July 14, 2024
Electric Motor Market

Electric Motor Market: Growing Industrial Automation Driving Market Growth

The global electric motor market is estimated to be valued at US$ 219.5 Billion In 2021 and is projected to reach a market size of US$ (market value for 2022) Bn/Mn, exhibiting a CAGR of 6.9% over the forecast period 2022-2030, according to a report by Coherent Market Insights.

Market Overview:
Electric motors are devices that convert electrical energy into mechanical energy, and are widely used in various industries such as automotive, aerospace, and manufacturing. These motors offer several advantages, including high energy efficiency and low maintenance costs. The increasing need for electric motors in various applications, such as electric vehicles and industrial automation, is fueling market growth.

Market Key Trends:
Amidst the growing demand for electric motors, one key trend that is emerging in the market is the shift towards energy-efficient motors. With increasing concerns about environmental sustainability and energy conservation, industries are focusing on adopting energy-efficient motors that consume less power and reduce carbon emissions. This trend is driven by government regulations and incentives that promote the use of energy-efficient equipment.

Overall, the Electric Motor Market is expected to witness significant growth due to the expanding industrial automation sector and the increasing need for energy-efficient solutions. Key players in the market include Nidec Corporation, AMETEK Inc., ABB Ltd., and Siemens AG, among others.
Porter’s Analysis

Threat of New Entrants:

The electric motor market is characterized by high barriers to entry, which limits the threat of new entrants. The industry requires significant capital investment for research and development, manufacturing facilities, and distribution networks. Moreover, well-established companies in the market benefit from economies of scale, brand recognition, and long-standing customer relationships. This makes it difficult for new players to gain market share and compete with established industry players.

Bargaining Power of Buyers:

Buyers in the electric motor market have moderate bargaining power. While buyers have the ability to compare prices and negotiate with suppliers, the limited number of suppliers and the criticality of electric motors in various industries give suppliers an advantage. Additionally, the cost of switching suppliers can be high, especially for large-scale industrial applications. However, with increasing competition in the market, buyers are gaining more power and exerting pressure on suppliers to provide competitive prices and customized solutions.

Bargaining Power of Suppliers:

Suppliers in the electric motor market also have moderate bargaining power. The market is highly dependent on raw materials such as steel, copper, and aluminum, which are essential for manufacturing electric motors. Suppliers of these raw materials can influence the market through price fluctuations and supply shortages. However, the presence of multiple suppliers and the ability of manufacturers to switch between materials mitigate the bargaining power of individual suppliers.

Threat of New Substitutes:

The threat of new substitutes in the electric motor market is relatively low. Electric motors are widely used in various industries and applications, and there are limited alternatives that offer similar performance and efficiency. While there has been growing interest in alternative energy sources and technologies, such as fuel cells and magnetic levitation systems, these substitutes are still in the early stages of development and commercialization.

Competitive Rivalry:

The competitive rivalry in the electric motor market is intense. The market is highly fragmented, with numerous multinational and regional players competing for market share. These companies strive to differentiate themselves through product innovation, technological advancements, and strategic partnerships. The market is also witnessing increased consolidation through mergers and acquisitions as companies aim to expand their product portfolios and global reach.

Key Takeaways

The global electric motor market is expected to witness high growth, exhibiting a CAGR of 6.9% over the forecast period (2022-2030). This growth can be attributed to the increasing demand for electric vehicles, industrial automation, and energy-efficient solutions. Various governments and organizations are promoting the adoption of electric motors to reduce carbon emissions and achieve sustainability goals.

Regionally, Asia Pacific is the fastest-growing and dominating region in the electric motor market. The region is witnessing rapid industrialization, urbanization, and infrastructural development, driving the demand for electric motors in various industries such as automotive, manufacturing, and construction. Furthermore, government initiatives, incentives, and investments in renewable energy and electric vehicle infrastructure are boosting market growth in the region.

Key players operating in the electric motor market include Nidec Corporation, AMETEK Inc., ABB Ltd., Hitachi Ltd., Regal Rexnord Corporation, Robert Bosch GmbH, Johnson Electric Holdings Limited, Weg SA, Siemens AG, Toshiba Corp., Rockwell Automation Inc., and TECO-Westinghouse Motor Company. These companies focus on product development, acquisitions, and partnerships to strengthen their market position and meet the evolving needs of customers. The competitive landscape is expected to intensify as companies aim to gain a competitive edge in terms of technology, efficiency, and sustainability.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it