Motion controls market declines 6.9% in 2024, growth expected

The long-term CAGR remains at 3.5%, suggesting market stabilization and rebalancing.

According to Interact Analysis’ newly published ‘Motion Controls Market – 2024’ report, the global motion controls market declined by -6.9% in revenue terms in 2024, equating to a loss of over $900 million. Posting revenues of $12.3 billion during 2024, this loss follows a period of unprecedented growth. This decline has impacted the market, the long-term compound annual growth rate (CAGR) remains at 3.5%, suggesting the market is stabilizing. Low manufacturing output and significant destocking made 2024 a challenging year for motion control vendors. Despite these challenges, the market is beginning to stabilize.

Pre-pandemic forecast and the ripple effect of Covid-19

In 2019, as manufacturing slowed, the motion controls market declined by 4% in revenue. During this period, Interact Analysis’ forecast for the motion control market through to 2023 was a CAGR of 3.47%. When this forecast was produced, the possibility of a global pandemic was not considered. Therefore, this pre-pandemic CAGR is a good representation of market growth under ‘normal’ conditions.

After the economic shutdown in 2020, manufacturing growth rebounded strongly. As shown by the graph below, the motion controls market grew by nearly 22% year-on-year in 2021.

The motion controls market, like many other industrial automation centric markets, experienced heavy volatility between 2021 and 2024.

2021 marked a significant shift from previous predictions. This growth was unprecedented; demand was at an all-time high, and motion control suppliers couldn’t produce products fast enough. Customers of motion control suppliers were eager to order but struggled to obtain products due to well-publicized supply shortages. As a result, panic buying occurred and customers over-ordered motion control products throughout 2021 and 2022.

Fallout from over ordering = Destocking

After two strong years in 2021 and 2022, the market began indicating that this growth would have wider consequences. As manufacturing production decreased in 2023, the effects of over-ordering in the previous years became evident. Backlog orders were worked through during 2023 and it became clear that new orders for motion control products were on a downward trajectory. Customers’ inventories of motion control components were full and manufacturing demand was down causing an inventory issue. This led to separation between manufacturing output growth and motion control market growth, with destocking contributing to further declines in the market.

When we compare overall manufacturing output growth with the performance of the motion control market, this decoupling of the two trends becomes apparent.

Growth in the motion controls market was significantly above growth of manufacturing production. This indicated drivers of growth beyond the underlying driver of demand, notably over-stocking.

Before Covid-19, motion controls market growth closely aligned with manufacturing output growth. As we see in the above graph, the motion controls market diverged from manufacturing production from 2021, due to over-ordering.

Late 2023 marked the point where manufacturing production growth aligned with motion control market growth. This intersection marks the onset of the ‘destocking’ effect and highlights the reverse of the rapid growth in 2021 and 2022. In 2023, the motion control market grew by just 1% and it became clear that amid low manufacturing production, motion control customers were overstocked with products and needed to wind down their inventories before placing new orders. This environment created conditions for motion control vendors to face a notable revenue decline during 2024.

Long-term expectations remain consistent despite short-term volatility

In the 2018 edition of our Motion Controls report, a CAGR of 3.5% was forecast for 2019-2023. Currently, despite the market fluctuations between 2020 and 2024, the market continues to align with the same long-term trend. When comparing the new forecast with historical data, the long term CAGR for the period 2019-2029 remains 3.5%, consistent with the pre-pandemic forecast.

The long-term CAGR for the motion controls market has remained consistent between pre and post Covid-19 forecasts.

The graph above shows the long-term trend, reflecting market stability despite short-term fluctuations. This consistency demonstrates that the period 2021 to 2024 represented unique circumstances and not a new norm for levels of growth and decline.

As we look to 2025 and beyond, manufacturing production and motion control market growth begin to synchronize once again, indicating market stability. 2025 is likely to be mixed in terms of regional performance, with Europe continuing to face challenges deep into the year. All regions are anticipated to recover as destocking ends and new order growth resumes.

Final thoughts

Following the high growth years in 2021 and 2022, understanding what constitutes normal growth in this market can become challenging. While double-digit declines in some regions are alarming, they should be viewed in the historical context of the market as a correction. As destocking in the market eases, a return to typical growth patterns with steadier and more moderate rates is anticipated. 2025 marks the first year climbing out of the market trough, and while it will be a slow process, the market outlook for 2026 and beyond appears more favourable.

Learn more about Motion Controls report.

Edited by Puja Mitra, WTWH Media, for Control Engineering, from an Interact Analysis news release.