Energy Efficient Motor Market

Energy Efficient Motor Market Overview

The global Energy Efficient Motor Market size was valued at USD 45.39 billion in 2024 and is predicted to reach USD 66.52 billion by 2030 with a CAGR of 6.6% from 2025-2030. 

The high-efficiency motor market or energy efficient motor market is fueled by growth of oil and gas industry and automotive industry growth and increasing demand for energy usage. But increasing price of high efficiency motor is the factor which restricts the overall market growth. With the introduction of internet of things technology into these motors providing favorable opportunity for market growth. 

Key players such as Siemens AG, ABB Ltd., and others are employing different business strategies to attain powerful dominance in the market. High-efficiency motor is a dominant factor in promoting energy saving initiatives that assist industries in maintaining operational efficiency and environmental sustainability. 

Expansion of the Oil & Gas Sector Drives the Energy Efficient Motor Market Growth

Growth of the oil and gas industry globally accelerates the market growth as an increase in the demand for green technology, that is, the energy efficient motor, will facilitate the efficiency enhancement of the entire process involved in operations such as the refining of crude oil and production of petrochemicals. As per the recent report by the Energy Institute, global production of oil increased from 51,520 TWh to 52,432 TWh in 2023, with a growth of 1.77%. The expansion fuels the use of high-efficiency motors to increase the processes and lower energy expenses, fueling market growth. 

Automotive Industry Boosts the Energy Efficient Motor Market Demand

The development of the automotive sector speeds up the market growth with manufacturers concentrating on environmentally friendly and efficient solutions during car manufacturing. The motors are significant in the improvement of processes such as assembly lines and robot systems and the saving of energy without compromising on high performance. As per a report provided by European Automobile Manufacturers Association, car manufacturing worldwide in 2023 hit 76 million, a 10.20% rise from 2022. Thus, the growth in the production of cars raises the need for energy-efficient motors to improve the efficiency in operations as well as promote campaigns of sustainability in the automotive industry. 

Surge in Global Energy Consumption Fuels the Market Growth

Increase in world energy consumption fuels the market for energy-saving motor as companies turn towards energy cost reduction and carbon footprint mitigation. It proves to be a vital component for power optimization within industrial machinery, HVAC systems, and water treatment plants. According to the Energy Institute's 2024 report, global energy consumption increased from 160,629 TWh in 2013 to 183,230 TWh in 2023, up by 14.06%. Such heightened energy use proves the efficiency of high-performance motors in their chase for ecofriendly industrial application in fueling business development. 

High Cost of Energy Efficient Motors Restrains the Market Growth

The high cost of High-efficiency motors limits their adoption among small businesses as the initial investment is a significant barrier hindering the market growth. 

Incorporation of IoT in Energy Efficient Motors Presents Lucrative Opportunity for Market Expansion

The Integration of internet of things (IoT) into energy efficient motors provides a key opportunity for the future of the market. IoT-motors incorporate real-time monitoring, performance reporting, and prediction-based maintenance to improve efficiency as well as keep operational costs at a low level. These systems gather data to optimize motor functionality, detect imminent problems before their occurrence, as well as eliminate downtime. 

Market Segmentations and Scope of the Study

The energy efficient motor market report is segmented on the basis of product type, efficiency level, power range, application, end user, and region. On the basis of product type, the market is divided into AC motor and DC motor. Ac motor is further divided into induction motors and synchronous motors. DC motors is further divided into brushless DC Motors, servo motors, and stepper motors. On the basis of efficiency level, the market is segmented into standard efficiency (IE1), high efficiency (IE2), premium efficiency (IE3), and super premium efficiency (IE4). On the basis of power range, the market is divided into 0.75–7.5 kW, 7.5–75 kW, 75–375 kW, and Above 375 kW. On the basis of application, the market is classified into pumps, fans, compressed air, refrigeration, and others. On the basis of end user, the market is divided into residential, commercial, and industrial. Industrial is further divided into oil & gas, chemicals, mining, food & beverage, automotive, and others. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW). 

Geographical Analysis

North America dominates the energy efficient motors market share and is anticipated to continue dominating the market throughout the forecast period. This is because the growing oil & gas industry in the region drives demand for high-efficiency motors. It is utilized to drive the use of energy to a maximum in hydrocarbon extraction and processing. It is reported, as per the most recent release in 2024 by Our World in Data, that Canadian oil production rose from 3,186 TWh in the year 2022 to 3,231 TWh in 2023, a 1.4% increase. Therefore, this increase in production of oil triggers the demand for energy-saving technology, driving market growth. 

Further, rising energy consumption in the region propels the market growth with increasing demand for better solutions that help enhance the energy efficiency in the sectors such as production and transmission of energy. The latest report of the U.S. Energy Information Administration 2023 states that the U.S. primary energy use 26,189 TWh during 2023, growing by 1.79% from the previous decade. This growing trend of energy consumption propels the demand for advanced, energy-efficient motor to complement clean energy policies, thereby accelerating the market growth. 

Alternatively, the Asia-Pacific market is going to experience constant growth in the energy efficient motor industry is due to increased chemical industry in this market that requires using energy efficient solutions in order to utilize maximum production while conserving energy. As per the newly published report released by the Ministry of Commerce and Industry, the chemicals industry in India is valued at about USD 220 billion in 2022 is going to increase its value to USD 300 billion by 2030. The development of the chemical industry significantly raises the need for high-efficiency motors with a view towards better operating efficiency and power conservation. 

Additionally, the expanding automotive industry in the region accelerates the market growth as companies seek efficient motors that enhances the performance of the car while making energy intake more efficient. The latest report of the electric vehicle sales in China rose to 8.1 million units in 2023 from 6 million units in 2022. This boom in electric vehicles propels the demand for energy saving motors that helps in realizing the optimal consumption of energy as well as improving the performance of electric vehicles.

Competitive Landscape

The energy efficient motor industry comprises of various market players such as Siemens AG, ABB Ltd., General Electric Company, Mitsubishi Electric Corporation, Rockwell Automation Inc., Regal Rexnord Corporation, Kirloskar Oil Engines Ltd., Nidec Motor Corporation, WEG S.A., CG Power, Industrial Solutions Ltd., Eaton Corporation, Turntide Technologies, H3X Technologies, CG Power & Industrial Solutions Ltd., K2 Drives & Controls Ltd. and others. These market players continue to adopt various product launch strategies to maintain their dominance in the market.

For instance, in April 2024, ABB India introduced two new ranges of energy efficient motors called IE4 super premium efficiency motors and the IE3 aluminum motors to drive sustainable industrial development. The move is part of the Make in India movement, that focuses on self-reliance and domestic manufacturing.

Key Benefits

• The report provides quantitative analysis and estimations of the energy efficient motor industry from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the energy efficient motor industry including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the energy efficient motor industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Energy Efficient Motor Market Key Segments

By Product Type 

• AC Motor

  • Induction Motors

  • Synchronous Motors

• DC Motor 

  • Brushless DC Motors

  • Servo Motors

  • Stepper Motors

By Efficiency Level

• Standard Efficiency (IE1)

• High Efficiency (IE2)

• Premium Efficiency (IE3)

• Super Premium Efficiency (IE4)

By Power Range

• 0.75–7.5 kW

• 7.5–75 kW

• 75–375 kW

• Above 375 kW

By Application

• Pumps

• Fans

• Compressed Air

• Refrigeration

• Material Handling

• Material Processing

• Others

By End User

• Residential

• Commercial

• Industrial 

  • Oil & Gas

  • Chemicals

  • Mining

  • Food & Beverage

  • Automotive 

  • Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Siemens AG

• ABB Ltd.

• General Electric Company

• Mitsubishi Electric Corporation

• Rockwell Automation Inc.

• Regal Rexnord Corporation

• Kirloskar Oil Engines Ltd. 

• Nidec Motor Corporation

• WEG S.A.

• CG Power and Industrial Solutions Ltd.

• Eaton Corporation 

• Turntide Technologies

• H3X Technologies

• CG Power & Industrial Solutions Ltd.

• K2 Drives & Controls Ltd.

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 45.39 Billion
Revenue Forecast in 2030	USD 66.52 Billion
Growth Rate	CAGR of 6.6% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	The expansion of the oil & gas sector propels the market growth. The growth of the automotive industry accelerates the market expansion. The rise in energy consumption boosts the growth of the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.