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    Energy Efficient Motor Market

    ID: MRFR/E&P/9353-HCR
    100 Pages
    Anshula Mandaokar
    September 2025

    Energy Efficient Motor Market Research Report Information By Efficiency Level (IE1, IE2, IE3, IE4), By Application (HVAC, Fans, Pumps, Compressors, Others), By End-Use (Industrial, Commercial Building, Residential, Automotive, Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2032

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    Energy Efficient Motor Market Summary

    As per Market Research Future Analysis, the Global Energy Efficient Motor Market was valued at USD 37.83 Billion in 2023 and is projected to grow to USD 67.92 Billion by 2032, with a CAGR of 6.0% from 2024 to 2032. The market is driven by the increasing demand for energy-efficient solutions to reduce greenhouse gas emissions and the adoption of advanced motor technologies. Key applications include HVAC, fans, pumps, and compressors, with the industrial sector being the largest end-user. The IE4 efficiency level segment holds the majority share due to its superior performance and energy savings. North America currently dominates the market, while Asia-Pacific is expected to witness significant growth due to supportive government initiatives.

    Key Market Trends & Highlights

    The market is experiencing several key trends that are shaping its growth trajectory.

    • Growing need to reduce greenhouse gas emissions is driving demand for energy-efficient motors.
    • IE4 motors are preferred for their high efficiency, accounting for the majority share in 2021.
    • The HVAC segment is projected to lead in revenue due to high motor requirements.
    • Industrial applications dominate the market, reflecting a shift towards energy conservation.

    Market Size & Forecast

    2023 Market Size USD 37.83 Billion
    2032 Market Size USD 67.92 Billion
    CAGR (2024-2032) 6.0%

    Major Players

    Key players include ABB, Siemens, Rockwell, Schneider Electric, Crompton Greaves, Kirloskar Electric Company Ltd., Bosch Rexroth AG, Regal Beloit Corporation, Nidec Motor Corporation, and WEG.

    Energy Efficient Motor Market Trends

    A growing need to reduce the greenhouse effect to boost the market growth

    The growing need to reduce greenhouse gas emissions is boosting the demand for energy-efficient solutions, which will drive the expansion of the energy-efficient motor market. Companies are choosing eco-friendly solutions for their technologies and processes as energy conservation becomes more popular. Switching to energy-efficient solutions is one of the most critical factors in reducing greenhouse gas emissions from fossil-fuel-generated electricity. 

    The aforementioned causes are driving industrial end-users to transition from standard to energy-efficient motors. This would allow governments to maintain natural energy supplies while also considerably reducing greenhouse gas emissions and hazardous pollution. Furthermore, the use of energy-efficient motors saves money for end-users by lowering energy usage. This tendency is expected to continue during the predicted period.

    Improvement in design methods to reduce carbon emissions

    Highly efficient motors are preferred over regular motors for a variety of reasons, including longer working life, lower energy usage, less maintenance, and greater tolerance to voltage variations. The requirement for greater productivity and reduced power consumption by electric motor applications is predicted to drive up demand for high-efficiency motors. 

    Furthermore, the rise in demand for electric motors from robotics and automated robot technologies is anticipated to provide lucrative opportunities for the growth of the Market.

    The transition towards energy-efficient motors is increasingly recognized as a pivotal strategy for reducing energy consumption and greenhouse gas emissions across various industrial sectors.

    U.S. Department of Energy

    Energy Efficient Motor Market Drivers

    Market Growth Projections

    The Global Energy Efficient Motor Market Industry is poised for substantial growth, with projections indicating a market size of 80.9 USD Billion by 2035. This growth is underpinned by a compound annual growth rate of 6.6% from 2025 to 2035, reflecting the increasing adoption of energy-efficient technologies across various sectors. The market's expansion is driven by a combination of factors, including rising energy costs, government regulations, and technological advancements. As industries continue to prioritize energy efficiency and sustainability, the demand for energy-efficient motors is likely to escalate, positioning the market for robust growth in the coming years.

    Technological Advancements

    Technological advancements are significantly influencing the Global Energy Efficient Motor Market Industry. Innovations in motor design, materials, and control systems have led to the development of highly efficient motors that outperform traditional models. For example, the integration of smart technologies allows for real-time monitoring and optimization of motor performance, further enhancing energy savings. These advancements not only improve efficiency but also extend the lifespan of motors, making them a more attractive investment for businesses. As technology continues to evolve, the market is expected to benefit from increased adoption of these advanced solutions.

    Growing Industrial Automation

    The trend towards industrial automation is a key driver of the Global Energy Efficient Motor Market Industry. As industries increasingly adopt automation technologies to enhance productivity and reduce labor costs, the demand for energy-efficient motors rises correspondingly. Automated systems often require high-performance motors that can operate efficiently under varying loads and conditions. This shift is particularly evident in sectors such as manufacturing and logistics, where energy-efficient motors are essential for optimizing operations. The growing emphasis on automation is likely to sustain the market's growth trajectory in the coming years.

    Rising Demand for Energy Efficiency

    The Global Energy Efficient Motor Market Industry experiences a surge in demand as industries seek to reduce operational costs and enhance sustainability. Energy-efficient motors are recognized for their ability to significantly lower energy consumption, which is crucial in an era where energy prices are volatile. In 2024, the market is projected to reach 40.0 USD Billion, driven by regulations and incentives promoting energy efficiency. This trend is expected to continue, with projections indicating a market size of 80.9 USD Billion by 2035. The anticipated compound annual growth rate of 6.6% from 2025 to 2035 further underscores the growing emphasis on energy-efficient technologies.

    Government Regulations and Incentives

    Government regulations play a pivotal role in shaping the Global Energy Efficient Motor Market Industry. Many countries have implemented stringent energy efficiency standards and regulations aimed at reducing greenhouse gas emissions. For instance, the U.S. Department of Energy has established efficiency standards for electric motors, encouraging manufacturers to produce energy-efficient alternatives. These regulations not only promote environmental sustainability but also provide financial incentives for businesses to invest in energy-efficient technologies. As a result, the market is witnessing a shift towards compliance-driven purchases, which is likely to bolster growth in the coming years.

    Increased Awareness of Environmental Impact

    There is a growing awareness of the environmental impact of energy consumption, which is driving the Global Energy Efficient Motor Market Industry. Businesses and consumers alike are becoming more conscious of their carbon footprints and are actively seeking solutions that align with sustainability goals. Energy-efficient motors contribute to reduced energy consumption and lower emissions, making them an appealing choice for environmentally conscious organizations. This heightened awareness is prompting companies to invest in energy-efficient technologies, thereby fostering market growth. As sustainability becomes a central focus for many industries, the demand for energy-efficient motors is expected to rise.

    Market Segment Insights

    Energy Efficient Motor Efficiency Level Insights

    The market segmentation, based on Efficiency Level, includes IE1, IE2, IE3, and IE4. The IE4 segment holds the majority share 2021 of the Energy Efficient Motor revenue. This is because IE4 motors are highly efficient and provide many advantages over traditional motors, such as reduced energy consumption, improved performance, and increased lifespan. As a result, more and more companies are switching to using IE4s for their motor needs.

    Energy Efficient Motor Application Insights

    Based on Application, the market segmentation includes HVAC, Fans, Pumps, Compressors, and Others. The HVAC segment is estimated to account for the largest share of the market in terms of revenue, as it requires the highest number of motors. This segment is expected to drive the market with its increasing requirements for efficient motors and other related components.

    Energy Efficient Motor End-use Insights

    Based on End-use, the market segmentation includes Industrial, Commercial buildings, Residential, Automotive, and Others. The Industrial segment dominated the market in 2021. The industrial sector is leading the way in this regard, as they are the largest consumers of these motors, accounting for a significant portion of the market. This trend is expected to continue as more industries look to reduce their energy consumption and improve their efficiency.

    Figure 2 Energy Efficient Motor Market, by End-use, 2021 & 2030 (USD Billion)

    Source Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Get more detailed insights about Energy Efficient Motor Market Research Report—Global Forecast till 2032

    Regional Insights

    By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America dominates the Energy-Efficient Motor Market. Because of the different actions implemented by the Department of Energy (DOE) in many countries in the region, Asia-Pacific is predicted to develop significantly from 2022 to 2030. 

    Rising energy prices have increased concern about energy efficiency, and several measures implemented by the Department of Energy (DOE) in various APAC countries are encouraging industries to switch to high-efficiency motors (HEMs) that consume less power, resulting in the growth of the energy efficient motors market in this region.

    Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    Figure 3 Energy Efficient Motor Market Share By Region 2021 (%) 

    Energy Efficient Motor Market Share By Region

    Source Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Key Players and Competitive Insights

    The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. 

    To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Energy Efficient Motor industry must offer affordable products.

    Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the globally Energy Efficient Motor industry to benefit customers and expand the market sector. The market has recently given medicine some of the most important advantages. Major market players, including ABB, Siemens, Rockwell, Schneider Electric, and others, are attempting to increase market demand by funding R&D initiatives.

    ABB is a business that offers industrial clients electrification, automation, robotics, and digitalization solutions. Electrification, Process Automation, Motion and Robotics, and Discrete Automation are its four main operating businesses. Modular substation packages, distribution automation products, switchgear, circuit breakers, measuring and sensing equipment, control products, solar power solutions, EV charging infrastructure, wiring accessories, and enclosures and cabling systems are all provided by the electrification business. 

    Turnkey engineering, control technologies, software and lifecycle services, measurement and analytics solutions, maritime and turbocharging options, human-machine interfaces (HMI), and integrated safety technology are all provided by the Process Automation company. 

    The Motion division sells items for mechanical power transfer, electrical motors, and generators. Industrial robots, software, application solutions, engineering systems, and related services are provided by the Robotics and Discrete Automation company.

    Schneider Electric specializes in the digital transformation of energy management and automation solutions for households and businesses. It is divided into two sections Industrial Automation and Energy Management. Low voltage power and building automation, medium voltage distribution and grid automation, critical power and cooling, industrial automation and control, and other products and solutions are available from the firm. 

    Schneider Electric services oil and gas, electric utility, transportation, banking and insurance, information technology, cloud computing, telecommunications, and other businesses.

    Key Companies in the Energy Efficient Motor Market market include

    Industry Developments

    In January 2022, ABB launched flameproof low-voltage motors for explosive atmospheres. These low-voltage flameproof motors are designed for safe use in applications in potentially explosive atmospheres.

    In September 2021, Rockwell released a new Bulletin 140MT motor protection product. It offers enhanced Type F combination motor controller ratings when used with Bulletin 100-C and 100-E contractors, allowing assembled starters to be used without additional branch circuit protection. Because of their tap conductor protection ratings, these devices can be wired with fewer conductors in group motor installations, saving money.

    Future Outlook

    Energy Efficient Motor Market Future Outlook

    The Energy Efficient Motor Market is projected to grow at a 6.6% CAGR from 2024 to 2035, driven by increasing energy regulations, technological advancements, and rising demand for sustainable solutions.

    New opportunities lie in:

    • Develop smart motor systems integrating IoT for enhanced efficiency monitoring.
    • Invest in R&D for next-generation materials to improve motor performance and lifespan.
    • Expand into emerging markets with tailored energy-efficient solutions for local industries.

    By 2035, the Energy Efficient Motor Market is expected to achieve substantial growth, reflecting a robust commitment to sustainability.

    Market Segmentation

    Energy Efficient Motor Type Outlook

    • IE1
    • IE2
    • IE3
    • IE4

    Energy Efficient Motor End-use Outlook

    • Industrial
    • Commercial Building
    • Residential
    • Automotive
    • Others

    Energy Efficient Motor Regional Outlook

    • US
    • Canada

    Energy Efficient Motor Application Outlook

    • HVAC
    • Fans
    • Pumps
    • Compressors
    • Others

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 USD 37.83 Billion
    Market Size 2024 USD 40.04 Billion
    Market Size 2032 USD 67.92 Billion
    Compound Annual Growth Rate (CAGR) 6.0% (2024-2032)
    Base Year 2023
    Market Forecast Period 2024-2032
    Historical Data 2018 & 2020
    Market Forecast Units Value (USD Million)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Efficiency Level, Application, End-use, and Region
    Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
    Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled ABB, Siemens, Rockwell, Schneider Electric, Crompton Greaves, Kirloskar Electric Company Ltd, Bosch Rexroth, Regal Beloit Corporation, Nidec Motor Corporation, WEG
    Key Market Opportunities Improvement in design methods to reduce carbon emissions
    Key Market Dynamics A growing need to reduce the greenhouse effect

    Market Highlights

    Author
    Anshula Mandaokar
    Team Lead - Research

    Anshula Mandaokar holds an academic degree in Chemical Engineering and has been contributing to the field for more than 5 years. She has expertise in Market Research and Business Consulting and serves as a Team Lead for a reputed Market Research firm under the Chemicals and Materials domain spectrum. She has worked on multiple projects, generating explicit results in a quick turnaround time. Her understanding of data interpretation justifies her role as a leader.

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    FAQs

    How much is the Energy Efficient Motor market?

    The Energy Efficient Motor market size was valued at USD 37.83 Billion in 2023.

    What is the growth rate of the Energy Efficient Motor market?

    The market is projected to grow at a CAGR of 6.0% during the forecast period, 2024-2032.

    Which region held the largest market share in the Energy Efficient Motor market?

    North America had the largest share of the Energy Efficient Motor market.

    Who are the key players in the Energy Efficient Motor market?

    The key players in the market are Panasonic Corporation, LG Chem, Johnson Controls Inc, Exide Technologies, The Furukawa Energy Efficient Motor Co. Ltd, Chaowei Power Holding Ltd, Penn Manufacturing Company Inc, Fengfang Co. Ltd, Saft Groupe, Delphi Automotive

    Which Energy Efficient Motor Efficiency Level led the Energy Efficient Motor market?

    The IE4 category dominated the market in 2021.

    Which Application had the largest market share in the market?

    HVAC had the largest share in the market for Energy Efficient motors.

    Energy Efficient Motor Market Research Report—Global Forecast till 2032 Infographic
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