Energy Efficient Motor Market Size, Share and Industry Analysis By Type (AC Motors and DC Motors), By Efficiency Level (IE1, IE2, IE3, and IE4), and By End User (Industrial, Commercial, Automotive, and Others), and Regional Forecast, 2024-2032

Energy-efficient motors are electric motors designed to minimize energy consumption and improve manufacturing techniques. These motors tend to achieve higher efficiency, lower waste heat output, and decline the energy losses that flow through the motor. These motors incorporate advanced design techniques to minimize energy losses that typically account for 3% to 6% of the energy consumed and often utilize improved core materials. Energy efficient motors have a high tolerance for overload situations and a low failure rate.

• For instance, GE adopted energy-efficient motors, which are known for their efficiency and reliability. They use advanced design techniques and high-quality materials to achieve higher efficiency than standard motors. They are intended to minimize energy losses and reduce heat generation. They can be used in various applications.

Manufacturers' growing adoption of factory automation to improve production capacity is the key driver for the rapid adoption of energy efficient motors. Moreover, a rise in green technology adoption, the need to reduce the cost of energy consumption, and government initiatives, including training programs for technicians and public awareness campaigns, contribute to the growth of energy-efficient motors. Further, rapid urbanization and improved technological advancements positively influence the market.

Energy-efficient motors require advanced technology and high-quality materials in the manufacturing processes. Moreover, the initial high investment costs, which include installation and infrastructure, may hinder the growth of this market.  

The energy efficient motor market has been impacted as the COVID-19 pandemic stopped business worldwide. Supply chains were disrupted, creating bottlenecks and affecting the production and distribution of energy-efficient engines. Factory closures, transportation problems, and lockdowns caused delays in the engine market's supply chain. The pandemic delayed projects in various sectors such as commercial and residential construction. These delays impacted the demand for energy efficient motors as projects were shelved or postponed.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Energy Efficient Motor Market


• Key Industry Trends


• Regulatory Landscape for the Energy Efficient Motor Market 


• Key Industry Developments


• Impact of COVID-19 on the Market

SEGMENTATION   

ANALYSIS BY TYPE

Based on type, the market is segmented into AC Motors (Alternating Current) and DC Motors (Direct Current). The AC motors segment is expected to dominate the market as they are widely used in industrial applications and found in pumps, compressors, fans, and other motor-driven equipment. The motors are also compatible with infrastructure as they are used as a common power source in most commercial and residential buildings. AC motors are more cost-effective compared to DC motors.

DC motors are identified for their high starting torque and controllability. However, they are also known for low efficiency, typically 50-80%.

ANALYSIS BY EFFICIENCY LEVEL

Based on efficiency level, the market is divided into IE1, IE2, IE3, and IE4. The IE4 segment is set to dominate over the forecast period due to high efficiency. In addition, these motors provide the greatest energy savings and can run continuously without any voltage disturbance. IE4 is also known as super premium efficiency. IE1 is the standard efficiency used in typical environments where energy costs are not a concern. IE2 motors significantly improve energy efficiency compared to IE1. They are suitable for applications where the motors run frequently and energy can be saved over time. IE3 - Premium Efficiency motors are even more efficient than IE2 and due to their energy-saving features, regulations in different countries often require them. IE3 motors are ideal for continuous or near-continuous use and offer significant energy savings.

ANALYSIS BY END USER

Based on end-user, the market is trifurcated into industrial, commercial, and other categories. The industrial segment is expected to dominate the market during the forecast period as more industries try to reduce their energy consumption and improve production efficiency. There is a high use of energy-efficient motors for various industrial applications as there is an emerging need for energy-efficient motors that enable industries to save on electricity consumption.

The commercial segment is also expected to grow due to the prominence of energy efficiency in commercial buildings to reduce energy loss and operational costs.

REGIONAL ANALYSIS

Based on region, the energy-efficient motor market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The Asia Pacific market is projected to record a significant energy efficient motor market share. Due to the prompt industrialization of developing economies in countries such as India, China, and South Korea, the energy efficient motor market has witnessed growth in manufacturing, infrastructure, automobiles, and construction sectors.

Energy efficiency has become a significant focus in the North American market, driven by rising electricity costs and environmental concerns. The government has implemented policies and schemes such as the NEMA premium efficiency standard and programs to promote the energy efficient motor market.

Further, in Europe, on July 1, 2023, the last phase of the EU ecodesign regulation will enter into force, setting stricter requirements for the energy efficiency of electric motors. This means that 75-200 kW motors sold in the EU must meet the requirements corresponding to the level of energy efficiency for IE4.

In Latin America, energy-efficient motors are used in several agricultural applications, including irrigation, material handling, ventilation, grain handling, aeration, and air conditioning. These energy efficient engines are the most energy-intensive agricultural machines.

On 3^rd February 2024, WEG Africa recognized the Government of South Africa for launching Minimum Energy Efficiency Standards (MEPS). Since many electric motors lacked efficiency, this initiative was considered timely and necessary to improve the country's energy standards.

KEY PLAYERS COVERED

The report includes profiles of key players such as ABB, GE, Siemens, Toshiba, WEG, Schneider Electric, Nidec Motor Corporation, Bosch Rexroth, Havells, Kirloskar Electric, and Rockwell Automation.

KEY INDUSTRY DEVELOPMENTS

• In October 2023, Toshiba Electronic Devices and Storage Corporation released two 600V small intelligent power supply (IPD)  efficiency motors for brushless DC motors such as air conditioners, air cleaners, and pumps. These comprise "TPD4163K" and "TPD4164K" bulk shipments with output current (DC) ratings of 1A and 2A, respectively. Both new products are contained in a through-hole HDIP30 package, which reduces the installation area by about 21% compared to previous Toshiba products.


• In July 2023, ABB launched the new generation development of AMI 5800 NEMA modular, an induction motor with an output of 1750 Hp and IE4 efficiency level.


• In April 2022, Nidec Corporation announced the launch of SynRA, the world's first aluminum cage-equipped, high-efficiency Synchronous Reluctance Motor that achieves IE5, the highest level of the IEC Standard.