Global Electric Motor Market Overview, 2024-29

Market Dynamic

Market Drivers • Increasing Adoption of Electric Vehicles (EVs): The shift towards electric mobility is a major driver of the electric motor market. Governments worldwide are implementing policies and providing incentives to reduce carbon emissions, which are accelerating the adoption of EVs. As a result, the demand for efficient and high-performance electric motors, essential for EV powertrains, is rising significantly. • Industrial Automation: The trend towards automation and smart manufacturing (Industry 4.0) is driving the need for advanced electric motors. These motors are crucial for powering automated systems, robotics, and machinery in smart factories, leading to improved efficiency and productivity. Market Challenges • High Initial Costs: Advanced electric motors, particularly those incorporating the latest technologies and high-efficiency designs, often come with a high upfront cost. These costs can be prohibitive for small and medium-sized enterprises (SMEs) and industries with limited capital budgets. The high initial investment required can slow down the adoption rate of new and more efficient motors, especially in cost-sensitive markets. • Maintenance Complexities and Costs: While electric motors are known for their reliability and efficiency, they still require regular maintenance to ensure optimal performance and longevity. Advanced electric motor systems, especially those integrated with IoT and AI technologies, may require specialized maintenance skills and tools. This can lead to increased operational costs and complexity, posing a challenge for industries that lack the necessary technical expertise and resources. Market Trends • Increasing Adoption of Smart Motors: Smart motors equipped with IoT and AI technologies are becoming increasingly prevalent in the electric motor market. These motors offer advanced features such as real-time monitoring, predictive maintenance, and enhanced control capabilities. By using sensors and connectivity, smart motors can optimize performance, reduce downtime, and improve overall operational efficiency. This trend is particularly significant in industrial automation and manufacturing, where the demand for intelligent and connected systems is high. • Advancements in Energy-Efficient Technologies: There is a strong push towards the development and adoption of high-efficiency electric motors. Advances in motor design and materials, such as the use of permanent magnets and improved winding techniques, are leading to motors that consume less power and offer better performance. These energy-efficient motors are gaining traction across various sectors, including HVAC, industrial machinery, and household appliances, driven by the need to reduce energy consumption and comply with stringent energy efficiency regulations.

Key Development

• In August 2023, WEG expanded its operation to the market of Eastern Europe and Southwest Asia by opening a new office in Dilovas, Kocaeli, Turkey. The 7,000 m2 area is used to provide technical support to customers and assemble products. The move offers a shorter time to market not only assemble products. The move offers a shorter time to market not only for the local area but also for the surrounding countries. • In May 2023, ABB India announced that it is expanding its production with a new line produces frequency converters from 75 kW to 250 kW and serves all major industrial segments. ABB variable frequency drives control the speed of electric motor to match actual process requirements and improve energy efficiency and effectiveness in all industrial applications. • In February 2021, German propulsion manufacturer Schottel won a contract for supplying main propulsion units to Vancouver-based company western Pacific Maritime (WPM). The order for the new sea ferry vessel is being placed by the British Columbia Ministry of Transport and Infrastructure. It will be fitted with four high-efficiency Schottel Twin Propellers STP 150 L of 360kW each. These propellers will be powered by a permanent magnet motor (PEM).