Servo Motors and Drives Market Report: Size, Share and Outlook by 2031

The servo motors and drives market was valued at approximately US$ 14.41 billion in 2024 and is projected to grow to US$ 21.44 billion by 2031, reflecting a compound annual growth rate (CAGR) of 5.8% during the period from 2024 to 2031.

This market is categorized into five primary regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South & Central America. In 2023, the Asia Pacific region led the market, followed by North America and Europe. Within the APAC region, the market is further divided into countries such as China, India, Japan, Australia, South Korea, and the Rest of APAC.

The increasing integration of advanced manufacturing technologies, particularly computerized numerical control (CNC) machines, is a significant driver for the growth of the servo motors and drives market. These components are integral to CNC machines, enhancing their performance, reliability, and precision. Servo motors facilitate superior control over motion, which is essential for the accurate and smooth operation of CNC machines used in precision-demanding tasks such as turning, milling, and laser cutting.

In the Asia Pacific region, various industries are increasingly adopting CNC machines to automate and optimize their production processes. This trend is leading to a higher demand for servo motors and drives, which are crucial for ensuring precise movements, accurate machine positioning, and overall operational efficiency. For example, data from Piran Advanced Composites published in May 2024 indicates that CNC machines are extensively utilized in sectors such as automotive, electronics, semiconductors, aerospace, transportation, and medical to automate manufacturing workflows.

Servo motors are typically equipped with encoders or resolvers that provide real-time feedback on the motor's position, direction, and speed. This feedback loop allows CNC machines to make precise adjustments, resulting in enhanced accuracy during machining operations. The integration of servo motors significantly boosts the efficiency of CNC machines, reducing operational downtime and improving overall production capabilities.

From an industry perspective, the servo motors and drives market is segmented into several verticals, including automotive and transportation, semiconductor and electronics, food processing, textile, and others. The automotive and transportation sector holds the largest share of the market. In these industries, the need for precision, efficiency, and reliability is critical, making servo motors and drives indispensable.

In automotive and transportation applications, servo motors and drives are utilized in various processes to enhance vehicle systems, streamline automated operations, reduce energy consumption, and improve overall performance. These components are employed in numerous applications, including automated manufacturing and assembly lines, autonomous vehicles, driver assistance systems, electric and hybrid bus systems, as well as material handling and logistics.

During automotive manufacturing, servo motors and drives are essential for tasks such as assembly, welding, material handling, and painting. They provide precise control over speed, position, and torque, which is vital for robotic welding operations where accuracy is crucial to maintain the structural integrity of components. In the logistics and transportation sectors, servo motors automate warehouse operations and material handling systems. They drive conveyor belts in automotive manufacturing plants and distribution centers, ensuring precise control over the movement of parts and products. This technology also aids in the efficient sorting, picking, and packaging of components, enhancing productivity in transportation and distribution environments.

Key players in the servo motors and drives market include ABB Ltd, Delta Electronics Inc, Fanuc Corp, Fuji Electric Co Ltd, Mitsubishi Electric Corp, Nidec Corp, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, and Yaskawa Electric Corp. These companies are profiled in the market study, highlighting their contributions to the industry.

The overall market size for servo motors and drives has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data regarding the market size. This approach also aids in providing a comprehensive overview and forecast of the market across all segments. Additionally, numerous primary interviews have been conducted with industry stakeholders to validate the data and gain deeper analytical insights. This process includes discussions with industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the servo motors and drives market.