ELECTRIC MOTOR MARKET ANALYSIS

Regional Analysis

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North America has been the dominant region in the global electric motor market owing 39.2% in 2024. The presence of leading motor manufacturers such as ABB, Siemens, and General Electric has firmly established the motor supply chain in the region. Additionally, the well-developed industrial sector utilizing a plethora of motor-driven equipment has contributed to North America commanding the largest market share. Stringent energy efficiency standards implemented by organizations like the Consortium for Energy Efficiency have also pushed the adoption of premium efficiency motors.

With factories closer to the major end-user industries, companies in North America have lower transportation costs and faster turnaround times. This enables just-in-time manufacturing and supply. The regional presence also allows these firms to customize offerings as per client requirements better than overseas competitors. Local manufacturing also means they face fewer trade barriers and do not have currency risk exposure. Together, these factors have enabled North American electric motor providers to defend their market leadership.

On the other hand, Asia Pacific has emerged as the fastest growing regional market. The burgeoning industrial and manufacturing activity in countries like China and India is the primary driver of this growth. Both nations are witnessing expansions and new plants across industries like construction, pharmaceuticals, automotive, etc. This is translating to massive demand for industrial motors. SEA nations are also industrializing rapidly to become global export hubs, augmenting regional requirements.

Asia Pacific has other advantages as well. An abundance of low-cost raw materials and labor have attracted significant foreign investments. This has boosted local motor manufacturing prowess over the years. Moreover, governments provide subsidies and relaxations to promote indigenous industry. This is giving Asian producers an edge over imported products on pricing. With costs expected to reduce further, Asia Pacific electric motor suppliers will become increasingly competitive globally. Coupled with the surging domestic needs, the region remains on track for continued fastest market expansion.