- Summary
- Table Of Content
- Methodology
AC Electric Motor Market Size:
AC Electric Motor Market is estimated to reach over USD 26,162.71 Million by 2032 from a value of USD 18,474.26 Million in 2024 and is projected to grow by USD 18,974.17 Million in 2025, growing at a CAGR of 4.7% from 2025 to 2032.
AC Electric Motor Market Scope & Overview:
An AC motor refers to an electric motor that is primarily driven by an alternating current. There are two primary types of AC motors including synchronous motors and induction motors. AC motors primarily comprise of an outside stator consisting of coils supplied with alternating current to generate a rotating magnetic field along with an inside rotor that is fixed to output shaft generating a second rotating magnetic field. The AC electric motor market is experiencing significant growth, driven by increasing industrial automation and a rising focus on energy efficiency. AC motors are widely used in various applications, including industrial machinery, HVAC systems, and electric vehicles. Factors, driving the market include the growing adoption of variable frequency drives (VFDs) to improve motor efficiency and control, the increasing adoption of high-efficiency motors to reduce energy consumption, and the development of smart motors with integrated sensors and communication capabilities for predictive maintenance and optimized performance. Additionally, the rise of electric vehicles and the growing emphasis on sustainable transportation are expected to create new opportunities for AC motor manufacturers.
AC Electric Motor Market Dynamics - (DRO) :
Key Drivers:
Growing Demand for Electric Vehicles is Driving Market
AC motors are primarily used in motor vehicles, specifically in electric and hybrid vehicles to provide propulsion for driving vehicle operations. Motors are also utilized in vehicles for applications including HVAC systems, wheel drive, exhauster, and battery power applications among others. Further, AC motors, especially permanent magnet synchronous motors (PMSMs), offer high efficiency and excellent performance, making them ideal for EVs. They provide the necessary power and torque for acceleration and driving. Furthermore, AC motors enable regenerative braking, a crucial feature in EVs. This allows the motor to recover energy during deceleration, increasing the vehicle's range and efficiency. The above benefits of electric motors are primary determinants for increasing its application in electric vehicles.
- For instance, according to the International Energy Agency (IEA), the total sales of electric cars in Europe reached approximately 3.4 million units in 2024, witnessing an increase of 6.3% in comparison to 3.2 million units in 2023, as depicted in the graph below. Meanwhile, the total sales of electric cars in the European region reached 2.7 million in 2022 and 2.3 million in 2021 respectively.
Thus, increasing adoption of electric vehicles and growing sustainability initiatives are key prospects accelerating the adoption of ac electric motor.
Key Restraints:
Lower Starting Torque and Control Complexity is Limiting Market
AC motors, particularly induction motors, often exhibit lower starting torque compared to DC motors. Starting torque refers to the rotational force the motor can generate at the moment of startup. In applications requiring high initial torque to overcome inertia or load resistance, such as heavy machinery or equipment, the lower starting torque of AC motors can be a disadvantage. This limitation may necessitate the use of specialized starting mechanisms or larger motors to compensate, adding to the cost and complexity of the system. Further, controlling the speed and torque of AC motors can be more complex compared to DC motors. AC motors typically require sophisticated control systems, such as variable frequency drives (VFDs), to achieve precise speed regulation and torque control. These limitations pose challenges in certain applications where high starting torque and precise control are essential and thereby limits the AC electric motor market.
Future Opportunities :
Increasing Trend of Industry 4.0 Offers Opportunities for Market Growth
Industry 4.0 is characterized by the automation of manufacturing processes, and AC motors are essential components in various automated systems. As industries increasingly adopt robots, automated guided vehicles (AGVs), and other automated machinery, the need for AC motors is expected to surge. Electric motors play a critical role in automation and robotics, which are key aspects in Industry 4.0. This includes their integration into smart factories for streamlined operations. The use of electric motors in robotics allows precise and controlled movements, which enables robots to perform tasks in manufacturing, assembly lines, and other industrial processes. Additionally, electric motors are also used for powering a broad range of industrial machinery such as conveyers, pumps, mixers, cranes and hoists, cutting and milling machines, and other related machinery that are used to facilitate industrial automation.
- For instance, the government of Germany launched the "Industry 4.0" initiative with the aim of promoting the development of digital technologies in manufacturing sector. The initiative also aims at supporting automation in manufacturing along with enhancing Germany’s competitiveness in the manufacturing sector.
Thus, rising trend of industrial automation fueled by Industry 4.0 offers significant opportunities for growth in AC electric motor market.
AC Electric Motor Market Segmental Analysis :
By Motor Type:
Based on the motor type, the market is segmented into induction motors, and synchronous motors.
Trends in the Motor Type:
- Increasing focus on energy conservation drives the need for high-efficiency induction motors
- Rising government initiatives for environment sustainability are driving the adoption of electric vehicles which in turn boosts the AC electric motor market.
Induction Motors accounted for the largest revenue share in the year 2024.
- Features including simplicity, reliability, and cost-effectiveness play a key role in driving the AC electric motor market.
- Further, the increasing adoption of automation in industries is fueling the expansion of high-performance induction motors market.
- For instance, ORIENTAL MOTOR USA CORP. offers World K Series Three-Phase AC Motors & Gear Motors that range from 6W to 150W and come in round shaft, parallel shaft gear, or right-angle gear configurations.
- Thus, as per analysis, benefits including simplicity, reliability, and cost-effectiveness are driving the induction motors market.
Synchronous Motors is anticipated to register the fastest CAGR during the forecast period.
- Growing adoption of synchronous motors typically in applications requiring precise speed control and high efficiency, such as pumps, compressors, and fans is driving the market expansion.
- Further, permanent magnet synchronous motors are gaining popularity due to their high efficiency and compactness which in turn drives the AC electric motor market.
- For instance, Kollmorgen offers SN3/SN4 Series AC synchronous motors that offer high performance in NEMA 34 and 42 frame sizes. Further, the motors are cost-effective, operate directly from standard AC line voltage, and their synchronous speed is tied to the line frequency.
- Therefore, based on analysis, precise speed control, compactness, and high efficiency is anticipated to boost the market during the forecast period.
By Voltage:
Based on the voltage, the market is segmented into up to 1kV, 1 to 6 kV, and above 6 kV
Trends in the Voltage:
- Growing focus on sustainable manufacturing practices and the use of eco-friendly materials is driving the market.
- The push for energy efficiency is a major trend across all voltage ranges which in turn results in development of more energy efficient motors.
Up to 1kV accounted for the largest revenue share of 59.29% in the year 2024.
- Up to 1kV motors are widely used in HVAC systems, small machinery, fans, washing machines, compressors, pumps, and others.
- Further, up to 1kV motors are smaller and lighter, facilitating easier integration into various equipment in turn driving the AC electric motor market expansion.
- Thus, according to analysis, wide range of uses and compactness of the motor is driving the AC electric motor market.
Above 6 kV is anticipated to register the fastest CAGR during the forecast period.
- These motors provide the highest power levels, suitable for a wide range of applications in industries including cement plants, steel mills, and large chemical facilities among others.
- Further, integration of digital technologies for control, monitoring, and predictive maintenance is expected to further drive the AC electric motor market.
- Therefore, a wide range of applications and integration of digital technologies is anticipated to boost the market during the forecast period.
By Power Output:
Based on the power output, the market is bifurcated into fractional horsepower (Up to 1HP) and integral horsepower (Above 1HP)
Trends in Power Output:
- Fractional horsepower motors are generally more cost-effective, while integral horsepower motors are more expensive but offer higher performance.
- Energy efficiency is crucial for both fractional and integral horsepower motors, but it becomes even more critical for integral horsepower motors since they consume more energy.
Fractional Horsepower (Up to 1HP) accounted for the largest revenue share in the year 2024.
- Fractional horsepower motors are widely used for applications including household appliances, HVAC systems, printers & scanners, small tools, conveyors, and pumps among others which in turn drives AC electric motor market.
- Further, increasing trend of miniaturization of devices is significantly impacting the AC electric motor market.
- Furthermore, factors including technological advancements in consumer electronics and growing adoption of household appliances and compact electric motors is propelling the rise of electric motors with fractional horsepower (up to 1HP).
- Thus, increasing trend of miniaturization and a wide range of uses is driving fractional horsepower.
Integral Horsepower (Above 1HP) is anticipated to register the fastest CAGR during the forecast period.
- Benefits including high power output, durability and reliability are driving adoption of integral horsepower which in turn drives AC electric motor market.
- Further, integration of sensors and connectivity for monitoring and predictive maintenance of motors is boosting the market.
- Furthermore, factors including rising progression in industrial automation, increasing automotive production, and growing requirement for robust and high-power electric motors are among the crucial prospects anticipated to drive the adoption of electric motors with integral horsepower (above 1HP).
- Therefore, benefits including high power output, durability and reliability are anticipated to boost the market during the forecast period.
By Sales Channel:
Based on the sales channel, the market is bifurcated into OEM and aftermarket
Trends in the Sales Channel Size:
- Governments and industries are increasingly focusing on energy efficiency, leading to a rise in adoption of AC electric motor with higher efficiency ratings.
- As technology advances, aftermarket customers are increasingly looking to upgrade or retrofit their existing AC electric motor with newer, more efficient models
OEM accounted for the largest revenue share in the year 2024.
- Strong and long-term relationships between OEMs and motor manufacturers are crucial for the growth of OEM segment.
- Further, manufacturers often require motors tailored to their specific equipment designs and needs which results in the rise of OEM segment.
- Furthermore, OEMs are focusing on developing compact, lightweight, and high-performance motors for EVs to meet the specific requirements of this application.
- Thus, need for customized solutions and long-term relationships between OEMs and end users is driving the market.
Aftermarket is anticipated to register the fastest CAGR during the forecast period.
- The aftermarket is primarily driven by the need to replace or repair existing motors in installed equipment.
- Further, cost is a major factor in the aftermarket, as customers are often looking for affordable solutions to get their equipment back up and running.
- Therefore, growing requirement for replacement of motors in residential, commercial, and industrial sectors is anticipated to boost the market during the forecast period.
By End User:
Based on the end user, the market is segmented into residential, commercial, and industrial
Trends in the End User:
- The increasing adoption of smart home appliances, such as smart refrigerators, washing machines, and HVAC systems, is driving the need for energy-efficient AC electric motors.
- Building owners and operators are increasingly focusing on energy efficiency and cost savings, which in turn drives the market.
Industrial accounted for the largest revenue share in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.
- Growing food and beverage sector is driving the demand for AC electric motors for equipment including pumps, mixers, blenders, and conveyors among others.
- Further, oil and gas sector's demand for AC motors is substantial and expands rapidly, fueled by increasing automation and continued industrial growth within the sector.
- Furthermore, industrial automation and robotics are becoming increasingly prevalent in manufacturing and other industrial sectors, which in turn drives market.
- For instance, ABB offers synchronous motors that are designed for oil and gas pumps, fans, and compressors (centrifugal and reciprocating). Further, motors are available in both slow and high speeds configurations and offer high efficiency and performance in various oil and gas settings.
- Thus, based on analysis, growing demand for AC motors in food & beverage and oil & gas sector is driving the market.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 6,546.42 Million in 2024. Moreover, it is projected to grow by USD 6,735.65 Million in 2025 and reach over USD 9,470.90 Million by 2032. Out of this, China accounted for the maximum revenue share of 36.8%. The market for AC electric motor is mainly driven by rapid industrialization and urbanization, leading to increased demand for machinery and equipment across various sectors. Also, expanding manufacturing activities, particularly in countries like China and India, contribute significantly to this demand. Additionally, growing infrastructure development, including transportation, energy, and water management projects, requires a large number of AC motors.
- For instance, in April 2024, ABB India launched two new energy-efficient motor ranges: small frame cast iron IE4 super premium efficiency motors (0.18-7.5kW) and IE3 aluminum motors (0.18-2.2kW). The made in India motors are used in various industries and applications, offering improved energy efficiency, cost savings, reduced emissions, and enhanced reliability. The IE4 motors complete ABB's IE4 portfolio and are customizable for various needs, while the lightweight, corrosion-resistant IE3 aluminum motors offer better heat dissipation and durability.
North America is estimated to reach over USD 7,351.72 Million by 2032 from a value of USD 5,222.31 Million in 2024 and is projected to grow by USD 5,360.97 Million in 2025. The North American market is mainly driven by a strong focus on energy efficiency, leading to increased demand for high-efficiency motors to comply with regulations and reduce operating costs. Further, aging infrastructure requires upgrades and replacements of existing motors creating a substantial market for new AC motors. Furthermore, growth in the manufacturing sector, particularly in areas like automotive, aerospace, and food & beverage, fuels demand for AC motors used in various production processes.
- For instance, in September 2023, Rockwell Automation and Infinitum have partnered to create a new, highly efficient integrated motor and drive system. Combining Rockwell's PowerFlex drives with Infinitum's Aircore EC motors, this system is 50% smaller and lighter, uses significantly less copper, and consumes 10% less energy than traditional motors which in turn helps industrial customers save money and reduce their environmental impact.
The regional analysis depicts that the growth in adoption of electric vehicles, rising adoption of industrial machinery, and growing robotics sectors has been a prevailing factor for market growth in the European region. Additionally, based on analysis, the primary factor driving the market in the Middle East and African region is growing oil and gas industry and rising adoption of electric vehicles. Further, rising industrialization, growing automation across various industries, and growing urbanization is paving the way for the progress of market in Latin America region.
Top Key Players and Market Share Insights:
The global AC electric motor market is highly competitive with major players providing solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the AC electric motor industry. Key players in the AC electric motor market include-
- ABB (Switzerland)
- Johnson Electric (China)
- ORIENTAL MOTOR USA CORP. (US)
- SEVA-tec GmbH (Germany)
- Shanghai Electric Machinery Co. Ltd. (China)
- Nidec Corporation (Japan)
- Kirloskar Electric Co. Ltd (India)
- WEG Electric Corporation (US)
- Yaskawa Electric Corporation (Japan)
- Siemens AG (Germany)
- Rockwell Automation Inc. (US)
Recent Industry Developments :
Product Launch:
- For instance, in May 2024 ABB launched a new motor and inverter package (AMXE250 motor and HES580 inverter) for electric buses. The HES580 is the industry's first 3-level inverter for buses, offering up to 12% less motor loss and 75% reduction in motor harmonic losses compared to 2-level inverters. This leads to greater efficiency, longer motor lifespan, and improved reliability. The AMXE250 motor offers high torque density, quieter operation, and both components are designed for flexible placement and easy installation.
Acquisition and Partnership:
- For instance, October 2024, Nidec Motor Corporation (NMC) partnered with Indian commercial vehicle manufacturer Ashok Leyland (AL) to supply electric motor-controller systems (E-Drives). NMC, a leading E-Drive provider for commercial electric vehicles, will support AL in developing next-generation E-Drives and establishing a Center of Excellence for vehicle electrification. This agreement follows NMC's $55M investment in "The Orchard Hub" in Hubli, Karnataka, which will begin production in late 2025.
- For instance, in April 2024, Regal Rexnord finalized the sale of its Industrial Motors and Generators business to WEG. The acquisition is expected to have a significant positive impact on WEG's market position in the industrial motors and generators sector.
AC Electric Motor Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 26,162.71 Million |
| CAGR (2025-2032) | 4.7% |
| By Motor Type |
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| By Voltage |
|
| By Power Output |
|
| By Sales Channel |
|
| By End User |
|
| By Region |
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| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the AC Electric Motor Market? +
The AC Electric Motor Market is estimated to reach over USD 26,162.71 Million by 2032 from a value of USD 18,474.26 Million in 2024 and is projected to grow by USD 18,974.17 Million in 2025, growing at a CAGR of 4.7% from 2025 to 2032.
What specific segmentation details are covered in the AC Electric Motor report? +
The AC electric motor report includes specific segmentation details for motor type, voltage, power output, sales channel, end user, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the AC electric motor market, the aftermarket is the fastest-growing segment during the forecast period due to the growing need to replace or repair existing motors in installed equipment and continuous technological advancements.
Who are the major players in the AC electric motor market? +
The key participants in the AC Electric Motor Market are ABB (Switzerland), Johnson Electric (China), Nidec Corporation (Japan), Kirloskar Electric Co. Ltd (India), WEG Electric Corporation (US), Yaskawa Electric Corporation (Japan), Siemens AG (Germany), Rockwell Automation Inc. (US), ORIENTAL MOTOR USA CORP. (US), SEVA-tec GmbH (Germany), Shanghai Electric Machinery Co. Ltd. (China) and others.
What are the key trends in the AC electric motor market? +
The AC electric motor market is being shaped by several key trends including increasing demand for energy-efficient motors, growing adoption of variable speed drives (VSDs), rising demand for electric vehicles (EVs), increasing use of automation and robotics, advancements in technology, and increasing focus on predictive maintenance.
