North America Electric Motor Market Outlook to 2030

North America Electric Motor Market Overview

• The North America electric motor market is valued at USD 30 billion, according to a five-year historical analysis. This market is primarily driven by rising demand across multiple sectors, including the automotive and industrial sectors. Factors such as the increasing adoption of electric vehicles (EVs), industrial automation, and the need for energy-efficient appliances are significant contributors to this growth.

• Dominant countries in the North America electric motor market include the United States and Canada. The United States leads the market due to its large-scale production of electric vehicles, industrial automation, and high adoption of energy-efficient systems. Canada also plays a critical role, especially in renewable energy adoption, which integrates electric motors for energy conversion and distribution.
• The U.S. government has committed to expanding electric vehicle infrastructure, which includes increasing the number of electric motors used in EV chargers and charging stations. In 2024, the U.S. government allocated $7.5 billion for the deployment of 500,000 new EV chargers by 2030. This initiative aims to support the electric vehicle ecosystem and subsequently boost the demand for electric motors used in chargers and other EV-related infrastructure.

North America Electric Motor Market Segmentation

By Motor Type: The market is segmented by motor type into AC motors and DC motors, with subtypes such as Induction AC motors, Synchronous AC motors, Brushed DC motors, and Brushless DC motors. AC motors dominate the market due to their efficiency, reliability, and cost-effectiveness. Their widespread use in industries such as HVAC, electric vehicles, and industrial machinery further solidifies their market leadership. The induction AC motor segment, in particular, holds a significant share due to its extensive application in industrial automation.

By Voltage: The market is also segmented by voltage into low voltage (<1kV), medium voltage (1kV-6kV), and high voltage (>6kV) electric motors. Low-voltage motors hold the largest market share due to their efficiency and suitability for various applications like pumps, compressors, and conveyors in industrial sectors. The high demand for automation and robotics in industrial applications has been driving the adoption of low-voltage motors.

North America Electric Motor Market Competitive Landscape

The market is dominated by a mix of global and regional players who lead through technological advancements, strategic partnerships, and acquisitions. Major companies focus on enhancing their product portfolios to meet the growing demand in industrial and automotive sectors.

North America Electric Motor Market Analysis

Market Growth Drivers

• Increased Demand for Electric Vehicles (EVs): The market is being driven by the expanding electric vehicle (EV) sector. In 2024, over 1.2 million EVs are expected to be sold in the U.S., which will significantly increase the demand for electric motors as they are integral to EV powertrains. The automotive industry is transitioning towards electric mobility, and with stringent regulations on emission reductions, the adoption of electric motors in EV manufacturing will increase substantially over the next five years.
• Industrial Automation and Manufacturing Growth: The ongoing industrial automation boom is another key growth driver in the market. As of 2024, the U.S. industrial sector saw an increase in automation investments, which included more than 100,000 installations of new automated machinery across key manufacturing hubs. Electric motors are essential for operating these automated systems.
• Renewable Energy Adoption: The increasing use of electric motors in renewable energy systems, particularly in wind and solar power generation, is driving market growth. In 2024, the U.S. Department of Energy reported the installation of over 60,000 megawatts of wind energy, requiring electric motors for turbine operations.

Market Challenges

• Skilled Labor Shortages: As the electric motor industry expands, there is an increasing demand for skilled labor to manage the manufacturing and maintenance of motors. In 2024, the U.S. Bureau of Labor Statistics reported a shortage of 80,000 skilled workers in the electric motor manufacturing sector, resulting in production delays and increased operational costs.
• Environmental Regulations on Motor Efficiency: Stricter environmental regulations on energy consumption are putting pressure on electric motor manufacturers to produce highly efficient motors. As of 2024, the U.S. Environmental Protection Agency (EPA) mandated stricter energy efficiency standards under the Energy Independence and Security Act (EISA), affecting over 1 million electric motors used in industrial applications.

North America Electric Motor Market Future Outlook

Over the next five years, the North America electric motor industry is expected to grow, driven by continuous advancements in electric motor technologies, increasing adoption of electric vehicles, and growing demand for industrial automation.

Future Market Opportunities

• Adoption of High-Efficiency Motors in Industrial Applications Will Grow: Over the next five years, the adoption of high-efficiency motors in industrial applications will increase significantly due to stricter energy regulations. By 2029, it is estimated that more than 80% of newly installed industrial motors in North America will be high-efficiency models, reducing energy consumption by an estimated 15 terawatt-hours annually.
• Rising Demand for Electric Motors in Autonomous Vehicles: The demand for electric motors in autonomous vehicles is expected to surge, with more than 100,000 autonomous cars projected to be on North American roads by 2030. These vehicles require specialized motors for precision control and power management, fueling demand in the electric motor industry.