Market Overview

In this survey, the small motors are the motors with the power output 1kW or less, excluding those geared to automobiles.
The global small motors market in 2023 shrank to 92.0% of the size of the previous year to 6,178,610 thousand units (estimation based on the shipment volume of manufacturers). During the Covid crisis, the supply of key materials like copper, neodymium, and iron became volatile, leading to significant price increases. Additionally, rising energy and logistics costs posed challenges for manufacturers in sourcing essential materials. While the market showed signs of recovery in the years that followed, global shipments declined once again in 2023, partly due to the Russian invasion of Ukraine and the economic downturn in China.

The recovery in shipments, propelled further by the growing demand for semiconductors driven by the rise of generative AI, the advancements in automation technologies like industrial robots, and the development of IoT-enabled/high-tech home appliances, are the global small motor market is expected to attain 6,421,960 thousand units in 2024, 103.9% of the previous year. However, competition is intensifying in traditional applications, such as commercial printers, communications devices, ATMs, home printers, and digital cameras, as demand for these products continues to decline. Moreover, global instabilities continue to threaten supply chains, further complicating the business landscape for the global small motor market.

Noteworthy Topics

Adding Value to Products & Accelerating M&A Against The Backdrop of New Market Opportunities and Technology Advancements

The rapid advancement of AI and automation technologies is opening up new markets for small motors.  
In commercial applications, motors are increasingly adopted in AI-powered premium home appliances and medical devices (such as medical robots). In industrial sectors, demand for motors is growing for robots and semiconductors. For example, the rise of AI-powered smartphones and a variety of new apps are driving the demand for vibration motors. The surge in data processing and heat generation from generative AI is boosting demand for cooling systems and fan motors.

Even still, differentiation by adding more value to products and M&A for sustainable business growth remain essential for the manufacturers. The motor manufacturers are trying to avoid price competition, expand their share in the global market through merger and acquisition.

Future Outlook

The global small motors market is forecasted to reach 6,632,590 thousand units in 2025, which is 103.3% of the size of the previous year (based on the shipment volume at manufacturers). Motor manufacturers are embarking on creating new market opportunities by adding value to their products, utilizing M&A, technology innovation, and differentiation.
Although they are mostly "hidden", the demand for motors is poised to grow in tandem with the growth of the global economy and will be driven further by manufacturers through technological innovation and offering of flexibility in meeting the rising demands.


 

Research Outline