U.S. Electric Motor Market Size & Trends
The U.S. electric motor market size was estimated at USD 27.11 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2030. The growing awareness regarding green vehicles (electric vehicles) among customers is a critical factor in the growth of the market. In addition, the U.S. government is providing incentives for adopting electric vehicles (EVs) as they have zero carbon emissions, which is also aiding in market growth. There are several advancements to the electric motor technology such as the advent of better insulation materials that enhance the operational efficiency and product life, which in turn, are propelling the market growth. Moreover, with the potential increase in automobile production over the forecast period, the market is anticipated to witness an upward growth curve.
The industry experiences a moderate-to-high level of M&A activities as both the key and emerging companies are competing for increased market share and for gaining access to the latest technological innovations to obtain a competitive edge against competitors. Many companies are forming strategic partnerships through M&A to expand their product portfolios and open up new markets.
The electric motor industry is significantly impacted by regulations, thereby affecting the market dynamics and product development. According to the EPA, manufacturers should follow regulations and guidelines to manufacture motors that adhere to environmental restrictions and strict energy efficiency criteria. The adoption of high-efficiency electric motors is being encouraged by initiatives that support sustainable practices and reduce carbon footprints.
Alternative technologies, such as piezoelectric and hydraulic systems in some specialized applications, are becoming more widely recognized. The development of these alternative technologies can be a threat for conventional electric motors at risk, particularly in specific sectors. However, alternatives to electric motors exhibit more niche-oriented competition rather than a broad market displacement, which is partly explained by the adaptability and extensive use of electric motors across multiple sectors.
The electric motor market exhibits varying degrees of end-user concentration, depending on the industry and application. There may be a high end-user concentration in certain industries due to a limited number of large industrial users making up a sizable portion of the revenue.
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