amongst others.
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