Electric Alternating Current (AC) Motors Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Japan, Germany, France - Size and Forecast 2024-2028

Electric Alternating Current (Ac) Motors Market Size 2024-2028

The electric alternating current (AC) motors market size is estimated to increase by USD 34.93 billion and grow at a CAGR of 6.04% between 2023 and 2028. Market expansion is driven by various factors, including the growing adoption of factory automation and industrial robots, the rising demand for synchronous motors to enhance energy efficiency, and the surging interest in electric vehicles. However, challenges persist. Excessive heat generation can hamper the performance of AC motors, limiting their effectiveness. Moreover, constraints related to power rating pose additional hurdles to market growth. Additionally, the prevalence of low-quality and inexpensive brushless AC motors further complicates the landscape. Despite these challenges, ongoing innovations aimed at addressing heat generation issues and improving power ratings are underway. Furthermore, efforts to enhance the quality and reliability of brushless AC motors are vital in sustaining market growth, ensuring that the industry continues to thrive amidst evolving technological landscapes and consumer demands.

Market Forecasting and Size

Market  Forecast 2023-2027

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Market Dynamics and Customer

The Electric AC Motors Market encompasses the production, sales, and installation of AC motors, including singlephase AC motors and Three-phase AC motors, for various applications such as Heating, Ventilating, Cooling equipment, Electric vehicles, and Motor vehicles. The market is driven by the increasing demand for Energy-efficient motors in HVAC systems and electronic appliances along with off-grid solar power systems due to rising living standards and income levels. The International Energy Agency and OICA report that the global production of electric vehicles is projected to grow significantly in the coming years, boosting the demand for Electric AC Motors. The IEC, CEE, and other regulatory bodies are promoting the use of motor vehicles and HVAC systems with energy-efficient motors, which is further fueling market growth. The use of Rare earth elements, particularly Neodymium magnets, in the production of Electric AC Motors is a key trend in the market. WEG and other leading manufacturers are investing in research and development to improve the efficiency and performance of Electric AC Motors, leveraging technologies such as Additive manufacturing and the Internet of Things for motor design and manufacturing. The market is expected to grow steadily in the coming years, driven by the increasing demand for energy-efficient solutions in various industries. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver

Rising factory automation and the use of industrial robots is the key factor driving the growth of the global electric AC motors market. The electric AC motor market encompasses various industries, including automotive, healthcare, household appliances, and offshore activities. AC motors, which operate on alternating current, consist of a stator and a rotor. Single-phase and three-phase AC motors are commonly used, with the latter dominating the automobile manufacturing sector, according to the International Organization of Motor Vehicle Manufacturers (OICA) and the International Energy Agency. Electric vehicles, HVAC systems, and industrial operations are significant consumers of energy-efficient AC motors.

The IEC and CEE set standards for motor efficiency. Rare earth elements, such as neodymium magnets, are essential for AC motor production. Advancements in robotics technology, IoT, additive manufacturing, and DC electric motors (series, shunt, and compound) have expanded AC motor applications. Key players include Johnson Electric, Nidec Corporation, Infinitum, WEG, and others. Output power, heating, ventilating, cooling equipment, and motor vehicles are influenced by living standards and income levels, driving global production and electronic appliance demand. OPEC and the International Energy Agency monitor energy trends. Hence, the demand for electric AC motors in end-user industries is increasing, thus propelling the growth of the global electric AC motors market during the forecast period.

Significant Market Trends

Increasing focus on using energy-efficient motors is the primary trend shaping the global electric AC motors market growth. The global electric AC motors market is experiencing growth due to various government initiatives promoting energy efficiency. AC motors, which operate on alternating current, consist of a stator and rotor. Single-phase and three-phase AC motors are commonly used. The increasing focus on electric vehicles (EVs) in countries like China, the UK, India, and Germany, driven by the need to reduce air pollution from traditional fossil fuel vehicles, is also contributing to the market's expansion. Key players in the market include Johnson Electric, Nidec Corporation, Infinitum, and WEG. The market is influenced by international organizations such as the International Energy Agency (IEA) and the Organisation Internationale des Constructeurs d'Automobiles (OICA). Applications include HVAC systems, industrial operations, and motor vehicles.

Energy-efficient motors, such as those using rare earth elements like neodymium magnets, are in high demand. Other types of motors include series motors, shunt motors, and compound motors. The output power of electric AC motors ranges from heating, ventilating, and cooling equipment to motor vehicles and electronic appliances. The market is also impacted by technological advancements, such as robotics technology, the Internet of Things, additive manufacturing, and DC electric motors. SMEs are also adopting energy-efficient motors to reduce operational costs. The market is expected to continue growing due to increasing living standards and income levels in various regions. The increasing trend of EVs is also expected to contribute to the growth of electric AC motors during the forecast period.

Major Market Challenge

Limitations of power rating are a major challenge impeding the growth of the global electric AC motors market. Electric AC motors, powered by alternating current, consist of a stator and a rotor. Single-phase and three-phase AC motors are commonly used in various industries, including electric vehicles, offshore activities, and HVAC systems. Extreme temperatures, low insulation resistance, and motor winding resistance contribute to overheating in these motors, affecting their performance negatively. Key players in the electric AC motors market include Johnson Electric, Nidec Corporation, Infinitum, and WEG. The market is driven by factors such as the increasing demand for energy-efficient motors, the global production of electronic appliances, and industrial operations with international presence.

Additionally, the use of rare earth elements like neodymium magnets and advancements in robotics technology, IoT, additive manufacturing, and DC electric motors are shaping the market landscape. Output power requirements in heating, ventilating, cooling equipment, motor vehicles, and living standards influence market growth. The International Energy Agency and Organisation Internationale des Constructeurs d'Engins Agricoles (OICA) provide insights into market trends. OPEC and SMEs also impact the market due to their involvement in offshore activities. The IEC and CEE set standards for motor efficiency. Thus, such factors are expected to negatively impact the growth of the global electric AC motors market during the forecast period.

Market Segmentation

Type Segment Analysis

The induction segment will account for a major share of the market's growth during the forecast period. The AC motor market encompasses the production and application of electric motors that operate on alternating current. These motors, including single-phase and three-phase variants, function through electromagnetic induction from the stator's magnetic field. Applications span various industries, such as oil and gas exploration, offshore activities, electric vehicles, and HVAC systems. Key players in the market include Johnson Electric, Nidec Corporation, Infinitum, and WEG. The segment experiences growth due to cost advantages over synchronous motors and increasing demand for energy-efficient motors. 

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The induction segment was valued at USD 58.13 billion in 2018. Other applications include industrial operations, electronic appliances, and robotics technology. The International Energy Agency and OICA report ongoing expansion in this sector. Rare earth elements, like Neodymium magnet, are essential components. Output power ranges from heating, ventilating, and cooling equipment to motor vehicles and living standards influence market size. CEE and IEC standards ensure motor efficiency. Compound, series, and shunt motor types serve diverse applications. Global production continues to increase, driven by SMEs, IoT, additive manufacturing, and the transition from DC electric motors.

Regional Analysis

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APAC is estimated to contribute 49% to the growth by 2027.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The electric AC motors market in the APAC region is primarily driven by the industrial machinery sector, which utilizes these motors in various applications such as pumps, compressors, and conveyor belts. HVAC equipment is another significant application, as the region experiences increasing urbanization and a growing focus on energy efficiency. The aerospace and transportation sectors also contribute to the market's growth, with the increasing adoption of electric vehicles and the need for lightweight and efficient motors in aircraft. Household appliances and motor vehicles are additional segments experiencing rising demand for electric AC motors due to their energy efficiency and cost savings. Electricity prices and the region's rapid industrialization further fuel the market's expansion. Hence, the above-mentioned factors are expected to drive the growth of the electric alternating current motors market in APAC during the forecast period.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Allied Motion Technologies Inc.: The company offers electric AC motors such as Globe Mil-Aero AC Motors.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

ABB Ltd., Addison Electric Inc., Arc Systems Inc., BDI, Emerson Electric Co., General Electric Co., Hitachi Ltd., Johnson Electric Holdings Ltd., Kirloskar Electric Co. Ltd., Lenze SE, Lunar Motors Pvt. Ltd., Nidec Corp., Regal Rexnord Corp., Rockwell Automation Inc., SAS TT Electric, Schneider Electric SE, Siemens AG, TAMAGAWA SEIKI Co. Ltd., and Toshiba Corp. 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type Outlook
  • Induction
  • Synchronous
• Power Output Outlook
  • Integral
  • Fractional
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is a significant sector in the global industrial landscape, driven by the increasing demand for energy-efficient and high-performance motor systems. Electric AC Motors are essential components in various industries, including manufacturing, transportation, and power generation. These motors offer advantages such as high power-to-weight ratio, efficiency, and reliability. The market for Electric AC Motors is expected to grow due to the rising adoption of electric vehicles, increasing demand for renewable energy, and the ongoing electrification of industries. Additionally, the development of advanced technologies, such as permanent magnet motors and variable frequency drives, is expected to further boost market growth.

Furthermore, the electric AC Motors are used in various applications, including pumps, fans, compressors, and conveyor systems. The growing demand for these applications in industries such as water and wastewater treatment, HVAC, and oil and gas is expected to drive market growth. Moreover, the increasing focus on energy efficiency and sustainability is leading to the adoption of Electric AC Motors in place of traditional internal combustion engines. This trend is expected to continue, as governments and regulatory bodies impose stricter emissions norms and incentivize the use of electric vehicles and renewable energy sources. In conclusion, the Electric AC Motors Market is poised for significant growth due to the increasing demand for energy-efficient and high-performance motor systems, the ongoing electrification of industries, and the adoption of advanced technologies.

Moreover, in the dynamic economic landscape, the motor vehicles segment, construction sector, and electronics sector significantly contribute to growth. The motor vehicles industry drives progress through innovation and efficiency in manufacturing and distribution. Simultaneously, the construction sector shapes our physical infrastructure, creating jobs and stimulating economic activity. Lastly, the electronics sector pushes technological boundaries, revolutionizing industries and enhancing our daily lives. Together, these sectors form the backbone of a thriving economy.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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