Report Overview

Growing industrialization and manufacturing activities, increasing adoption of electric motors in renewable energy projects, and a rising demand for HVAC systems in residential and commercial buildings are expected to drive Saudi Arabia Electric Motor Market during the forecast period between 2025 and 2031.

Saudi Arabia Electric Motor Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Electric Motor Market size was estimated at USD 2.7 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Electric Motor Market size is projected to grow at a CAGR of 7.3% reaching a value of USD 4.4 billion by 2031. Prominent drivers of the market include rising urbanization and increasing disposable income, leading to greater adoption of electrical appliances such as washing machines, dishwashers, and microwaves. The hot climate also drives demand for air conditioning systems powered by electric motors. Also, the trend of replacing gas turbines with electric motors in industrial plants is boosting market growth. Government policies supporting new industries, coupled with significant investments in construction and infrastructure projects, further propel demand. The growing focus on environmental sustainability and the increasing adoption of electric vehicles are also expected to significantly enhance market expansion.

Electric Motor – Overview

An electric motor is an electro-mechanical device that transforms electrical energy into mechanical energy through electromagnetic principles, generating torque via the interaction of current-carrying conductors with a magnetic field. Known for its efficiency, energy savings, durability, and ability to withstand voltage fluctuations, it is widely used in fans, disk drives, compressors, and electric vehicles. These applications span residential, real estate, manufacturing, and commercial sectors. Currently, the demand for electric motors in Saudi Arabia is growing, driven by major construction projects initiated by the government.

Saudi Arabia Electric Motor Market

Growth Drivers

Increasing Adoption of Electric Motors in Renewable Energy Projects

The increasing adoption of electric motors in renewable energy projects is a key growth driver for Saudi Arabia Electric Motor Market. Under the Kingdom’s "Vision 2030," renewable energy initiatives, such as solar photovoltaic (PV) plants, wind turbines, and energy storage systems, are heavily reliant on electric motors to enhance efficiency and sustainability. Advanced technologies like digitally-enabled variable speed drives (VSDs) are optimizing motor performance, reducing energy consumption, and enabling real-time monitoring for proactive maintenance. For example, the Saudi Water Conversion Corporation (SWCC) has implemented VSDs at its desalination plant, achieving up to 60% energy savings. Additionally, energy efficiency audits and customized service agreements offered by companies like ABB are supporting industries in upgrading motor-driven systems to align with sustainability goals. These developments not only reduce carbon emissions but also reinforce Saudi Arabia’s commitment to achieving net-zero targets by 2060, making electric motors integral to the Kingdom’s renewable energy transformation and a significant contributor to the growth of Saudi Arabia Electric Motor Market.

Challenges

High Initial Costs

The high initial costs associated with advanced electric motors could be a significant restraint on the growth of Saudi Arabia Electric Motor Market. Modern motors, equipped with advanced features, such as variable speed drives (VSDs) and digital monitoring systems, offer enhanced efficiency and energy savings but require substantial upfront investment. These costs could deter adoption, particularly among small and medium-sized enterprises (SMEs) with limited budgets. Additionally, the expenses related to installation, maintenance, and system integration further contribute to the financial burden. Despite their long-term benefits, the high capital outlay required for advanced electric motors poses a challenge to widespread adoption, slowing market expansion in cost-sensitive industries and sectors.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Electric Motor Market

Escalating geopolitical tensions could significantly impact the growth of Saudi Arabia Electric Motor Market by disrupting supply chains and increasing the costs of raw materials, such as copper, steel, and aluminum, which are critical for motor production. Trade restrictions, sanctions, and fluctuating global energy prices further exacerbate market uncertainties, impacting manufacturing and distribution. Additionally, military tensions could delay renewable energy projects and infrastructure developments, which are key drivers of electric motor demand in the Kingdom. While the Saudi government continues to invest in local manufacturing to mitigate external risks, the market remains vulnerable to geopolitical disruptions that may hinder its growth trajectory and affect long-term plans for economic diversification under "Vision 2030."

Saudi Arabia Electric Motor Market

Segmental Coverage

Saudi Arabia Electric Motor Market – By Motor Type

Based on motor type, Saudi Arabia Electric Motor Market is bifurcated into AC Motors and DC Motors segments. The DC motors segment holds a higher share in Saudi Arabia Electric Motor Market by motor type. Widely used across key industries, such as petrochemicals, manufacturing, mining, and agriculture, DC motors play a vital role in powering conveyor systems, material handling equipment, and manufacturing machinery. In the oil and gas sector, their rugged design makes them ideal for pumps, compressors, and drilling machinery, while in construction, they are used in cranes and hoists to meet the growing demand fueled by infrastructure development. Additionally, DC motors support marine applications, transportation systems like trains, and renewable energy projects, including solar tracking systems for optimizing energy capture, highlighting their versatile and critical role in the Kingdom’s industrial growth.

Saudi Arabia Electric Motor Market – By Voltage Range

By voltage range, Saudi Arabia Electric Motor Market is divided into Low Voltage Electric Motors (Less than 1 kV), Medium Voltage Electric Motors (1 kV to 6.6 kV), and High Voltage Electric Motors (Above 6.6 kV) segments.

Saudi Arabia Electric Motor Market – By Power Output

Based on power output, Saudi Arabia Electric Motor Market is bifurcated into Fractional Horsepower (FHP) Motors and Integral Horsepower (IHP) Motors segments.

Saudi Arabia Electric Motor Market – By Application

Saudi Arabia Electric Motor Market by application is divided into Industrial, Residential, Commercial, and Agriculture segments. The industrial segment holds the largest share of Saudi Arabia Electric Motor Market by application. The oil and gas industry, a cornerstone of Saudi Arabian economy, drives substantial demand for electric motors in pumps, compressors, and drilling equipment. Additionally, the Kingdom’s growing manufacturing sector, part of its economic diversification efforts, relies on electric motors for conveyor systems, HVAC systems, and industrial machinery. Significant investments in infrastructure projects, including railways, airports, and smart cities, further boost demand for electric motors in construction equipment, elevators, and HVAC systems. Moreover, the petrochemical industry and water treatment plants utilize electric motors extensively, reflecting their vital role in chemical processes, wastewater management, and addressing water scarcity.

Saudi Arabia Electric Motor Market – By End User

On the basis of end user, Saudi Arabia Electric Motor Market is divided into HVAC, Automotive, Manufacturing, Water & Wastewater Treatment, and Construction segments.

Competitive Landscape

Major players operating in Saudi Arabia Electric Motor Market include ABB Ltd, Siemens AG, WEG Industries, TECO Electric & Machinery, Nidec Corporation, Emerson Electric Co., Denso Corporation, Meem, Ashoor Electric Motors Co., and Atlas Copco. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Motor Type

• AC Motors

• DC Motors

By Voltage Range

• Low Voltage Electric Motors (Less than 1 kV)

• Medium Voltage Electric Motors (1 kV to 6.6 kV)

• High Voltage Electric Motors (Above 6.6 kV)

By Power Output

• Fractional Horsepower (FHP) Motors

• Integral Horsepower (IHP) Motors

By Application

• Industrial

• Residential

• Commercial

• Agriculture

By End User

• HVAC

• Automotive

• Manufacturing

• Water & Wastewater Treatment

• Construction