Electric Motors Market size is estimated to surpass $36 billion by 2024; according to a new research report by Global Market Insights, Inc. Global electric motor shipments are expected to cross 2 billion units till 2024. High adoption of electric vehicles will primarily drive the industry growth till 2024. Major players from automotive sector are focusing at increasing their electric vehicle production which in turn drive industry demand. For instance, Honda plans to electrify two-third of its vehicle production by 2030. Similarly, Volkswagen aims at accomplishing over 2 million vehicle sales by 2025. These continuous efforts by the OEMs will lead to increased electric motors demand, thus fostering the industry growth.
Various governments have mandated several targets regarding reduction of CO2 emissions. These targets aim for 95 g CO2/km cap by 2020 and are anticipated to become more stringent beyond 2020. Fulfilling these targets require complete vehicle electrification, strengthening the product penetration over the forecast timeframe. However, operational & supply chain issues coupled with probability of product failure may hamper the electric motors market growth over the forecast timeframe.
Shifting focus towards solar powered consumer goods owing to their benefits is witnessed as an opportunity for industry participants. These benefits include high efficiency and low power consumption. Additionally, government initiatives to promote their usage will support the electric motors demand. For instance, US Department of Energy is investing heavily on the development of superior solar powered products.
Extensive R&D activities are carried out for energy efficiency enhancement in electric motors. For instance, the US Department of Energy (DOE) announced an investment of approximately $25 million for 13 R&D projects, targeting technological advancements in electric motors. These advancements will induce immense potential and will provide enhance product features for different applications.
Small DC motors for automotive is anticipated to hold highest market share crossing $26 billion over the forecast timeframe. Extensive usage in automobile industry, especially in the key mechanical applications such as cooling systems and electric power steering (EPS) will support the industry growth. Traction motors will showcase exponential growth till 2024 owing to rising electric vehicle production across the globe. Additionally, they are used as a major component in varied application areas including industrial & electrical devices, propelling the product penetration.
Small DC motors for consumer goods & industrial applications will account for a considerable revenue share and grow at more than 5 percent from 2017 to 2024. This can be credited to their high acceptance from industrial machinery and consumer electronics. Provision of benefits such as high performance, efficiency and outstanding control properties will contribute significantly towards the industry growth.
OEMs will account for more than 80 percent revenue share in electric motors market till 2024. Increasing prominence of DC motors in consumer, industrial and automotive applications will support the high revenue generation. Industry players are continuously focusing on the development of cost effective solutions to gain competitive edge. Additionally, reduction in taxes and excise duties for auto components boosting trade will escalate the demand for OEM products over the coming years.
Aftermarket is poised to grow rapidly at more than 8 percent CAGR owing to high demand from local and international markets. This can be credited to the factors such as price competitiveness and regulatory compliance. Higher profit margins along with shifting trends toward the noiseless and precise operation of the products are expected to further fuel the industry growth till 2024.
Asia Pacific is anticipated to capture approximately 55 percent of the electric motors market share over the forecast timeframe. Substantial automobile production across the region will mainly drive the regional growth. Focus of automobile industry towards emission reduction and fuel economy enhancement has resulted in implementation of green vehicles in various countries. Moreover, favorable regulatory landscape in the region regarding vehicle electrification will further propel the industry growth. For instance, Indian government has mandated vehicle electrification by 2030 and is forcing automobile OEMs for early planning of the same.
Rising deployment in commercial & passenger vehicles will spur the North America electric motors market over the forecast timeframe. Latin America will grow significantly owing to rising trading activities and availability of cheap labor. MEA will grow at over 3 percent CAGR from 2017 to 2024. Increasing sales of all-terrain vehicles (ATVs) along with shifting trend towards hybrid vehicles will support the regional growth.
WEG, Nidec Corp., ABB, Toshiba and Robert Bosch are among the prominent players in electric motors market. Other notable players include Regal Beloit, Allied Motion Technologies, General Electric, Shandong, and Hyosung.