ABB Report Highlights Cost and Emissions Savings from High-Efficiency Motors in Construction - News and Statistics

Jun 1, 2026

A new report from ABB, a major manufacturer of industrial motors and generators, indicates that the construction industry could lower operating costs, energy consumption, and carbon emissions by selecting higher-efficiency motors and generators for building projects.

According to ABB’s Industrial Efficiency Gap report, motors and generators rated above 375 kW currently account for approximately 10.4% of global electricity demand, a share projected to double by 2040. The analysis highlights that the Engineering, Procurement and Construction (EPC) sector traditionally prioritizes materials, labor, and scheduling during design phases, often neglecting efficiency improvements in motors and generators that operate continuously for 25 years after project completion.

ABB’s research notes that a 0.2% efficiency gap between standard specifications and achievable performance is costing operators between US$9.5 billion and US$12 billion in unnecessary electricity costs over a 25-year asset lifespan. This gap also generates between 60 and 75 million tonnes of avoidable CO2 emissions, equivalent to permanently removing 13 to 16 million cars from roads.

The report explains that motor and generator selection occurs early in construction, with assessments typically based solely on upfront and installation costs, making standard equipment appear most cost-efficient initially. ABB points out that the engineer focused on minimizing project costs is different from the facility manager who pays energy bills over the motor’s lifetime.

ABB’s Top Industrial Efficiency (TIE) initiative is a contractual commitment to deliver motors and generators at the highest achievable efficiency using proven, commercially available technology. The manufacturer states the technology exists but is simply not being specified. Applying the TIE approach globally would save four to six TWh of electricity annually, rising to between 100 and 150 TWh over 25 years, equivalent to powering the United Kingdom for five months.

The report draws on a decade of data from ABB’s Vasteras facility in Sweden, covering over 1,000 large synchronous motors and generators delivered worldwide between 2015 and 2025. David Bjerhag, Global Business Line Manager at ABB, notes that the gap between a standard machine and a TIE-optimized one is not technological but a specification gap, and that companies closing it fastest align engineers with CFOs or CSOs around total cost of ownership.

The report urges the industry to adopt total cost of ownership as the primary decision metric, rather than purchase price, and to specify minimum performance levels from the start. For construction and EPC teams, this represents both a cultural and technical shift, requiring procurement, engineering, and energy management teams to collaborate. As scrutiny of operational carbon in buildings intensifies, selected assets will be judged on long-term performance over decades. Getting motor specification correct is described as one of the lowest-cost but fastest-payback optimizations available during design and planning.

Interactive table based on the Store Companies dataset for this report.

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#
Company
Headquarters
Focus
Scale
Note

1
ABB
Switzerland
Electrification, Motion
Global
Broad motor & generator portfolio

2
Siemens
Germany
Industrial motors, generators
Global
Large motors, automation

3
WEG
Brazil
Electric motors, generators
Global
Major motor manufacturer

4
Nidec
Japan
AC motors, small appliances
Global
World’s leading motor manufacturer

5
Regal Rexnord
USA
Industrial motors, power transmission
Global
Formed from Regal Beloit acquisition

6
Toshiba Industrial Products
Japan
Industrial motors, drives
Global
Heavy industry focus

7
SEW-EURODRIVE
Germany
Gear motors, drive electronics
Global
Integrated drive systems

8
Danfoss
Denmark
Motor controls, components
Global
Strong in variable speed drives

9
Rockwell Automation
USA
Industrial automation, motors
Global
Allen-Bradley, Dodge brands

10
Hitachi Industrial Equipment
Japan
Industrial motors, systems
Global
Large motors & compressors

11
Baldor Electric (ABB)
USA
Industrial motors
Global
ABB subsidiary, N. America leader

12
Brook Crompton
UK
AC motors, geared motors
Global
Part of Wolong Electric

13
Wolong Electric
China
Motors, drives, generators
Global
One of China’s largest

14
Jiangsu Hengda
China
Vibration motors, AC motors
Large
Major Chinese manufacturer

15
Harbin Electric
China
Power equipment, large motors
Large
State-owned, large generators

16
Shanghai Electric
China
Power generation equipment
Large
Large turbines & generators

17
Cummins
USA
Generators, power systems
Global
Leading alternator/generator maker

18
Generac
USA
Generators, power systems
Global
Leading standby generator maker

19
Kirloskar Electric
India
Motors, generators, transformers
Large
Major Indian manufacturer

20
Crompton Greaves (CG)
India
Motors, generators, transformers
Global
Part of Avantha Group

21
Leroy-Somer (Nidec)
France
AC motors, alternators
Global
Nidec subsidiary

22
Marathon Electric (Regal Rexnord)
USA
Motors, generators
Global
Part of Regal Rexnord

23
Meidensha
Japan
Motors, generators, systems
Large
Industrial equipment

24
TECO Electric & Machinery
Taiwan
Motors, drives, generators
Global
Major Asian manufacturer

25
Hyosung
South Korea
Heavy industry, generators
Large
Power & industrial systems

26
Marelli Motori
Italy
AC motors, generators
Large
Specialized industrial motors

27
VEM Group
Germany
Large motors, generators
Large
Special & large machines

28
Lafert (Nidec)
Italy
Industrial motors, servo motors
Global
Nidec subsidiary

29
HBD Industries
USA
Geared motors, industrial
Large
Goodman, HBD brands

30
Bharat Bijlee
India
Motors, transformers
Large
Indian motors & power equipment

This report provides a comprehensive view of the global ac/dc motor industry, tracking demand, supply, and trade flows across the worldwide value chain. It explains how demand across key channels and end-use segments shapes consumption patterns, while also mapping the role of input availability, production efficiency, and regulatory standards on supply.

Beyond headline metrics, the study benchmarks prices, margins, and trade routes so you can see where value is created and how it moves between exporters and importers worldwide. The analysis is designed to support strategic planning, market entry, portfolio prioritization, and risk management in the global ac/dc motor landscape.

Quick navigation
Key findings

Global demand is shaped by both household and industrial usage, with trade flows linking cost-competitive producers to import-reliant markets.
Pricing dynamics reflect unit values, freight costs, exchange rates, and regulatory shifts that affect sourcing decisions.
Supply depends on input availability and production efficiency, creating distinct cost curves across regions.
Market concentration varies by country, creating different competitive landscapes and entry barriers.
The 2035 outlook highlights where capacity investment and demand growth are most aligned globally.
Report scope

The report combines market sizing with trade intelligence and price analytics. It covers both historical performance and the forward outlook to 2035, allowing you to compare cycles, structural shifts, and policy impacts across countries and regions.

Market size and growth in value and volume terms
Consumption structure by end-use segments and regions
Production capacity, output, and cost dynamics
Global trade flows, exporters, importers, and balances
Price benchmarks, unit values, and margin signals
Competitive context and market entry conditions
Product coverageProdcom 27112100 – Universal AC/DC motors of an output > .37,5 WProdcom 27112230 – Single-phase AC motors of an output . .750 WProdcom 27112250 – Single-phase AC motors of an output > .750 WProdcom 27112300 – Multi-phase AC motors of an output . .750 WProdcom 27112403 – Multi-phase AC motors of an output > 0,75 kW but . 7,5 kWProdcom 27112405 – Multi-phase AC motors of an output > 7,5 kW but . .37 kWProdcom 27112407 – Multi-phase AC motors of an output > .37 kW but . .75 kWProdcom 27112530 – Multi-phase AC traction motors of an output > .75 kWProdcom 27112540 – Multi-phase AC motors of an output > .75 kW but . .375 kW (excluding traction motors)Prodcom 27112560 – Multi-phase AC motors of an output > .375 kW but . .750 kW (excluding traction motors)Prodcom 27112590 – Multi-phase AC motors of an output > .750 kW (excluding traction motors)Prodcom 27112610 – Alternators of an output . .75 kVAProdcom 27112630 – Alternators of an output > .75 kVA but . .375 kVAProdcom 27112650 – Alternators > .375 kVA but . .750 kVAProdcom 27112670 – Alternators of an output > .750 kVACountry coverageCountry profiles and benchmarks

For the global report, country profiles provide a consistent view of market size, trade balance, prices, and per-capita indicators. The profiles highlight the largest consuming and producing markets and allow direct benchmarking across peers.

Methodology

The analysis is built on a multi-source framework that combines official statistics, trade records, company disclosures, and expert validation. Data are standardized, reconciled, and cross-checked to ensure consistency across time series.

International trade data (exports, imports, and mirror statistics)
National production and consumption statistics
Company-level information from financial filings and public releases
Price series and unit value benchmarks
Analyst review, outlier checks, and time-series validation

All data are normalized to a common product definition and mapped to a consistent set of codes. This ensures that comparisons across time are aligned and actionable.

Forecasts to 2035

The forecast horizon extends to 2035 and is based on a structured model that links ac/dc motor demand and supply to macroeconomic indicators, trade patterns, and sector-specific drivers. The model captures both cyclical and structural factors and reflects known policy and technology shifts.

Historical baseline: 2012-2025
Forecast horizon: 2026-2035
Scenario-based sensitivity to income growth, substitution, and regulation
Capacity and investment outlook for major producing countries

Each country projection is built from its own historical pattern and the regional context, allowing the report to show where growth is concentrated and where risks are elevated.

Price analysis and trade dynamics

Prices are analyzed in detail, including export and import unit values, regional spreads, and changes in trade costs. The report highlights how seasonality, freight rates, exchange rates, and supply disruptions influence pricing and margins.

Price benchmarks by country and sub-region
Export and import unit value trends
Seasonality and calendar effects in trade flows
Price outlook to 2035 under baseline assumptions
Profiles of market participants

Key producers, exporters, and distributors are profiled with a focus on their operational scale, geographic footprint, product mix, and market positioning. This helps identify competitive pressure points, partnership opportunities, and routes to differentiation.

Business focus and production capabilities
Geographic reach and distribution networks
Cost structure and pricing strategy indicators
Compliance, certification, and sustainability context
How to use this report

Quantify global demand and identify the most attractive markets
Evaluate export opportunities and prioritize target countries
Track price dynamics and protect margins
Benchmark performance against major competitors
Build evidence-based forecasts for investment decisions

This report is designed for manufacturers, distributors, importers, wholesalers, investors, and advisors who need a clear, data-driven picture of global ac/dc motor dynamics.

FAQ
What is included in the global ac/dc motor market?

The market size aggregates consumption and trade data at country and regional levels, presented in both value and volume terms.

How are the forecasts to 2035 built?

The projections combine historical trends with macroeconomic indicators, trade dynamics, and sector-specific drivers.

Does the report cover prices and margins?

Yes, it includes export and import unit values, regional spreads, and a pricing outlook to 2035.

Which countries are profiled in detail?

The report provides profiles for the largest consuming and producing countries, enabling benchmarking across peers.

Can this report support market entry decisions?

Yes, it highlights demand hotspots, trade routes, pricing trends, and competitive context.

1. INTRODUCTION

Report Scope and Analytical Framing

Report DescriptionResearch Methodology and the Analytical FrameworkData-Driven Decisions for Your BusinessGlossary and Product-Specific Terms2. EXECUTIVE SUMMARY

Concise View of Market Direction

Key FindingsMarket TrendsStrategic ImplicationsKey Risks and Watchpoints3. MARKET SIZE AND DEVELOPMENT PATH

Market Size, Growth and Scenario Framing

Market Size: Historical Data (2012-2025) and Forecast (2026-2035)Growth Outlook and Market Development Path to 2035Growth Driver DecompositionScenario Framework and Sensitivities4. CATEGORY SCOPE, DEFINITIONS AND BOUNDARIES

Commercial and Technical Scope

What Is Included and How the Market Is DefinedMarket Inclusion CriteriaProduct / Category DefinitionExclusions and BoundariesDistinction From Adjacent Products and Substitute Categories5. CATEGORY STRUCTURE, SEGMENTATION AND PRODUCT MATRIX

How the Market Splits Into Decision-Relevant Buckets

By Product Type / ConfigurationBy Application / End UseBy Customer / Buyer TypeBy Channel / Business Model / Technology PlatformSegment Attractiveness MatrixProduct Matrix and Segment Growth Logic6. DEMAND, CUSTOMER AND CONSUMER ARCHITECTURE

Where Demand Comes From and How It Behaves

Consumption / Demand by Country or Region: Historical Data (2012-2025) and Forecast (2026-2035)Demand by End-Use and Buyer GroupDemand by Customer / Consumer SegmentPurchase Criteria, Switching Logic and Adoption BarriersReplacement, Replenishment and Installed-Base DynamicsFuture Demand Outlook7. PRODUCTION, SUPPLY AND VALUE CHAIN

Supply Footprint, Trade and Value Capture

Production by CountryManufacturing Footprint and Supply HubsCapacity, Bottlenecks and Supply RisksValue Chain Logic and Margin PoolsRoute-to-Market and Distribution Structure8. TRADE, SOURCING AND IMPORT DEPENDENCE

Trade Flows and External Dependence

Exports by CountryImports by CountryTrade Balance and Sourcing StructureImport Dependence and Supply ResilienceStrategic Trade Corridors9. PRICING, PROMOTION AND COMMERCIAL MODEL

Price Formation and Revenue Logic

Price Levels and Price CorridorsPricing by Segment / Specification / GeographyCost Drivers and Margin LogicPromotion, Discounting and Procurement PatternsRevenue Quality and Commercial Levers10. COMPETITIVE LANDSCAPE AND PORTFOLIO POWER

Who Wins and Why

Market Structure and ConcentrationCompetitive ArchetypesSegment-by-Segment Competitive IntensityPortfolio Breadth and Product PositioningCapability MatrixStrategic Moves, Partnerships and Expansion Signals11. GEOGRAPHIC LANDSCAPE AND COUNTRY ROLES

Where Growth and Supply Concentrate

Core Demand MarketsCore Production MarketsExport HubsImport-Reliant MarketsFastest-Growing MarketsCountry Archetypes and Strategic Roles12. GROWTH PLAYBOOK AND MARKET ENTRY

Commercial Entry and Scaling Priorities

Where to PlayHow to WinBuild vs Buy vs PartnerRoute-to-Market ChoicesLocalization and Capability ThresholdsEntry Risks and Mitigation13. WHERE TO PLAY NEXT: MOST ATTRACTIVE GROWTH OPPORTUNITIES

Where the Best Expansion Logic Sits

Most Attractive Product NichesMost Attractive Customer SegmentsMost Attractive Markets for Commercial ExpansionWhite Spaces and Unsaturated OpportunitiesHigh-Margin and Underpenetrated PocketsMost Promising Product Adjacencies14. PROFILES OF MAJOR COMPANIES

Leading Players and Strategic Archetypes

Leading Manufacturers and SuppliersRegional Specialists and ChallengersProduction Footprint and Manufacturing CapacitiesProduct Portfolio and Segment FocusPricing Positioning and Indicative Price LogicChannel / Distribution StrengthStrategic Archetypes15. COUNTRY PROFILES

Detailed View of the Most Important National Markets

View detailed country profiles50 countries

15.1

United States