Energy Efficient Motor Market: Current Analysis and Forecast (2022-2028)

Energy Efficient Motor Market: Current Analysis and Forecast (2022-2028)

An energy-efficient motor is a type of electric motor designed to consume less energy compared to traditional motors while delivering better performance. Energy-efficient motors are typically more efficient in converting electrical energy into mechanical energy, which results in lower electricity consumption, reduced greenhouse gas emissions, and lower operating costs. In recent times, energy-efficient motors witness significant demand attributed to their design which reduces energy consumption by avoiding the overloading and underloading of the motor along with more efficient cooling and better insulation to reduce energy loss.

The Energy Efficient Motor Market is expected to grow at a steady rate of around 7% owing to the increasing energy cost coupled with the stringent government regulation for carbon emissions along with the advancement in technology such as improved material, design, and control systems. Major companies in the market are focusing to provide energy-efficient motor with technologically advanced features along with new product launches, collaboration, and mergers & acquisitions. For instance, in 2020, WEG a Brazilian company that produces a range of electrical products, including energy-efficient motors launched a new line of energy-efficient motors known as the W22X.

• Based on the efficiency level, the market is segmented into IE4: super premium efficiency, IE3: premium efficiency, IE2: high efficiency, and IE1: standard efficiency. The IE4: super premium efficiency motor segment is expected to witness significant market growth during the forecast period. The IE4 (or Super Premium Efficiency) energy-efficient motors are designed to operate at a higher level of energy efficiency than standard induction motors. These motors typically have a higher efficiency rating and consume less energy for the same amount of output power. Also, these motor offers better control such as variable frequency drive and greater load characteristics and are expected to support market growth in the coming time.
• Based on the motor design the market is segmented into AC motors and DC motor segment. The DC motor segment is expected to register significant market growth during the forecast period owing to its higher efficiency and ability to deal efficiently with input energy. Also, DC motors offer higher torque making them suitable for applications that require a lot of power at startup and better speed control which makes them compatible with pumps and fan applications. In addition, the lower noise, simple construction, and wide range of sizes along with the lower noise will propel the demand for DC motors during the forecast period.
• Based on the application the market is segmented into fans, HVAC, compressors, pumps, refrigeration, and material handling. The pump segment is expected to witness higher CAGR during the forecast period owing to their higher utilization in the agriculture application along with several industries including oil & gas, manufacturing, water & wastewater treatment, and marine among others. Also, energy-efficient motors offer higher reliability, lower emission, and require lower maintenance which makes them suitable for industrial applications.
• Based on the vertical, the market is segmented into commercial, residential, industrial, and agriculture. The industrial segment is expected to witness significant market growth during the forecast period owing to the increasing automation and increasing demand for lower power consumption. Also, energy-efficient motors can also provide better performance in certain applications, such as variable-speed drives and high-temperature environments. Further, energy-efficient motors can reduce greenhouse gas emissions and support environmental sustainability. By reducing energy consumption, industrial companies can lower their carbon footprint and contribute to global efforts to combat climate change.
• For a better understanding of the market adoption of the energy-efficient motor industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing energy price and increasing demand for cost-effective energy motors attributed to optimized performance and greater efficiency. Also, many countries in the Asia Pacific region have implemented regulations and policies to encourage the adoption of energy-efficient motors, including labeling programs, minimum energy performance standards, and financial incentives. For example, the Chinese government has implemented regulations that require energy-efficient motors to be used in industrial applications, and in July 2020, India has launched the National Motor Replacement Program to promote the replacement of inefficient motors. Also, the Asia Pacific region is experiencing rapid industrialization and urbanization, resulting in an increased demand for energy. Energy-efficient motors offer a sustainable solution for meeting this demand while reducing energy consumption.
• Some of the major players operating in the market include ABB, Siemens AG, Kirloskar Electric Company, Rockwell Automation, Inc., Bosch Rexroth AG, Maxon, WEG, Schneider Electric, Havells India Ltd., and General Electric.