Research Overview

This study forecasts the future of the electric motor industry as it embraces new business models and innovations brought in by the Industrial Internet of Things (IIoT) and digital transformation across the value chain. Shifting customer preferences and socioeconomic volatility, the impact of the global pandemic on the supply chain, and political turmoil are compelling motor original equipment manufacturers (OEMs) to design products and solutions to improve thinning margins and maintain a competitive edge. The advent of digitalization and IIoT resulted in motor OEMs achieving business excellence by moving from product-based to solution-based offerings. The motors market, valued at $20.12 billion in 2021, is expected to grow at a CAGR of 2.9% to $22.55 billion, driven by the adoption of digital-based solutions and aftermarket services. Asia-Pacific (APAC) is expected to be the largest region for the motors market, propelled by demand from process industries, such as oil and gas, chemical, and power generation. In addition to the digitalization trend, the motors market will be driven by energy-efficiency norms and demand from hybrid and discrete industries, especially electric vehicles. However, the prevailing global pandemic and its impact on supply chain and operations across end-market will offset the expected growth, resulting in a CAGR of 2.9% by 2025. The key market trends impacting the motors market will be decarbonization, digitalization, vendor-agnostic aftermarket services, supply chain optimization, and focus on glocalization (global + local).