Low Voltage Electric Motor Market Size, Share & Industry Analysis, By Motor Type (AC Motors and DC Motors), By Power Output (Fractional Horsepower (Upto 1HP) and Integral Horsepower (Above 1HP)), By End-User (Industrial, Commercial, Residential, Agriculture, and Transportation), and Regional Forecast, 2025-2032

The global low voltage electric motor market size was valued at USD 62.98 billion in 2024. The market is projected to grow from USD 67.11 billion in 2025 to USD 108.09 billion by 2032, exhibiting a CAGR of 7.05% during the forecast period. Asia Pacific dominated the global market with a share of 28.67% in 2024.

Low voltage electric motors are electromechanical devices that operate at voltages below 1,000V and convert electrical energy into mechanical motion. Low voltage electric motors are known for their high efficiency, durability, and reliability in various industries. Low voltage electric motors are available in different types, such as AC motors and DC motors, catering to diverse applications.

Low voltage electric motors are widely used in multiple applications such as industrial automation, home appliances, HVAC systems, and electric vehicles. The soaring need for modern products in multiple sectors has driven the adoption of electric motors and their components in recent years.

Competition for manufacturers is moderate owing to the strong product portfolio of market players. Some of the key players, such as ABB, are constantly developing their tactics for better expansion. For instance, in May 2023, ABB finished the purchase of Siemens low-voltage motor segment to expand its business globally.

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MARKET DYNAMICS

MARKET DRIVERS

Increasing Energy-Efficient Motors to Boost Market Growth

The global low voltage electric motor market is experiencing healthy growth, driven by the increasing adoption of energy-efficient motors across various industries aiming to reduce operational costs and carbon footprints. Moreover, rapid industrialization is one of the major factors that require low-voltage motors in multiple applications. The proliferation of household appliances and the advancements in electric motors influenced market growth. Hence, these factors are expected to boost market expansion in the coming years.

MARKET RESTRAINTS

High Initial Cost of Low Voltage Electric Motors is Hindering Product Demand

The global low-voltage electric motor market faces several challenges that hinder its growth. One of the major reasons is the high initial cost of energy-efficient motors (IE3 and IE4 class), which can discourage small and medium enterprises from adopting them, despite its long-term economical benefits. Furthermore, changing raw material prices, particularly for copper and rare earth elements used in motor production, impact manufacturing costs and profitability.

MARKET OPPORTUNITIES

Growth in Electric Vehicles Segment to Create New Opportunities in Market

The rise in the Electric Vehicles (EVs) segment presents a significant opportunity for the low-voltage electric motor market. This can be attributed owing to the wide range of micro applications associated with the motor, such as battery cooling, power steering, and auxiliary systems. To expand the technological demand in the EV segment, manufacturers are investing heavily into the low voltage electric motor market. For instance, in March 2025, Chery Automobile Co Ltd, a Chinese car manufacturer, is planning to invest around USD 1 billion in an electric vehicle plant in Turkey. This step lines up with Ankara’s aim to develop a regional manufacturing hub.

LOW VOLTAGE ELECTRIC MOTORS MARKET TRENDS

Integration of Digital Technologies in Electric Motors to Boost Market Growth

The low voltage electric motor market share is experiencing substantial growth, driven by increasing industrial automation, demand for energy-efficient solutions, and the expansion of electric vehicle adoption. Key trends include a shift toward higher efficiency motors, advancements in motor design and control systems, and the integration of motors with digital technologies. The increasing adoption of automation in manufacturing and other industries is a major driver, as low voltage motors are essential for powering various automated systems and equipment. Moreover, growing awareness of energy conservation and sustainability is leading to a rising demand for energy-efficient low voltage motors, which can significantly reduce energy consumption and operational costs.

SEGMENTATION ANALYSIS

By Motor Type

Increasing Demand for Home Appliances is expected to Fuel AC Motors Demand in Future

By motor type, the market is divided into AC motors and DC motors. The AC motors segment dominates the market, driven by the rising application of home appliances that require alternative current. Modern household appliances such as air conditioners, fans, and pumps, are major contributors to this trend, pushing the product demand upward.

DC motors is the second-fastest growing segment owing to their use in small everyday appliances such as cleaning motors, ice makers, and vacuum cleaners.

By Power Output

Fractional Horsepower (Up to 1HP) Dominates Owing to its Usage in Small Machinery

By power output, the market is fragmented into fractional horsepower (upto 1HP) and integral horsepower (above 1HP). The fractional horsepower (upto 1HP) segment is dominating the global market driven by their use in small machinery such as conveyors and pumps in commercial and residential sectors.

Integral horsepower (above 1HP) is the fastest-growing segment driven by its use in industrial applications. The automation in the operational unit requires sustainable and proficient products where above 1HP motors are used, further creating product demand.

By End-User

Rising Demand from Industrial Applications to Positively Influence Market Growth

By end-user, the market is divided into industrial, commercial, residential, agriculture, and transportation. The industrial segment is expected to dominate the market, driven by expansion in automation and technology. Automated systems such as conveyor systems and compressors are being used heavily in manufacturing and backing the segment growth.

Residential is the fastest-growing segment driven by the growing use of home appliances.

The commercial segment holds a significant share of the global market driven by the growing infrastructure development that requires power components. 

LOW VOLTAGE ELECTRIC MOTOR MARKET

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America

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North America is the fastest-growing region, driven by the technological advancements in the region and the strong presence of electric motor manufacturers in the region.

The U.S. is the dominating country in North America driven by the rising adoption of electric vehicles. The strong product portfolio of major players such as Tesla, Ford, and GM, is driving market growth in the country. In addition, these players are focusing on expanding their presence in the international market boosting the industry developments. 

Europe

Europe has witnessed significant growth in recent years owing to the widespread application of low voltage motors across multiple industries. The rise of smart factories and advancements in industrial operations are boosting demand for efficient motors. This trend is further influenced by IoT integration and predictive maintenance capabilities. Moreover, as global infrastructure investments grow, manufacturers focusing on innovation, customization, and sustainability will gain a competitive edge in the expanding market.

Asia Pacific

The low voltage electric motor market in Asia Pacific is witnessing significant opportunities driven by energy-efficient regulations and the expansion of renewable energy. Many Asian governments are mandating the use of energy-efficient motors, creating demand for IE3 and IE4 efficiency class motors. Rapid industrialization in emerging markets, especially in Japan, China, and India, is further supporting low voltage electric motor market growth. For instance, in April 2024, China introduced an action plan to enhance the standards regulating equipment renewals and trade-in of consumer goods, as part of its broader effort to accelerate economic transformation.

Latin America

Latin America has shown improvements in the adoption of energy-efficient products owing to the region's focus on reducing carbon emissions. Low voltage motors are one of the efficient products that are influencing the region's growth due to their applications. Moreover, emerging countries such as Brazil and Mexico are expanding their industrial activities, backing the market growth.

Middle East & Africa

The rising interest in HVAC product systems in the region owing to climate change is increasing the demand for the low voltage electric motor market. Moreover, the use of automated small tools and devices such as washing machines, fans, and pumps is boosting the growth of the market. The region is also experiencing significant growth due to the increasing adoption of advanced technologies and improvements in industrial equipment.

KEY INDUSTRY PLAYERS

COMPETITIVE LANDSCAPE

Key Players Focus on Technological Advancements to Meet Market Needs

The global low-voltage electric motor market is highly competitive, with manufacturers focusing on technological advancements to fulfill demand. Leading key players such as ABB, WEG, Siemens, and Schneider Electric are integrating IoT and AI-driven predictive maintenance capabilities into their motors for enhanced efficiency and reduced downtime.  For example, ABB is a leader in developing different types of energy-efficient motors, including the IE5 ultra-premium efficiency SynRM motor. This motor delivers up to 40% lower energy losses compared to IE3 motors and is designed for hazardous environments.

List of Key Low Voltage Electric Motor Companies Profiled

• ABB (Switzerland)
• AMETEK (U.S.)
• Johnson Electric (China)
• Siemens (Germany)
• Rockwell Automation (U.S.)
• GE (U.S.)
• Nidec Motor Corporation (Japan)
• WEG (Brazil)
• Toshiba Corporation (Japan)
• Hitachi (Japan)
• Mitsubishi Heavy Industries (Japan)
• TECO-Westinghouse Motor Company (U.S.)

KEY INDUSTRY DEVELOPMENTS

• March 2024: Garrett Motion, famous for its pioneer role in the automotive sector, leveraged its extensive knowledge of turbocharger systems to design and produce high-speed electric motors for electric vehicles, marking a strategic expansion into the e-mobility market.
• May 2024: ABB introduced an energy-efficient and sustainable motor and inverter package for electric buses. This package highlights the industry’s first 3-level inverter for buses, delivering a longer lifespan and noteworthy energy efficiency gains, with up to 12% reduction in motor losses during typical drive cycles.
• May 2023: Siemens, a product and services technology firm, approved the sale of its low-voltage motors and geared motors businesses to a subsidiary of Siemens AG. The Board also resolved to distribute 100% of the sale proceeds, net of applicable Capital Gains Tax and offer relevant reductions to shareholders.
• May 2022: ABB launched flameproof low voltage motors made in India, designed for applications in explosive environments. Low voltage electric motors are offered in IE2 and IE3 efficiency classes and are available in small to mid-frame sizes with a 0.18 – 55kW output range.
• January 2019: Dana, which provides engineered solutions for several industries, announced the completion of its acquisition of the SME Group that designs, engineers, and manufactures low-voltage AC induction and synchronous reluctance motors.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, competitive landscape, and segments. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation