AC Electric Motor Market Size, Share, Trends, Valueh 2032

AC Electric Motor Industry Prospective:

The global AC electric motor market size was worth around USD 18.57 billion in 2023 and is predicted to grow to around USD 31.38 billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.00% between 2024 and 2032.

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AC Electric Motor Market: Overview

An alternating current (AC) electric motor is a device consisting of a coil and a stator.

When supplied with alternating current, the device converts electric power into mechanical form. In an alternating current electric motor, the stationary part is the stator while the rotor is the rotating entity. According to market research, AC electric motors are available either in single or three phases.

The latter is traditionally used in bulk power conversions while single-phase AC motors are used for smaller energy conversions. Alternating current electric motors are classified into two segments: induction and synchronous. The former is also known as an asynchronous motor. The operation of the induction versions is through the stator excitement only.

Whereas, in a synchronous motor, the frequency of the applied current and the rotation speed of the shaft match perfectly. The demand for AC electric motor has been growing rapidly over the years due to extensive use in end-user industries. For instance, AC electric motors are used in common home appliances such as washing machines and air conditioners. Additionally, they also have industrial applications along with usage in transportation. The industry’s growth rate is projected to be limited due to the high cost of the motors as well as competition from alternate technologies.

Key Insights:

• As per the analysis shared by our research analyst, the global AC electric motor market is estimated to grow annually at a CAGR of around 6.00% over the forecast period (2024-2032)
• In terms of revenue, the global AC electric motor market size was valued at around USD 18.57 billion in 2023 and is projected to reach USD 31.38 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising use in the automotive sector.
• Based on the voltage, the low voltage motors segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the end-user application, the industrial segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

AC Electric Motor Market: Growth Drivers

Rising use in the automotive sector to fuel the market growth rate during the projection period

The global AC electric motor market is expected to be driven by the growing demand for the device in the automotive industry. According to industry analysis, the application of alternating current electric motors is expected to gain extreme momentum in the coming years due to the surging investments in electric vehicles (EVs). The global automotive industry is currently at a revolutionary stage due to the rising adoption of EVs across public and private transportation mediums.

One of the key components of an electric vehicle is the AC electric motor. The device is used for converting electrical energy stored in EV batteries to mechanical power thus facilitating the vehicle’s movement. One of the key benefits of using AC electric motors in the propulsion systems of electric or hybrid vehicles is excellent control over speed and superior power density.

Furthermore, the device is also used to power heating, ventilating, and air conditioning (HVAC) systems of the automotive industry. The demand for electric vehicles has improved in the last five years influenced by several factors. For instance, electric vehicles offer a sustainable alternative to fuel-powered vehicles.

Additionally, increasing tax subsidies and reducing the cost of electric vehicles have further promoted the demand for EVs across major developed and developing economies. The US recorded more than 3 million sales of EVs in the fourth quarter of 2023 according to market findings.

Rising automation in the industrial sector to promote extensive market growth rate

Automation in the industrial sector has gained high popularity due to the advantages of employing sophisticated industrial tools in business operations. According to detailed market studies, manufacturers in the US witnessed an increase in industrial automation by 12.01% in 2023 as compared to the previous year.

Furthermore, emerging economies with higher numbers of manufacturing and industrial facilities are at the forefront of automation innovation and adoption. The solutions available in the global AC electric motor market are used widely in industrial facilities across conveyor belts, industrial robots, and fans or blowers. The surge in the adoption of semi-automatic or fully automatic industrial robots will promote an extensive market growth rate in the future.

AC Electric Motor Market: Restraints

High cost of the devices to limit the industry’s revenue rate in the future

The global industry for AC electric motor is projected to be restricted due to the high cost of the devices. This is especially applicable to large or customized alternating current motors. The cost of the same can reach over USD 10,000 according to market experts.

Furthermore, the development of AC electric motors is a complex procedure due to the use of several sensitive parts. The lack of sufficient maintenance infrastructure along with the non-availability of skilled labor to repair broken motors may further impact overall revenue in the industry.

AC Electric Motor Market: Opportunities

Ongoing investments in motor technology advancements will generate growth opportunities

The global AC electric motor market is projected to generate growth opportunities due to the ongoing launch of new solutions with improved performances and extensive end-user applications. The changing consumer needs due to the emergence of more sophisticated technologies are driving the market’s innovation rate.

In October 2024, CG Power, a leading provider of electrical energy management and application solutions, announced the launch of two new low-voltage induction motors. The company has launched AXELERA 4.0 and AXELERA 3.0. The former is equipped with a capacity of up to 7.5 kW.

According to the company’s claims, these devices are designed to help industries improve energy efficiency and reduce carbon footprint. The innovation emerges in the backdrop of growing concerns over environmental damage caused by business operations.

In August 2024, WEG, a leading international player in the market, announced the addition of air-handling motors to the company’s existing line of products. The new tool is equipped with an electronically commutated motor carrying an International Efficiency (IE) Class 6 rating. It is capable of providing power up to 4kW. The motor is designed to improve the quality of air in a room which is essential for the comfort of humans and animals enclosed in the facility.

AC Electric Motor Market: Challenges

Competition from alternate technologies could challenge the market expansion rate

The global industry for AC electric motor is expected to be challenged by the presence of massive competition from alternate technologies. Some of the common substitutes for AC electric motor include hydraulic motors, stepper motors, brushless direct current motors, and Permanent Magnet Synchronous Motors (PMSM). The large-scale availability of alternate technologies along with increased research & development will impact overall revenue in the long term.

AC Electric Motor Market: Report Scope

AC Electric Motor Market: Segmentation

The global AC electric motor market is segmented based on voltage, end-user application, and region.

Based on the voltage, the global market segments are high-voltage motors, medium-voltage motors, and low-voltage motors. In 2023, the highest growth was listed in the low-voltage motors segment. The solutions available in this segment have wider applications in greater volumes. For instance, low-voltage motors equipped to provide voltages up to 1,000 volts are regularly employed in household appliances such as air conditioners and washing machines. Furthermore, they are also in major industrial applications.

Based on the end-user application, the global market divisions are transportation, agriculture, residential, commercial, and industrial. In 2023, the highest revenue-generating segment was industrial. AC electric motors have registered extreme popularity in several industrial machinery such as compressors and conveyor belts. Furthermore, the surge in the adoption of industrial robots across facilities will further promote the segment's overall revenue in the long term. The global industrial automation market was valued at over USD 210 billion in 2023.

AC Electric Motor Market: Regional Analysis

Asia-Pacific to emerge as the leading revenue generator during the forecast period

The global AC electric motor market will be led by Asia-Pacific during the forecast period. Countries such as China, South Korea, Japan, and India will aid regional market expansion in the coming years. One of the preliminary reasons for Asian countries dominating the global market is the extensive production and application of AC electric motors across major regional industries.

According to market analysis, South Korea is projected to register a CAGR of more than 7% during the forecast period. The country is home to some of the world’s most advanced factory units. The engineering and manufacturing sectors of South Korea are equipped with state-of-the-art automation tools relying heavily on AC electric motors for proper functioning. China is projected to grow at a CAGR of 6.01% in the coming years.

China’s growing automotive industry fueled by the growing production rate of affordable and luxury electric vehicles with presence across international countries will help the country generate high demand for AC electric motors.

In addition to this, demand for household appliances powered using alternating current motors across China and India is growing rapidly due to changing consumer lifestyles and rising disposable income prompting greater use of AC electric motors.

AC Electric Motor Market: Competitive Analysis

The global AC electric motor market is led by players like:

• Johnson Electric
• Siemens AG
• Marathon Electric (Regal Beloit Brand)
• Rockwell Automation
• Baldor Electric (ABB Subsidiary)
• TECO Electric & Machinery Co.
• Kirloskar Electric Company
• Toshiba Corporation
• Mitsubishi Electric Corporation
• Yaskawa Electric Corporation
• ABB Ltd.
• Brook Crompton
• Nidec Corporation
• Regal Rexnord Corporation
• WEG Electric Corporation.

The global AC electric motor market is segmented as follows:

By Voltage

• High Voltage Motors
• Medium Voltage Motors
• Low Voltage Motors

By End-User Application

• Transportation
• Agriculture
• Residential
• Commercial
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa