August 21, 2026 — The global 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. The market was valued at USD 55.3 billion in 2025, with absolute dollar growth of USD 101.7 billion expected between 2026 and 2036.

Permanent magnet motors are gaining demand because they provide higher efficiency, compact size, and lower heat loss than induction motors. They use permanent magnets such as ferrite, neodymium-iron-boron, and samarium cobalt to generate the rotor magnetic field. Their applications include electric vehicles, industrial automation, robotics, wind turbines, HVAC systems, and precision motion control.

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EVs, Efficiency Rules, and Renewable Energy Drive Demand

Global EV production mandates are encouraging automotive manufacturers to invest in permanent magnet traction motor capacity. Fact.MR identifies the European Union's 2035 internal-combustion passenger vehicle sales ban and China's NEV credit system as important demand catalysts.

Industrial efficiency regulations are another growth driver. The EU Ecodesign Regulation's mandatory IE4 Super Premium Efficiency standard for industrial motors above 75 kW took effect in July 2023. Offshore wind expansion in the United Kingdom, Germany, the United States, and South Korea is also creating demand for high-torque direct-drive permanent magnet generators.

Industry companies are also increasing investment. Siemens AG committed EUR 500 million in 2023 to expand permanent magnet motor production for EV and industrial applications. TDK Corporation invested JPY 15 billion in 2023 to expand ferrite magnet capacity for HVAC and industrial motor markets.

Key Numbers

Source: Fact.MR analysis.

Segment Outlook

AC motors lead by motor type. AC motors are projected to hold 53.2% of the market in 2026. Their use across industrial automation, EV traction, and wind energy supports their leading position. Variable-frequency drive compatibility and brushless operation also support demand.

Ferrite leads by magnetic material type. Ferrite magnets are expected to hold a 36.2% share in 2026. Their lower cost and reduced exposure to rare-earth supply risks make them suitable for HVAC fan drives, small appliance motors, and general industrial pumps.

Automotive leads by end-user vertical. Automotive applications are projected to account for 37.4% of the market in 2026. EV traction motor volumes are identified as the primary demand growth engine for neodymium permanent magnet motor production.

Country Growth Outlook

Source: Fact.MR analysis, based on proprietary forecasting model and primary research.

South Korea is forecast to record the fastest growth at 12.1% CAGR, supported by EV platform expansion and vertically integrated motor supply chains. The United Kingdom follows at 11.8%, driven by offshore wind and EV production. China is projected to grow at 11.1%, while the United States and Japan are expected to record 10.7% and 8.8%, respectively.

Competitive Landscape

The permanent magnet motor market is moderately concentrated at the premium technology level. Fact.MR identifies ABB Ltd, 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.

Competition is influenced by manufacturing scale, rare-earth magnet sourcing, drive electronics integration, and long-term OEM qualification requirements. Nidec benefits from its global acquisitions and procurement scale. ABB differentiates through integrated motor and drive systems, while Yaskawa maintains a position in precision servo applications through winding technology and automation partnerships.

Company market shares: The supplied Fact.MR content names leading companies but does not provide individual company market-share percentages. No company share figures have been invented.

Analyst View

Shambhu Nath Jha, Principal Consultant at Fact.MR, says the market is being reshaped by rare-earth supply concentration, EV traction motor volume growth, and IE4/IE5 industrial motor efficiency mandates. He highlights these factors as important considerations for companies assessing motor technology investment opportunities.

Frequently Asked Questions

What is the permanent magnet motor market size 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?
The market is projected to reach USD 161.9 billion by 2036.

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

Which motor type leads the permanent magnet motor market?
AC motors are projected to lead with a 53.2% share in 2026.

Which country has the highest permanent magnet motor market CAGR?
South Korea has the highest listed CAGR at 12.1% from 2026 to 2036.

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About Fact.MR

Fact.MR provides market research, industry analysis, market forecasts, and competitive intelligence across global markets. Its research covers market trends, demand patterns, regional developments, competitive positioning, and long-term industry opportunities.