Low Voltage AC Motor Market - Forecast(2024 - 2030)

Low voltage AC motor market size is forecast to surpass $25 billion by 2030, after growing at a CAGR of 7% during the forecast period 2024-2030. The government's energy efficiency regulations on motor-driven systems in industrial & commercial sector are anticipated to be the main growth drivers for the worldwide low-voltage AC motors market. Apart from this the investments towards expansion of existing plants and setup of new ones across pharmaceutical, food & beverages, water & wastewater, power generation and other verticals to drive the demand for low voltage AC motors market during the forecast period 2024-2030

The report “Low Voltage AC Motor Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Low Voltage AC Motor market.

By Type: Synchronous Motors, Induction Motors, Permanent Magnet Motors, Servo Motors, Others

By Power Rating: up to 1 HP, 1-5 HP, 5-10 HP, 10-20 HP, 20-50 HP, above 50 HP. 

By Phase: Single Phase, Three Phase

By Housing Material: Aluminum, Cast Iron, Steel. 

By Efficiency Class: IE1, IE2, IE3, IE4, IE5

By Application: Pumps, Machine Tool, Compressor, Conveyor Systems, Robotics & Automation, HVAC&R, Fans & Blowers, Main Drive Units, Others

By End User Industry: Oil & Gas, Chemical, Pharmaceutical, Mining, Food & Beverage, Water & Wastewater, Commercial, Transportation, Agriculture, Power Generation, Automotive, Industrial Machinery, Others

By Geography:  North America, South America, Europe, APAC, and RoW.

• The adoption of higher efficiency motors such as the IE4 class of motors has been favorably embraced by Europe region, and legislation governing motor efficiency in the EU remains a driving force in the market.

• By 2050, global power usage is expected to double. Around the same period, the governments are planning to reduce their country's CO2 emissions by 50% in order to mitigate climate change. Electric motors account for roughly 40% of global energy use. Industries are another major worldwide energy user, with motors in industrial plants often consuming 65 to 80% of total plant electricity. As a result, an energy-efficient IE4 motor is expected to set a trend in the market for low-voltage AC motors.

• On 19 May 2023, The Board of Directors of Siemens Limited authorized a sale and transfer of Siemens Limited's AC and DC low voltage motors and geared motors businesses, including related customer service businesses ("the Business") to Siemens Large Drives India Private Limited, an entity completely owned by Siemens AG, for a consideration of Rs. 2,200 crore, effective October 1, 2023.

Induction motors dominated the Low voltage AC motor market in 2023. Low-voltage alternating current induction motors transfer electrical energy from stator to rotor without the use of slip rings or brushes, resulting in smooth, quiet, and consistent performance owing to which there are significant less maintenance cost during the service period. Induction motors being majorly used in commercial vertical for pumps, elevators & escalators, HVAC and other applications, is set to witness an significant upsurge during the forecast period 2024-2030 with the rise in investments towards establishments of commercial buildings such shopping malls, office parks, hospitals and so on. 

1 to 5 HP motor segment dominated the global low-voltage AC motor market in 2023 owing to the widescale use of induction motors for pumps, main drive units, fans & blowers, compressors and so on in various industry verticals. The growing emphasis towards integration of energy efficient motors such permanent magnet motors for continuous duty operations is set to drive the market during the forecast period 2024-2030. Apart from this the increase in investments towards setting up of new plants and upgrade of the existing ones with energy efficient equipment is also set to the assist the market growth in the future.

Steel dominated the Low voltage AC motor market in 2023, owing to advantages of certain grades of steel such as stainless steel towards corrosion resistance, durability, hygiene, and aesthetics. Stainless steel motors are especially suitable for applications that require frequent washdowns, such as food processing, pharmaceuticals, wastewater, and other harsh environments. For instance, ABB’s stainless steel AC brushless servo motors are built with washdown capability and may be applied in harsh, corrosive environments. These stainless-steel AC brushless servo motors achieve IP67 dust and liquid ingress protection and can withstand 1,500 psi washdown conditions.

IE3 dominated the Low voltage AC motor market in 2023. The rising emphasis on energy efficiency, sustainability, and regulatory compliance is driving the growth of the IE3 Low Voltage AC Motor market. As enterprises strive to improve operations, minimize energy consumption, and meet global environmental targets, IE3 motors provide a compelling solution that provides both economic and environmental benefits. For instance, In 2022, ABB introduced flameproof low-voltage motors for explosive atmospheres, ABB's new low-voltage flameproof motors are designed for safe usage in potentially explosive atmospheres. The made-in-India motors are available in IE2 and IE3 efficiency classes, with frame sizes ranging from 80 to 250 mm. IE3 low voltage AC motors are frequently chosen as part of energy reduction measures by organizations participating in energy management programs or obtaining energy certifications such as ISO 50001.  Many countries and areas have enacted stringent laws and standards mandating the use of more energy-efficient motors. These regulations demand that IE3 motors achieve or exceed the efficiency requirements.

The water pump segment dominated the low-voltage AC motor market in 2022. Due to various aspects that contribute to its advantages in this specific application. Water pumps are used for a variety of applications, including agricultural irrigation, industrial processes, wastewater treatment, and more. Low Voltage AC Motors provide multiple benefits that are ideally suited to the needs of water pump systems. Growing reliance on groundwater and monsoon irregularities are fueling demand for water pumps in the agriculture sector. Government efforts to improve water infrastructure, water supply, and sanitation services around the world are likely to boost the use of water pumps even further. Increased emphasis on the setting up of new wastewater treatment plants and desalination plants around the world, along with numerous government programs to improve and upgrade the existing plants are also analyzed drive the market for low-voltage AC motors during 2024-2030

The APAC region attributed to the largest share of the global low voltage AC motor market in 2023 and is also estimated to witness the highest growth of CAGR 8% during 2024-2030. The low-voltage AC Induction motor type market in China has positive growth opportunities, mainly supported by increasing demand for efficient and energy-saving solutions. The government’s initiatives to promote the use of new energy-efficient motors as well as the rising demand for high-power motors from the industrial sector will further drive the growth of the AC motor types market in China. The growing demand from various end-user industries, such as the automotive, oil & gas, and power generation sectors is the primary driver of this growth. Furthermore, the Government of India’s Make in India initiative, and the recent surge in renewable energy installations, are other factors contributing to the market’s growth.

• Increase in demand of Electric Vehicles to drive the establishment of new manufacturing plants.

The growing environmental concerns from internal combustion engine exhausts is already leading to the shift towards electric vehicles. With favourable government initiatives such as grants, subsidies, and tax benefit towards adoption of electric vehicles the demand for the same has been witnessing multi-fold growth in recent years. Owing to this shift, the auto OEMs are investing significantly towards setting up of new plants and expanding the production capacities of the existing ones to meet this surge in demand. This is set to drive the demand of low voltage AC motors used in EV manufacturing plants for various major applications such as main drive units for assembly line, robotics & automation, HVAC, and so on. In April 2023, Two major automakers, General Motors and Hyundai, have separately announced plans to build electric vehicle (EV) battery plants in the US, indicating the continued growth of EV manufacturing in the country. General Motors is partnering with Samsung SDI to invest $3 billion in an EV battery plant in the US. This joint venture is expected to commence in 2026 and will have a capacity of over 30GWh. Hyundai is forming a joint venture with SK On, a South Korean battery manufacturer, to invest $5 billion in an EV battery factory in Georgia. This plant is scheduled to start producing battery cells in the second half of 2025 and will have an annual capacity of 35GWh, sufficient to manufacture 300,000 EVs. 

• Strong industrial infrastructure in major nations

China's industrial sector is rapidly growing, supported by a variety of sectors including the automobile, manufacturing, chemicals, and electronics industries. The demand for low-voltage electric motors in various industries is being fueled by industrial automation, production line adjustments, and the need for energy-efficient solutions. 

The conventional boundaries of automation and control functions are being broken by Industry 4.0 in the process and manufacturing industries. It allows for a broader range of functions and sectors to operate within global efforts and architectural frameworks, such as Made-in-China 2025 in China and Society 5.0 in Japan. As a result of China's rapid urbanization and ongoing construction projects, there is a significant need for low-voltage motors in industries including HVAC, building automation, elevators, and escalators. The country’s market is expanding as a result of both the growing urban population and infrastructure development.

• High production costs of low-voltage AC motors will impede growth

The fluctuation of raw materials’ prices is analyzed to put a significant strain on the production of electric motors. In January 2022, the cost of neodymium, the primary rare earth element used in magnets, surged by more than 200% when compared to its value in 2019. Additionally, copper prices rose by 59%, aluminum saw a 62% increase, and steel prices climbed by 24% during the same period. Apart from this, the global energy supply system's recent reorganization, driven by the Ukraine crisis and the escalating U.S.-China trade dispute, has led to a worldwide increase in prices for raw materials and assembly components. Owing to this motor manufacturers witness decrease in profit margins due to the increase in manufacturing cost. Thereby such fluctuation in the raw materials cost are set to impeded the market growth during forecast period

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the low-voltage AC Motor market. In 2023, Major players in the Low Voltage AC Motor market are ABB, Siemens, Nidec Corporation, WEG Electric Corp, Schneider Electric, Wolong, Toshiba Corporation, Regal Rexnord Corporation, TECO Electric & Machinery Co., Ltd. and Others.

In May 2023, ABB declared that the purchase of Siemens’ low-voltage NEMA motor division had been finalized. The purchase of this company is a successful expansion plan for the Motion business area. It strengthens ABB's position as a leading producer of industrial NEMA motors and provides the business with an even more reliable platform from which to better serve its customers around the world.

In March 2023, Nidec Copal Electronics Corporation, a subsidiary of the Company, purchased all of the stock in Midori Precisions Co., Ltd, an electronic component manufacturer that develops, manufactures, and sells switches, pressure sensors, potentiometers, small precision motors, and other products, among other things. The new plant will produce EMBs (electro-mechanical brakes), EWPs (electric water pumps), and other automotive motors, with the E-Axle, the Company's traction motor system, expected to be mass-produced by 2024.