Permanent magnet synchronous motor (PMSM) Market Size, Share, Growth, and Industry Analysis, By Type (Surface Mounted PMSM, Interior PMSM), By Application (Automotive (EVs), Industrial Machinery, HVAC), and Regional Insights and Forecast to 2034

•   
•   
  

  Request a Free sample to learn more about this report

    

PERMANENT MAGNET SYNCHRONOUS MOTOR (PMSM) MARKET OVERVIEW

The global Permanent magnet synchronous motor (PMSM) Market size was approximately USD 8.28  billion in 2025, is expected to rise to USD 8.81 billion in 2026, and is forecasted to reach USD 15.38 billion by 2034, expanding at a CAGR of about 6.39% throughout the period 2025-2034.

The Permanent Magnet Synchronous Motor (PMSM) market is witnessing strong increase because of increasing call for high-efficiency motors across commercial, automotive, and energy sectors. PMSMs are valued for his or her superior torque-to-weight ratio, higher performance, and higher performance as compared to traditional cars. They are widely utilized in electric powered motors (EVs), robotics, HVAC structures, and renewable power structures, particularly in wind mills and solar-powered gadget. The shift closer to electrification and electricity conservation has driven manufacturers to undertake PMSMs for their capacity to lessen power intake and help sustainable operations, making them a preferred desire for present day motion manage applications.

Moreover, the growing manufacturing of electrical cars globally is drastically contributing to the enlargement of the PMSM market, as those automobiles are important for traction structures due to their compact layout and precision control. Industrial automation and smart production tendencies also are boosting the adoption of PMSMs in conveyor systems, pumps, compressors, and gadget equipment. While fee and complexity in layout stay demanding situations, ongoing innovations in magnet substances and manage technology are helping producers’ triumph over these limitations. With expanding use cases and supportive regulatory frameworks centered on strength efficiency, the PMSM marketplace is expected to grow regularly across various areas and sectors.

KEY FINDINGS

COVID-19 IMPACT

Permanent magnet synchronous motor (PMSM) Industry Had a Negative Effect Due to reduced industrial activity during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels. 

In the early levels, the marketplace faced a poor effect due to global supply chain disruptions, exertions shortages, and decreased business hobby. Delays in manufacturing, transport, and raw cloth availability affected manufacturing timelines and project deployments, mainly in car and commercial sectors. Major OEMs and cease-customers postponed or canceled equipment enhancements and installations, which bogged down short-term demand for PMSMs.

LATEST TRENDS

Optimized Winding and SiC-Integrated Motor to Drive Market Growth

There have been notable developments in the market which have the potential to boost the permanent magnet synchronous motor (PMSM) market share. One of the most giant latest traits inside the Permanent Magnet Synchronous Motor (PMSM) market is the adoption of AI-optimized winding and SiC-incorporated motor systems, which started out gaining traction in Q3 2023. A exceptional example is the release of an AI-optimized PMSM that leveraged superior algorithms to improve torque density with the aid of 38 % and decrease torque ripple through 32 %, with approximately 45,000 devices already in production with the aid of the quilt of the year. Simultaneously, every other fashion has been the integration of silicon carbide (SiC) power inverters with PMSMs. In Q4 2023, a SiC-integrated motor–inverter unit (IDU 2.0) debuted, turning in a compact 1.8 kW/kg powertrain utilized in over 85,000 EVs.

• According to the International Energy Agency (IEA), electric car sales exceeded 14 million units globally in 2023, up from 10 million in 2022. PMSMs are used in over 70% of electric powertrains due to their high torque density and efficiency, reflecting a significant shift in the automotive sector.

• As per data published by the U.S. Department of Energy (DOE), industrial motors account for 69% of all electricity used in manufacturing sectors. PMSMs are increasingly replacing traditional motors in automation systems due to their 15% higher energy efficiency, promoting sustainable production processes.

•   
•   
  

  Request a Free sample to learn more about this report

    

PERMANENT MAGNET SYNCHRONOUS MOTOR (PMSM) MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Surface Mounted PMSM, Interior PMSM

• Surface Mounted PMSM: Surface Mounted Permanent Magnet Synchronous Motors (SPMSMs) have magnets affixed directly to the rotor surface, offering a less difficult shape and simpler production. They are usually utilized in programs requiring high-velocity overall performance and lower torque ripple, along with HVAC structures, enthusiasts, and precision tools. In the PMSM market, SPMSMs are valued for their value-effectiveness and easy torque traits.

• Interior PMSM: Interior Permanent Magnet Synchronous Motors (IPMSMs) have magnets embedded in the rotor, bearing in mind progressed magnetic flux and higher torque density. These cars are broadly used in electric powered vehicles and business machinery because of their advanced performance below variable hundreds and higher area-weakening functionality. IPMSMs are gaining extra traction in the PMSM marketplace as demand grows for compact, high-performance cars with excellent power-to-weight ratios.

By Application

Based on application, the global market can be categorized into Automotive (EVs), Industrial Machinery, HVAC

• Automotive (EVs): PMSMs are extensively used in electric automobiles (EVs) because of their excessive efficiency, compact design, and first-rate torque control. They assist enhance automobile range and performance, making them ideal for traction motor systems in each passenger and business EVs.

• Industrial Machinery: In industrial machinery, PMSMs offer superior precision, energy financial savings, and reliability, which can be crucial for automation, robotics, conveyors, and machine equipment. Their capability to keep regular pace and torque underneath various hundreds makes them properly-ideal for continuous-responsibility applications.

• HVAC: PMSMs are more and more being adopted in HVAC structures for fanatics, compressors, and pumps to enhance electricity performance and decrease operational noise. Their particular pace control and lower strength consumption guide sustainable constructing operations and compliance with energy-efficiency rules.

MARKET DYNAMICS

Driving Factors

Rising Adoption in Electric Vehicles (EVs) to Boost the Market

This is a major factor in the permanent magnet synchronous motor (PMSM) market growth. A number one driving force for the PMSM market is the fast global shift in the direction of electric powered mobility. PMSMs are desired in EV powertrains because of their high torque density, efficiency, and compact design, which beautify vehicle range and performance. As governments push for 0-emission objectives and provide incentives to boost up EV adoption, call for excessive-performance cars like PMSMs keeps to surge. Leading automakers and EV startups are increasingly integrating PMSMs into their drivetrains to improve strength utilization and reduce charging frequency—contributing substantially to the market’s expansion.

• According to India’s Bureau of Energy Efficiency (BEE), electric motors meeting IE4 or Super Premium Efficiency levels (which includes PMSMs) can save up to 30% energy compared to standard IE1 motors, leading to large-scale industrial adoption.

• Based on a report by the International Renewable Energy Agency (IRENA), global wind power capacity reached 1,000 GW in 2024, with PMSMs used in over 60% of modern wind turbines for their performance in variable-speed operations.

Growth in Industrial Automation and Robotics to Expand the Market

PMSMs play a vital role in superior production structures, mainly in robotics, CNC machines, and automatic production traces. With the upward push of Industry 4.0, there may be a growing need for unique, efficient, and sturdy cars. PMSMs offer higher dynamic reaction, decreased renovation, and excessive reliability—critical qualities for twenty-four/7 industrial operations. As industries international undertake clever factories and digitized workflows, the demand for high-performance synchronous automobiles is expected to develop progressively.

Restraining Factor

High Cost of Rare Earth Materials to Potentially Impede Market Growth

One of the major constraints in PMSM manufacturing is the dependence on rare earth materials like neodymium and dysprosium for permanent magnets. These elements are luxurious, geographically focused, and concern to deliver volatility because of geopolitical issues. Fluctuations in uncommon earth expenses can extensively effect production charges, making PMSMs less economically attractive compared to induction motors in certain programs, mainly in fee-sensitive markets.

• According to the U.S. Geological Survey (USGS), prices of neodymium oxide—a key rare earth used in PMSMs—rose by 47% between 2021 and 2023, significantly increasing the overall cost of motor production.

• As per the European Commission’s 2024 Industry Fact Sheet, nearly 28% of surveyed manufacturers cited difficulties in maintaining PMSMs due to their intricate rotor construction, leading to higher operational downtime in certain applications.

Technological Advancements in Magnet-Free or Hybrid Motor Designs to Create Opportunity for the Product in the Market

Opportunity

The improvement of opportunity motor technologies that reduce or cast off using rare earth elements provides a main opportunity. Innovations in hybrid PMSM systems, ferrite-primarily based magnets, or even magnet-less synchronous cars can assist mitigate deliver chain dangers and reduce dependency on costly materials.

Companies making an investment in that technology can free up new segments of the market, particularly in areas centered on price optimization and neighborhood sourcing.

• The Japan Robot Association (JARA) stated that PMSMs are used in over 82% of newly developed industrial and service robots in 2024, thanks to their compactness and high power-to-weight ratio—making them suitable for aerospace-grade robotics and drones.

• According to the U.S. Department of Energy, PMSMs are now being integrated into grid-scale battery storage systems, which are expected to power over 50 GW of storage capacity by 2030, supporting grid stability and energy transition.

Thermal Management and Efficiency at High Loads Could Be a Potential Challenge for Consumers

Challenge

While PMSMs are recognized for excessive efficiency, they could face thermal demanding situations beneath heavy-obligation or high-speed operations, mainly in EVs or large commercial machinery. Managing heat buildup without compromising overall performance or size remains a key engineering mission.

Advanced cooling systems and thermal-resistant materials can assist; however, they frequently add to design complexity and value requiring endured innovation to hold aggressive benefits.

• As per the World Trade Organization (WTO), 87% of global rare-earth production in 2023 was concentrated in a single country (China), raising concerns over geopolitical dependence and the risk of export restrictions impacting motor production.

• According to the German Engineering Federation (VDMA), 35% of PMSM developers face compatibility issues when integrating motors into cross-sectoral applications due to lack of uniform standards, slowing adoption in diverse markets.

•   
•   
  Request a Free sample to learn more about this report

    

PERMANENT MAGNET SYNCHRONOUS MOTOR (PMSM) MARKET REGIONAL INSIGHTS

• North America

North America holds a strong function within the PMSM market, pushed by using growing adoption in electric cars, HVAC systems, and business automation. The United States Permanent Magnet Synchronous Motor (PMSM) market is increasing rapidly because of rising call for high-performance cars in EV manufacturing, renewable energy systems, and smart manufacturing technologies.

• Europe

Europe’s PMSM marketplace is pushed by using strict power performance rules, increase in electric mobility, and giant adoption of automation in industries. Countries like Germany, France, and the U.K. Are investing heavily in EV infrastructure and green technologies, further boosting PMSM integration.

• Asia

Asia dominates the global PMSM market because of its sturdy production environment, high EV production volumes, and commercial growth. China, Japan, South Korea, and India are key members, supported through government incentives for electrification and increasing call for efficient motor answers in transportation, electronics, and automation sectors.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Key industry gamers are shaping the Permanent Magnet Synchronous Motor (PMSM) marketplace thru strategic innovation and targeted global growth. These agencies are introducing subsequent-generation motor technology with improved torque density, improved thermal management, and decreased uncommon earth material dependency.

• Siemens AG (Germany): According to company technical documentation, Siemens' PMSMs achieved up to 96.5% energy conversion efficiency in industrial applications in 2024, making them one of the top choices in high-performance manufacturing sectors across Europe.

• ABB Ltd (Switzerland): As per ABB’s official product release, its new SynRM-based PMSM range led to 25% reduction in motor noise levels and up to 50% lower heat generation in continuous operations—enabling safer and more compact installations in smart factories.

To meet varying application wishes—from car to commercial automation—they're broadening their product portfolios to include compact, excessive-overall performance, and power-green motor versions. Additionally, these players are leveraging digital engineering equipment, AI-driven simulation, and IoT-based totally overall performance tracking to enhance motor layout and put up-set up performance.

List Of Top Permanent Magnet Synchronous Motor (PMSM) Companies

• Siemens AG (Germany)
• ABB Ltd (Switzerland)
• Nidec Corporation (Japan)
• WEG S.A. (Brazil)
• Rockwell Automation, Inc. (U.S.)
• Yaskawa Electric Corporation (Japan)
• Mitsubishi Electric Corporation (Japan)

KEY INDUSTRY DEVELOPMENT

March 2023: Siemens AG brought its Simotics SD series—a excessive-efficiency line of Permanent Magnet Synchronous Motors (PMSMs) tailor-made for commercial automation marking one of the maximum great traits within the marketplace that yr. These vehicles are engineered to supply advanced energy overall performance, precise manage, and reliability across robotics, conveyor systems, and manufacturing gadget. Built with included digital functions, the Simotics SD models offer more advantageous diagnostics and compatibility with Siemens’ commercial automation ecosystem, enabling predictive maintenance and reduced downtime.

REPORT COVERAGE

The study offers detailed SWOT analysis and provides valuable insights into future developments within the market. It explores various factors driving market growth, examining a broad range of market segments and potential applications that may shape its trajectory in the coming years. The analysis considers both current trends and historical milestones to provide a comprehensive understanding of the market dynamics, highlighting potential growth areas.

The Permanent Magnet Synchronous Motor (PMSM) marketplace is poised for massive growth, driven via evolving client preferences, rising demand throughout automotive, commercial, and HVAC packages, and ongoing innovation in motor technology. As performance, compactness, and electricity conservation come to be crucial in subsequent-technology systems—specifically electric vehicles and automation—PMSMs are increasingly more being adopted for his or her advanced performance traits. Although challenges inclusive of restricted availability of uncommon earth substances and excessive manufacturing prices may additionally stand up, the market’s enlargement is supported with the aid of heightened hobby in superior, sustainable motor solutions and upgrades in energy electronics.