India Electrical Motor Market Outlook to 2028

India Electrical Motor Market Overview

The India electrical motor market is valued at USD 2.8 Bn, based on a five-year historical analysis. This valuation is driven primarily by the increasing demand for energy-efficient systems across industrial sectors, the expanding use of electrical motors in household appliances, and the rapid growth of electric vehicle (EV) adoption in India. The government's focus on industrial electrification and green energy initiatives such as the National Electric Mobility Mission Plan (NEMMP) further propels market growth.

Dominant regions in the market include Maharashtra, Gujarat, and Tamil Nadu, where industrialization is particularly robust. Maharashtra's dominance is due to its extensive manufacturing base and infrastructure development, while Gujarat benefits from significant investments in industrial automation and renewable energy. Tamil Nadu, being an industrial hub, has seen rapid adoption of electric motors across various sectors, further driving its leadership in the market.

Indias National Electric Mobility Mission Plan (NEMMP) aims to promote electric vehicle adoption across the country. By 2024, over INR 14,000 crore has been allocated to supporting EV manufacturing, infrastructure development, and charging stations. This initiative directly supports the growth of the electrical motor market, as electric motors are integral to EV propulsion. The plan is a key driver for the motor manufacturing industry.

India Electrical Motor Market Segmentation

By Motor Type: The market is segmented by motor type into AC motors, DC motors, synchronous motors, and asynchronous motors. Among these, AC motors dominate the market, primarily due to their widespread application in industries and appliances. AC motors are preferred for their efficiency and ability to handle varying power outputs, making them ideal for use in industrial machinery and HVAC systems. Additionally, the easy availability of AC motors in various sizes and specifications has cemented their dominance.

By Application: The market in India is also segmented by application into industrial machinery, electric vehicles (EVs), HVAC systems, and household appliances. Industrial machinery dominates this segment due to the increasing focus on automation and energy efficiency in manufacturing. The use of motors in electric vehicles is also rapidly growing, supported by government incentives for green technology adoption and infrastructure development for electric mobility.

India Electrical Motor Market Competitive Landscape

The India electrical motor market is dominated by both domestic and international players. These companies lead through a combination of technological advancements, strategic partnerships, and an expansive distribution network. Domestic firms benefit from government incentives under the Make in India initiative, while global players leverage their R&D capabilities to introduce innovative products that meet energy efficiency standards.

Company Name

Establishment Year

Headquarters

Number of Employees

Revenue (INR Cr)

R&D Expenditure (INR Cr)

Product Range

Market Presence

Recent Strategic Initiatives

Technology Adoption Rate

Siemens India

1927

Mumbai

Crompton Greaves

1937

Mumbai

ABB India Ltd.

1949

Bengaluru

Bharat Heavy Electricals

1964

New Delhi

Havells India Ltd.

1958

Noida

India Electrical Motor Industry Analysis

Growth Drivers

Expansion of Electric Vehicles: The electric vehicle (EV) sector in India is seeing rapid growth, largely driven by the country's push toward reducing carbon emissions and increasing energy independence. As of 2023, India has over 1.7 million electric vehicles on the road. With the governments plan to reach 30% electric mobility by 2030, the demand for electrical motors, which form the core component of EV propulsion, is significantly rising. India's National Electric Mobility Mission Plan (NEMMP) is also investing approximately INR 14,000 crore toward EV production. The resulting increase in electric motor demand in 2024 is evident in EV sales growth.

Government Push for Energy Efficiency: The Bureau of Energy Efficiency (BEE) continues to enforce stricter energy efficiency norms for motors under the Make in India initiative. India currently mandates IE2 and IE3 efficiency standards for motors, and 2023 saw an uptick in demand for IE4 standard motors, which consume about 15% less energy compared to IE3 motors. In 2024, industries are rapidly adopting energy-efficient motors, supported by incentives under the Energy Conservation Act of India. Energy-efficient motors are expected to power Indias manufacturing output, contributing significantly to India's GDP of $3.73 trillion as of 2023.

Increased Demand in HVAC Systems: With the expansion of urban infrastructure, India's construction and real estate sectors have seen an increase in the demand for Heating, Ventilation, and Air Conditioning (HVAC) systems. Electrical motors are critical components in HVAC equipment. As of 2024, Indias real estate market size reached INR 12.9 trillion. The growing number of commercial and residential buildings equipped with HVAC systems directly correlates with increased demand for efficient motors in the HVAC industry.

Market Challenges

Competition from Low-Cost Imports: India faces stiff competition from countries like China, which produces low-cost electrical motors. In 2023, India imported electrical machinery worth INR 1.5 trillion, much of which included cheaper motors that undermine local manufacturers. This influx of low-cost imports, combined with lower labor and production costs in countries like China and Vietnam, is squeezing margins for domestic manufacturers who produce high-efficiency motors at a higher cost.

Availability of Raw Materials: Electrical motor production is highly dependent on raw materials like copper and steel, whose prices have been volatile. In 2023, India imported 1.3 million tonnes of copper, and prices surged due to global supply chain disruptions. These materials, which are critical for motor winding and casing, have become costlier, increasing production costs for electrical motor manufacturers in India. Additionally, geopolitical tensions and supply chain issues exacerbate the problem, leading to production delays.

India Electrical Motor Market Future Outlook

Over the next five years, the India electrical motor market is expected to witness substantial growth, driven by the expanding application of electric motors in industries, households, and electric vehicles. With the Indian government's push for energy efficiency and the increasing adoption of electric vehicles, the demand for advanced electrical motors is likely to increase. Additionally, technological advancements such as Io T-enabled smart motors are expected to enhance operational efficiencies across various sectors, further boosting market growth. The market will also benefit from ongoing infrastructure projects and the push for renewable energy integration.

Future Market Opportunities

Adoption of Smart Motors with Io T Integration: The adoption of smart motors integrated with Io T and AI technologies is opening new market avenues. By 2023, India had 3 million Io T-connected devices, including motors used in industries such as automotive and manufacturing. These smart motors provide real-time data on performance, leading to improved energy efficiency and predictive maintenance. The Indian industrial Io T market is expected to increase, and this technological advancement in motors can cater to industries' growing need for automation.

Growth in Renewable Energy Installations: India's push toward renewable energy is driving the need for electrical motors in the wind and solar sectors. By 2023, Indias total renewable energy capacity reached 120 GW, and with the governments target of reaching 175 GW, the installation of wind turbines and solar panels is on the rise. Electrical motors are key components in these installations, particularly for solar tracking systems and wind turbine generators, making this an expanding market for motor manufacturers.
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