Servo Motors and Drives Market is expected to reach US$ 21.44 Billion by 2031

Rise in Demand from Automotive Industry to Fuel Servo Motors and Drives Market Growth During Forecast Period 

According to our latest study, "Servo Motors and Drives Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by of Component, Product Type, Brake Technology, Industry Vertical, and Geography," the market was valued at US$ 14.41 billion in 2024 and is expected to reach US$ 21.44 billion by 2031; it is estimated to register a CAGR of 5.8% during 2024–2031. The report includes growth prospects owing to the current servo motors and drives market trends and their foreseeable impact during the forecast period. 

Servo motors and drives play an important role in the automobile industry, improving the precision, performance, and safety of several vehicle systems. In modern and electric vehicles (EVs), servo motors and drives are employed in various applications, including electric power steering (EPS) systems, anti-lock braking systems (ABS), motor control systems, battery management systems (BMS), traction control systems, active suspension systems, and autonomous driving systems. In EPS systems, encoders are used to monitor the steering wheel's position by ensuring exact control and response. Similarly, servo motors are used for maintaining optimal conditions for battery cells in BMS. The motor balances the cells and controls cooling fans, providing precise control of BMS. Moreover, the growing demand for EVs surges the adoption of servo motors and drives to improve vehicle performance. For instance, according to the International Energy Agency's (IEA) annual Global Electric Vehicle Outlook 2024, ~14 million electric cars were sold worldwide in 2023, which is 3.5 million higher than in 2022, a 35% year-on-year increase. This brings the total number of cars on the roads to 40 million. This growth shows that the electric cars' share of the overall car market increased to 18% in 2023, which was 14% in 2022. The increasing sales of electric cars boost the adoption of servo motors and drives among automotive manufacturers for improved driving experience and reducing energy consumption in electric and hybrid vehicles. As demand for EVs is growing, automakers are increasingly relying on servo motor-powered robotic systems to perform welding, material handling, and painting in the EV manufacturing processes. The production of EVs includes a range of advanced manufacturing procedures, such as accurate robotic handling, automated assembly lines, and high-precision component positioning. This increases the adoption of servo motors and drives in advanced manufacturing procedures to adjust vehicle components in real time. Therefore, the growing demand for encoder ICs from the automotive industry drives the servo motors and drives market growth.  

Servo Motors and Drives Market Analysis — by Geography

Source: The Insight Partners Analysis

ABB Ltd, Delta Electronics Inc, Fanuc Corp, Fuji Electric Co Ltd, Mitsubishi Electric Corp, Nidec Corp, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, and Yaskawa Electric Corp are among the key players profiled in the servo motors and drives market report. Several other major players were also studied and analyzed in the market study to get a holistic view of the market and its ecosystem.

The report includes the servo motors and drives market forecast by component, product type, brake technology, and industry vertical. Based on component, the servo motors and drives market is divided into sensors, controller modules, encoders, electronic amplifiers, and others. In terms of revenue, the controller modules segment held the largest servo motors and drives market share and is expected to register the highest CAGR during the forecast period.

The scope of the servo motors and drives market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest servo motors and drives market share in APAC. The demand for servo motors and drives from the automotive industry and government support toward the adoption of EVs is boosting the market in China. According to International Institute for Management Development (IMD) data from January 2024, EV production and sales in China have increased significantly due to the Made in China 2025 strategy, which identified critical sectors where China expected to develop its manufacturing base. The government of China has actively supported the new energy vehicles (NEVs) sector since 2009, with funding estimated to reach US$ 23.62 billion (150 billion yuan) by 2022, accelerating China's NEV market. The demand for EVs and NEVs encourages market players to increase their production to fulfill their customer's demand. The growing production of vehicles has prompted the adoption of servo motors and drives for high precision and safety. In self-driving vehicles, servo motors handle steering, braking, and acceleration systems, allowing the vehicle to navigate without human intervention.

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