ELECTRIC MOTOR CORE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The electric motor core market size is estimated to be valued at US$ 30.23 Bn in 2023 and is expected to reach US$ 52.71 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 8.3% from 2023 to 2030.

The electric motor core is the main inner part of an electric motor which generates magnetic flux to produce motion in the rotor through electromagnetic induction. Electric motor cores are made up of stack steel laminations, alloys of cobalt & iron and aluminum or magnesium die castings. The key advantage of electric motors is their efficiency, long service life, low maintenance, and ability to operate in harsh conditions. The major drivers for the market include rapid industrialization in emerging economies, increasing adoption of electric vehicles (EVs) and high demand from the automotive industry.

The electric motor core market is segmented into material, motor type, end-use industry, and region. By material, the silicon steel segment held the largest market share of over 40% in 2022 due to its high magnetic permeability and low coercivity. Silicon steels are extensively used for manufacturing stators and rotors.

Electric Motor Core Market Regional Insights

• North America is expected to be the largest market for electric motor core market during the forecast period, accounting for over 37% of the market share in 2023. The growth of the market in North America is due to the well-established automotive and industrial machinery sectors.
• The Europe market is expected to be the second-largest market for electric motor core market, accounting for over 25% of the market share in 2023. The growth of the market in Europe is due to the strong presence of OEMs (Original Equipment Manufacturer) and rising adoption of EVs in the region.
• The Asia Pacific market is expected to be the fastest-growing market for electric motor core market, with a market share of over 19% during the forecast period. The growth of the market in Asia Pacific is due to rapid industrialization and increasing production of motor vehicles.

Figure 1. Electric Motor Core Market Share (%), By Region, 2023

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Analyst Viewpoint

The electric motor core market is expected to witness steady growth globally over the estimated years. The swiftly increasing adoption of electric vehicles worldwide will be a key driver for higher demand of electric motor cores. Moreover, the rising installations of industrial motors across automation applications are further expected to propel the market. A significant opportunity lies in growing investments by nations to build infrastructure suitable for electric mobility. The nascent aircraft electrification trend also opens new avenues.

However, availability of motor core alternatives can restrict the market to some extent. Volatility in prices of raw materials required for motor cores like silicon steel may pose challenges. Furthermore, the market will face stiff competition from the existing ICE vehicle industry. Substituting traditional vehicles with electric variants will be a complex transition and not happen overnight.

Electric Motor Core Market Drivers:

• Increasing adoption of electric vehicles globally: Rising adoption of electric vehicles (EVs) worldwide is a major driver for the electric motor core market. EVs use electric motors instead of internal combustion engines, thereby creating strong demand for electric motor cores. Government incentives and schemes are further accelerating EV adoption. For instance, in September 2020, the rapidly growing global EV market will boost demand for efficient and high-performance electric motor cores.
• Rapid industrialization and automation in emerging economies: Emerging economies like China, India, Mexico, Brazil, and others are undergoing rapid industrialization and adopting automation across various industries like automotive, metals, electronics, chemicals, aviation, food & beverage (F&B), and others. Process automation increases the use of electric motors and drives, in turn, propelling the demand for motor cores. For example, Made in China 2025, a strategic plan by the Chinese government to upgrade and modernize Chinese industries, is leading to increasing automation and Industrie 4.0 adoption in the country. Similar initiatives are being undertaken in other emerging economies as well. The industrial automation trends in these markets provide significant growth opportunities for electric motor core manufacturers.
• High efficiency, lower maintenance, and longer life of electric motors: Electric motors are highly efficient with over 90% efficiency in converting electrical energy into mechanical motion. They have lower friction losses as compared to engines and require less maintenance due to absence of fluids or lubricants. The life span of an electric motor can be over 10 years with proper care. These advantages over alternate technologies like internal combustion engines and hydraulic motors are fueling electric motor adoption in diverse applications ranging from electric vehicles, industrial machinery, HVAC   (Heating, Ventilation, and Air Conditioning) systems, aerospace systems, robotics, appliances, and others. The expanding use cases and demand for electric motors will drive the electric motor core market.
• Increasing g demand from the automotive industry: The automotive industry is the largest end-use sector for electric motors. They are used in various applications like electric power steering, HVAC systems, engine cooling fans, seat adjustment, door locks, windshield wipers, and others. Increasing proliferation of electric motors in modern vehicles to enhance safety, comfort, and fuel efficiency is fueling demand for motor cores. Further, the rising production of motor vehicles globally especially in emerging economies is driving automotive industry growth.

Electric Motor Core Market Opportunities:

• Growing adoption of robotics and industrial automation: Increasing adoption of robotics, IoT (Internet of Things), Industry 4.0 and process automation across industries such as automotive, healthcare, electronics, logistics, and others presents major growth opportunities for electric motor core manufacturers. Robots extensively use servo motors, stepper motors, and other precision electric motors. For instance, collaborative robots deployed across many factories use servo motor technology. Increasing demand for robotics and automation will boost the adoption of associated electric motors and cores.
• Development of axial flux electric motors: Axial flux electric motors have emerged as an efficient motor technology due to benefits like high torque density, low noise, compact size, and others. These motors find applications in EVs, industrial machinery, robotics, and other fields. Many companies are investing in research and development (R&D) to develop axial flux motor technologies. For example, Yasa, an U.K.-based company designs innovative axial flux electric motors and controllers. The expected rise in demand for axial flux motors will open up new avenues for electric motor core manufacturers.
• Potential applications in renewable energy sector: Renewable energy sectors such as hydro, tidal, wind, and geothermal power generation deploy large electric generators and motors. For instance, offshore wind turbines use high-capacity electric generators. Moreover, electric propulsion is also gaining popularity in the marine sector. Growing renewable energy market globally will create fresh demand for specially designed and high-performance electric motor cores. Market players can gain by capitalizing on opportunities in these eco-friendly sectors.
• Replacement demand for outdated low efficiency motors: Replacement of outdated, derated, and low efficiency electric motors with new energy efficient motors is expected to create fresh demand for motor cores. Many old factories and industrial facilities continue to use standard efficiency electric motors purchased long ago. Regulations on enhancing industrial energy efficiency and incentives are accelerating replacements. Motor core manufacturers can tap into this replacement demand.

Electric Motor Core Market Trends:

• Development of dedicated motors designed for EVs/HEVs: Leading electric motor manufacturers are launching high efficiency, high-performance, dedicated motors that are designed exclusively for electric vehicles and hybrid electric vehicles. Companies like Tesla, Nidec, Hitachi Metals, and others. have dedicated EV motor manufacturing lines. These motors are designed to deliver maximum power density, torque density, efficiency, reliability and vehicle range. Customized core designs, advanced materials, optimized cooling systems are some features. The trend of developing dedicated motors for EVs will shape technology innovation in this market.
• Focus on enhancing energy efficiency: There is an increased focus on enhancing the energy efficiency of electric motors to align with sustainability targets and reduce energy consumption. Motor companies are innovating with new materials, designs and manufacturing techniques to develop super premium efficiency IE5/IE6 models according to IEC (International Electrotechnical Commission) standards. For instance, ultrasonic welding of core laminations minimizes losses. The development of high efficiency motor technologies will drive advances in electric motor core design.
• Adoption of alternative core materials: Usage of alternative lightweight materials like cobalt and aluminum alloys is increasing for making motor cores, especially for high-performance applications. Cobalt iron laminations reduce core losses at high frequencies. Aluminum’s lightness aids torque density improvement. Companies like Equipmake design, develop and manufacture electric powertrain solutions use aluminum for core of EV traction motors. The shift from traditional silicon steels to cobalt/aluminum alloys for niche applications is an emerging trend in this market.
• Advancements in electrical steel through Metglas: Metglas alloys and amorphous metal technology by Hitachi Metals manufacturer of steel and steel product are facilitating improvements in magnetic properties of core laminations. Metglas is an iron-boron-silicon alloy which offers very low coercivity and iron losses. Cores made using Metglas alloys improve motor efficiency. Development of such advanced electrical steel solutions will enhance performance and efficiency of electric motor cores.

Electric Motor Core Market Restraints:

• High initial and maintenance costs: The high costs that are associated with procuring and maintaining electric motors are a key factor restraining adoption in many cost-sensitive applications. Electric motors are priced higher than comparable internal combustion engines. Moreover, maintenance costs are also significant due to the need for highly skilled personnel. These costs are further compounded by long lead times and supply chain issues. The high initial investment and maintenance required continue to limit uptake.
• Counterbalance: The high costs of procuring the electric motors need to be affordable so that it can be easily acquired by the companies.
• Performance limitations in high power applications: Conventional electric motors have certain torque density, speed, and heat dissipation limitations which restrict their use in very high-power applications. For instance, traction motors above 300 kW capacity that are required for long-range heavy duty EVs remain challenging. Oil & gas industry applications also often demand very high-power ratings not achievable by standard electric motors. Overcoming these performance barriers restricts growth opportunities to some extent.
• Raw material price volatility: Key materials like electrical steels, aluminum alloys, copper windings, magnets, that are used in electric motor core manufacturing experience severe price volatility due to cyclical supply-demand dynamics. For instance, electrical steel prices rose fourfold in 2021 due to supply bottlenecks. Such raw material price fluctuations affect the overall costs and margins of motor core manufacturers. It poses a risk of hampering production growth if input costs rise significantly.

Recent Developments

New product launches

• In March 2022, ABB is engaged in power and automation technologies launched a new range of high efficiency IE5+ SynRM motors offering ultra-premium energy efficiency. These motors are designed for applications in industries like mining, metals, pulp & paper.
• In January 2021, Siemens technology conglomerate introduced a new 1FW4 line of high efficiency (IE5+), permanent magnet-excited synchronous reluctance motors with output up to 375 kW. It delivers improved efficiency across entire speed range.
• In June 2020, WEG electric-electronic equipment company introduced a new range of W22 Magnet Super Premium (IE4) motors for demanding applications. The key features include high power density design and premium efficiency levels.

Acquisition and partnerships

• In October 2021, Regal Beloit Corporation acquired NEMA motor manufacturer Section Eight Co. to strengthen its portfolio of general-purpose motors.
• In December 2020, Toshiba electronics company announced the acquisition of the motor business of Siemens for US$ 861 million to expand its offering of high efficiency motors
• In March 2022, Nidec manufacturer and distributor of electric motors entered into a strategic partnership with ArcelorMittal to jointly develop high quality electrical steel grades for electric motor cores

Figure 2. Global Electric Motor Core Market Share (%), by Type, 2023

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Top Companies in Electric Motor Core Market

• Hitachi Metals
• ABB
• Siemens
• WEG
• Nidec
• Wolong
• Jing-Jin Electric
• Toshiba
• Emerson Electric
• Hyosung
• Höganäs
• Voith
• Zhuzhou CRRC Times Electric
• Zhejiang Hengdao Electric
• Shenyang No.1 Machine Tool Works
• Jumo
• Finecharm
• Foshan T-Top Electric
• Zhejiang Top Electric Motor
• XEMC

Definition: The electric motor core market refers to the market for the inner stationary part of electric motors consisting of stacked steel laminations or die cast aluminum/magnesium. It generates the magnetic flux through which the outer rotor rotates to produce motion. The key drivers of this market include increasing industrial automation, rising adoption of EVs, and high efficiency & low maintenance of electric motors. Electric motor cores find applications across industries like automotive, industrial machinery, HVAC, aerospace, household appliances, and others. Leading manufacturers are constantly innovating with new materials and designs to improve efficiency, power density, torque density and reduce losses.

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