Procurement Market Intelligence Report
Electric AC Motors
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Electric AC Motors Global Overview
Definition
Summary
Electric alternating current (AC) motors are widely used in heating and cooling systems, automobiles, pumps, fans, conveyors and machine tools. The primary suppliers of electric AC motors are manufacturers and wholesalers. Key buyers include electrical equipment wholesalers, machinery manufacturers and heavy industrial construction companies.
This Report Includes:
- Electric AC Motors for Automobiles
- Electric AC Motors for Industrial Machines
Not in this Report:
- Electric Direct Current (DC) Motors
- Generators
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Global Electric AC Motors Procurement Trends
Discover the top international trends affecting procurement in the global Electric AC Motors market.
Warning Trends
Increased tariffs on copper imports take effect
- On August 1, the Trump administration implemented 50.0% tariffs on imported copper. Chile and Canada will be most impacted by these tariffs, as they account for a combined 87.0% of all copper imports in the United States.
- However, these tariffs are less sweeping than initially expected, only applying to semi-finished copper products, while excluding high-purity refined copper and copper input materials, such as ore and concentrate. As leading importers, such as Chile and Canada, have both high copper mining and refining capacities, they will likely avoid most of these tariffs by either exporting the copper in its unrefined form or refining the copper before exporting it to the United States
- These copper tariff exemptions limit the impact on the electronics and electrical equipment sectors because these applications require refined copper due to its optimal conductive properties.
- Thus, the prices of metal alloys that include copper, consumer products made from copper, tools, plumbing, corrosion-resistant alloys, and construction materials made from copper are forecast to rise by an average of 39.2%, according to the Yale Budget Lab.
Tariffs may drive up prices and lead times for electrical equipment
- The Trump administration’s reciprocal tariffs, which raise the tariffs on all goods imported from most other countries, are set to take effect on August 7 after the rates were finalized on August 1. The US power generation and distribution sector is highly reliant on imports, with electrical equipment imports accounting for an estimated 56.7% of total annual domestic supply.
- Due to the complexity of most power generation and distribution machinery, most components or raw materials included in these products originate outside the United States, even if the finished machinery is assembled domestically.
- As a result, the Yale Budget Lab currently estimates that the upcoming tariffs will cause electrical equipment prices to increase by 26.6% on average.
- Further, tariffs present complications for the long, often multinational production cycles common for more complex electrical equipment manufacturing, leading American Electric Power and other leaders in the energy sector to warn of shortages and increased lead times for electric equipment.
United States announces new tariffs on all imported steel
- In February 2025, the United States announced 25.0% tariffs on all imported steel with no exemptions or exceptions. The tariffs took effect on March 12, 2025. On June 4th, these tariffs were increased further to 50%. These tariffs were not impacted by a recent court decision that temporarily suspended duties on certain goods as they were implemented under Section 232 of the Trade Expansion Act.
- Previously, countries such as Canada, Mexico, and Brazil, the top exporters of steel to the United States, had exemptions from tariffs. These have now been removed and all imported steel, regardless of origin, will be subject to the 50.0% tariff. However, on May 8th, the US announced an agreement with the United Kingdom to remove all levies on steel exported from the UK.
- When tariffs on steel imports were introduced in March 2018, they contributed to an increase in the price of steel and steel products. According to the Bureau of Labor Statistics, the price of steel-milled products increased by 10.2% in the year after the tariffs were implemented. This market heavily relies on steel as an input and may be impacted by this policy.
Global Electric AC Motors Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 4,755 |
| #2 Europe | 3,910 |
| #3 India | 2,205 |
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Geography Drilldown - US
Average Cost of Electric AC Motors
United States
2026 Market Pricing$145.00 to $XX,XXX.XX
per AC motorAverage Price
Prices in the Electric AC Motors market range from $145.00 to $XX,XXX.XX, depending on Horse Power (HP), Energy Efficiency, Features and Material. For example, lower prices are associated with Less than 1 HP ($145 to $900 per AC motor) and 1 to 3 HP ($145 to $1,500 per AC motor), whereas higher prices are associated with 4 to 10 HP ($350 to $3,000 per AC motor) and More than 10 HP ($900 to $40,000 per AC motor).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Electric AC Motors Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Electric AC Motors market, prices in the US have grown 2.8% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Electric AC Motors
Total cost of ownership is Medium in the Electric AC Motors market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Installation
Other Fees
Billed During
Maintenance
Unforeseen
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -3.1 in the United States. Buyer power is most positively impacted by Price Driver Volatility. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Iron & Steel Manufacturers
- Copper Rollers, Drawers & Extruders
- Aluminum Manufacturers
2nd
Tier Suppliers
- Iron Ore Miners
- Copper, Zinc & Lead Refiners
- Coal & Natural Gas Power Companies
Biggest Electric AC Motors Suppliers in the US by Revenue
The largest Electric AC Motors vendors by revenue in the US are SEW-Eurodrive GmbH & Co KG, Eaton Corporation Plc and Weg Sa. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Abb Ltd | Global | Zurich | >10,000 | 10-15 | ||||
| GE Vernova Inc | Global | CAMBRIDGE | >10,000 | 5-10 | ||||
| Eaton Corporation Plc | Global | DUBLIN | >10,000 | 5-10 | ||||
| Siemens Ag | Global | Munich , DE | >10,001 | < 5 | ||||
| TAMPA ELECTRIC CO. | Global | Taipei, TW | 1,001-10,000 | < 5 | ||||
| Weg Sa | Global | Jaraguá do Sul, BR | >10,001 | < 5 | ||||
| Rockwell Automation Inc. | Global | MILWAUKEE, WI | >10,000 | < 5 | ||||
| Regal Rexnord Corp | Global | MILWAUKEE, WI | >10,000 | < 5 | ||||
| SEW-Eurodrive GmbH & Co KG | International | Bruchsal, DE | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Electric AC Motors market is 5.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Vendor risk is moderate in the electric AC motors market. Vendors face low competition from substitutes, but high competition from other AC motor suppliers.
Market share concentration is low in the electric AC motors market. There are many vendors selling similar motors and price is a major point of competition.
The electric AC motors market has a high level of supply chain risk. Price volatility for inputs like steel and aluminum is high, and increased tariffs have heightened uncertainty around prices and supply in these upstream markets.
The US is a net importer of multi-phase electric AC motors, providing increased competitive pricing pressure for domestic suppliers and increased sourcing options for buyers.
Supplier Information
Abb Ltd
ABB Ltd. is a global technology company that offers comprehensive electrification, robotics, automation, and motion solutions, primarily serving the distribution utilities, renewables, and transport & infrastructure markets. It organizes its business into four segments: the Electrification segment, which Subscribe to learn more
Eaton Corporation Plc
Eaton Corporation Plc is a public company operating globally in the manufacturing sector. The company's offerings include electric vehicle charging station construction & maintenance, electric vehicle charging stations, electric ac motors, electric dc motors, hydraulic motors. Founded in 2018, the company... Subscribe to learn more
GE Vernova Inc
GE Vernova Inc. is a global electric power company offering products and services that generate, transfer, orchestrate, convert, and store electricity. It organizes its business into three segments: the Power segment, which designs, manufactures, and services gas, nuclear, hydro, and steam technologies; the... Subscribe to learn more
Johnson Electric Holdings Ltd.
Johnson Electric Holdings Ltd. is a public company operating globally in the manufacturing sector. The company's offerings include electric ac motors, electric dc motors and power supply units. Founded in 2013, the company is currently headquartered in Hong Kong, China with an estimated employee count of Subscribe to learn more
Regal Rexnord Corp
Regal Rexnord Corp. is a global manufacturer of airflow, motion control, power transmission, and power generation solutions for commercial, industrial, and residential applications. It organizes its business into three segments: the Automation & Motion Control segment, which designs, produces, and services... Subscribe to learn more
Rockwell Automation Inc.
Rockwell Automation Inc. is a public company operating globally in the manufacturing, professional, scientific and technical services and other services (except public administration) sectors. The company's offerings include circular saws, machine shop services, electric ac motors, electric dc motors, power... Subscribe to learn more
SEW-Eurodrive GmbH & Co KG
SEW-Eurodrive GmbH & Co KG is a private company operating internationally in the manufacturing sector. The company's offerings include electric ac motors and electric dc motors. Founded in 1931, the company is currently headquartered in Bruchsal, Baden-Wurttemberg, Germany with an estimated 16500 employees.... Subscribe to learn more
Siemens Ag
Siemens Ag is a public company operating globally in the manufacturing, information, real estate & rental & leasing, professional, scientific & technical services, administration, business support and waste management services and other services (except public administration) sectors. The company's offerings... Subscribe to learn more
TAMPA ELECTRIC CO.
TAMPA ELECTRIC CO. is a public company operating globally in the manufacturing sector. The company's offerings include electric ac motors and electric dc motors. Founded in 1899, the company is currently headquartered in Taipei, Taipei, Taiwan with an estimated 5500 employees. Subscribe to learn more
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Procurement Management KPIs for the Electric AC Motors Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Satisfaction (CSAT) and Defect Density. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Satisfaction (CSAT) |
|
Number of positive customer responses Number of customer responses |
Customer satisfaction represents customers’ overall satisfaction with a company. Customer satisfaction can be used to determine whether improvements to customer service are required. Customer satisfaction can be used to evaluate a company’s reputation. |
| Defect Density |
|
Number of units sold Number of defective units |
The defect density represents the share of defective products a company produces. The defect density can be used to determine whether manufacturing, assembly or quality assurance processes require improvement. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Service
What sort of tracking system is used for customer queries?
Can you explain the processes in place to handle changes in the order?
Distribution
Where are your manufacturing facilities located? What about your warehouses?
What are the different capabilities of each facility? What types of AC motors does each location offer?
Cost Containment
Do you source your materials from multiple suppliers or a single supplier? How does this affect costs?
How do you minimize administrative and other costs?
The ultimate prep for procurement negotations
View all 31 negotiation questions for this category when you subscribe.
Electric AC Motors RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their operations (commercial, industrial, municipal, etc.), to help vendors understand their voltage requirements.
Buyers should provide a detailed description of their operational structure, including to whom vendors will report.
Statement Of Need
Buyers should list the type and number of AC motors they require
Buyers should provide a description of major project sites, and plans for future project sites and energy needs, if applicable.
Project Budget
Buyers should explicitly state the amount for the award.
Buyers should explain the schedule with which payments will be made.
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Our Reports include:
- Opportunity assessment
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- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
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- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
