Continued growth is expected in the high-efficiency motor market between 2026 and 2030, according to the latest research report from Interact Analysis. The firm forecasts revenues to rise by 15 per cent in 2026, following a slowdown in 2025 caused by weak global macroeconomic conditions. Growth is being driven by increasing demand in industry sub-sectors such as data centres and mandatory legislation, particularly in Europe.

The market is projected to grow at an average annual rate of 12 per cent between 2024 and 2030, expanding from $1.6 billion in 2024 to $3.1 billion by 2030.

In 2024, the Europe, Middle East and Africa (EMEA) region accounted for approximately 48.5 per cent of global revenues in the high-efficiency motor sector. Europe was the first region to introduce major legislation mandating motors meeting IE4 efficiency standards. Rising energy costs since 2022 have further accelerated demand. Market revenues in the region reached $782.8 million in 2024 and are expected to grow to $1.6 billion by 2030.

Asia–Pacific (APAC) is the second-largest regional market, generating $519.9 million in 2024, with revenues projected to reach $942.6 million by 2030. Demand in the region is driven primarily by the scale of its manufacturing sector, despite the absence of major IE4 legislation.

The Americas accounted for 19.4 per cent of total market revenues in 2024, equivalent to $312.9 million, and are expected to grow to $600.5 million by 2030. Although growth remains strong, the absence of mandatory legislation has slowed adoption.

Market conditions improved in the second half of 2025, with many motor vendors reporting stronger activity. Interact Analysis expects this momentum to continue into 2026.

Blake Griffin, Research Manager at Interact Analysis, said, “Many capital projects were paused during 2025 as uncertainty loomed and interest rates remained high. As the year progressed, the new economic reality surrounding US tariff policy stabilised, while 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.”