Servo Motors and Drives Market

Servo Motors and Drives Market Size

The global servo motors and drives market was estimated at USD 20.2 billion in 2024. The market is expected to grow from USD 21.7 billion in 2025 to USD 38.2 billion in 2034, at a CAGR of 6.5%. The growing integration of automation and robotics into industrial processes, coupled with increased investment in research and development, is expected to significantly strengthen the industry landscape.

There is a rising trend toward adopting cost-effective, energy-efficient alternatives to conventional productivity enhancing technologies. The new innovations, serving operations that require precision in speed and position control, are further deepening the growth opportunities for the industry.

Furthermore, the shift in industry dynamics will be favorable due to the enforcement of strict effectiveness policies and emission requirements. For instance, the European Union's new directive for restricting emissions from industrial and livestock production facilities is set to commence in August 2024. The directive falls under the purpose of the European Green Deal which seeks to achieve better health for the public, encourage innovation, and provide healthy competition within industries in the EU and beyond.

Trade tariffs instituted under the Trump administration had a great mark on the market of servo motors and drives with the increase in tariffs on Chinese goods, including industrial equipment with servo motors and drives, led to high costs to U.S. manufacturers and distributors. These developments escalated the prices of many imported goods, causing issues for both domestic producers and end-users. There was exploration for new supply routes and innovations in servo motor technologies, while the governments in the indulged regions began changing their policies to stimulate more competition in the market for advanced automation components.

Servo Motors and Drives Market Trends

The growing demand for motor control devices with enhanced efficiency ratings across various industrial activities will favor the industry dynamics. Moreover, the increasing inclination of process automation across large industrial infrastructures coupled with ongoing integration of Industrial Internet of Things (IIoT) to propel energy optimization and mitigate power consumption will further add to the industry growth.

For example, Siemens made enhancements to its servo motor and drive unit SINAMICS S210 in January 2024 which aim at compatibility, safety, and precision improvement. These enhancements permit the integration with DriveSim, simulation software for pre-hardware deployment. Additionally, the product provides the capability to develop a digital twin within the TIA Portal programming environment and contains a web server for easier commissioning, diagnostics, and maintenance.

The servo motors and drives industry is anticipated to grow due to the increased focus in using energy efficient devices in industrial processes to enhance productivity and speed up operations. Moreover, the new initiative aimed at increasing the expansion of manufacturing and processing industries in different regions is expected to further increase the product demand. For instance, World Bank’s May 2024 report highlights that the global manufacturing sector’s value surged over 18.4% from USD 13.57 trillion in 2020 to approximately USD 16.19 trillion in 2022.

Servo Motors and Drives Market Analysis

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• The global servo motors and drives industry was estimated to be USD 17.7 billion, USD 18.8 billion, and USD 20.2 billion in 2022, 2023, and 2024 accordingly. Based on the category the market is segmented into digital and analog.
  
• The digital servo motors and drives segment is projected to exceed USD 16.5 billion by 2034, driven by the shift towards more advanced systems with greater control features, high holding power, and superior customer control features. Enhanced spending on the construction of manufacturing facilities, growth in spending on industrial automation, and strong focus on the adoption of energy efficient technologies are likely to provide new opportunities across the digital servo motors and drives industry landscape.
  
• For instance, in July 2024, the Department of Commerce earmarked competitive dollars for the research and development for domestic semiconductor packaging and pledged up to USD 1.6 billion. The CHIPS for America Program will allocate around USD 150 million for direct investments with large support from the sponsor investments.
  
• The analog servo motors and drives industry is projected to expand at a significant pace rapidly backed by the growing implementation of devices with low carbon footprint along with stringent energy savings standards & norms targeting to minimize the carbon emissions from building infrastructures will add to the industry growth. Moreover, the escalating investments across the renovation & construction of new and existing residential, commercial, and industrial infrastructure will further drive industry development.
  

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• Based on the drive, the servo motors and drives market is bifurcated into AC drives and DC drives. The AC drive is set to lead the industry with a major market share of over 75.4% in 2024 while growing at a positive CAGR through 2034.
  
• The demand for AC drives has grown significantly with the automation of various industries, and with respect to the industry 4.0 trend. They are also driven by increasing automation in new areas like the transportation and commercial sectors, as well as other technological innovations.
  
• Moreover, the integration of AI and data analysis during exploration and production and the modernization of industrial facilities and the introduction of new automation and communication technologies are expected to sustain the continued expansion of the AC servo motors and drives industry.
  
• The DC drives segment of the servo motors and drives market is predicted to exceed the growth rate of 5.8% by 2034 due to their continuous requirement in demand in applications where precision control, high torque at low speeds, and low speeds are needed. These drives provide superior benefits in sectors like manufacturing, automotive, and robotics owing to the arguably most important factor which is the reliability, energy efficiency, speed control, and variable speed control offered by these industries. These drives are appreciated for their low maintenance and great value, which makes them favorable for both current and new systems in multiple industries.
  
• For instance, in June 2024, Mclennan introduced the MDX+ series servo drives, developed by Applied Motion Products Inc. These units are designed to integrate a brushless motor, drive stage, absolute encoder, and motion controller into a single compact system. Furthermore, the increasing emphasis on energy-efficient solutions and the ongoing adoption of automation and electric vehicles is contributing to the rising demand for DC servo drives.
  

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• The U.S. servo motors and drives market was valued at USD 3, 3.2, 3.4 billion in 2022, 2023 and 2024, respectively, supported by automation advances in industry automation, the surge in smart manufacturing, and the emergence of smart factories. Also, newly adopted policies funding private and federal R&D, AI and IoT implementation in industrial functions, and industry-friendly policies will further bolster the growth of the market.
  
• For example, in February 2024, new construction of manufacturing facilities is at USD 225 billion owing to recently passed bipartisan clean infrastructure bills as well as Democratic policy goals in clean energy and manufacturing policy. This projection also emphasizes the opportunity the U.S. market is providing in terms of value spreading throughout the servo motors and drives ecosystem, thus allowing stakeholders to capitalize on numerous benefits.
  
• The servo motors and drives market in Europe is expected to surpass USD 7.5 billion by 2034, due to the region’s emphasis on automating industries, energy conserving practices, and smart manufacturing. This growth is supported by an increase in the adoption of precision motion control systems in the automotive, electronics, food & beverage, and pharmaceutical industries.
  
• Moreover, the growing regulations requiring energy-efficient equipment and increasing funding towards Industry 4.0 projects are anticipated to substantially increase the need for advanced servo systems. The ongoing infrastructure development coupled with the emission reduction targets associated with the European Green Deal will further positively sway the regional industry dynamics.
  
• The Asia Pacific servo motors and drives market is projected to observe a growth rate of over 5.5% by 2034 on account of the increasing investments in the region's manufacturing and process industries as well as in research and development. The market growth will be supported by driving policies from emerging economies trying to stimulate digital transformation, alongside the earlier integration of modern technologies for performance monitoring in real time.
  
• The Middle East and Africa of servo motors and drives is projected to observe significant growth supported by several areas of development, such as increased infrastructure spending, growing requirements for energy-efficient solutions, and the further development of manufacturing, oil & gas, and water treatment industries.
  
• Moreover, the rise of smart manufacturing and the use of Industry 4.0 frameworks have opened new pathways for the use of new automation hardware. The major investments both from the private as well as the public sector aid in the construction and modernization of high-tech production and R&D centers which help in the development of the region's market.
  

Servo Motors and Drives Market Share

The top 5 manufacturers of servo motors and drives are Danfoss, Yaskawa Electric, ABB, KEB Automation, and Rockwell Automation collectively account for a market share of approximately 25%. They are also expanding their scope to include industrial automation and technology systems by forming strategic alliances and relationships with other essential industries and integrating complementary subsystems.

Industry leaders in the servo motors and drives industry are focusing on some critical areas to remain competitive and take advantage of new opportunities. Factors such as market leaders spending on research and development to improve performance, energy efficiency, and accuracy of the product are adding value to the industry. This also involves implementing new technologies like AI, machine learning, and IoT to create smart and adaptive self-tuning systems capable of adjusting to different operational conditions.

Servo Motors and Drives Market Companies

• KEB Automation offers a complete set of products aimed at improving performance, accuracy, and energy savings, ranging from industrial machinery to robotics and automation systems. KEB's servo drives and motors are reliable with flexible integration, modular design, high performance, and multitasking capability giving them the edge in hostile surroundings requiring exact motion control.
  
• Rockwell’s integration with the Logix control platform makes its servo solutions highly precise, scalable and enables smooth interfacing between peripherals and programs for coordination of functions within the systems. It allows manufacturers to optimize productivity, flexibility, and operational excellence. This provides opportunities for improving motion control and automation to strengthen their market position. The annual turnover of the company is USD 8.2 billion.
  
• Yaskawa Electric Corporation is a global leader in motion control and industrial automation with a varied range of AC servo motors and servo drives under its Sigma series, which are widely used in applications requiring precise motion control in robotics, packaging, semiconductor manufacturing, and machine tools. The company leverages its technological expertise to meet the growing demand for smart, responsive, and reliable motion systems.
  

Major players operating actively operating across the industry are:

• Allied Motion
• Advanced Motion Controls
• ABB
• Bosch Rexroth
• Baumueller
• Delta Electronics
• Danfoss
• Fuji Electric
• Hitachi
• Ingenia Cat
• KEB Automation
• Kollmorgen
• Mitsubishi Electric
• Nidec
• Panasonic
• Rockwell Automation
• Siemens
• Schneider Electric
• Yaskawa Electric
  

Servo Motors and Drives Industry News

• In March 2025, Nidec Instruments added S-FLAG DYNAMIC MOTION MB Series AC servo motors to their catalog, adding to previously released S-FLAG models. These S-FLAG models were a refinement of their proprietary AC servo motors meant for transfer robots. Later, these motors were adapted for general-purpose industrial equipment.
  
• In January 2025, Yaskawa Electric Corporation expanded its Σ-X (Sigma-10) series of AC servo drives, showcasing their focus on motion control and industrial safety technology. The product features an addition of the Advanced Safety Modules (ASM-X), which are attached directly to the adjacent of the SERVOPACK along with a new line of servo motors with integrated functional safety.
  
• In June 2024, Panasonic unveiled India's maiden servo system equipped with the AI solutions called MINAS A7, designed to slash human operational involvement by as much as 90%. Designed to deliver top-tier motion performance and automatic tuning capabilities that surpass even expert-level manual adjustments, the MINAS A7 set a new benchmark in industrial automation. Additionally, it also launched the MINAS A6SC and MINAS CZ1 Global series servo motors.
  
• In March 2024, Kollmorgen added additional communication protocols to the existing ones in their AKD2G servo drive. The latest version added support for Ethernet/IP and PROFINET IRT with CIP Sync, augmenting its compatibility beyond the previously available protocols. This development improves the precision in motion synchronization across several drives and various control system configurations.
  

This servo motors and drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2021 to 2034 for the following segments:

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Market, By Category

• Digital
• Analog

Market, By Drive

• AC drive
• DC drive

Market, By Application

• Oil and gas
• Metal cutting & forming
• Material handling equipment
• Packaging and labeling machinery
• Robotics
• Medical robotics
• Rubber & plastics machinery
• Warehousing
• Automation
• Extreme environment applications
• Semiconductor machinery
• AGV
• Electronics
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Norway
  • Sweden
  • Denmark
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Thailand
  • Malaysia
  • Philippines
  • Indonesia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Nigeria
  • Egypt
  • Algeria
• Latin America
  • Brazil
  • Argentina
  • Chile