The global servo motors and drives market size to reach USD 19 billion by 2026, growing at a CAGR of 5% during 2021–2026. The global servo motors and drives market share is expected to grow significantly due to a large application of robotics in factories, medical facilities, and other related industries. Both servo motors and drives are expected to observe exponential growth during the forecast period. Their penetration is increasing as several industries are opting for automation and innovative applications to transform operations, according to Industry 4.0. Industrial robots are the major applications, which use servo motors and drives; thus, the increased use of robotics and automation in industries is expected to drive market growth.
- The servo motor market is expected to observe an incremental growth of USD 3 billion by 2026 on the increased application in machine tools, packaging, factory automation, and printing industries.
- The linear segment is likely to observe a revenue share of USD 7 billion by 2026 owing to high durability and the demand for precise positioning controls.
- The revenue share of stainless steel servo motors and drives is projected to reach over USD 13 billion by 2026.
- The machine tools segment is expected to contribute a revenue of over USD 6.7 billion by 2026.
- Europe is expected to grow at the highest CAGR during the forecast period because of the rapidly increasing industrialization and industrial production growth.
- India's servo motor market is expected to grow at a CAGR of over 5% during the period 2020–2026 due to the increasing adoption of automation solutions in several downstream industries.
GLOBAL SERVO MOTORS AND DRIVES MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Product Type
- Motor Type
- Sales Channel
- Power Output
INSIGHTS BY PRODUCT TYPE
Factory automation and robotics application in several commercial and industrial segments are expected to drive the demand for servo motors. Japan, China, the US, and Germany are key countries boosting the growth of servo motors. The market is expected to grow due to an increase in automation and precision techniques. A key driver for AC servo motors' growth is advanced microprocessor technology and permanent magnet development for these machines. Growth in smart factories with IoT and AI, and other automated systems has been increased, thereby driving the demand for servo motors.
The consumption of servo drives has increased and doubled in the last 5–6 years due to the increased capital investment in automation across the globe. With the growing consumer demand, traditional methods need to be replaced with innovative technology to increase production. AC servo drives are expected to witness high demand as they can accelerate, decelerate, and can break in any rotational direction, which is a major advantage compared to DC. Moreover, the increased use of servo drives in heavy-duty applications, comprising automation and robotics, is expected to increase demand. AC servo drives offer high current flow, which is expected to drive the market growth. The demand for software integrated drives comprising IoT technologies is projected to accelerate market growth.
INSIGHTS BY SEVRO MOTOR TYPE
Increased application of servo motors in the packaging and medical sectors is expected to drive linear servo motors' growth. These motors provide high speed, longer strokes, and accuracy. The demand for linear servo motors was slightly high in 2020 as the demand in Europe, North America, and APAC increased. The growing demand for components with integrated servo power and high-resolution precision feedback is expected to be a major contributor to rotary servo motors' growth during the forecast period. Moreover, rotary devices are anticipated to increase due to their high-power functioning coupled with precise-positioning capabilities.
INSIGHTS BY POWER OUTPUT
Above 5kW servo motors and drives are governed by strict energy-efficiency legislation globally, especially in developed countries. These machines hold the highest revenue share in the market and are expected to accelerate further at the highest CAGR during the forecast period. Below 5kW, motors and drives are expected to grow at a CAGR of over 6%, expecting to register a revenue share of approx. USD 8 billion by 2026. Several government regulations, including the necessity to operate below 5kW with frequency inverters, are expected to hamper the production of below 5kW servo motors.
INSIGHTS BY MATERIAL
Packaging, pharmaceuticals, food preparation, bakery machines, and meat processing units are some major end-users of stainless steel servo motors and drives. While steel prices are fluctuating currently, vendors and other suppliers are shifting to other manufacturing materials. However, stainless steel servo motors and drives are expected to have a high share because of their increased application, long life, and high performance. However, non-stainless steel models manufactured from aluminum, copper, and iron gain traction due to cost efficiency and reliability. The rise in steel prices and disruptions in production has escalated the demand for non-stainless-steel based motors and drives.
INSIGHTS BY VOLTAGE
Low voltage servo motors and drives are widely used in brushed and brushless DC motors and brushless AC motors. Favorable government policies aiming to achieve energy efficiency, coupled with significant enhancements in conventional machinery in small to medium businesses, are expected to boost the demand for low-voltage models. Low-voltage machines are expected to account for the highest revenue share of over $11 billion by 2026.
Developing markets with continuing demand for infrastructure development and increasing automation boosts the demand for medium-voltage servo motors and drives. China and India, which have an influential middle-class population, are expected to generate increased demand for automobiles, white goods, and packaged products, thereby increasing the demand from steel, plastics & rubber, oil & gas, and chemical industries. Compared to low voltage motors, medium ones are high in cost but better inefficiency.
High-voltage servo motors are primarily tailor-made. Oil & gas, water & wastewater treatment, chemicals & petrochemicals, power generation, metal manufacturing, and utilities are the major end-users, which require specialized high voltage motors. However, high maintenance costs hamper the adoption of these models in several industrial sectors.
INSIGHTS BY END-USER
The demand for servo motors and drives from the end-user industry is anticipated to grow due to increased industrial production and the replacement of old and worn out motors with energy-efficient ones. The demand is expected to increase in the coming years due to the expansion and investment by private and public oil & gas, chemical, mining, and other industries in the Middle East, North America, and APAC. However, the end-user industry demand for servo motors and drives was adversely affected in 2020 due to the COVID-19 outbreak. The impact level varies in intensity and scale as the industry is characterized by a high degree of end-user variability. Vendor margins were affected in Q2 and Q3 2020, and vendors will continue to experience margin pressures as the payment terms are expected to be realigned.
INSIGHTS BY SALES CHANNELS
Increased consumer trust and reduced expense in direct sales channels and high opportunities for deeper market penetration, and a better understanding of the local demand via indirect sales hold significant promise for direct and indirect distribution sales channels for the global servo motors market. Direct sales are traditional distribution channels for several industries to sell products directly to large end-customers. However, indirect sales channels involve selling products to a partner, who, in turn, sells to end customers. While some vendors utilize the direct and indirect channel parallel, others have entirely switched to an indirect sales channel to improve business.
INSIGHTS BY GEOGRAPHY
APAC accounts for the highest servo motors and drives market share and is expected to grow significantly by 2026. The major factors driving the demand for servo motors and drives in the region are rapidly increasing factory automation and robotics in the region. In some developed countries, the demand from several industry end-users is expected to grow during the forecast period. The APAC market is expected to reach USD 7.60 billion by 2026, growing at a CAGR of 5.67%. It is expected to grow due to increased production and the development of factory automation. Packaging, robotics, machine tools, electronics & semiconductor, and metal processing industries are the leading five industries, which are expected to dominate the demand for servo motors and drives during the forecast period.
INSIGHTS BY VENDORS
Emerson, Siemens, Rockwell Automation, ABB, Mitsubishi Electric, Delt, and Fuji Electric are the market's major players. They have a strong presence in both high-end and low-end servo motor and drives segments. Also, most vendors are vertically integrated and provide end-to-end solutions to their customers. Vendors in the market are expanding their presence through partnerships, investments, and mergers and acquisitions. Several vendors are focusing on innovation in production technologies to provide various products and efficiency in the global servo motor and drive the market.
The global servo motors and drives market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Direct Sales
- Direct to OEMs
- Direct to End-users
- Direct to System Integrators
- Indirect Sales
- Distributor to OEMs
- Distributor to End-users
- Distributor to System Integrators
- Stainless Steel
- Non-stainless Steel
- Machine Tools
- Electronics & Semiconductor
- Metal Processing
- Oil & Gas
- Paper Industry
- Aerospace & Defence
- Food & Beverages
- Power Generation
- North America
- South Korea
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- Rest of the Middle East