Europe Servo Drives Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Drive (AC and DC), Category (Digital and Analog), Voltage (Low, Medium, and High), and Application (Semiconductor and El

The Europe servo drive market is projected to grow significantly, reaching an estimated US$ 1,820.20 million by 2031, up from US$ 1,288.16 million in 2024. This growth represents a compound annual growth rate (CAGR) of 5.3% from 2025 to 2031.

Executive Summary and Market Analysis

The expansion of the servo drive market in Europe is largely driven by robust government initiatives that promote Industry 4.0, sustainability, and energy efficiency in manufacturing processes. Leading countries such as Germany, Italy, and France are at the forefront of integrating advanced digital technologies into their industrial operations. Servo drives are essential for enabling smart motion control and automation, which are critical components of modern manufacturing.

Germany, in particular, has a strong automotive and robotics sector that significantly contributes to the demand for advanced servo systems. These systems are valued for their precision, speed, and reliability, which are essential in high-performance applications. Additionally, the European Union's stringent regulations regarding energy consumption and carbon emissions are pushing industries to adopt servo drives that feature regenerative braking and high energy efficiency ratings. The ongoing digital transformation and the focus on optimizing production processes are further driving the adoption of servo drives across various applications, including renewable energy, packaging, and pharmaceutical manufacturing.

In a notable development, Applied Motion Products (AMP) announced on September 10, 2023, the launch of a new line of 48 VDC brushless DC servo motors in collaboration with its UK and European distributor, Mclennan. These motors, equipped with robust 16-bit magnetic encoders, are designed for high-current single and dual-axis drives, specifically targeting automated guided vehicle (AGV) and autonomous mobile robot (AMR) applications. This product launch is part of AMP's broader strategy to provide both standard and application-specific motion control solutions that meet the evolving demands of the AGV industry. AMP plans to expand its offerings to include higher-power drives, integrated motor/drive units, advanced AGV motion controllers, and various mechanical components, aligning with the growth trajectory of the European servo drive market.

Market Segmentation Analysis

The Europe servo drive market can be segmented based on drive type, category, voltage, and application:

Drive Type: The market is divided into AC and DC drives, with the AC segment holding a larger market share in 2024.
Category: The market is further divided into digital and analog categories, with digital drives dominating the market.
Voltage: The voltage segmentation includes low, medium, and high voltage, where the low voltage segment is the largest in 2024.
Application: Key applications include semiconductor and electronics, automotive, packaging, oil and gas, metal and mining, pharmaceutical and healthcare, among others. The semiconductor and electronics sector held the largest share in 2024.

Market Outlook

According to the International Energy Agency (IEA), global electric vehicle (EV) sales surpassed 17 million units in 2024, accounting for over 20% of total vehicle sales worldwide. This marks a significant increase of 3.5 million units compared to the previous year, highlighting a rapid acceleration in EV adoption. Projections indicate that EV sales will exceed 20 million units in 2025, representing more than 25% of all new vehicle sales globally. The first quarter of 2025 alone saw a 35% year-over-year increase in EV sales, indicating sustained demand.

The surge in electric vehicle production presents a substantial opportunity for the servo drive market, driven by the increasing complexity and automation needs in EV manufacturing processes. As automakers transition from internal combustion engines to electric powertrains, production lines are being modernized to accommodate new assembly techniques, battery manufacturing, and quality control measures. Servo drives are crucial in this transformation, providing the precise motion control necessary for various stages of EV production, including battery cell assembly, module packaging, motor winding, and vehicle assembly. Their ability to enable accurate positioning, speed control, and torque management is essential for robotic arms, AGVs, and other automated systems used in EV factories.

Moreover, servo drives are also being integrated into automated charging stations and battery testing equipment, expanding their application scope within the EV infrastructure. The growing emphasis on sustainability and energy efficiency in the EV sector aligns with advancements in servo drive technology, which includes energy-saving features and compact, high-performance designs.

Country Insights

The Europe servo drive market includes key countries such as Germany, the UK, Italy, France, Russia, and the Rest of Europe. Notably, the Rest of Europe, which encompasses countries like the Netherlands, Spain, Hungary, and Sweden, held the largest market share in 2024. This region is experiencing significant growth due to increasing industrial automation initiatives and a rising demand for efficient manufacturing solutions.

For instance, in April 2024, Falcon Autotech, a leader in intralogistics automation, opened a new office in Amsterdam, Netherlands, to strengthen its presence in the European market and meet the growing demand for warehouse automation solutions. Similarly, in May 2024, Lear Corporation announced its intention to acquire WIP Industrial Automation, a Spanish systems integrator specializing in advanced automation solutions, further emphasizing the strategic focus on automation within Europe.

Company Profiles

Key players in the Europe servo drive market include ABB Ltd, Fuji Electric Co Ltd, Hitachi Ltd, Bosch Rexroth AG, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, Beckhoff Automation GmbH & Co. KG, and Infranor GmbH, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative products to consumers. Show more