India Electric Motor Market Report and Forecast 2024-2032

India Electric Motor Market Size

The India electric motor market attained a value of INR 118.30 billion in 2023. The market is further expected to grow at a CAGR of 11% in the forecast period of 2024-2032 to attain USD 302.6 billion by 2032.

India Electric Motor Market Outlook

The growth in India electric motor market is supported by the rising construction activities within the country. Gujarat, Maharashtra, and Madhya Pradesh are the major markets for electric motor in the country. These states have played a crucial role in increasing the India electric motor market revenue. The market is further invigorated by the rising number of government initiatives such as Green Energy Corridor in Gujarat, Maharashtra, and Madhya Pradesh in the forecast period.

Industry Outlook

According to Society of Indian Automobile Manufacturers (SIAM), the passenger vehicle production in India demonstrated a robust growth trend, increasing from 30,62,280 units in 2020-21 to 49,01,844 units in 2023-24, indicating a significant recovery and expansion in the sector. Similarly, commercial vehicle production experienced a steady rise from 6,24,939 units in 2020-21 to 10,66,429 units in 2023-24, reflecting strong demand and investment in commercial transportation.

Three-wheeler production also followed an upward trajectory, moving from 6,14,613 units in 2020-21 to 9,92,936 units in 2023-24, suggesting a growing market for smaller and more versatile transport options, as per SIAM data. Two-wheeler production, a key segment in India’s automobile industry, surged from 18,349,941 units in 2020-21 to 21,46,84,527 units in 2023-24, underscoring the increasing mobility needs and economic growth.

Quadricycle production displayed relative stability with minor fluctuations, reaching 5,006 units in 2023-24, indicating a niche but steady demand. Overall, total automobile production in India saw a substantial increase, climbing from 2,26,55,609 units in 2020-21 to 2,84,34,742 units in 2023-24, showcasing the industry's resilience and capacity for growth.

Electric Motor Industry Statistics in India

According to the India Brand Equity Foundation (IBEF), manufacturing exports have reached their highest ever annual figure of US$ 447.46 billion with a 6.03% growth during FY23, surpassing the previous year's record of US$ 422 billion. By 2030, the Indian middle class is expected to have the second-largest share in global consumption at 17%. India's gross value added (GVA) at current prices was estimated at US$ 770.08 billion in the first quarter of FY24. The country's GDP grew by 8.4% in the October-December quarter, driven by strong performances in the manufacturing and construction sectors, which grew by 11.6% and 9.5% respectively. India has the potential to become a global manufacturing hub, potentially adding over US$ 500 billion annually to the global economy by 2030. The economic survey reports estimate employment in the manufacturing sector was 5.7 crore in 2017-18, 6.12 crore in 2018-19, and increased to 6.24 crore in 2019-20. The manufacturing GVA at current prices was estimated at US$ 110.48 billion in the first quarter of FY24, as reported by the India Brand Equity Foundation.

As per the India electric motor industry analysis, India, despite only 8% of its 300 million households owning air conditioners, is the fastest-growing AC market globally. Out of the 170 million AC units sold in 2023, China accounted for 90 million units, while India purchased 12 million. The International Energy Agency (IEA) forecasts a nine-fold increase in home air conditioner ownership in India by 2050, surpassing the growth rate of other household appliances such as TVs, refrigerators, and washing machines.

India Electric Motor Market Trends

India's electric motor market is expected to grow as a result of factors such the high cost of batteries for electric cars, lack of infrastructure for charging, and the popularity of low-quality, low-priced imports. The growing popularity of electric vehicles is one of the key developments in the India electric motor market. The government of India has set an ambitious goal to electrify all forms of transportation by 2030, which is anticipated to increase demand for electric motors in this country. India offers an extensive number of chances for companies operating in the electric motor industry. The country's need for electric motors will be driven by the growing popularity of electric vehicles and government programs to support sustainable energy sources.

Recent Development

In May 2024, a new greenfield plant under the name I.EVR Motors was inaugurated by an Israeli electric motor firm, which specializes in high power density electric motors, near Manesar, Haryana. Trapezoidal geometry coils, a patented essential part of EVR's Trapezoidal Stator Radial Flux Permanent Magnet (RFPM) motor technology, will be manufactured at the Manesar factory. These coils are a crucial component of EVR's electric motors, which are renowned for being more affordable, lighter, and flexible enough to satisfy a wide range of customer demands.

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India Electric Motor Industry Segmentation

Electric motors are referred to as electro-mechanical devices, which operate on the principle of electromagnetic induction. They are highly efficient, durable, require low maintenance, use less energy, and can withstand extreme fluctuating voltages. In addition to this, electric motors cost significantly lower than a fossil-fuel engine.

The market is segmented based on type into:

• AC

• DC

• Others

AC, on the basis of type, is divided into induction AC motors, and synchronous AC motors, whereas DC is divided on the basis of type into brushed DC motors and brushless DC motors. Based on voltage, the industry is categorised into low voltage, medium voltage, and high voltage.

Based on rated power, the electric motor industry in India is divided into fractional horsepower motors and integral horsepower motors. Based on weight, the industry is divided into low, medium, and high. Based on speed, the industry is segmented into low speed, medium speed, high speed, and ultra-high speed. On the basis of magnet type, the industry is segmented into ferrite, neodymium (NdFeB), and samarium cobalt (SmCo5 and Sm2Co17).

Based on application, the industry is divided into:

• Fans

• Pumps

• Compressors

• Mechanical Movement

• Others

On the basis of end-use, the India electric motor market is categorised into:

• Residential

• Commercial

• Industrial

• Transportation

• Others

The regional markets for the product include North, South, East, and West India.

India Electric Motor Market Analysis

The India electric motor market is driven by the rising use of the product in the various industries. The market is further propelled forward by the rising construction activities across the country. Moreover, trending government focus towards adopting energy-efficient motors is aiding the electric motor demand growth. The market is gaining momentum owing to the rising population in the tier II and tier III cities and rapid urbanisation. The government of India plays a significant role in the expansion of this market, by introducing initiatives, such as Make in India, Smart City Mission, AMRUT, affordable housing, and others. This is expected to increase the electric motor market size in India in the forecast period.

Common Applications of Electric Motors

HVAC Systems

Electric motors are crucial in Heating, Ventilation, and Air Conditioning (HVAC) systems, providing thermal comfort by conditioning and distributing fresh air in indoor environments such as offices, homes, and vehicles.

Industrial Automation

As per the India electric motor market analysis, electric motors enhance industrial automation by performing heavy tasks efficiently and continuously without human intervention, thereby increasing productivity and meeting modern demands.

Climate Change Mitigation

Using electric motors in vehicles and trains reduces reliance on fuel, minimizes maintenance needs, and lowers harmful emissions, promoting the use of green and renewable energy sources.

Agriculture

Electric motors are extensively used in agriculture to enhance productivity and reduce human labor. They power various machines for cultivating, plowing, planting, irrigating, fertilizing, and harvesting, thus increasing the electric motor market share in India. Additionally, motors are utilized in equipment for cutting, packing, and processing fruits and vegetables to meet market demands.

Compressor

An air compressor increases gas pressure by reducing its volume, with an electric motor pumping the gas. Compressors are employed for cleaning, filling gas cylinders and tires, micro-level object cleaning, operating nail guns, and ensuring paint adherence during painting tasks.

Factors Contributing to the India Electric Motor Market Share

• Rapid industrial growth increasing the demand for electric motors.

• Strong support from government policies and initiatives promoting manufacturing.

• Innovation in electric motor technologies enhancing efficiency and performance.

• India has a well-established manufacturing infrastructure for electric motors.

• Wide range of applications in sectors like automotive, industrial, and household appliances is increasing the India electric motor market value.

Challenges Faced by Manufacturers in the India Electric Motors Market

• Relatively high production costs due to raw material prices and labor costs.

• Significant reliance on imported components and raw materials is negatively impacting the India electric motor industry revenue.

• Variation in quality standards across different manufacturers.

• Highly fragmented market with numerous small and medium-sized enterprises.

Key Opportunities in the Growth of India Electric Motor Market

• Increasing focus on renewable energy sources like wind and solar power.

• Rising adoption of electric vehicles boosting demand for electric motors.

• Government investment in infrastructure projects requiring electric motors.

• Growing export opportunities to other developing countries is supporting the India electric motor market.

• Integration of smart technologies and IoT in electric motors.

Intense Competition from International and Low-Cost Chinese Manufacturers, and Economic Slowdowns Impacting the India Electric Motor Market Growth

• Stiff competition from international players and low-cost Chinese manufacturers.

• Potential economic slowdowns affecting industrial growth and investment.

• Rapid technological changes will lead to potential obsolescence, which will influence the electric motor demand forecast.

• Environmental regulations and concerns over the carbon footprint of manufacturing processes.

Competitive Landscape

The report gives a detailed analysis of the following Indian electric motor company, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Hindustan Electric Motors

• ABB India Limited

• Siemens Limited

• Bharat Heavy Electricals Ltd (BHEL)

• Kirloskar Electric Company

• Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC)

• Marathon Electric India

• Bharat Electric Motors

• Bharat Bijlee Limited

• Others

Competitive Strategies by Key Players in the India Electric Motor Market

• Product Innovation and Technology Upgrades: Siemens focuses on integrating advanced technologies such as IoT and AI in their electric motors, enhancing efficiency and performance.

• Strategic Partnerships and Collaborations: ABB collaborates with local companies to leverage their market presence and enhance distribution networks.

• Market Diversification: Bharat Bijlee diversifies its product offerings to cater to various sectors, including automotive, industrial, and residential markets, influencing the electric motor demand.

• Cost Leadership: Kirloskar Electric adopts cost-effective manufacturing processes to offer competitively priced products.

• Customer-Centric Approach: Bonfiglioli provides customized solutions and excellent after-sales service to maintain strong customer relationships.

• Sustainability Initiatives: WEG Industries focuses on developing energy-efficient motors that comply with environmental regulations.

Factors Impacting the Price of Electric Motors

• Raw Material Costs: The prices of key raw materials such as copper, steel, aluminum, and rare earth magnets significantly impact the overall cost of electric motors. Fluctuations in the prices of these materials due to supply and demand dynamics, geopolitical tensions, and trade policies can lead to varying motor prices.

• Manufacturing Technology: As per the analysis of India electric motor market, advanced manufacturing technologies and processes, such as automation, precision engineering, and the use of high-efficiency materials, can increase production costs but also enhance motor performance and reliability, thereby affecting prices.

• Energy Efficiency Standards: Compliance with stringent energy efficiency regulations and standards, such as those set by governments and international organizations, can increase production costs due to the need for higher-quality materials and more sophisticated designs, impacting the India electric motor market.

• Labor Costs: The cost of labor, including wages, benefits, and training, impacts the overall manufacturing expenses. Countries with higher labor costs may have higher-priced electric motors compared to those with lower labor costs.

• Economies of Scale: Large-scale production can reduce per-unit costs due to economies of scale. Manufacturers producing electric motors in high volumes can spread fixed costs over more units, potentially lowering prices.

• Research and Development: Investment in research and development for new motor designs, improved efficiency, and advanced materials contributes to the cost structure. Innovations resulting from R&D can lead to higher initial costs but potentially lower operating costs and better performance, leading to the growth of the electric motor industry.

• Supply Chain and Logistics: Efficient supply chain management and logistics influence the cost of acquiring raw materials and components and delivering finished products to customers. Disruptions in the supply chain, such as those caused by natural disasters or pandemics, can increase costs.

Key Highlights of the Report

India Electric Motor Market Report Snapshots

India Electric Motor Market Size

India Electric Motor Market Trends

India Electric Motor Market Analysis

India Electric Motor Market Share

India Electric Motor Market Growth

India Electric Motor Companies