Interact Analysis projects 15% revenue growth in 2026 as IE4 rules and data center demand lift high-efficiency motor sales, led by EMEA.
High-efficiency motors market projected to reach $3.1 billion by 2030
- The high-efficiency motors market is projected to grow from $1.6 billion in 2024 to $3.1 billion in 2030.
- A year-over-year growth rate of 15% is projected for 2026.
- EMEA remains the largest market, supported by efficiency legislation.
Interact Analysis projects continued growth in high-efficiency motor market from 2026 and 2030. The firm projects 2026 revenue growth of 15%, following a slowdown in 2025 as weaker global macroeconomic conditions reduced demand. Demand in segments such as data centers, along with regulations, particularly in Europe, is contributing to growth. Interact Analysis estimates a12% CAGR from 2024-2030, with the market increasing from $1.6 billion in 2024 to $3.1 billion in 2030.
For Control Engineering readers, more energy efficient motors are important. In most applications, the energy used to power less-efficient motors exceeds the more-efficient motor’s extra cost within a few years, making energy efficiency a worthwhile investment. Also, original equipment manufacturers selling to other countries need to be aware of motor efficiency requirements.
EMEA continues to lead the way in high-efficiency motors
In 2024, Europe, the Middle East and Africa (EMEA) accounted for about 48.5% of global high-efficiency motor revenue. Europe was the first region to pass legislation requiring motors that meet IE4 efficiency levels. Higher energy costs since 2022 have also contributed to increased demand for high-efficiency motors. Market revenues reached $782.8 million in 2024 and is projected to increase to $1.6 billion by 2030.
APAC was the second-largest region, with $519.9 million in revenue in 2024, projected to reach $942.6 million by 2030. The region has no broad IE4 requirement in place and demand is supported by the size of its manufacturing sector.
The Americas accounted for 19.4% of total revenue in 2024 ($312.9 million) projected to reach $600.5 million by 2030. Revenue is increasing, but limited regulation has slowed adoption.
What to expect for high-efficiency motors in 2026
In Q3 and Q4 of 2025, many motor vendors reported improving market conditions and Interact Analysis projects this trend will continue into 2026.
Blake Griffin, Interact Analysis research manager, says, “Many capital projects were paused during 2025 as uncertainty loomed and interest rates remained high. As the year continued, the new economic reality surrounding US tariff policy normalized, while at the same time, borrowing conditions improved.
“2026 is expected to be a peak year during our forecast as the remaining motors in Europe legislated to be IE4 are substituted away from IE3 (75kw to 200kw). We expect the market will maintain high levels of growth through our forecast, with market values in nearly every major region expected to double by 2030.”
About the Report: High Efficiency Motors
This report analyzes high efficiency (IE4+) low voltage AC motors.
Adoption of high efficiency motors is expected to increase. EU legislation taking effect in mid-2023 will require motors between in the 75kw –200kw range to meet a minimum IE4 efficiency standard. This is an early example of regulation in the motor market that includes IE4 requirements. Additional efficiency regulations may follow in Europe and other regions. The report examines market conditions for high-efficiency motors and projected trends in motor topology.
Edited by Puja Mitra, WTWH Media, for Control Engineering, from an Interact Analysis news release.
Also read, from Control Engineering: “Motor and Drives 2025 study: What improvements buyers want“
