The global electric motor market is projected to reach a value of over $195.2 billion by 2030, rising from $118.2 billion in 2019, progressing at a 4.8% CAGR during 2020–2030, according to P&S Intelligence.
The market is growing due to the:
- Increasing sales of electric vehicles
- Rising government efforts for encouraging the adoption of electric vehicles
The increasing government efforts for enhancing the adoption of electric vehicles is a key driving factor of the electric motor market. Governments of several countries are offering tax incentives and subsidies on the purchase of electric vehicles and are implementing strict emission laws on traditional ICE vehicles. For example, China has been providing a subsidy of over $10,000 per EV since 2017. Similarly, the Indian government is also aiming to have a considerable EV fleet by 2030, for which the National Electric Mobility Mission Plan 2020 was launched in 2012.
On the basis of output power, the integral horsepower division is expected to register the higher CAGR of 6.5% during 2020–2030. The output power of integral-HP motors is 1 or more HP, owing to which, their demand is rising from the commercial and industrial sectors. In terms of applications, the motor vehicle category held the major share of the electric motor market in the past. The demand for electric vehicles is growing in order to reduce the rate of environmental degradation and implementation of strict emission-control laws.
When motor type is taken into consideration, the AC division is predicted to witness the higher CAGR in the years to come. These motors can operate a higher voltages, thereby resulting in the reduction in the size of wire. Other than this, these motors also offer higher torque and speed. It is further easier to maintain AC motors, thereby making them the popular choice over direct current motors. It is predicted that the production of EVs will rise post the current pandemic situation, which will further result in the increasing sales of AC motors.
Geographically, the Asia-Pacific (APAC) region held the major share of the electric motor market in the past, and is further predicted to register the highest CAGR in the years to come as well. With China at the leading position, APAC is the largest producer of electric vehicles in the world. The production of these vehicles in further increasing in countries such as India, where the FAME scheme is offering a number of benefits to people who purchase EVs. This is predicted to drive the regional domain in the near future.