Induction Motor Market

Induction Motor Market Size:

The global induction motor market size reached US$ 21.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 42.4 Billion by 2032, exhibiting a growth rate (CAGR) of 7.5% during 2024-2032. The market is propelled by growing investments in construction, oil and gas, and the automotive sector, growth in manufacturing sector, increasing demand for high-performance products, and shift toward lightweight materials and fuel efficiency in vehicles.

Induction Motor Market Analysis:

• Major Market Drivers: The rising industrial automation and the need for high-efficiency motors are major drivers propelling the induction motor market growth. Besides, government regulations and incentives promoting energy-efficient solutions are also contributing to market growth.
• Key Market Trends: The trend toward industrial automation and the adoption of smart manufacturing practices are driving the induction motors demand. Besides, growing environmental concerns and the shift toward renewable energy sources are leading to the increased adoption of energy-efficient induction motors.
• Geographical Trends: Asia Pacific holds a significant share in the global induction motor market, driven by its dominance in manufacturing industries such as automotive, electronics, and consumer goods. Besides, Europe also presents as a hub for industrial automation and machinery manufacturing, which drives demand for induction motors used in factory automation, robotics, and material handling equipment.
• Competitive Landscape: Some of the leading induction motor companies in the market are ABB, Ametek, Emerson Electric, Siemens, WEG, Brook Crompton, Danaher Corporation, Johnson Electric Holdings, Regal Beloit, etc. among others.
• Challenges and Opportunities: As per the induction motor market forecast, one of the main challenges facing the induction motor market is the high initial cost of advanced and energy-efficient motors. However, opportunities lie in the growing demand for smart and connected motors, which can offer long-term cost savings and operational benefits through enhanced efficiency and predictive maintenance capabilities.
   

Induction Motor Market Trends:

Increasing industrial automation

The rise of industrial automation is another significant driver of the induction motor market. As per the 2022 McKinsey Global Industrial Robotics Survey, automated systems will account for 25% of capital spending over the next five years. Among the industrial sectors surveyed, the biggest spender on automation over the next five years is retail and consumer goods, with 23% of respondents from that sector planning to spend more than $500 Million. As companies use automation to boost production, save labor costs, and improve precision, the demand for dependable and efficient motors rises. Induction motors, which are noted for their durability and low maintenance, are favored in automated systems to power conveyors, pumps, and other gear. The move toward smart factories, which rely on networked and automated systems, increases the demand for improved induction motors that can work seamlessly with automated operations. Furthermore, the rise of Industry 4.0, which is defined using IoT and advanced data analytics in production, necessitates motors that can deliver consistent performance and energy efficiency.

Growing renewable sector

The expanding renewable energy sector has a considerable impact on the induction motor business. As countries around the world work to minimize their carbon footprints and follow environmental standards, there is a significant shift toward renewable energy sources like wind and solar power. According to the Solar Energy Industries Association, a record 31 gigawatts (GW) of solar energy capacity was installed in the U.S. in 2023, a roughly 55% increase from 2022 installations and substantially more than the previous record in 2021.Even with significant project delays, solar was the fastest-growing power source in the U.S, representing half of all new utility-scale generating capacity through Q3 of 2023.Installed solar capacity in the U.S. now totals 161 GW, enough to provide about 5% of the nation’s electricity. Induction motors play an important role in various applications, particularly in wind turbines, where they generate power. Induction motors are ideal for renewable energy systems as they can function efficiently under fluctuating load circumstances. Furthermore, the growing investment in renewable energy projects and the building of grid infrastructure to support these sources are pushing up demand for induction motors.

Demand for energy efficiency

Energy efficiency has become an important factor in industrial and consumer applications, driven by the need to reduce energy consumption and operating costs. Induction motors are highly recognized for their energy efficiency, making them the preferred choice in a wide range of applications. Governments and regulatory agencies around the world are enacting severe energy efficiency requirements and regulations, requiring industry to use motors that satisfy these standards. The growing emphasis on sustainable practices and lowering carbon footprints fuels the market for energy-efficient induction motors. Buildings and manufacturing plants account for about two-thirds of carbon dioxide emissions in the United States. Energy not used is energy saved, and the U.S. Department of Energy encourages partners to lead with energy efficiency. Organizations can set goals and partner with the Energy Department to reduce greenhouse gas emissions through the Better Climate Challenge. Furthermore, advances in motor technology, such as the creation of high-efficiency motors, have improved the energy performance of induction motors, making them more appealing to customers.

Induction Motor Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on product type and end use sector.

Breakup by Product Type:

• Single Phase Induction Motors
• Three Phase Induction Motors
   

Three phase induction motors dominate the market

The report has provided a detailed breakup and analysis of the market based on the product type. This includes single phase induction motors and three phase induction motors. According to the report, three phase induction motors accounted for the largest market share.

Three-phase induction motors are utilized in industrial and high-power applications where a consistent and efficient source of mechanical energy is required. They are commonly used in machinery such as pumps, compressors, conveyors, and fans, which are essential components in, HVAC systems, water treatment plants, and machinery that needs more than 5 horsepower (HP). They self-start, require no additional components and operate on three-phase alternating current (AC), making them more efficient and capable of producing more torque than single-phase motors. Besides, many regions have implemented stringent energy efficiency regulations and standards for industrial equipment, including electric motors. Three-phase induction motors often meet or exceed these regulatory requirements, making them a compliant choice for industries. For instance, as per Department of Energy, compressors manufactured starting on January 10, 2025 and distributed in commerce, as defined by 42 U.S.C. 6311(7), must meet the energy conservation standards specified in the Code of Federal Regulations at 10 CFR 431.345. Manufacturers must follow the test procedure methods specified in 10 CFR 431.344 to determine that compressors that are currently manufactured or distributed into commerce are in compliance with DOE standards.

Breakup by End-Use Sector:

• Industrial 
• Commercial 
• Residential 
   

Industrial sector holds the largest share in the market

A detailed breakup and analysis of the market based on the end use sector has also been provided in the report. This includes industrial, commercial and residential. According to the report, industrial accounted for the largest market share.

The industrial sector is at the forefront of using automation and modern technology to improve production, accuracy, and safety. Induction motors are essential components of automated systems, offering dependable and accurate control over a wide range of industrial processes. Besides, the advent of Industry 4.0 and the Internet of Things (IoT) has resulted in the creation of smart induction motors that include sensors and communication capabilities. These smart motors provide real-time monitoring, predictive maintenance, and increased operational efficiency, which precisely aligns with the industrial sector's goals of optimizing operations and reducing downtime. According to Mckinsey, in a survey of more than 400 global manufacturing companies, 94 % of respondents indicated that Industry 4.0 helped them to keep their operations running during the crisis, and 56 percent said the digital transformation they undertook was essential to their pandemic responses. The push for more automated and technologically advanced processes is further increasing the induction motors market revenue.

Breakup by Region:

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

Asia Pacific held the majority of induction motor market share 

The report has also provided a comprehensive analysis of all the major regional markets including Asia Pacific, North America, Europe, Middle East and Africa, and Latin America. According to the report, Asia Pacific was the largest market for induction motors.

Asia Pacific is witnessing tremendous industrialization and urbanization, which increases demand for induction motors. Countries such as China, India, and Japan are experiencing rapid industrial growth, which is resulting in an increase in the deployment of machinery and equipment powered by induction motors. As per World Economic Forum, the Indian economy is expected to grow at 6.8% this year. Its nominal GDP is set to outpace Japan’s by 2025, and by 2030 India is expected to overtake Germany to become the world’s third largest economy with a projected $7 Trillion GDP. External trade is likely to grow by over $393 Billion over the next decade as India benefits from shifting geopolitical dynamics. The increase in manufacturing activity, construction projects, and infrastructure development in these countries supports the demand for induction motors. Furthermore, urbanization has resulted in the development of smart cities and improved infrastructure, driving up demand for energy-efficient induction motors in residential, commercial, and industrial applications.

Competitive Landscape:

• The induction motor market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the induction motor industry include ABB, Ametek, Emerson Electric, Siemens AG, WEG, Brook Crompton, Danaher Corporation, Johnson Electric Holdings, Regal Beloit, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The induction motor market outlook shows that companies are forming strategic alliances and working together to increase their market reach and capabilities. These alliances may take the form of joint ventures with regional producers, alliances with suppliers of technology, or partnerships for advanced research with university institutions. Through these alliances, businesses use one another's advantages, enter new markets, and advance their technological know-how. For instance, partnerships with IoT and AI companies facilitate the addition of intelligent functionalities to induction motors, providing clients with increased value. Besides, induction motor manufacturers are increasingly adopting customer-centric approaches to strengthen their market position. This includes offering customized solutions, providing comprehensive after-sales services, and building strong relationships with customers. For instance, in September 2023, German supplier company ZF has introduced a groundbreaking electric motor, termed the I2SM, that forgoes the need for magnets. This magnet-free design distinguishes itself through its ultra-compact form factor and high power and torque density.

Induction Motor Market News:

• In August 2023, Research Gate published a report stating that a study by the University of California, Berkeley found that wireless control of induction motors can result in energy savings of up to 20%.
• In July 2023, ABB developed the new generation AMI 5800 NEMA modular induction motor to offer exceptional energy efficiency and reliability in demanding applications such as pumps, compressors, fans, extruders, conveyors and crushers. The AMI 5800 motor is a true NEMA design that builds on ABB’s technology leadership in the North American market to meet both electrical performance requirements and mechanical mounting standards.

Induction Motor Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the induction motor market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global induction motor market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the induction motor industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.