Electric AC Motors Market Size, Share & Trends Analysis By Type (Synchronous, Induction), By Voltage (Integral, Fractional), By End-use (Industrial, Motor Vehicles, HVAC, Transportation, Household), And Segment Forecasts, 2018 - 2025

Industry Insights

The global electric AC motors market size was USD 78.6 billion in 2016. They are used in HVAC equipment that is installed in residential as well as commercial buildings. The escalating demand for HVAC systems is subsequently projected to increase the demand for AC motors over the forecast period. Furthermore, AC motors are also used in a variety of equipment, such as household appliances, and industrial equipment such as fixed cranes and conveyor belts.

The market is expected to witness significant growth, which is attributed to the augmented modernization and automation of industrial processes. The well-established oil & gas industry and power generation sector push the increased demand for industrial automation, for which these products act as key components in cost-saving.

These products are cost-effective as they incur negligible maintenance costs due to their construction. They do not comprise accessories such as slip rings, brushes, or commutators, which require maintenance. Their design includes oversized bearings, cast iron construction, and high-integrity seals, which guarantee higher reliability and improved operating life in harsh working environments.

The constant rise in commercial construction projects across developed and developing countries, along with a constant increase in HVAC installations, is likely to boost the market for electric AC motors. Furthermore, the extensive consumption of traditional energy sources, such as fuels, and their rapid depletion have propelled several nations to revise their energy regulation policies. These factors have led to an increase in the demand for AC motors over the forecast period.

Type Insights

Electric AC motors can be largely segmented into two types namely synchronous and induction. The induction segment accounted for a major market share in 2016 and is expected to grow at a CAGR exceeding 5% over the forecast years, since these are cost-effective, have a simple design, and are able to operate efficiently in harsh environments.

However, the synchronous segment is expected to witness a rapid growth of CAGR exceeding 7% across several sectors, owing to benefits such as precise control of speed & position, sturdy construction, and efficient torque. These products are excellent for low-speed drives (lower than 300 rpm) as their power factor can be adjusted to 1.0. They can be operated at ultra-low speeds by incorporating high-power electronic converters that produce extremely low frequencies.

Synchronous motors are extensively used for various applications as they are capable of attaining different speeds through a variable frequency drive system. Additionally, they are used to power uninterruptedly operating equipment such as fans, centrifugal pumps, blowers, and ammonia and air compressors.

Voltage Insights

Electric AC motors voltage type can be segregated into integral HP output and fractional HP output. In 2016, the fractional HP output segment held the largest market share, owing to the facilitation of higher power when used in single-phase AC motors, across residential and automobile sectors.

These AC motors are cost-effective and compact. However, the integral HP output motors are anticipated to grow at a higher rate due to their usage in three-phase motors, which help in saving electricity. An integral horsepower motor includes various types of controls that manage speed. This is further driving the segment growth.

End-use Insights

The motor vehicle segment captured the major market with a value of over USD 30.0 billion in 2016 and is expected to grow at a CAGR of over 5% from 2017 to 2025. The growing automotive industry and increasing preference for electric vehicles have boosted the adoption of AC motors in the motor vehicle sector, owing to their easy installation, improved safety, and efficient torque.

However, the HVAC equipment segment is expected to grow at the fastest CAGR exceeding 9% by 2025. The infrastructure developments across different regions are likely to drive the segment growth over the forecast period. The industrial machinery segment is expected to be the second-fastest-growing segment with a CAGR of over 8% from 2025.

The industrial machinery segment is also projected to grow at a CAGR exceeding 8%, owing to rapid industrialization across developed and developing countries. Additionally, other segments, such as aerospace & transportation and household appliances, are anticipated to witness stable growth over the forecast period.

Regional Insights

The Asia Pacific market is expected to witness high growth over the forecast period. The regional market includes developing economies, such as China, India, and Japan, whose rate of industrialization as well as commercialization is faster than other developing nations across the globe. This region is anticipated to grow at a CAGR exceeding 7%, owing to the growing construction as well as industrial sectors.

North America is projected to grow at a CAGR exceeding 6.0%, owing to the stringent government regulations for reducing the greenhouse effect. Moreover, the manufacturers in the U.S. initiated a gradual shift toward using electric motors as alternative sources of power, instead of gas turbines. Europe and Latin America regions are anticipated to witness steady growth over the forecast period. In 2016, these regions accounted for approximately 30% of the total market share and a revenue of more than USD 20 billion. Additionally, the growing number of industries is expected to drive the market growth in these regions.

Electric AC Motors Market Share Insights

The global electric AC motors market includes large-scale and small-scale manufacturers. The keys players, such as ABB Ltd., Baldor Electric Co., Toshiba, and Siemens AG, captured the major market shares in 2016. Companies are broadly investing in research and development to introduce cost-effective and compact products.

Key market players focus on inorganic growth strategies, such as joint venture and merger & acquisition, to sustain competition and capture higher market shares. Moreover, they are also making efforts for developing electric AC motors with combined speed controllers to efficiently serve different customer needs. 

Recent Development

• In May 2023, ABB acquired Siemens’ low voltage NEMA motor business to strengthen its position in the industrial NEMA motor manufacturing market and cater to the global demand.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the electric AC motors market based on types, voltage, end uses, and regions:

• Type Outlook (Revenue, USD Billion; 2014 - 2025)

  • Synchronous AC Motors

  • Induction AC Motors

• Voltage Outlook (Revenue, USD Billion; 2014 - 2025)

  • Integral HP Output

  • Fractional HP Output

• End-use Outlook (Revenue, USD Billion; 2014 - 2025)

  • Industrial Machinery

  • Motor Vehicles

  • HVAC Equipment

  • Aerospace & Transportation

  • Household Appliances

  • Others

• Regional Outlook (Revenue, USD Billion; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa