Procurement Market Intelligence Report

Electric AC Motors
Sourcing Guide & Market Intelligence

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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

Global Electric AC Motors Procurement Trends

Discover the top international trends affecting procurement in the global Electric AC Motors market.

Warning Trends

Tariffs may drive up prices and lead times for electrical equipment

  • On April 9, the Trump Administration paused the implementation of country-specific tariffs and replaced them with 10.0% blanket tariffs on all imports. Additionally, the administration hiked tariff rates against Chinese imports to 145.0%.
  • The US power generation and distribution sector is highly reliant on imports, with imports of electrical equipment accounting for an estimated 56.7% of annual domestic consumption.
  • 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.
  • Due to this reliance on imports, the Yale Budget Lab currently estimates that tariffs will increase electrical equipment prices will increase by 4.2% on average.
  • Further, tariffs present complications for the long, often multinational production cycles common for more complex electrical equipment, leading American Electric Power and other energy sector leaders to warn of shortages and increased lead times for electric equipment.

Canada and Mexico tariffs to negatively impact the vehicles and transportation sector

  • On March 4, 2025, the United States imposed a 25.0% tariff on goods imported from Mexico and Canada, which applies in addition to other duties or fees that are in place. President Trump announced a 25.0% tariff on all cars and light-duty trucks imported into the United States from any country in April 2025.
  • As of April 3, 2025, US automakers compliant with the United States-Mexico-Canada Agreement (USMCA) will continue to be exempt from Canada-Mexico tariffs.
  • According to the United States International Trade Commission, Mexico and Canada account for 47.4% of motor vehicle imports to the United States, and 54.1% of motor vehicles bodies and parts. According to Anderson Economic Group (AEG), a Michigan-based economic consultancy, the broad-based 25.0% tariff could raise new car prices by $1,000 to $4,000, and up to $10,000 if manufacturers are unable to mitigate the tariff’s impact.
  • Around half of the vehicles and light trucks exported by Mexico to the United States were manufactured by the largest three Detroit-based automakers (GM, Ford, and Stellantis). Other automakers to be impacted include Honda Motor, which sells 80.0% of its Mexican output in the United States, BMW, where nearly all Mexican output is exported to the United States, and Volkswagen, which exported nearly 350,000 cars to the United States that were manufactured in Mexico.
  • According to Telemetry Insights, many auto parts suppliers will be unable to absorb the tariffs or make adjustments to mitigate the tariff impact (e.g., relocating their facilities or splitting efforts across three countries). With the introduction of 25.0% steel and aluminum tariffs for Mexican and Canadian imports, and the interconnected nature of vehicle/automotive supply chains (components may cross the US-Canada and US-Mexico borders up to eight times before final assembly), tariff-related costs could drive up production costs further.

Tariffs on Chinese imports to impact vehicles and auto parts

  • In February 2025, the Trump Administration imposed an additional 10.0% tariff on all imports from China with no exemptions or exceptions, and in March 2025, the tariff was doubled to 20.0%. In addition, the de minimis shipping exemption for imports under $800 was suspended, exposing these imports to all applicable tariffs; however, the repeal is paused currently until procedures and systems are properly in place.
  • According to GlobalData, China-made vehicles represented 0.6% of new vehicle sales in 2024, indicating the impact of additional tariffs will be minimal. However, US auto parts imports from China are estimated to be $15.0 to $20.0 billion annually, according to the US International Trade Commission, indicating a larger impact on the vehicle and parts supply chain.
  • While the impact of tariffs on China imports is still being evaluated by US companies in the vehicles and parts industry, companies reliant on parts from China will face higher costs, which could be passed on to buyers. The United States is China’s largest export market for auto components, and these parts (including but not limited to wheels, windshield wipers, air bags, air filters, catalytic converters, mufflers, radiators, brake systems, steering and suspension components, and electric and electronic equipment for vehicles, etc.) included are integrated into global supply chains.
  • In retaliation, China imposed an additional 10.0% tariff on imports of vehicles and pickup trucks from the United States in February 2025. While US manufacturer exports to China in vehicles are minimal, some companies, like General Motors and Ford, with operations in China may be negatively affected by the increased cost of their products.
  • The imposition of retaliatory tariffs by China is expected to lead to a further escalation in tariff rates after the Trump Administration implemented a new 25.0% vehicle, light truck, and auto part tariff in April 2025.

Global Electric AC Motors Market - Suppliers by Region

Country/RegionNumber of Suppliers
#1China4,755
#2Europe3,910
#3India2,205

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

Geography Drilldown - US

Average Cost of Electric AC Motors

United States
2025 Market Pricing
$145.00 to $XX,XXX.XX
per AC motor

Average 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).

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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 declined -1.1% 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)

-1.1%

Compound Annual Growth Rate
United States (2025-2028)
Compound Annual Growth Rate
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Wondering where prices are heading?

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

Installation costs are low or moderate for standardized AC motors. Installation is more expensive for customized AC motors or when the machine that houses the motor is difficult to access.

Other Fees

Buyers may need to pay restocking fees for motors returned in cases where products were not defective.

Billed During

Maintenance

AC motors require regular maintenance to prolong their useful life and prevent breakdowns. Buyers can mitigate maintenance costs if a vendor offers a warranty that includes maintenance and service.

Unforeseen

Delays

Failing AC motors can disrupt the operation of machines and automobiles, which can cause delays in a buyer's delivery or service operations.

Buyer Power in Procurement Negotiations

In 2025, buyer power amounts to -1.8 in the United States. Buyer power is most positively impacted by Recent Price 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
-1.8

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

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Supply Chain Risk

The average level of supply chain risk is assessed as Medium, 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, GE Vernova Inc and Eaton Corporation Plc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

SupplierOperational SizeHeadquartersNumber of EmployeesMarket Share (%)Market Share Performance (3yr trend)Total Revenue ($ million)Profit Level (%)Risk Level
Abb LtdGlobalZurich>10,00010-15
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Eaton Corporation PlcGlobalDUBLIN>10,0005-10
GE Vernova IncGlobalCAMBRIDGE>10,0005-10
Siemens AgGlobalMunich , DE>10,001< 5
TAMPA ELECTRIC CO. GlobalTaipei, TW1,001-10,000< 5
Weg SaGlobalJaraguá do Sul, BR>10,001< 5
Rockwell Automation Inc.GlobalMILWAUKEE, WI>10,000< 5
Regal Rexnord CorpGlobalMILWAUKEE, WI>10,000< 5
Johnson Electric Holdings Ltd.GlobalHong Kong, CN>10,001< 5

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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 Wages. The cost trend for this component is rising, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 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 moderate level of supply chain risk. Price volatility for inputs like steel and aluminum is high, but AC motor vendors absorb most of the associated costs to remain competitive on price.

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

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

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

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

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 public company operating globally in the manufacturing sector. The company's offerings include electric ac motors, electric dc motors, power supply units and surge suppressors. Founded in 1955, the company is currently headquartered in BELOIT, Wisconsin, United States of America with... 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

Weg Sa

Weg Sa is a public company operating globally in the manufacturing sector. The company's offerings include electric ac motors, electric dc motors and surge suppressors. Founded in 2005, the company is currently headquartered in Jaraguá do Sul, Brazil with an estimated employee count of over 10,000. 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.

KPILevel of Importance (1-5)MeasurementsKey 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?

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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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