The AC motors market is projected to reach USD 6.60 billion by 2029 from an estimated USD 4.60 billion in 2024, at a CAGR of 7.5% during the forecast period (2024–2029). Increasing demand for AC motor drives has resulted from the efficiency, reliability, and versatility of applications in industry. AC motors, such as induction motors, cut down on the costs of maintenance, are energy-efficient, and are very rugged, thereby being applied for automation and industrial processes. The tendency towards automation coupled with energy-efficient solutions in manufacturing is why AC motors are being applied. Another advantage is variable speed drives, which improve flexibility and control over motor operations as the demand for these operations rises across industries such as HVAC and manufacturing.
The Asia Pacific region is the largest growing market for AC motors due to rapid industrialization, infrastructure development, and high demand from sectors like HVAC and water treatment. China and India lead the demand, driven by industrial expansion, the rise of electric vehicles, and stringent emissions regulations. high torque brushless motor
Asia-Pacific region dominates the VFD market due to rapid industrialization, increased automation, and infrastructure growth, particularly in energy, and logistics sectors.
Product launches, technological advancements, and emerging technologies will offer robust opportunities for market players in the next five years.
The growth of the AC motors market can be attributed to rapid industrialization, infrastructure development, automation, and the rising need for energy efficiency across sectors like manufacturing, oil and gas, drive the market.
Fluctuating prices of raw materials are expected to impact the revenue of manufacturers of AC motor, globally.
According to the estimation of the World Steel Association, the steel industry in the world will continue to rise with China as the leader. This is followed by India, Japan, and the US. In 2023, China has a total production percentage of 53.9 for achieving a production of 895.7 million tonnes. The increase in demand is providing strong prospects for the growth of the high voltage induction motors. In these production processes, rolling mills, crushers, and fans make heavy machinery that relies greatly on the power of motors for running. With steel's rising demand globally, steel is expected to be produced with much more reliability, efficiency, and durability.
International initiatives to reduce carbon footprint from the steel industry have picked pace in 2023 recently. That is because many issues lie in the implementation of them, such as carbon leakage or the need to invest clean technology. Towards net zero steel, Japanese G7 Presidency has attempted to consolidate emission measurement under the ambit of the 2023 agenda for industrial decarbonization adopted by G7. On similar lines, the Climate Club, which was initiated under the German G7 Presidency, aims to pool nations in various stages of industrial transition.
Induction and synchronous motors are the most critical elements in many industrial applications that can give performance with reliability and efficiency. However, one of the major restraints on the growth of the market for these motors is the high maintenance costs associated with their operation. The maintenance expenses for induction motors can be huge because regular inspections, repairs, and parts replacements are required to achieve optimal performance and avoid untimely downtimes. Such costs may become even more unbearable for industries running on a thin budget or in a cost-conscious sector, thereby affecting the adoption rate of such motors as a whole.
Also the repair cost is 50%-80% that of new motor. At rapid technology development in solid state, electron switches the controllers are discarded with around 4-5 years after usage. Added the estimated by some manufacturers and for this type of controller which 30,000 and another states 40,000 hours.
The global automobile industry is shifting toward electric mobility with major shifts in electric vehicle technology. The proactive steps taken toward society's decarbonization, in Europe, have increased electric vehicles with electric motors. With advanced battery technologies, battery costs are being decreased and their charging speeds are getting improved. Increasing government support in the form of tax redemptions and incentives for promoting eco-friendly electric vehicles that use electric motors are also opportunities for the players in the electric motors market. According to the IEA, China is expected to account for 50% of the global passenger electric vehicles by 2025.
To reduce their greenhouse gas emissions, many countries around the globe are promoting electric cars through measures such as tax relief, subsidies in purchasing electric cars, and stricter emissions controls. The policies are fueling an enormous demand for electric motors to be used in EVs' drivetrains that is accelerating the adoption of electric vehicles. Because of their high torque output, scalability, and efficiency, AC motors, especially induction and permanent magnet synchronous motors, are very crucial to EVs and are therefore the first choice for the manufacturers.
In applications such as industrial ones, thermal management is one of the critical issues in induction motors, especially those considered high-voltage. Significant thermal and electrical losses are associated with their operation, and thus when the cooling is inadequate, insulations break down, losses are increased, and sometimes, motor failure is established.
Another major problem is insulation deterioration. The high voltage stresses the materials of the insulations gradually to cause a possible electrical breakdown. This problem worsens because there are environmental factors like moisture, dust, and temperature extremes that facilitate the deterioration.
Besides, there are problems on vibration and mechanical stress. The mechanical forces exerted on a high-voltage motor are indeed much stronger, leading to over-stress of parts and potential alignment problems, increased vibration and noise.
Key participants in this industry are established and financially stable manufacturers of AC motors. These companies have distinctive product portfolios, advanced manufacturing technologies, and a strong sales and marketing network. Some of the major companies in this market include ABB (Switzerland), Siemens (Germany), GE Vernova (US), WEG (Brazil) and NIDEC (Japan).
The demand for AC drives in VFDs is much higher because AC drives can control speed and torque more efficiently, and it is pretty much in use in all industries. The frequency of the motor is changed by AC drives according to the operational need. Therefore, they save a lot of energy and give better efficiency. Actually, these are more adaptable and energy-efficient for applications with pumps, fans, or conveyors. Because of the strict requirements of industries in terms of energy efficiency and cost reduction, the market found AC drives in order to save energy without compromising the desired output at which it should operate. Moreover, their capacity to integrate with advanced automation and Internet of Things (IoT) technologies enhances operational efficiency and corresponds with the increasing emphasis on energy efficiency and sustainability across various sectors, thereby further propelling their adoption.
Water and wastewater treatment is considered the biggest end-user for AC motors due to the very energy-intensive nature of most processes used in treating, pumping, and distributing water. The use of induction motors for pumps, compressors, aerators, and other such equipment critical in water and wastewater management is the most prevalent type of AC motors.
Besides growing global demand for clean water and importance placed on water reuse, growing reliance also demands efficient motorized systems in treatment plants. Again, due to stringent regulations enforcing environment compliance and industrial wastewater, growth in treatment facilities worldwide translates directly to boosted demand for motors. The promotion for more energy-efficient motors to avoid cost in operations in major treatment programs promotes the use of AC motors in this regard.
Asia Pacific is the largest region for AC motors with higher power ratings because of its rapid industrialization and infrastructure development. High-power motors are required in manufacturing, mining, and energy industries to support large-scale operations. Countries such as China and India are driving demand, supported by government initiatives promoting industrial automation and renewable energy adoption. The region's large water treatment plants and increasing electric vehicle manufacturing add to the demand for high-power motors. Moreover, improving motor efficiency and compact high-density designs also increase the market further.
List of Top AC Motors Market Companies
The AC Motors Market is dominated by a few major players that have a wide regional presence. The major players in the AC Motors Market are
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This research study involves the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg L.P., Factiva, ICIS, and OneSource, to identify and collect information useful for this technical, market-oriented, and commercial study of the global AC motor market. Primary sources are mainly industry experts from core and related industries, preferred suppliers, manufacturers, distributors, service providers, and organizations related to all segments of the value chain of this industry. In-depth interviews were conducted with various primary respondents, including key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information as well as assess growth prospects of the market.
Secondary sources include annual reports, press releases, and investor presentations of companies; directories and databases, which include D&B, Bloomberg, and Factiva; white papers and articles from recognized authors, and publications and databases from associations, such as International Energy Agency (IEA), US Energy Information Administration (EIA), International Renewable Energy Agency (IRENA), National Electrical Manufacturers Association (NEMA). Secondary research has been used to obtain important information about the key players and market classification & segmentation according to industry trends to the bottom-most level and key developments related to market and technology perspectives. A database of the key industry leaders has also been prepared using secondary research.
In the primary research process, various sources from both the supply and demand sides have been interviewed to obtain and verify qualitative and quantitative information for this report and analyze prospects. Primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology and innovation directors, and related executives from various leading companies and organizations operating in the AC motor market. Primary sources from the demand side include experts and key persons.
After the complete market engineering process (which includes calculations of market statistics, market breakdown, market size estimations, market forecasts, and data triangulation), extensive primary research has been conducted to gather information and verify and validate the critical numbers arrived at. Primary research has also been conducted to identify the segmentation, applications, Porter’s Five Forces, key players, competitive landscape, and key market dynamics such as drivers, opportunities, challenges, industry trends, and strategies adopted by key players.
Note 1: Others include sales managers, marketing managers, and product managers. Note 2: Tier 1 companies’ revenues are more than USD 10 billion; tier 2 companies’ revenues range between USD 1 and 10 billion; and tier 3 companies’ revenues range between USD 500 million and USD 1 billion. Source: Industry Experts
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In the complete market engineering process, both top-down and bottom-up approaches have been extensively used along with several data triangulation methods to estimate and forecast the overall market segments listed in this report.
Top-down and bottom-up approaches have been used to estimate and validate the market size of AC motor for various end user in each region. The key players in the market have been identified through secondary research, and their market share in respective regions has been determined through primary and secondary research. This entire procedure includes the study of annual and financial reports of the key market players and extensive interviews for insights from industry leaders such as CEOs, vice presidents, directors, and marketing executives. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and sub-segments. Data triangulation and market breakdown procedures have been used wherever applicable to complete the overall market engineering process and to arrive at the exact statistics for all segments and sub-segments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has been validated using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—the top-down approach, the bottom-up approach, and expert interviews. When the values arrived at from the three points matched, the data was assumed to be correct.
An AC motor is an electric motor that uses electromagnetic induction to transform electrical energy into mechanical energy. It is powered by alternating current (AC). It is made up of a rotor that rotates because of a revolving magnetic field produced by coils in a stator. Synchronous and induction are the two primary types of AC motors. Induction motors are durable and commonly used because they work asynchronously, with the rotor speed being slower than the stator's magnetic field. Conversely, synchronous motors provide precise speed control for certain applications by running at the same speed as the stator's magnetic field.. These AC motors serve induction motors and synchronous motors type; they are available with power ratings of 500 – 900 kW, 900 – 1,200 kW, 1,200 – 5,000 kW, 5,000 – 9,000 kW, 9,000 – 12,000 kW, 12,000 – 15,000 kW, 15,000 – 25,000 kW, above 25,000 kW; and are used by steels & metals, mining, oil & gas, water & wastewater treatment, power, marine and shipbuilding, petrochemicals, automotive manufacturing and others. The regional scope considered for the AC motors market study covers Asia Pacific, Europe, North America, South America, and the Middle East & Africa.
Note: 1. Micro markets are defined as the further segments and subsegments of AC motor market included in the report. 2. Core competencies of companies are captured in terms of their key developments and product portfolios, as well as key strategies adopted to sustain their position in the AC motor market.
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