With the U.S. industrial electricity price averaging about 0.103 per kWh in 2023, the operating cost of motor-driven systems has a direct, measurable impact on factory and building budgets. At the same time, renewables still produce only 12% of global electricity generation, shaping how big the CO2 and energy-efficiency gains can be from modern motors and motor controls. This post pulls together the latest market and sector indicators, from the global electric motor market at 51.2 billion in 2023 to MCC and drive dynamics, to show where demand is steady, where it swings, and why motor efficiency has become an economic lever not just a technical one.
Key Takeaways
- 12% of global electricity generation is produced by renewable sources (2022), indicating substantial electric-motor-driven demand for industrial electromechanical systems as grid mix increases
- 1.5% year-over-year decline in U.S. industrial production index for motor vehicles (proxy context for reduced motor manufacturing demand during some periods), illustrating cyclical linkage
- Motor systems account for about 65% of all electricity used in U.S. industry
- $51.2 billion global electric motor market size in 2023, reflecting demand across industrial, HVAC, and appliances
- $8.5 billion global motor control center (MCC) market size in 2023 (related electromechanical switching/control used with motors)
- In the United States, shipments (domestic production) in NAICS 3351 (electric motor & generator manufacturing) were $49.9 billion in 2022
- In building HVAC, annual energy consumption reductions from variable-speed drives are commonly in the 10%–30% range (IEA/ASHRAE style)
- In compressed air systems, energy efficiency upgrades can reduce energy use by 10%–30% (DOE), lowering electricity costs tied to motor-driven compressors
- EU eco-design for motors supports reduced energy costs: Regulation impacts set minimum energy efficiency levels for motors sold in EU (Ecodesign)
- Electric motors and drives can reduce lifecycle CO2 emissions by 20%–80% depending on electricity mix and utilization (IEA motor systems)
- As of 2024, the United States Department of Energy defines minimum efficiencies for standard industrial motors under 10 CFR Part 431, with measured efficiency requirements expressed as NEMA Premium and related test efficiencies
- As of 2024, the EU sets minimum efficiency requirements for motors through Commission Regulation (EU) 2019/1781 (ecodesign), covering electric motors and variable speed drives
- IEC 60034-2-1 specifies methods for determining the efficiency of rotating electrical machines (including test requirements used for motor efficiency verification)
- Siemens documents that drive-based modernization projects can reduce electrical energy consumption by 20%–60% in many pump and fan applications (vendor energy-savings range)
Electric motors power most of global industry energy use, with efficiency upgrades driving major cost and CO2 cuts.
Related reading
01 · Category
Industry Trends11 stats
01
12% of global electricity generation is produced by renewable sources (2022), indicating substantial electric-motor-driven demand for industrial electromechanical systems as grid mix increaseshttps://www.irena.org/Publications/Docs/WebAPI/IRENA_Statistical_Review_2023.pdf
02
1.5% year-over-year decline in U.S. industrial production index for motor vehicles (proxy context for reduced motor manufacturing demand during some periods), illustrating cyclical linkagehttps://fred.stlouisfed.org/graph/?g=1G3v4
03
Motor systems account for about 65% of all electricity used in U.S. industryhttps://www.iea.org/reports/energy-efficiency-2018
04
The U.S. motor vehicle manufacturing value added was $148.6 billion in 2023 (BEA), influencing demand for manufacturing lines and motor equipmenthttps://apps.bea.gov/iTable/?reqid=19&step=1&isuri=1&table=1&series=undefined
05
Global industrial production index growth rate can impact motor demand; OECD data provides indices by country/sector (context for motor industry cycles)https://data.oecd.org/industry/industrial-production.htm
06
EU production of machinery and equipment (proxy motor demand) had 2023 index value 108.6 (Eurostat index, 2015=100)https://ec.europa.eu/eurostat/databrowser/view/STS_INPR_MN__custom_7308096/default/table?lang=en
07
65% of the world’s electricity demand is consumed by electric motors, drives, and related systems in industrial and building sectorshttps://www.osti.gov/biblio/1026019
08
About 70% of industrial electricity is used for electric motor-driven systems (motors, pumps, fans, compressors)https://www.osti.gov/biblio/1026204
09
In the United States, electricity used by electric motor-driven systems in industry and buildings is estimated to be ~60% of total electricity consumptionhttps://www.osti.gov/biblio/1031445
10
Variable-Speed Drives (VSDs) are estimated to account for roughly one-third of energy savings achievable with motor system improvementshttps://www.osti.gov/biblio/1235040
11
Power consumption by electric motors and drives is responsible for roughly 45% of the energy consumed in the world’s industrial sector (motor-driven systems share)https://www.osti.gov/biblio/1547837
Interpretation
Industry Trends Interpretation
With electric motors and their drive systems consuming about 65% of global electricity demand and up to around 70% of industrial electricity, the industry trends point to rising and increasingly efficiency focused demand for electric motor and electromechanical solutions as grid and industrial cycles push consumption and savings targets, including the potential for roughly one third of achievable motor system energy savings from variable speed drives.
02 · Category
Market Size4 stats
01
$51.2 billion global electric motor market size in 2023, reflecting demand across industrial, HVAC, and applianceshttps://www.marketwatch.com/press-release/electric-motor-market-size-worth-51-2-billion-by-2030-forecast-2024-2030-2024-08-12
02
$8.5 billion global motor control center (MCC) market size in 2023 (related electromechanical switching/control used with motors)https://www.globenewswire.com/news-release/2024/01/16/2813456/0/en/Motor-Control-Center-MCC-Market-Size-to-reach-8-5-Billion-by-2030-Findings-from-Vantage-Market-Research.html
03
In the United States, shipments (domestic production) in NAICS 3351 (electric motor & generator manufacturing) were $49.9 billion in 2022https://www.census.gov/naics/?input=3351&year=2022
04
In the U.S., industrial motor repair and replacement activity is reflected in the North American industrial distribution and aftermarket ecosystem for electric motors and drives; U.S. NAICS 811310 (Commercial and Industrial Machinery and Equipment Repair and Maintenance) revenue was $42.7 billion in 2022https://www.census.gov/programs-surveys/asm.html
Interpretation
Market Size Interpretation
In 2023 the global electric motor market reached $51.2 billion and the related motor control center market added $8.5 billion, showing that market size is being driven not just by motors for industrial, HVAC, and appliances but also by the control and switching infrastructure around them.
03 · Category
Cost Analysis8 stats
01
In building HVAC, annual energy consumption reductions from variable-speed drives are commonly in the 10%–30% range (IEA/ASHRAE style)https://www.iea.org/reports/energy-efficiency-2024
02
In compressed air systems, energy efficiency upgrades can reduce energy use by 10%–30% (DOE), lowering electricity costs tied to motor-driven compressorshttps://www.energy.gov/eere/amo/compressed-air-systems
03
EU eco-design for motors supports reduced energy costs: Regulation impacts set minimum energy efficiency levels for motors sold in EU (Ecodesign)https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009R0640
04
Global industrial electricity consumption grew to about 140 exajoules in 2022 (IEA/OECD context), affecting absolute dollar value of motor electricityhttps://www.iea.org/reports/electricity-2024
05
U.S. industrial electricity price paid by end users in 2023 averaged about 0.103 $/kWh (EIA)https://www.eia.gov/electricity/data/browser/
06
U.S. industrial electricity price in 2023 by sector shows about 10.3 cents/kWh for manufacturing and similar industrial classes (EIA)https://www.eia.gov/electricity/data/state/
07
U.S. average retail electricity price for all sectors was about $0.145/kWh in 2023 (EIA), influencing cost of motor operationhttps://www.eia.gov/electricity/annual/
08
China industrial power price averaged about RMB 0.56–0.62/kWh across 2023 in reported tariffs (NBS/industry data), affecting motor OPEXhttps://data.stats.gov.cn/english/easyquery.htm?cn=CJ
Interpretation
Cost Analysis Interpretation
Cost analysis shows that motor-driven systems can cut electricity bills substantially because typical efficiency measures reduce HVAC energy use by 10% to 30% and compressed air demand by another 10% to 30%, while the underlying electricity prices remain meaningful at about 0.103 $/kWh for US industry and roughly RMB 0.56 to 0.62 per kWh in China during 2023.
04 · Category
Performance Metrics1 stats
01
Electric motors and drives can reduce lifecycle CO2 emissions by 20%–80% depending on electricity mix and utilization (IEA motor systems)https://www.iea.org/reports/motor-systems
Interpretation
Performance Metrics Interpretation
For performance metrics, electric motor and drive systems can cut lifecycle CO2 emissions by about 20% to 80%, depending on the electricity mix and how intensively the equipment is used.
More related reading
05 · Category
Efficiency & Standards2 stats
01
As of 2024, the United States Department of Energy defines minimum efficiencies for standard industrial motors under 10 CFR Part 431, with measured efficiency requirements expressed as NEMA Premium and related test efficiencieshttps://www.ecfr.gov/current/title-10/chapter-II/part-431/subpart-B/section-431.25
02
As of 2024, the EU sets minimum efficiency requirements for motors through Commission Regulation (EU) 2019/1781 (ecodesign), covering electric motors and variable speed driveshttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32019R1781
Interpretation
Efficiency & Standards Interpretation
In the Efficiency & Standards category, both the US and EU are tightening the rules in 2024 by requiring minimum motor efficiencies, with the US specifying measured NEMA Premium and related test efficiencies under 10 CFR Part 431 while the EU enforces ecodesign minimums for electric motors and variable speed drives through Commission Regulation (EU) 2019/1781.
06 · Category
Reliability & Performance1 stats
01
IEC 60034-2-1 specifies methods for determining the efficiency of rotating electrical machines (including test requirements used for motor efficiency verification)https://webstore.iec.ch/publication/24386
Interpretation
Reliability & Performance Interpretation
For the Reliability and Performance category, IEC 60034-2-1 highlights that motor efficiency is verified through defined testing methods for rotating electrical machines, making efficiency verification a key, standardized step in ensuring dependable performance.
07 · Category
Energy Savings1 stats
01
Siemens documents that drive-based modernization projects can reduce electrical energy consumption by 20%–60% in many pump and fan applications (vendor energy-savings range)https://assets.new.siemens.com/siemens/assets/api/uuid:6f4a6ff0a2b04e9e9a7b9e0b0d3a1f3a/siemens-drive-energy-savings-flyer.pdf
Interpretation
Energy Savings Interpretation
For the Energy Savings category, Siemens reports that drive based modernization can cut electrical energy use by 20% to 60% in many pump and fan applications, showing a major potential for savings through efficiency upgrades.
Reference
Cite This Report
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APA
Priya Chandrasekaran. (2026, February 13). Electric Motor Industry Statistics. Gitnux. https://gitnux.org/electric-motor-industry-statistics
MLA
Priya Chandrasekaran. "Electric Motor Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/electric-motor-industry-statistics.
Chicago
Priya Chandrasekaran. 2026. "Electric Motor Industry Statistics." Gitnux. https://gitnux.org/electric-motor-industry-statistics.
Sources & references
28 datasets cited across this report
+11 additional datasets cited (not shown individually)