United States AC Motor Market

United States AC Motor Market Analysis

The United States AC Motor Market size is estimated at USD 3.70 billion in 2025, and is expected to reach USD 4.24 billion by 2030, at a CAGR of 2.75% during the forecast period (2025-2030).

• The demand for AC motors in the United States is driven by the industrial revolution across various sectors, including aerospace, automotive, defense, food & beverage, and the country's efforts to emerge as the leading exporter of oil and gas products.
• The increasing need for advanced technologies across various industries, integration of safety devices, increasing investment in manufacturing industries, and augmented complexity in electronics and semiconductors fuel the demand for AC motors.
• The United States is one of the largest automotive markets in the world, with a dozen of the biggest car manufacturers calling it home. These manufacturers are among the country's leading revenue sources, making it an ideal market for vendors in this region. Besides domestic auto manufacturers, foreign automobile producers have a significant demand for AC motors.
• Moreover, with increasing electricity prices and stricter energy consumption standards in the United States, demand for energy efficiency AC is expected to grow rapidly in the coming years. In addition, the development of energy-efficient motors can be significantly encouraged by strict design and production standards to improve AC motor efficiency, further supporting market growth.
• However, the growth of AC motors in the short term may be impeded by high initial costs. In addition, the market may face a significant threat from price fluctuations of basic materials.

United States AC Motor Market Trends

Rapid Industrialization and Increasing Infrastructure Development Will Drive the Market Growth

• Industrial automation in the United States has witnessed notable growth over the last few years, owing to the growing need to develop cost-effective production methods, comply with global quality standards, and support government regulations.
• The increasing focus on Industry 4.0 primarily drives the United States AC motors market. In the United States, industrial automation drives the manufacturing sector toward more effective productivity, which is expected to grow strongly during the forecast period. AC motor technology is widely applied in many areas, such as vehicles, power generation, oil & gas production, mining, and manufacturing.
• As AC motors offer high reliability with low maintenance requirements, and their service life is often limited only by the lifetime of the bearing, the demand for AC motors in the industrial sector is increasing. They do not have any parts that wear out regularly, so they do not require commutators, brushes, or slip rings. Therefore, it makes them ideal for applications where the motor must be continuously operated, has little access, or will operate without supervision for long periods.
• The rising government investment in infrastructure development projects will support the market growth during the projected timeline. For instance, in September 2023, the US government announced it would invest USD 100 million in expanding recycling infrastructure and waste management systems nationwide.
• In October 2023, the government announced the investment of USD 3.46 billion for 58 projects across 44 states to strengthen electric grid resilience and reliability across America. These transformative projects will all support the President's Justice40 Initiative to benefit disadvantaged communities, help to bring more than 35 gigawatts of new renewable energy online, and invest in 400 microgrids.
• Several players operating in the market focus on introducing new products to meet the growing demand. For instance, in October 2023, WEG announced its new W51 High Density (HD) motor line, which utilizes high-density technology to focus on high performance and lower resource consumption. The W51 HD motors are customizable, compact, and suitable for various applications, delivering better performance and longer durability.

Growing Food & Beverages Industry will Support the Market Growth

• AC motors used in the food & beverages industry are commonly characterized by specific and challenging application requirements, including meat, fish, chicken, poultry, cake making, and dairy, as well as machinery like mixers, flour mills, or conveyors. In the food and beverage sector, AC motors help to carry out applications in which raw material handling, processing, or transfer is used, as well as packaging and storage, without compromising performance and quality, thus supporting the demand for AC motors.
• Food processing is one of the major manufacturing industries in the United States. According to the US Department of Agriculture, 16% of the value of the shipments from all the manufacturing plants in the country comes from food processing plants.
• In November 2023, according to the US Census Bureau, the total sales of US retail and foodservice for the August 2023 through October 2023 period were up 3.1% from the same period a year ago.
• The growing urbanization, changing demographics, and steady growth in retail have propelled the food processing industry in the United States. This increased demand has led to a surge in production from food & beverage companies. These companies are capitalizing on the growing middle-class population by introducing new products and expanding their existing product lines, further creating demand in the market.
• Also, the growing investments by the leading players in the country to expand their manufacturing capacity are expected to drive the market's growth. For instance, Nestle announced investing USD 43 million to expand its Wisconsin factory to increase capacity for its Boost and Carnation Breakfast Essentials ready-to-drink (RTD) products.

United States AC Motor Industry Overview

The US AC motor market is competitive with various large, medium, and small players. The market players are introducing innovative products to cater to the growing consumer demands. Major players in the market include Siemens AG, Kirloskar Electric Company, Johnson Electric, Rockwell Automation Inc., Franklin Electric Co. Inc., and ABB Limited. Technological advances in various industries, including healthcare, energy, and infrastructure, will boost the market growth.

• February 2024: ABB unveiled a liquid-cooled iteration of its SynRM (synchronous reluctance) motor, melding IE5 energy efficiency with robust cooling capabilities. Initially showcased at the 2022 SPS exhibition, these motors promise energy savings and reduced emissions, whether integrated into new projects or as retrofits for older, less efficient models. The liquid-cooled variants come in aluminum frames, specifically IEC 200-315, offering power ratings from 37-710kW at 400V, with steel frame options available upon request.
• Setember 2023: ABB has introduced the IE5 SynRM Increased Safety motor to its IE5 SynRM series, designed for use in potentially explosive atmospheres. This new motor offers precise control and high efficiency across the entire speed range, even at partial loads. A significant advantage of the IE5 SynRM Increased Safety motors is their cooler operation compared to standard designs. Bearing temperatures decrease by up to 15°C, and winding temperatures drop by up to 30°C. These improvements enhance reliability, extend the motor's lifespan, and reduce maintenance needs.

United States AC Motor Market Leaders

United States AC Motor Market News

• February 2024: ABB has introduced a new version of its IE5 SynRM (synchronous reluctance motor) series, which combines exceptional energy efficiency with highly effective liquid cooling. The new design sets a new benchmark for high power output and reliability in a compact footprint.
• March 2024: POSCO International signed contracts worth approximately KRW 1.16 trillion won (USD 885 million) to supply rare earth permanent magnets to carmakers in North America and Europe. The company's U.S. subsidiary recently secured a contract to provide about 900 billion won worth of permanent magnets to a major North American automaker. Deliveries are scheduled from 2026 to 2031, and these magnets are expected to be installed in the drive motors of the automaker's new medium to large electric vehicles.