Electric Drives Market

Industry Overview

The global Electric Drives Market size was valued at USD 95.28 billion in 2024 and is predicted to reach USD 100.71 billion by the end of 2025. The industry is predicted to reach USD 133.07 billion with a CAGR of 5.7% from 2025-2030.

The market revenue is driven by factors such as the growing demand for energy efficiency worldwide, the rising adoption of electric vehicles and the rising adoption of industrial automation worldwide. The electric drive sector, also known as electric motor drives sector, is however, hindered by the cost of purchasing and installing electric motors, along with necessary infrastructure upgrades. 

Conversely, the increasing need for energy storage solutions and grid technologies integration into electric motors offers a huge opportunity to the market in the long term. This integration will enable sustainability to meet environmental objectives and increase the market potential by integrating renewable energy sources into the grid seamlessly and utilizing advanced communication and control technologies to provide efficient and reliable energy delivery while enabling the shift to a sustainable energy future by improving grid stability. 

The Growing Demand for Energy Efficiency Fuels the Growth of the Market

The growing global emphasis on energy efficiency stands out as a key driver for the electric drives market demand. Industries are increasingly adopting energy-efficient motor drives to lower power usage, enhance operational efficiency, and meet sustainability targets. These drives also support seamless integration with renewable energy sources, making them essential for cost-effective and cleaner processes. As per the IEA's 2024 report, energy efficiency could contribute to over 70% of the expected drop in oil demand and 50% in gas demand by 2030 in a net-zero scenario. Backed by the COP28 commitment to double efficiency gains by 2030 and ongoing energy savings, electric drives continue to see rising adoption across various sectors.

The Rising Adoption of Electric Vehicles Boosts the Growth of the Market

The growing adoption of electric vehicles is significantly increasing the demand for electric motors, driving the expansion of the industry. Electric motors, as core components in EVs, convert electrical energy into mechanical energy to ensure efficient performance. 
According to the IEA Global EV Outlook 2024, global electric car sales reached around 17 million units in 2024, reflecting a 25% increase from 2023. With EVs now accounting for over one in five cars sold worldwide, rising demand supported by strong policies and consumer shift toward sustainability continues to boost the integration of electric motors and strengthen the electric drives market opportunities.

The Rising Adoption of Industrial Automation Further Boosts the Market

The rising adoption of automation across global industries is driving strong demand for motor drives, as they play a crucial role in ensuring precise and consistent operation of industrial robots while enhancing productivity and efficiency in manufacturing. 

According to the International Federation of Robotics 2025 report, the global market value of industrial robot installations reached a record USD 16.5 billion. Since electric motors are essential for powering robotic movement and enabling precise control, their growing use in automation continues to support the expansion of the electric drives sector.

The Cost of Purchasing and Installing Electric Drives Hinders the Growth of the Market

The substantial upfront investment required for purchasing and installing electric drives poses a significant barrier to market growth. These systems involve high capital expenditure not only for the equipment itself but also for the necessary modifications to existing infrastructure. This financial burden is particularly challenging for small and medium-sized enterprises (SMEs), which operate under tight budget constraints and lack access to favorable financing options. 
Furthermore, the need for skilled technicians to ensure proper installation and integration adds to the overall cost. As a result, many businesses delay or forgo adopting electric drives, limiting the electric drives market expansion potential especially in price-sensitive regions and industries.

The Growing Demand for Energy Storage Solutions and Integration of Grid Technologies into Electric Drives Creates Future Growth Opportunities for the Market

The growing need to integrate grid technologies and energy storage solutions with servo drives is opening new growth opportunities for the electric drives market trends. Advanced control systems and communication technologies enable smoother integration of renewable energy sources, improving grid stability and supporting cleaner energy transitions.

In 2024, global grid-scale battery storage saw a sharp rise, with China and the US adding 5 GW and 4 GW respectively, backed by supportive policies like the US Inflation Reduction Act. Innovations in AI-based energy management, IoT-enabled smart grids, and vehicle-to-grid technology, along with falling battery costs, are accelerating this trend and driving the growth of the sector.

Market Segmentations and Scope of the Study

The electric drives market report is segmented based on product, voltage, power rating, sales channel, end-user, and region. By product, the market is categorized into AC drives, DC drives, servo drives, and integrated motor drives (IMDs). Based on voltage, it is segmented into low voltage drive, medium voltage drive, and high voltage. On the basis of power rating, the market is divided into less than 250 KW, 251 KW to 500 KW, and more than 500 KW. By sales channel, the market is segmented into direct sales and indirect sales. In terms of end-user, the market is classified into oil and gas, power generation, food and beverage, automotive, water and wastewater, metals and mining, chemicals and petrochemicals, building automation (HVAC), pulp and paper, textiles, transportation, aerospace and defense, and others. Regional analysis of each of these segments covers North America, Europe, Asia-Pacific, and Rest of the World.

Geographical Analysis

The electric drives market share in the Asia-Pacific region remains dominant due to a strong commitment to energy efficiency and rapid industrial development. Government-led programs such as India’s energy efficiency initiatives resulted in significant energy savings during 2023–24, reinforcing the shift toward technologies that promote reduced power consumption, including these energy-efficient drives. 

According to the Bureau of Energy Efficiency’s Annual Report 2023-24, India saved 54.26 million Tonnes of Oil Equivalent (Mtoe) in energy savings in 2023-24. Additionally, the widespread adoption of electric vehicles continues to influence demand, with China accounting for a major share of global EV sales in 2024. The International Energy Agency (IEA) reported that China accounted for nearly 60% of global EV registrations in 2024, with 10.2 million units sold, a 25% increase from 2023. 

In North America, the market is expanding steadily due to consistent investment in automation and the strength of its manufacturing base. The U.S. industrial sector continues to rely on electric drives for robotics and precision control in automated systems. The National Association of Manufacturers reported that the U.S. manufacturing sector contributed USD 2.93 trillion to GDP in 2024, creating demand for the drives in manufacturing processes. 

Additionally, the food and beverage industry contribute to demand through the growing use of motor drives in processing equipment, with Statistics Canada noting a 4% growth in food service and drinking place sales in 2024. A rise in EV production, along with developments in smart grid technologies, supports further integration of electrical drives in both industrial and energy sectors.

Across Europe, the electric drives industry benefits from regulatory pressure and a growing focus on energy-efficient automation. The European Union’s long-term decarbonization goals encourage widespread use of variable frequency and servo drives in industrial operations, helping reduce energy costs across facilities. 

According to a report by the European Commission, 2024, over 50% of industrial facilities in the region use variable frequency drives (VFDs), saving up to USD 2 billion annually in energy costs. Countries such as Italy are experiencing rising demand due to their strong manufacturing activities. 

Furthermore, the region’s leadership in renewable energy deployment increases the use of these drives in applications like wind power and solar tracking, while automation initiatives in Germany, France, and the UK continue to advance adoption.

In the Rest of the World region, including Latin America, the Middle East, and Africa, the market is showing moderate growth. Brazil and Mexico are expanding their industrial activities, particularly in the automotive sector, driving the need for electric drives in production processes. 

According to the International Energy Agency (IEA), Brazil’s automotive sector grew by 7% in 2024, increasing the demand for the drives. The Middle East shows growing interest due to large-scale oil and gas developments alongside increasing renewable energy projects. 

In Africa, the sector is gradually developing through its use in mining and basic industrial operations, although infrastructure challenges remain. Continued investment in sustainable and water management projects in these regions supports additional adoption of electrical drives.

Strategic Innovations by Key player Strengthen Competitive Positioning in the Market

The competitive landscape of the electric drives industry remains highly dynamic, as key players actively pursue innovation to expand their foothold across fast-growing sectors. Companies including Siemens AG, ABB Ltd., Robert Bosch GmbH, Mitsubishi Electric Corporation, Danfoss A/S, and Rockwell Automation, Inc., among others, continue to introduce advanced electric drive technologies aimed at enhancing performance, precision, and energy savings. 

For example, ABB launched the ACH180 compact drive for HVACR systems in India in February 2024, featuring space-efficient design and high motor control precision. Likewise, Siemens introduced a servo drive system in November 2023, optimized for battery and electronics manufacturing through improved control and simplified cabling. 

In addition, Bosch unveiled an 800-volt drive system in February 2025, designed to deliver up to 200 kW of power and support voltages between 400 and 850 volts. Moreover, GAC Motor’s Quark Electric Drive 2.0, revealed in September 2024, reached 98.5% efficiency and extended EV range by 50 km without increasing battery size. 

Through such innovations, along with ongoing R&D initiatives and strategic partnerships, these firms are well-positioned to address rising demand across industrial automation, energy-efficient systems, and electric mobility—particularly across growth-intensive regions such as Asia-Pacific.

Key Benefits

• The report provides quantitative analysis and estimations of the electric drives market from 2025 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future electric drives market trends to depict prevalent investment pockets in the sector.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Electric Drives Market Key Segments

By Product

• AC Drives

• DC Drives 

• Servo Drives

• Integrated Motor Drives (IMDs)

By Voltage

• Low Voltage Drive

• Medium Voltage Drive

• High Voltage

By Power Rating 

• Less than 250 KW

• 251KW - 500 KW 

• More than 500 KW

By Sales Channel

• Direct Sales

• Indirect Sales 

By End-User

• Oil & Gas

• Power Generation

• Food & Beverage

• Automotive

• Water & Wastewater

• Metals & Mining

• Chemicals & Petrochemicals

• Building Automation (HVAC)

• Pulp & Paper

• Textiles

• Transportation

• Aerospace & Defense

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East 

  • Africa

Key Players

• Siemens AG

• ABB Ltd.

• Robert Bosch GmbH 

• Danfoss A/S

• Fuji Electric Co., Ltd.

• Rockwell Automation, Inc.

• ZF Friedrichshafen AG

• Yaskawa Electric Corporation

• Mitsubishi Electric Corporation

• Nidec Motor Corporation

• WEG

• Hitachi Hi-Rel Power Electronics Private Limited

• Schneider Electric

• TOSHIBA CORPORATION

• CG Power & Industrial Solutions Ltd. 

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 95.28 Billion
Revenue Forecast in 2030	USD 133.07 Billion
Growth Rate	CAGR of 5.7% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	The increasing demand for energy efficiency globally is accelerating the market growth. The rising adoption of electric vehicles (EVs) across the world is boosting the market growth. The increasing adoption of industrial automation is driving the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.