Permanent Magnet Motor Market Heads Toward USD 161.9 Billion by 2036

 

August 26, 2026 — The permanent magnet motor market is estimated at USD 60.2 billion in 2026 and is projected to reach USD 161.9 billion by 2036, expanding at a 10.4% CAGR during the forecast period, according to FACT.MR analysis. The market was valued at USD 55.3 billion in 2025, with an expected absolute increase of USD 101.7 billion between 2026 and 2036.

Demand is rising as electric vehicle production expands and manufacturers seek higher motor efficiency. FACT.MR identifies EV adoption mandates, IE4 and IE5 industrial efficiency requirements, and offshore wind and tidal energy installations as major growth drivers. Permanent magnet motors offer high efficiency, compact size, and lower heat loss than induction motors. They are used in EVs, industrial automation, robotics, wind turbines, HVAC systems, and precision motion control.

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Proof Points From Named Sources

The FACT.MR report cites several dated industry sources supporting the market outlook. The International Energy Agency (IEA) reported that global EV production exceeded 14 million units in 2023, with AC permanent magnet motors dominating passenger drivetrain architectures. Siemens AG committed EUR 500 million in 2023 to expand permanent magnet motor production for EV and industrial applications, according to its 2023 annual report. TDK Corporation invested JPY 15 billion in 2023 to expand ferrite magnet capacity for HVAC and industrial motor markets, according to its fiscal 2024 annual report.

Key Numbers

·         Market value, 2025 — USD 55.3 billion

·         Market value, 2026 — USD 60.2 billion

·         Forecast value, 2036 — USD 161.9 billion

·         CAGR, 2026–2036 — 4%

·         Absolute growth, 2026–2036 — USD 101.7 billion

·         AC Motors share, 2026 — 2%

·         Ferrite share, 2026 — 2%

·         Automotive share, 2026 — 4%

Source: FACT.MR analysis and proprietary forecasting model.

Segment Breakdown

Motor type: Alternating Current Motors are projected to hold 53.2% of the market in 2026. FACT.MR links their position to industrial automation, EV traction, and wind energy applications. Their compatibility with variable-frequency drives and EV inverter systems also supports adoption.

Magnetic material: Ferrite is expected to account for 36.2% in 2026. FACT.MR identifies ferrite as a lower-cost option that avoids rare-earth supply risks. It is suited to applications such as HVAC fan drives and general industrial pumps.

End-user vertical: Automotive leads with a 37.4% share in 2026. EV traction motor volumes are identified as the primary growth engine for neodymium permanent magnet motor production across major manufacturing regions.

Country Growth Outlook

·         South Korea — 1%

·         United Kingdom — 8%

·         China — 1%

·         United States — 7%

·         Japan — 8%

Source: FACT.MR analysis based on its proprietary forecasting model and primary research.

South Korea records the fastest country-level CAGR at 12.1%, supported by EV platform expansion and a vertically integrated motor supply chain. The United Kingdom follows at 11.8%, supported by offshore wind and EV production. China is forecast to grow at 11.1%, while the United States reaches 10.7%. Japan records 8.8%, supported by precision automation and advanced manufacturing demand.

Competitive Landscape

The market is moderately concentrated at the premium technology level. FACT.MR identifies ABB Limited, Siemens AG, Nidec Corporation, Yaskawa Electric Corporation, Mitsubishi Electric Corporation, Rockwell Automation, Danfoss, Parker Hannifin, WEG S.A., and Regal Rexnord Corporation among the leading companies.

However, FACT.MR does not disclose individual company market-share percentages on the cited page. Therefore, no company-specific share is assigned here. The report says competitive strength increasingly depends on production scale, rare-earth magnet sourcing, and drive-electronics integration. It also notes that high capital requirements and multiyear OEM qualification processes create barriers for new entrants.

Recent developments include a June 2025 trial by Chengdu Metro Line 7 using a silicon-carbide traction converter paired with a permanent magnet synchronous motor. In August 2025, NORD Drivesystems expanded its permanent magnet synchronous motor portfolio with additional frame sizes and design upgrades.

Analyst View

Shambhu Nath Jha, Principal Consultant at FACT.MR, states that the report helps CXOs assess how rare-earth supply concentration, EV traction motor growth, and IE4/IE5 efficiency mandates are reshaping competitive advantage and investment opportunities across verticals and geographies.

Frequently Asked Questions

How large is the permanent magnet motor market in 2026?
The market is estimated at USD 60.2 billion in 2026, according to FACT.MR.

What will the permanent magnet motor market be worth in 2036?
FACT.MR projects the market to reach USD 161.9 billion by 2036.

What is the CAGR of the permanent magnet motor market?
The market is projected to grow at a 10.4% CAGR from 2026 to 2036.

Which permanent magnet motor segment leads the market?
Alternating Current Motors lead by motor type with a 53.2% share in 2026. Automotive leads by end-user vertical with 37.4%.

Which country has the fastest permanent magnet motor market growth?
South Korea has the highest country-level CAGR at 12.1% through 2036.

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About FACT.MR

FACT.MR is a market research and consulting company providing industry analysis, forecasts, and strategic intelligence across global markets. Its permanent magnet motor study covers 2026–2036 forecasts by motor type, magnetic material, end-user vertical, region, and country. The research uses top-down and bottom-up market modeling supported by primary interviews, company disclosures, policy documents, industry data, and technical standards.