The global industrial fractional horsepower motors industry size is poised to reach a valuation of USD 11.84 billion in 2025. It is anticipated to surge at a CAGR of around 5.2% during the forecast period from 2025 to 2035. The industry is likely to reach a valuation of USD 19.66 billion by the end of 2035.
In the past year, the global industrial fractional horsepower motors industry grew steadily, driven by rising manufacturing automation and accelerated growth of electric vehicles (EVs). There was a rapid rise in the demand for energy-efficient motors, driven by new regulations on reducing energy consumption and carbon emissions, resulting in more use of brushless DC (BLDC) motors.
In addition, supply chain disruptions prevalent in previous years, witnessed ease, leading to better raw material availability such as copper and rare earth magnets, which had previously affected motor manufacturing.
The industry is also likely to progress consistently. The change in the industrial sector toward smart manufacturing and IoT-based motors will be a key factor in propelling demand. Expanding industries in HVAC, robotics, and medical equipment are also likely to support sales.
| Metrics | Values |
|---|---|
| Market Size (2025E) | USD 11.84 billion |
| Market Value (2035F) | USD 19.66 billion |
| CAGR (2025 to 2035) | 5.2% |
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Future Market Insights carried out a thorough survey among major stakeholders of the industrial fractional horsepower motors industry, such as manufacturers, suppliers, and end-users from diverse industries.
(Survey conducted in Q4 2024, n=500 participants across manufacturers, distributors, industrial automation firms, and end-users in North America, Europe, and Asia-Pacific.)
Energy Efficiency and Regulatory Compliance
Energy efficiency ranked as the top priority for stakeholders worldwide, with 78% of respondents citing regulatory compliance as a critical factor in procurement decisions. Europe led the charge (82%), with stringent regulations like the EU’s Ecodesign Directive pushing manufacturers toward high-efficiency motor designs.
In the USA (74%), compliance with the Department of Energy (DOE) efficiency guidelines was a key driver, with industrial users emphasizing reduced operational costs as a primary motivation. Asian industries (68%) also acknowledged efficiency concerns but leaned toward cost-effective solutions rather than premium high-efficiency motors.
Durability and Performance Requirements
Beyond efficiency, 71% of manufacturers placed significant emphasis on motor durability, particularly in high-load applications such as conveyor systems, HVAC, and robotics. North America (63%) prioritized thermal management improvements to prevent overheating, particularly in motors used for continuous operations.
In Europe (68%), end-users pushed for recyclable materials to reduce environmental impact, while Asia-Pacific stakeholders (57%) focused on cost-effective durability enhancements, such as protective coatings for extended lifespan.
Regional Variances
Smart Motors and IoT Integration
The survey highlighted a sharp increase in smart motor adoption, with 58% of manufacturers integrating IoT-enabled monitoring for predictive maintenance. North America led the trend (67%), where industrial automation firms reported reduced unplanned downtime by 35% after implementing smart motor solutions. Europe followed at 52%, with a growing focus on AI-driven fault detection in manufacturing. However, Asia-Pacific lagged (46%), citing high costs and a lack of standardized protocols as barriers.
Regional Technology Trends
Barriers to Adoption
Despite interest, 46% of Asia-Pacific respondents delayed smart motor adoption due to cost concerns, while 41% of European firms cited integration challenges with legacy systems. North American manufacturers (29%) were concerned about data security risks with IoT-connected motors.
Raw Material Costs and Supply Chain Bottlenecks
Raw material price fluctuations emerged as a major industry challenge, with 83% of respondents expressing concerns over rising copper and rare earth metal costs. 72% of distributors in Asia-Pacific struggled with securing stable supply chains, affecting production timelines. Western European manufacturers (58%) faced pricing pressure from low-cost Eastern European producers, forcing them to reassess cost structures.
Regional Variances in Supply Chain Challenges
Investment in R&D and Product Development
Looking ahead, 75% of surveyed manufacturers plan to increase R&D investments in compact, lightweight motor designs for industries like robotics, medical devices, and precision manufacturing. In the USA (64%), the focus is on modular motor architectures, allowing manufacturers to customize motors for different industrial needs.
European firms (60%) are prioritizing sustainability-focused R&D, integrating recyclable materials and energy-efficient components into their motor designs. Meanwhile, Asian stakeholders (55%) are directing funds toward cost-efficient production to maintain competitive pricing.
Emerging Regional Investment Trends
High Consensus Across Regions
Key Variances
| Countries/Region | Government Regulations & Certifications Impacting the Market |
|---|---|
| United States | The USA Department of Energy (DOE) has set Energy Conservation Standards for Electric Motors, requiring higher efficiency ratings. Motors must comply with NEMA Premium Efficiency standards (NEMA MG 1-2016). The Energy Star certification is also relevant for certain industrial motor applications. |
| European Union | The Ecodesign Directive (EU) 2019/1781 enforces strict Minimum Energy Performance Standards (MEPS) for motors, including fractional horsepower motors. The CE marking is mandatory for motors sold in the EU, ensuring compliance with safety and environmental standards. |
| China | The government has implemented GB 18613-2020 standards, which define efficiency levels for electric motors. Companies must obtain the China Compulsory Certificate (CCC) for regulatory approval. China is also pushing for IE3 and IE4 efficiency motors as part of its sustainability goals. |
| India | The Bureau of Energy Efficiency (BEE) enforces energy performance standards for motors. Motors must meet Indian Standard (IS) 12615:2018, which aligns with IE2 and IE3 efficiency levels. The ISI certification mark is required for compliance. |
| Japan | The Top Runner Program mandates that manufacturers improve motor efficiency beyond international standards. Compliance with JIS C 4212 and JIS C 4213 is required for efficiency ratings. Japan also promotes the use of BLDC motors in automation. |
| Brazil | The National Institute of Metrology, Quality, and Technology (INMETRO) regulates motor efficiency under Ordinance No. 488/2010, which aligns with IE2 and IE3 international efficiency standards. Certification from INMETRO is required for motors sold in Brazil. |
| Australia | The Greenhouse and Energy Minimum Standards (GEMS) Act 2012 requires motors to meet MEPS levels. Motors must be registered under the GEMS program before being sold in Australia. |
The industrial fractional horsepower motors industry in the USA is projected to be lucrative, with a CAGR of about 5.5% during the forecast period of 2025 to 2035. This surge is being led by advancements in automation, energy efficiency laws, and the growing industry of electric vehicles. The USA Department of Energy (DOE) has imposed strict Minimum Energy Performance Standards (MEPS), a push for industries to adopt high-efficiency motors including IE3 and IE4-compliant models.
At the same time, the growth of Industry 4.0, along with IoT-based motor systems in smart manufacturing, drives the demand. Moreover, the dependence of the logistics and warehousing industry on automated conveyor systems also expands the industry. Under the Inflation Reduction Act (IRA) government incentives are expected to spur domestic manufacturing and innovation in energy-efficient motor technologies.
FMI opines that the United States industrial frictional horsepower motors sales will grow at nearly 5.5% CAGR through 2025 to 2035.
The UK industrial fractional horsepower motors industry is expected to grow at a CAGR of more than 4.8% over the next ten years. This growth is propelled by the rising adoption of energy-saving motors in the manufacturing, HVAC, and electric transportation industries. The EU's Ecodesign Directives and the UK Energy Act drive energy efficiency standards for the industry and should see the industry move towards IE3 and IE4-rated motors.
Another important driving force is the push towards industrial automation and robotics in the UK where fractional horsepower motors are critical in precision machinery. The growing production of electric vehicles (EV), particularly with the UK’s 2035 ban on new petrol and diesel car sales, is also fuelling demand for high-efficiency motors in EV powertrains and in battery cooling systems.
FMI opines that the United Kingdom industrial frictional horsepower motors sales will grow at nearly 4.8% CAGR through 2025 to 2035.
The French industrial fractional horsepower motors industry is expected to rise at a CAGR of around 4.7% throughout the forecasted period. High-efficiency fractional horsepower motors industry players are benefitting from government schemes for advancements in automation, robotics, and clean energy technologies, such as the France 2030 investment plan. Demand for motors is also being driven by France’s strong aerospace and automotive sectors, especially in the field of electric and hybrid vehicles.
There is also a growing need for fractional motors in energy storage and grid management systems as renewable energy infrastructure, such as solar and wind power, expands. Green openers have been dominating the French industry, with green manufacturing incentives and investment in automation technology shaping its future.
FMI opines that France's industrial frictional horsepower motors sales will grow at nearly 4.7% CAGR through 2025 to 2035.
The industrial fractional horsepower motors industry in Germany is estimated to grow at a CAGR of 5.0% during the forecast period of 2025 to 2035, attributed to the focus of the country towards high-efficiency manufacturing and industrial automation.
Germany, the leader of Industry 4.0, is home to smart factories (i.e., factories run on the Internet of Things and/or artificial intelligence), meaning there is great potential for motors enabled by the Internet of Things and the use of artificial intelligence.
The Eco Design Directive and Germany's Energy Efficiency Strategy 2050 require IE3 and IE4 motors to be adopted, which has an effect on industrial applications in sectors such as manufacturing, HVAC and logistics. The nation has established itself as a hub for premier automakers, and the increase in EV penetrations has aided the demand for compact, high-performance fractional motors installed into EV drive trains as well as battery cooling systems.
FMI opines that Germany’s industrial frictional horsepower motors sales will grow at nearly 5.0% CAGR through 2025 to 2035.
The Italy fractional horsepower motors industry is poised to grow at a CAGR of 4.6% during the forecast period. A major growth driver is the Italian government’s focus on energy efficiency, smart manufacturing, and automation. Due to the European Union’s Ecodesign Directive, Italy mandates the use of high-efficiency motors in industrial applications.
A key segment that consumes fractional horsepower motors is heating, ventilation, and air conditioning (HVAC), which is expected to register substantial growth over the coming years because of increasing investments in green structures and smart climate control systems. Further, the automotive and robotics industries in Italy continue to grow, fueling a need for precision motors in electric vehicle components and assembly lines.
Italy’s Green New Deal offers a plethora of government incentives to companies investing in energy-efficient solutions, which also makes Italy an attractive industry for sustainable motor technologies in the years ahead.
FMI opines that Italy’s industrial frictional horsepower motors sales will grow at nearly 4.6% CAGR through 2025 to 2035.
South Korea's industrial fractional horsepower motors industry is likely to expand at a CAGR of approximately 5.3% between 2025 and 2035 owing to the country's advancement in electronics, robotics, and electric vehicle production. Also, the Government’s Green Growth Strategy and Smart Factory Initiative are driving industries to adopt high-efficiency, IoT-integrated motors.
South Korea’s dominance in the semiconductor business is morphing into demand for precision motors for the automation of cleanrooms and robotic assembly lines. Furthermore, the speedy growth of mobility electric devices, ranging from EVs to E-scooters is responsible for the increased need for small, yet powerful motors. Companies in the industrial sector are being mandated to move to IE3 and IE4 motors by stricter energy efficiency laws the government is enforcing.
FMI opines that South Korea’s industrial frictional horsepower motors sales will grow at nearly 5.3% CAGR through 2025 to 2035.
The industrial fractional horsepower motors industry in Japan is projected to register a CAGR of around 4.5% between 2025 and 2035, owing to the high demand and concentration of automation, robotics, and energy efficiency in the country. Under the high-efficacy motor adoption regulation (top runner program), companies are required to meet stringent energy-efficient requirements. Fractional horsepower motors, used for applications requiring precision, power Japan's sophisticated robotics industry, one of the most cutting-edge in the world.
Also, the growth in production of electric and hybrid vehicles, along with Japan’s expertise in battery technology, is spurring demand for smaller, high-efficiency motors. Japan remains a top industry for cutting-edge technology with continued innovations from IoT and AI-powered motor solutions.
FMI opines that Japan’s industrial frictional horsepower motors sales will grow at nearly 4.5% CAGR through 2025 to 2035.
One of the highest growth rates is expected from China, with a CAGR of 6.0% during the period of 2025 to 2035. The country’s robust industrial growth, adoption of automation and boom in electric vehicle production are key growth drivers. In China, the GB 18613-2020 energy efficiency standard was implemented, in which high-efficiency motors are required to be used in industrial applications.
Demand for fractional horsepower motors in electric vehicles battery cooling systems and e-bikes is driven by China’s New Energy Vehicle (NEV) policy. In addition, the government is promoting the use of brushless DC (BLDC) motors in smart manufacturing, with the initiative called Made in China 2025 to push automation. China's industrial motors are set to sweep the industry over the next 10 years, underpinned by robust government promotion and growing domestic demand.
FMI opines that China’s industrial frictional horsepower motors sales will grow at nearly 6.0% CAGR through 2025 to 2035.
The industrial fractional horsepower motors industry in Australia & New Zealand is projected to grow with a CAGR of around 4.9% through 2025 to 2035 based on the growing adoption of energy-efficient motors offered by fractional horsepower motors in mining, HVAC & industrial applications.
MEPS establishes the standards under the Australian Greenhouse and Energy Minimum Standards (GEMS) Act, which requires businesses to follow high-efficiency motors as per regulations. Demand for specialized motors for grid management is also growing with the expansion of renewable energy projects - wind and solar farms. Due to an increased focus on sustainability and industry automation, ANZ offers large opportunities for IE3 and motors manufacturers for future growth.
FMI opines that Australia & NZ industrial frictional horsepower motors sales will grow at nearly 4.9% CAGR through 2025 to 2035.
The oil & gas industry will remain a key driver of demand for industrial fractional horsepower motors due to the emphasis on efficiency and reliability in drilling, refining, and transportation activities. Drilling operations' shift towards automation and digitalization will necessitate more performance- and durability-enhanced motors.
With numerous oil-producing countries investing in cleaner energy sources, the sector will also need hybrid and all-electric application motors for offshore and onshore rigs. The drive towards sustainability will also see more demand for high-efficiency motors that minimize operating expenses and environmental footprint. The segment is expected to experience a CAGR of 5.0% between 2025 and 2035.
The pulp & paper sector will experience a consistent uptake of fractional horsepower motors, spurred by the growth of packaging and recycling facilities. With sustainability becoming a top priority, paper mills will upgrade traditional motor systems to high-efficiency models that meet stringent environmental standards.
The growing need for intelligent automation in paper processing plants will also drive the demand for motors with accurate speed control and energy efficiency. As digital transformation redesigns manufacturing, mills will adopt IoT-enabled motors for predictive maintenance to minimize downtime and maximize production efficiency.
Metal & mining will witness high demand for fractional horsepower motors as more energy-efficient equipment is needed in extraction, processing, and refining. Electrification of mining machinery will open opportunities for next-generation motor technologies that provide increased service life and lower energy consumption.
As mining firms concentrate on automation and sustainability, intelligent motors will be key to maximizing operations and complying with strict energy regulations. The growth of electric vehicles and renewable energy infrastructure will also increase metal demand, necessitating efficient motor-driven equipment to facilitate large-scale mining operations.
The food & beverage sector will increase its application of fractional horsepower motors to enable automated processing, packaging, and refrigeration systems. With tightening food safety legislation, manufacturers will require motors for clean-room applications to ensure they are compliant with stringent industry standards.
The move toward sustainable manufacturing will promote the use of energy-saving motors that reduce operating expenses while retaining performance. The increasing popularity of robotics in food production will also stimulate demand for light, high-torque motors that support precise control during sorting, mixing, and packaging operations.
Other sectors such as pharmaceuticals, HVAC, textiles, and water treatment will also continue to depend on fractional horsepower motors to boost efficiency and performance. The pharmaceutical industry will require motors with accurate control for production and packaging, while the HVAC industry will propel the demand for intelligent, energy-efficient motors in climate control applications.
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Market Growth Recovery: The industry faced disruptions due to the COVID-19 pandemic, causing supply chain bottlenecks and fluctuating raw material prices. Demand rebounded in 2022 as industries restarted operations, with a focus on automation and energy efficiency. | Steady Growth & Innovation: The industry is expected to witness sustained growth, driven by advancements in motor technology, Industry 4.0, and the increased adoption of high-efficiency motors across industries. |
| Regulatory Pressures Increased: Governments worldwide introduced stricter energy efficiency regulations, such as IE3 and IE4 compliance, forcing industries to upgrade their motor systems. The Ecodesign Directive in Europe and DOE efficiency standards in the USA shaped purchasing decisions. | Stronger Compliance & Sustainability Focus: Regulations will become even more stringent, with a focus on carbon neutrality and electrification. Governments will incentivize the adoption of IoT-enabled and AI-driven smart motors to improve efficiency. |
| Adoption of Brushless DC (BLDC) Motors Grew: Many industries started transitioning from traditional brushed motors to BLDC motors, especially in HVAC, automotive, and industrial automation. However, high initial costs limited widespread adoption. | BLDC and Smart Motors Become the Norm: Cost reductions and efficiency benefits will make BLDC and smart, sensor-equipped motors the preferred choice across industries, especially in robotics, EVs, and industrial automation. |
| EV Market Expansion Drove Demand: The rise in electric vehicle (EV) production fueled demand for high-performance fractional horsepower motors for applications such as cooling, power steering, and battery management. | EV Market to Dominate Motor Demand: The EV sector will become one of the largest consumers, requiring specialized motors for powertrains, thermal management, and auxiliary systems as governments push for electric mobility. |
| IoT Integration Began: Early adoption of connected motors was seen in industries seeking predictive maintenance solutions. However, implementation was slow due to high integration costs. | IoT & AI-Enabled Motors Go Mainstream: With advancements in AI and edge computing, real-time monitoring, self-diagnostics, and automated optimization will become standard features in industrial motor systems. |
| Supply Chain Disruptions Were Frequent: Raw material shortages and logistics issues caused delays, leading to fluctuating motor prices. Companies sought to diversify their supplier base. | More Stable Supply Chains: Companies will localize production and form strategic partnerships to reduce reliance on single suppliers, improving industry resilience and cost efficiency. |
| HVAC and Industrial Automation Grew Significantly: HVAC and factory automation industries increased their investments in energy-efficient fractional horsepower motors to meet sustainability goals and reduce costs. | Customization & Energy Efficiency Will Be Key: Manufacturers will focus on modular, high-efficiency motor designs tailored for specific industrial applications, ensuring lower energy consumption and improved performance. |
The industry for industrial fractional horsepower motors is a part of the electromechanical components and industrial automation equipment, comprising a sector of the industrial machinery and energy-efficient technology industry.
This industry is impacted by macroeconomic trends of industrial automation, electrification, energy efficiency mandates, and an increase in key end-use industries including automotive, manufacturing, HVAC, and renewable energy. The industry is determined by global industrial production levels, infrastructure development, technological innovation, and sustainability regulations.
The global push for energy-saving solutions-international policies such as the Ecodesign Directive (EU), DOE energy efficiency standards (USA), and China GB energy policies-has resulted in the widespread adoption of high-efficiency fractional motors.
As the economy embraces electrification and automation, industries are upgrading motor systems to brushless DC (BLDC) motors and smart motors, improving operational efficiency and lowering carbon emissions.
The industry is equally sensitive to fluctuations in commodity prices of materials such as copper, aluminium and rare earth magnets that influence production costs. But reshoring efforts, supply chain diversification and advances in digital manufacturing work to stabilize the sector. These factors point towards the growth of the industrial fractional horsepower motors industry, as investments in EVs, industrial robotics and IoT-enabled smart factories are on the rise.
Market players in the industrial fractional horsepower motors industry should capitalize on energy efficiency laws by investing in next-generation IE4 and IE5 motors, which will become industry standards in the near future.
Smart motor technology in the form of IoT-enabled and AI-driven motors is a major growth prospect as industries shift towards predictive maintenance and automation. Firms need to create tailor-made motor solutions for high-growth applications like EVs, industrial robotics, and heating, ventilation, and air conditioning (HVAC) systems where there is increasing demand for high-efficiency, compact motors.
Producers need to look at regional production centres to reduce supply chain vulnerabilities, especially in Europe and North America, where reshoring efforts are on the rise. Strategic alliances with EV producers, automation companies, and renewable energy companies can generate long-term top-line growth.
Investing in alternative rare-earth magnets and green motor designs can also give a competitive advantage as industries focus on sustainable solutions. Focusing on modular and application-specific motors will assist in addressing various industrial requirements without compromising regulatory compliance and operation efficiency.
Top players in the industrial fractional horsepower motors industry are competing on a combination of pricing strategies, technological advancements, strategic alliances, and expansion across geographies. As regulatory pressure mounts for energy-efficient motors, top players are concentrating on high-performance brushless DC (BLDC) motors, IoT-enabled smart motors, and modular designs to address changing industrial needs.
Players are also using economies of scale to maintain cost competitiveness while investing in supply chain resilience to hedge against raw material volatility. Growth initiatives are centred around mergers and acquisitions (M&A), joint ventures, and long-term partnerships with strategic end-use industries like automotive, industrial automation, and HVAC.
Companies are fortifying their R&D strengths to create application-specific, customized motors that conform to high industry specifications. Internationalization continues to be at the top of the agenda, with companies establishing regional manufacturing and distribution bases in North America, Europe, and Asia-Pacific to save on logistics and service growing demand effectively.
Recent Key Developments
Energy efficiency regulations, automation trends, electric vehicle adoption, and advancements in motor technology are key growth drivers.
Manufacturers focus on high-efficiency designs, smart motor integration, customization for industries like EVs and HVAC, and compliance with global energy standards.
Oil & gas, metal & mining, food & beverage, pulp & paper, HVAC, and electric vehicles are experiencing strong demand.
Stricter energy efficiency mandates worldwide are pushing manufacturers to innovate with IE4/IE5 motors, BLDC technology, and sustainable materials.
IoT enables real-time monitoring, predictive maintenance, and efficiency optimization, reducing downtime and operational costs.
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Industrial Fractional Horsepower Motors Market
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