The Servo Drives market size is expected to reach US$ 9.28 billion by 2031 from 6.34 billion in 2024, at an estimated CAGR of 5.8% from 2025 to 2031.

By Geography the Servo Drives market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America. In 2024, Europe held a significant share in the market. In Europe, the growth of the servo drive market is propelled by strong government initiatives promoting Industry 4.0, sustainability, and energy efficiency in manufacturing. Countries such as Germany, Italy, and France are at the forefront of integrating digital technologies into industrial processes, and servo drives play a crucial role in enabling smart motion control and automation. The region's strong automotive and robotics industries, particularly in Germany, contribute significantly to the rising demand for sophisticated servo systems that offer precision, speed, and reliability. Moreover, the European Union's stringent regulations on energy consumption and carbon emissions are pushing industries to adopt servo drives with regenerative braking features and high-energy efficiency ratings. The ongoing digital transformation and emphasis on production optimization are also encouraging the deployment of servo drives in newer applications, including renewable energy, packaging, and pharmaceutical manufacturing.

The Servo Drives market analysis has been carried out by considering the following segments: Drive, Category, Voltage, and Application.

The Global Servo Drive Market, by Voltage, is segmented into Low, Medium and High. Low-voltage servo drives play a vital role in industrial motion control systems with the precise management of servo motor functions, including torque, speed, and position. They are commonly deployed in compact installations that demand high electrical safety. These drives are especially well-suited for mobile power applications within automation, including AGV drive systems in smart logistics, wind turbine blade pitch control, collaborative robots, production line conveyors, access gate control, robotic gripping and handling systems, and engraving machinery. In April 2024, Applied Motion Products launched the MDX+ series of low-voltage servo systems that combine the servo drive, motor, and encoder into a single integrated unit. The series offers power output options of 100W, 200W, 400W, and 550W. MDX+ systems support a range of control interfaces, including pulse train-based methods (such as Pulse/Direction, CW/CCW, and encoder following) with RS-485, CANopen, and EtherCAT communication protocols.

Moreover, factor such as Surge in Demand for automation and industrial robots and advancements in technology propel the Servo Drives market growth. Also, rising popularity of advanced feedback systems is expected to bring new servo drives market trends in the coming years.

The Global Servo Drive Market, by Application, is segmented into Semiconductor and Electronics, Automotive, Packaging, Oil and Gas, Metal and Mining, Pharmaceutical and Healthcare, and Others. Semiconductor manufacturing is the cornerstone of modern electronics; as a result, it requires exceptional precision. Servo drives in semiconductor fabrication equipment provide the accurate positioning and movement control essential for producing semiconductor devices. This level of precision is critical to upholding the stringent quality and performance standards demanded by the electronics industry. It is an essential component in semiconductor manufacturing equipment-including wafer handlers, lithography machines, and wire bonders-ensuring the precision and cleanliness required throughout the production process. Various players are developing servo drives for semiconductors and electronics; for example, in June 2022, SANYO DENKI introduced the SANMOTION G, a next-generation servo system offering industry-leading performance in a compact, lightweight, and energy-efficient design. This advanced solution is well-suited for applications in the semiconductor manufacturing and machine tools industries, among others.

ABB Ltd, Fuji Electric Co Ltd, Hitachi Ltd, Bosch Rexroth AG, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, Infranor, and Beckhoff Automation GmbH & Co. KG are among the key players profiled in the servo drives market report.

The Servo Drives market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the servo drives market growth. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the servo drives market.