India Electric Motor Market Outlook to 2030

India Electric Motor Market Overview

• The India Electric Motor Market was valued at INR 118 billion, driven by the increasing demand for electric vehicles (EVs), the rising industrial automation sector, and the growing government initiatives aimed at boosting energy efficiency across industries.
• Key players in the market include Bharat Heavy Electricals Limited (BHEL), Siemens India, ABB India, CG Power and Industrial Solutions, and Nidec India. These companies have successfully leveraged technological advancements and innovation to produce high-performance, energy-efficient motors catering to diverse applications across automotive, industrial, and consumer electronics sectors.
• Siemens India has acquired the electric vehicle (EV) division of Mass-Tech Controls for Rs 38 crore, enhancing its e-mobility offerings in India. The acquired division reported a turnover of around Rs 16.7 crore during FY23.
• The Western region led the market in 2023, driven by its high industrial activity, rapid urbanization, and adoption of renewable energy sources. Cities like Mumbai, Pune, and Ahmedabad have witnessed a surge in the use of electric motors across industries, ranging from automotive to heavy machinery manufacturing.

India Electric Motor Market Segmentation

The India Electric Motor Market is segmented by motor type, power output, application, and region.

• By Motor Type: The market is segmented into AC motors, DC motors, and other motor types (synchronous and stepper motors). AC motors dominated the market in 2023 due to their extensive use in industrial applications and electric vehicles.

• By Power Output: The market is categorized into low voltage motors (up to 1 kW), medium voltage motors (1 kW to 100 kW), and high voltage motors (above 100 kW). Low voltage motors held the largest share in 2023, largely driven by their extensive use in home appliances, HVAC systems, and smaller industrial machines.

• By Region: The market is segmented into North, South, East, and West. The Western region dominated the market in 2023, driven by a concentration of manufacturing units and increased investments in electric vehicle infrastructure.

India Electric Motor Market Competitive Landscape

• Bharat Heavy Electricals Ltd (BHEL): BHEL has secured orders for the 960 MW Polavaram hydroelectric project in India, marking a substantial development in renewable energy. The project includes the supply of pump-motor sets, enhancing India's hydroelectric capacity and supporting its transition to sustainable energy sources.
• ABB India: ABB India and Witt India partner to deliver state-of-the-art tunnel ventilation solutions, deploying ABB's smoke extraction motors in key projects across India to enhance safety and efficiency for over 1 million commuters daily.

India Electric Motor Market Analysis

India Electric Motor Market Growth Drivers:

• Surging Electric Vehicle (EV) Demand: The increasing shift towards electric vehicles is driven by consumer preference for cleaner transportation options. In FY 2023, India's electric two-wheeler market saw a notable 34.42% increase in sales compared to the previous quarter, boosting the demand for electric motors.
• Expansion of Industrial Automation: India's manufacturing sector is rapidly adopting Industry 4.0, with a dedicated policy allocating Rs. 500 crore to enhance green mobility and stimulate electric vehicle manufacturing. Electric motors are essential for automation across applications like robotics and conveyor systems.
• Rising Adoption of Renewable Energy: India aims to install 500 GW of non-fossil fuel-based energy capacity by 2030. The growing renewable energy sector, particularly solar and wind, requires electric motors to convert energy into usable power, contributing to the overall growth of the electric motor market.

India Electric Motor Market Challenges:

• Fluctuations in Raw Material Prices: he electric motor industry faces fluctuations in raw material costs, particularly for copper and steel. In 2023, copper prices surged by 15%, impacting manufacturing expenses and leading to price hikes that have affected profitability across the sector, complicating cost management.
• Technological Barriers: India's electric motor market is expanding, yet it lags in advanced technologies compared to India standards. Currently, only 20% of Indian manufacturers have adopted smart and sensor-integrated motors, highlighting a technological gap that hinders innovation and limits the competitive edge in the market.

India Electric Motor Market Government Initiatives:

• FAME II Scheme: The Faster Adoption and Manufacturing of Electric Vehicles (FAME) Phase II scheme has allocated INR 10,000 crore to accelerate EV adoption in India. This funding supports the development of electric infrastructure, including motors, aiming to incentivize the purchase of around 5 lakh electric three-wheelers and 10 lakh electric two-wheelers.
• Energy Conservation Building Code (ECBC): The Energy Conservation Building Code (ECBC) promotes energy-efficient motors in commercial buildings, mandating updated efficiency criteria for HVAC systems. Launched by the Government of India, the code aims to reduce energy consumption in buildings by 30-50% compared to conventional standards, enhancing overall energy efficiency.

India Electric Motor Market Future Market Outlook

The India Electric Motor Market is expected to continue its robust growth in next five years, with a focus on high-efficiency motors driven by EV adoption and increasing automation in various sectors. The market will likely see a greater shift towards brushless DC motors (BLDC) for EVs and industrial applications.

Future Market Trends:

• Increased Adoption of Brushless Motors: The adoption of brushless DC motors (BLDC) will rise substantially due to their higher efficiency and lower maintenance requirements. In the coming years, these motors will become the preferred choice for applications in electric vehicles and consumer electronics, enhancing performance and reliability.
• Smart Motors and IoT Integration: Smart motors equipped with sensors will gain traction in industrial settings, where predictive maintenance will become essential. In the coming years, IoT-enabled motors will be increasingly integrated into industrial automation and energy management systems, facilitating real-time monitoring and optimizing operational efficiency.