Energy Efficient Motor Market Size, Share, and Trends 2024 to 2034

Energy Efficient Motor Market Size to Reach USD 152.10 Billion by 2034

The global energy efficient motor market size was USD 55.30 billion in 2023, calculated at USD 60.63 billion in 2024 and is expected to reach around USD 152.10 billion by 2034. The market is expanding at a solid CAGR of 9.63% over the forecast period 2024 to 2034. The energy efficient motor market is driven by increasingly strict rules set forth by the government.

Energy Efficient Motor Market Key Takeaways

• Asia Pacific dominated the energy efficient motor market in 2023 and accounted for 42% market share.
• North America is observed to be the fastest-growing in the energy efficient motor market during the forecast period.
• By type, the super premium-IE4 segment has accounted market share of 39% in 2023.
• By type, the premium-IE3 segment is observed to be the fastest growing in the energy efficient motor market during the forecast period.
• By product type, the AC motor segment has dominated the market with a market share of 61% in 2023.
• By application, the pumps segment dominated the energy efficient motor market in 2023.
• By application, the fans segment shows a significant growth in the energy efficient motor market during the forecast period.
• By end-user, the industrial segment has accounted market share of 41% in 2023.
• By end-user, the commercial segment is observed to be the fastest growing in the market during the forecast period.

Asia Pacific Energy Efficient Motor Market Size and Growth 2024 to 2034

The Asia Pacific energy efficient motor market size was exhibited at USD 23.23 billion in 2023 and is projected to be worth around USD 64.03 billion by 2034, poised to grow at a CAGR of 9.65% from 2024 to 2034.

Asia-Pacific dominated the energy efficient motor market in 2023. The global manufacturing capacity is largely concentrated in the Asia-Pacific. Due to this concentration of manufacturing activity, energy-efficient motors are becoming more widely produced and used. These motors are essential for cutting operating costs and satisfying environmental regulations. Many countries provide tax breaks, subsidies, and other incentives to promote the use of energy-efficient devices. These financial incentives partially cover the upfront expenses of switching to energy-efficient motors.

North America is observed to be the fastest growing in the energy efficient motor market during the forecast period. Rising energy costs drive businesses and consumers to look for energy-efficient ways to lower their energy expenses. Energy-efficient motors appeal due to fluctuating energy prices and provide long-term cost savings. The need for energy-efficient motors is fueled by increasing investments in industrial and infrastructure projects brought about by North America's economic expansion.

Market Overview

The industry that produces, distributes, and uses electric motors made to run more energy-efficiently than conventional motors is known as the energy efficient motor market. These motors help reduce electric motors emissions and other pollutants by using less energy, which aligns with international initiatives to mitigate climate change and advance sustainability. Energy-efficient motors frequently offer improved performance attributes like increased torque, longer lifespans, and less maintenance requirements. This may result in less downtime and more dependable operations in industrial applications.

Energy Efficient Motor Market Trends

• In April 2024, to provide dependable and energy-efficient solutions in India, ABB India unveiled its newest IEC Low Voltage IE4 cast iron super premium efficiency motors in frame sizes 71–132 and IE3 aluminum motors in frame sizes 71–90. These motors are designed for various industries, including water and wastewater, packaging, food and beverage, metals, cement and mining, plastics and rubber, and HVAC applications. They were introduced globally and are produced in India.
• In March 2024, Johnson Controls and Mahindra Group jointly established an initiative to decarbonize buildings. The Net Zero Buildings Initiative aims to give organizations, building owners, and facility managers the knowledge and tools they need to design sustainable spaces. The program will hasten the use of sustainable and intelligent building technologies in the public, commercial, and urban housing sectors.

Energy Efficient Motor Market Growth Factors

• Energy-efficient motors consume less electricity, which helps businesses and industries save a lot of money on their electricity costs over time.
• Growing demand for sustainable solutions, such as energy-efficient motors, is driven by concerns about climate change and the need to minimize greenhouse gas emissions.
• Industries are compelled to use energy-saving technologies, such as efficient motors, by strict government rules that promote energy efficiency and emissions reduction.
• The market for industrial motors is expanding due to rising industrialization, especially in emerging nations, where there is a growing inclination towards energy-efficient models.Improvements in motor design, materials, and manufacturing techniques result in more economical and energy-efficient motors. This drives for the growth of the energy efficient motor market.

Market Scope

Market Dynamics

Drivers

Lower life cycle costs than traditional motors

Energy-efficient motors are made to use less electricity than conventional motors. As energy expenses usually account for most of a motor's overall life cycle costs, cutting energy use can result in significant savings. Lower electricity bills eventually result from less energy use, which can drastically cut operating expenses for enterprises. This is especially crucial in manufacturing, HVAC, and water treatment, where motors are utilized extensively.

Comparing energy-efficient motors to conventional motors, superior performance features are frequently offered. These motors can increase productivity by providing more dependable and consistent performance. Variable speed drives (VSDs), one of the more sophisticated characteristics of many energy-efficient motors, enable precise control over motor speed and torque, maximizing energy consumption and enhancing process efficiency.

Increasing adoption of energy efficient motors in industrial sector

To counteract climate change and reduce energy usage, governments and regulatory agencies around the world enforce strict energy efficiency requirements and regulations. High-efficiency motors must be used in industrial applications according to rules like the U.S. Department of Energy's efficiency standards and the European Union's Ecodesign Directive. Industries must use energy-efficient motors to comply with these laws, avoid fines, and take advantage of incentives. This drives for the growth of the energy efficient motor market.

Restraints

Initial high investment costs

Premium components, including rare-earth magnets, copper windings, and high-grade electrical steel, are frequently used in energy-efficient motors. These parts cost more than regular motors, but they improve performance. Modern manufacturing processes, which include laser cutting and specialty insulating, guarantee accuracy and excellent performance, raising production costs.

Limited awareness about benefits of energy efficient motors

Due to their higher initial purchase cost, there is a common misconception that energy-efficient motors are more expensive. Stakeholders may be reluctant to invest if they are unaware of the total cost of ownership (TCO), which includes lower energy bills, fewer maintenance costs, and extended operating life. Industries and businesses that prioritize short-term financial planning may prioritize short-term cost savings ahead of long-term efficiency improvements. This short-term perspective might discourage them from implementing energy-saving solutions. This limits the growth of the energy efficient motor market.

Opportunities

Growth of robotics and automation

Automation and robotics are commonly employed in the manufacturing industry for material handling, welding, painting, and assembly jobs. Automation lowers labor expenses, speeds production, and enhances accuracy and caliber. Drones, robotic arms, and automated guided vehicles (AGVs) boost operational efficiency by streamlining picking, sorting, and inventory management procedures. Robotic exoskeletons, automated diagnostic instruments, and robotic-assisted surgeries are revolutionizing medical operations and patient care. This opens an opportunity for the growth of the energy efficient motor market.

Rising industrialization and decarbonization initiatives

The need for machinery and equipment in various industries, including manufacturing, construction, the automobile industry, and others, is growing as industrialization advances. These devices are not complete without energy-efficient motors, which provide better performance and lower running costs. Many businesses have set high standards for sustainability to lessen their environmental effect. Installing energy-efficient motors is an easy and effective approach to meet these goals. The need for these motors is predicted to increase as businesses work to achieve their sustainability goals.

Type Insights

The super premium-IE4 segment dominated the energy efficient motor market in 2023. Improvements in the motors' design and production have resulted in more efficient IE4 motors. In IE4 designs, technologies that offer improved performance and energy savings, like synchronous reluctance motors and permanent magnets, are frequently employed.

Using better components and higher-quality materials, such as rare-earth magnets, has increased the performance of IE4 motors. These materials help to improve efficiency and reduce energy losses.

The premium-IE3 segment is observed to be the fastest growing in the energy efficient motor market during the forecast period. Compared with motors in lesser efficiency classes, IE3 motors are more expensive up front, but they save a lot of money during their operational life. Because these motors use less electricity, your energy costs will go down. IE3 motors are economically attractive since the reduction in energy usage quickly outweighs the original investment. Energy-intensive sectors get higher returns on investment (ROI) for these motors because operational effectiveness has a direct financial impact.

Product Type Insights

The AC motor segment dominated the energy efficient motor market in 2023. AC motors are essential for many industrial uses, including production, processing, and manufacturing. These industries depend on them to run their compressors, fans, pumps, conveyors, and other gear and equipment. AC motors are used in commercial buildings' escalators, elevators, and HVAC (heating, ventilation, and air conditioning) systems. These components greatly enhance large-scale operations' energy efficiency.

Because they use less energy, AC motors, especially those with higher efficiency ratings, have substantial financial savings throughout their operating life. This is especially advantageous for sectors that use a lot of energy.

Application Insights

The pumps segment dominated the energy efficient motor market in 2023. Pumps are essential in many industries, including manufacturing, oil and gas, and water and wastewater treatment. They make up a sizeable amount of energy in these industries. Pumps use more energy since they are utilized nonstop or for long periods. Therefore, even modest increases in energy efficiency can result in considerable savings.

Organizations and businesses are concentrating more on lessening their environmental impact. Energy-efficient pumps assist companies in achieving their sustainability goals and help reduce greenhouse gas emissions. The adoption of efficient pump systems is further propelled by the push for energy-saving solutions, which aligns with corporate social responsibility (CSR) programs.

• In December 2023, Johnson Controls, an American industrial corporation, unveiled a water-to-water compound centrifugal heat pump designed for use in commercial buildings. The York Cyk heat pump is claimed to provide hot water up to 77 degrees Celsius and is suited for high-head situations.

The fans segment shows a significant growth in the energy efficient motor market during the forecast period. Both households and businesses are looking for ways to lower their energy expenses as the cost of electricity keeps rising. Energy-efficient fans are an appealing option because they use less electricity than traditional versions, which helps achieve this. The need for energy-efficient fans is driven by the construction sector's growth, particularly in emerging economies. Energy-efficient solutions are increasingly used in new construction and infrastructure projects to comply with current regulations.

End-user Insights

The industrial segment dominated the energy efficient motor market in 2023. Since industries run a variety of machinery and equipment, they are significant consumers of electrical energy. Industrial processes require motors to run conveyors, compressors, fans, pumps, and other vital equipment. Industries are encouraged to invest in energy-efficient motors due to their high energy consumption, lowering operating costs and improving overall efficiency.

The commercial segment is observed to be the fastest growing in the energy efficient motor market during the forecast period. The need for energy-efficient motors is fueled by the growth of commercial infrastructure, which includes office buildings, retail establishments, and industrial facilities. Modern energy-saving technology is frequently incorporated into new buildings and renovations. Energy-efficient motors are being added to older commercial buildings undergoing retrofits to increase energy performance and satisfy contemporary norms.

Sustainability is given top priority by many companies when developing their corporate social responsibility (CSR) plans. Using energy-efficient motors enables businesses to meet sustainability objectives and lower their carbon footprint. Energy-efficient certifications such as LEED (Leadership in Energy and Environmental Design) are becoming increasingly sought after by commercial properties. Acquiring these certifications is made possible in part by energy-efficient motors.

Energy Efficient Motor Market Companies

• Johnson Controls Inc.
• AG Regal
• General Electric
• Bosch Rexroth
• Schneider Electric SE
• Honeywell International, Inc.
• Crompton Greaves
• Marathon Electric
• ABB Ltd.
• Microchip Technology, Inc.

Recent Developments

• In April 2024, A new line of residential HVAC products from Johnson Controls is designed to work with the low-GWP refrigerant R-454B. Dates of delivery are anticipated for this quarter.
• In June 2023, Leading the way in the digital transformation of energy management and automation, Schneider Electric will present a plethora of innovative software and technology solutions at Hannover Messe 2023 to assist the industry in addressing the global concerns of sustainability, resource efficiency, and energy security

Segments Covered in the Report

By Type

• Super Premium-IE4
• Premium-IE3
• High-IE2
• Standard-IE1

By Product Type

• AC Motor
• DC Motor

By Power Output Rating

• < 1 kW
• 1 - 2.2 kW
• 2.2 - 375 kW
• 375 kW

By Application

• Pumps
• Fans
• Compressed Air
• Refrigeration
• Material Handling
• Material Processing

By End-user

• Industrial
• Commercial
• Residential
• Agriculture Sector
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa