The global energy efficient motor market is anticipated to reach $119,052.6 million by 2032, growing from $48,530.0 million in 2022 at a CAGR of 9.5% from 2023 to 2032.
Energy efficient electric motor are particularly developed and constructed to be more efficient than ordinary motor. These motor are designed to minimize energy losses while maximizing energy conversion, resulting in lower energy consumption, less expensive running costs, and a reduced environmental effect. HVAC systems, industrial machinery, automotive, aerospace, consumer appliances, and other sectors and applications use energy efficient motor. They are intended to meet or exceed particular energy efficiency requirements and regulations established by governments and organizations across the world.
The major factors driving the growth of this market include the reduction in energy consumption and subsequent cost savings over traditional motor, increasing support from governments worldwide for the adoption of energy efficient motor, the growing need to reduce greenhouse gas emissions, and the increasing adoption of energy efficient motor in the industrial sector. Energy-efficient motor are utilized in a variety of agricultural applications, including irrigation, ventilation, grain handling, material handling, aeration, and conditioning. Motor are among the most energy-intensive agriculture devices. Motor used in agriculture account for 18% of all on-farm energy usage worldwide. Furthermore, the energy-saving solutions are relevant to all areas of the agriculture industry, including dairies and livestock producers, nurseries, crop growers, and food processing companies. This is expected to further boost the growth of the energy efficient motor market during the forecast period.
Initial purchase cost of energy-efficient motors is typically higher than conventional ones, deterring some potential buyers. Retrofitting existing systems can also be logistically and financially challenging. In addition, the lack of awareness and education about these motors' benefits has limited their adoption, especially among smaller industries and residential consumers. Regulatory inconsistencies and varying standards across regions can create uncertainty for manufacturers. Furthermore, in some cases, the perceived complexity of installation and maintenance may discourage users from adopting or using a particular product, service, software, or system. Users may be hesitant to engage with or invest in something that they perceive as too complex or difficult to install and maintain. Addressing these barriers is crucial to unlocking the full potential of the energy-efficient motor market.
Market players are projected to benefit from ongoing developments in energy-efficient technologies that reduce power consumption, creating great opportunity for the growth of the energy efficient motor market. The enormous need for energy-efficient motors in HVAC applications, machine tools, residence power tools, and autonomous robots drives market revenue. The rising energy prices have led to an increase in demand for the most advanced and energy-efficient motors equipment.. For instance, in April 2022, Nidec Motor Corp. established SynRATM, an avant-garde synchronous motor with a pending patent. When integrated with the ID300 PerfectspeedTM integrated drive, the new motor with IE 4 and IE 5 ratings delivers one of the highest efficiencies conceivable for modern commercial pumping and HVAC systems. This revolutionary technology from Nidec's U.S. MOTORS brand allows for simple motor replacement without the need to install a completely novel system and controls, saving time and money.
The COVID-19 pandemic has had significant impact on the market for energy efficient motor market. As industries worldwide adapted to the new normal of remote work and operational resilience, the significance of energy-efficient motor systems became increasingly evident. With an increased emphasis on energy conservation and cost reduction, the demand for these motors surged. Organizations recognized their potential to optimize energy usage, aligning with sustainability goals. The pandemic thus accelerated the adoption of energy-efficient motors, reflecting a parallel trend in the energy efficient motor market, where adaptability and efficiency gained paramount importance in the face of global disruptions. The post pandemic highlighted the importance of energy conservation as businesses sought to optimize resources in the face of economic uncertainties. This drive toward efficiency has boosted robust demand for energy-efficient motors, prompting manufacturers to innovate and expand their product offerings.
The key players profiled in this report include ABB Ltd, Crompton Greaves, General Electric, Honeywell International, Inc., Kirlosakar Electric Company, Ltd, Microchip Technology, Inc., Magneteck, Inc., Johnson Controls Inc., Simens AG, and Weg S.A. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Energy efficient electric motor are particularly developed and constructed to be more efficient than ordinary motor. These motor are designed to minimize energy losses while maximizing energy conversion, resulting in lower energy consumption, less expensive running costs, and a reduced environmental effect. HVAC systems, industrial machinery, automotive, aerospace, consumer appliances, and other sectors and applications use energy efficient motor. They are intended to meet or exceed particular energy efficiency requirements and regulations established by governments and organizations across the world.
The major factors driving the growth of this market include the reduction in energy consumption and subsequent cost savings over traditional motor, increasing support from governments worldwide for the adoption of energy efficient motor, the growing need to reduce greenhouse gas emissions, and the increasing adoption of energy efficient motor in the industrial sector. Energy-efficient motor are utilized in a variety of agricultural applications, including irrigation, ventilation, grain handling, material handling, aeration, and conditioning. Motor are among the most energy-intensive agriculture devices. Motor used in agriculture account for 18% of all on-farm energy usage worldwide. Furthermore, the energy-saving solutions are relevant to all areas of the agriculture industry, including dairies and livestock producers, nurseries, crop growers, and food processing companies. This is expected to further boost the growth of the energy efficient motor market during the forecast period.
Initial purchase cost of energy-efficient motors is typically higher than conventional ones, deterring some potential buyers. Retrofitting existing systems can also be logistically and financially challenging. In addition, the lack of awareness and education about these motors' benefits has limited their adoption, especially among smaller industries and residential consumers. Regulatory inconsistencies and varying standards across regions can create uncertainty for manufacturers. Furthermore, in some cases, the perceived complexity of installation and maintenance may discourage users from adopting or using a particular product, service, software, or system. Users may be hesitant to engage with or invest in something that they perceive as too complex or difficult to install and maintain. Addressing these barriers is crucial to unlocking the full potential of the energy-efficient motor market.
Market players are projected to benefit from ongoing developments in energy-efficient technologies that reduce power consumption, creating great opportunity for the growth of the energy efficient motor market. The enormous need for energy-efficient motors in HVAC applications, machine tools, residence power tools, and autonomous robots drives market revenue. The rising energy prices have led to an increase in demand for the most advanced and energy-efficient motors equipment.. For instance, in April 2022, Nidec Motor Corp. established SynRATM, an avant-garde synchronous motor with a pending patent. When integrated with the ID300 PerfectspeedTM integrated drive, the new motor with IE 4 and IE 5 ratings delivers one of the highest efficiencies conceivable for modern commercial pumping and HVAC systems. This revolutionary technology from Nidec's U.S. MOTORS brand allows for simple motor replacement without the need to install a completely novel system and controls, saving time and money.
The COVID-19 pandemic has had significant impact on the market for energy efficient motor market. As industries worldwide adapted to the new normal of remote work and operational resilience, the significance of energy-efficient motor systems became increasingly evident. With an increased emphasis on energy conservation and cost reduction, the demand for these motors surged. Organizations recognized their potential to optimize energy usage, aligning with sustainability goals. The pandemic thus accelerated the adoption of energy-efficient motors, reflecting a parallel trend in the energy efficient motor market, where adaptability and efficiency gained paramount importance in the face of global disruptions. The post pandemic highlighted the importance of energy conservation as businesses sought to optimize resources in the face of economic uncertainties. This drive toward efficiency has boosted robust demand for energy-efficient motors, prompting manufacturers to innovate and expand their product offerings.
The key players profiled in this report include ABB Ltd, Crompton Greaves, General Electric, Honeywell International, Inc., Kirlosakar Electric Company, Ltd, Microchip Technology, Inc., Magneteck, Inc., Johnson Controls Inc., Simens AG, and Weg S.A. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the energy efficient motor market analysis from 2022 to 2032 to identify the prevailing energy efficient motor market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the energy efficient motor market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global energy efficient motor market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Type
- Super premium-IE4
- Premium-IE3
- High-IE2
- Standard-IE1
By Product Type
- AC Motor
- DC Motor
By Application
- Pumps
- Fans
- Compressed Air
- Refrigeration
- Material Handling
- Material Processing
By End User
- Industrial
- Commercial
- Residential
- Agriculture Sector
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- United Arab Emirates
- South Africa
- Rest of LAMEA
- Key Market Players
- Bosch Rexroth
- AG Regal
- General Electric
- Microchip Technology, Inc.
- Johnson Controls Inc.
- ABB Ltd.
- Crompton Greaves
- Marathon Electric
- Schneider Electric SE
- Honeywell International, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: ENERGY EFFICIENT MOTOR MARKET, BY TYPE
CHAPTER 5: ENERGY EFFICIENT MOTOR MARKET, BY PRODUCT TYPE
CHAPTER 6: ENERGY EFFICIENT MOTOR MARKET, BY APPLICATION
CHAPTER 7: ENERGY EFFICIENT MOTOR MARKET, BY END USER
CHAPTER 8: ENERGY EFFICIENT MOTOR MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the energy efficient motor market was valued at $48.5 billion in 2022, and is estimated to reach $119.1 billion by 2032, growing at a CAGR of 9.5% from 2023 to 2032.Energy efficient motors have improved manufacturing procedures and superior materials, as well as longer bearing lifetimes, greater service factors, reduced waste heat output, and less vibration, all of which promote dependability. Efficient electric motors gain higher efficiency by minimizing losses, which account for just 3-6% of the energy flowing through the motor. Efficient electric motors have the ability to minimize emissions related with energy savings through variable speed drive (VSD). The primary function of a VSD is to regulate the speed of a motor based on the load. The addition of the VSD assists in the optimization of the overall system's efficiency. Efficient energy motors are slightly more expensive than ordinary motors.
Energy-efficient motors are used in a variety of industries, including the industrial, commercial, residential, and agricultural sectors, among others. Higher efficiency of these motors, along with reduced maintenance costs, has resulted in an increase in demand for a variety of applications. This technology has been constantly improved with the goal to minimize power usage. It has immediately extended its uses in material handling, material processing, and HVAC, pumps, among others. Government regulations also offer additional incentives for manufacturers to follow standards like Minimum Energy Performance Standards and Environment Protection Act in motor production. Growing environmental concern is also encouraging the use of energy-saving technologies in a variety of applications. All these factors are predicted to drive the market growth during the forecast period.
However, the high cost of extremely premium efficiency (IE4) motors is expected to hinder industry expansion. When compared to normal motors, the initial cost of energy-efficient motors is higher. IE4 motors are more costly due to the use of premium materials and enhanced manufacturing and design procedures to improve efficiency. The rotors of these motors use larger-diameter copper wires and more aluminum to reduce resistance losses. A better cooling fan is used as well to reduce winding losses. The use of high-end, costly materials increases the overall cost of these various types of motors. All these factors are anticipated to restrict the market growth during the forecast period.
Leading market players are constantly innovating to maintain their competitive edge. The market shares illustration showcases the revenue distribution among key companies. Acquisitions, partnerships, and collaborations are pivotal strategies driving growth and expansion of the market. This presents an opportunity for the energy efficient motors market to grow and innovate. In May 2022, ABB India announced the launch of Flameproof Motors, a low voltage flameproof motors family designed for safe use in potentially explosive environments. The newly launched products offer essential advantages such as low vibration levels, increased dependability, and less maintenance requirements for a lower cost of ownership. These factors are anticipated to boost the market expansion in the upcoming years.
The energy efficient motor market share is segmented on the basis of type, product type, application, end user and region. By type, it is classified into super premium-IE4, premium-IE3, high-IE2, and standard-IE1. By product type, it is classified into AC motor and DC motor. By application, it is classified into pumps, fans, compressed air, refrigeration, material handling, and material processing. By end user, it is classified into industrial, commercial, residential, agriculture sector, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the energy efficient motor market report include ABB Ltd, Crompton Greaves, General Electric, Honeywell International, Inc., Kirlosakar Electric Company, Ltd, Microchip Technology, Inc., Magneteck, Inc., Johnson Controls Inc., Simens AG, and Weg S.A.
The report offers a comprehensive analysis of the global energy efficient motor market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights on the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.
Impact of COVID-19 on the Global Energy Efficient Motor Industry
The COVID-19 pandemic had a significant impact on the global energy-efficient motor industry. Initially, the industry faced challenges such as disrupted supply chains, labor shortages, and reduced production capacities due to lockdowns and restrictions in various regions. This resulted in delays in manufacturing and delivery of energy-efficient motors.The economic downturn caused by the pandemic led to a temporary reduction in demand for these motors, especially in sectors like manufacturing and construction, which were hit hard by the crisis. Industries were in an effort to cut costs, postpone or cancel capital expenditure projects, affecting the adoption of energy-efficient motors.
The pandemic highlighted the importance about energy efficiency, prompting a surge in the adoption of energy-efficient motors across various sectors. Companies sought ways to cut operational costs, and energy-efficient technologies proved instrumental in achieving these savings.
Key Findings of the Study
Based on type, the super premium-IE4 sub-segment emerged as the global leader in 2022 and the premium-IE3 sub-segment is anticipated to be the fastest growing during the forecast period.Based on product type, the AC motor sub-segment emerged as the global leader in 2022 and the DC motor sub-segment is predicted to show the fastest growth in the upcoming years.
Based on application, the pumps sub-segment emerged as the global leader in 2022 and the fans sub-segment is predicted to show the fastest growth in the upcoming years.
Based on end user, the industrial pumps sub-segment emerged as the global leader in 2022 and it is predicted to show the fastest growth in the upcoming years.
Companies Mentioned
- Bosch Rexroth
- AG Regal
- General Electric
- Microchip Technology, Inc.
- Johnson Controls Inc.
- ABB Ltd.
- Crompton Greaves
- Marathon Electric
- Schneider Electric SE
- Honeywell International, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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