Electric Motor Market to Hit $236.88 Billion by 2032, at a CAGR of 7.3%, Driven by Growing Electric Vehicle Demand

The electric motor market is estimated to be valued at USD 144.56 Bn in 2025, growing at a compound annual growth rate (CAGR) of 7.3% from 2025 to 2032.

BURLINGAME, CA, UNITED STATES, November 14, 2025 /EINPresswire.com/ -- The electric motor market is estimated to be valued at USD 144.56 Bn in 2025 and is expected to reach USD 236.88 Bn by 2032, growing at a compound annual growth rate (CAGR) of 7.3% from 2025 to 2032. The electric motor market is gaining strong momentum, fueled by tougher emissions regulations and a rising emphasis on energy-efficient technology. As electric vehicles become more mainstream and governments increasingly support renewable energy, demand for electric motors across both the automotive and energy sectors is climbing steadily.

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Global Electric Motor Market Key Takeaways

According to Coherent Market Insights (CMI), the global electric motor market size is expected to reach USD 144.56 Bn in 2025 and USD 236.88 Bn by 2032, growing at a CAGR of 7.3%.
Demand remains especially high for AC motors, with the target segment expected to account for a market share of 54.2% in 2025.
In terms of Voltage, the 1 kV-6.6kV segment is slated to dominate the industry, capturing 48.2% of the global electric motor market share in 2025.
Transportation is likely to remain the leading end user of electric motors, holding a market share of 33.1% share by 2025.
North America is projected to lead the global market, holding a share of 39. 7% in 2025.
Asia Pacific is poised to emerge as the fastest-growing electric motor market during the forecast period.
Rising Demand for Electric Vehicles Fueling Market Growth

Coherent Market Insights’ new electric motor market analysis outlines major factors driving the industry’s growth. Increasing demand for electric vehicles is one such prominent growth driver.

This is a growing shift from internal combustion engines to electric vehicles due to rising environmental concerns, stringent regulations, and government incentives. According to IEA’s Global EV Outlook 2025, global electric car sales are expected to exceed 20 million units in 2025.

This rise in electric vehicle sales is expected to boost demand for electric motors during the forecast period. Electric vehicles need high-efficiency traction motors. Thus, electrification of transportation will create a conducive environment for the growth of electric motors.

High Costs and Dependence of Rare Materials Restraining Market Growth

The global electric motor market outlook remains positive, owing to increasing adoption in electric vehicles, robotics, and industrial applications. However, high costs and dependence on rare materials might limit market growth during the forthcoming period.

Advanced electric motors, especially those used in EVs or industrial applications, are more expensive than conventional motors. This can restrict adoption among cost-sensitive customers, thereby affecting overall electric motor market demand.

In addition, many high-efficiency electric motors rely on rare earth metals like neodymium. Supply chain constraints and price volatility of these materials could slow down electric motor market growth during the forthcoming period.

Expansion of Industrial Automation and Robotics Creating Growth Avenues

The rapid rise of industrial automation and robotics courtesy of the Industry 4.0 revolution is fueling demand for electric motors. This trend is creating new revenue opportunities for electric motor manufacturers across various industrial sectors.

According to the International Federation of Robotics (IFR), around 542,000 industrial robots were installed worldwide in 2024. This rise in robot use is increasing demand for electric motors, which are essential for controlling robot movements and powering automation systems.

Electric motors are essential components in automated machinery, robotic arms, and material-handling systems. As industries worldwide embrace smart manufacturing and digitalization, the need for efficient and reliable motors continues to grow sharply.

In addition, rapid urbanization is expected to unlock growth prospects for manufacturers of electric motors in the coming years. Infrastructure growth often drives demand for electric motors across applications like HVAC systems, pumps, compressors, and fans.

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Emerging Electric Motor Market Trends

Rising demand for energy efficiency is a key growth-shaping trend in the electric motor market. Energy-efficient motors compliant with IE3 and IE4 efficiency standards are witnessing strong demand as industries and governments aim to reduce energy consumption, carbon emissions, and operational costs. Regulatory initiatives and energy-efficiency mandates in regions such as the EU, U.S., China, and India are further accelerating this shift.

Continuous technological advancements are transforming the electric motor industry. New technologies like permanent magnet motors, smart motor controls, and IoT-based predictive maintenance are making motors more efficient, reliable, and easier to monitor. These innovations help industries reduce downtime, improve performance, and cut maintenance costs, boosting the adoption of advanced electric motors across various applications.

Increasing renewable energy integration is expected to boost sales of electric motors during the forecast period. Electric motors play a crucial role in renewable energy systems such as wind turbines, hydroelectric plants, and solar tracking mechanisms. Consequently, the global shift toward clean and sustainable energy is set to uplift electric motor demand.

Companies like Siemens, ABB, Nidec, and others are developing brushless DC motors, permanent magnet synchronous motors, and smart motors to improve performance as well as reliability and compactness. Similarly, integration of AI, IoT, and smart controls enhances predictive maintenance as well as operational efficiency. For instance, QPT recently launched the world’s first AI-ready motor driver for collaborative robots.

Surging demand for consumer appliances like washing machines, air conditioners, refrigerators, and vacuum cleaners is also fueling electric motor sales. This is because these appliances rely heavily on electric motors.

Competitor Insights

Key companies in the electric motor market report include:

Allied Motion Technologies, Inc.
ABB Group
Ametek, Inc.
Franklin Electric
Hyosung Corp.
General Electric Company
Dumore Corp.
Hitachi, Ltd.
Johnson Electric
Kirloskar Electric Company, Ltd.
Robert Bosch GmBH
Lincoln Electric Holdings, Inc.
Nidec Motor Corp.
Regal Rexnord Corp.
Rockwell Automation
Schneider Electric
Toshiba Corp.
Siemens AG
Teco Westinghouse
WEG S.A.
Hyundai Electric Co, Ltd.
Key Developments

In September 2025, ABB India launched its IE5 ultra-premium efficiency motor range to meet rising end-user demand. The company also announced an investment of INR 140 crore to expand as well as modernize its Low Voltage motors manufacturing facility in India.

In October 2024, Bosch unveiled a powerful 800‑volt electric drive for working and recreational boats at the METSTRADE marine trade show. The electric drive can deliver up to 200 kW of power and is suitable for boats of different sizes.

In May 2024, ABB launched its new energy-efficient AMXE250 motor and HES580 inverter for electric buses. The integrated package is designed to provide a cleaner and more sustainable transportation solution for end users.

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Author of this Marketing PR:

Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

About CMI:

Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.

Raj Shah
Coherent Market Insights Pvt. Ltd.
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