Australia Electric Motor Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Key Market Trends and Insights:

• The electric motor industry in Australian Capital Territory is projected to grow at a CAGR of 5.2% over the forecast period.
• The Western Australia electric motor market accounted for 16.2% of the total market share in 2024.
• By motor type, the DC category is expected to record 5.5% CAGR during the forecast period.
• By voltage, the category between 1 kV- 6 kV is expected to register a CAGR of 5.7% over the forecast period.

Market Size and Forecast:

• Market Size in 2024: AUD 4.80 billion
• Projected Market Size in 2034: AUD 7.53 billion
• CAGR from 2025 to 2034: 4.60%
• Dominant Regional Market: Western Australia

One of the strongest trends driving the market is the country’s accelerating renewable energy transition. The government’s Powering Australia Plan, launched in May 2024, earmarked AUD 20 billion for modernizing electricity grids, scheduled to be disbursed over four years, and electric motors form a critical pillar of wind and solar integration. According to the Australia electric motor market analysis, the nation will need to accelerate its renewable generation to reach 229TWh by 2035, with high-efficiency motors supporting grid stability and industrial electrification. This link between sustainability targets and motor adoption highlights how policy is directly shaping commercial opportunities for manufacturers and suppliers.

At the industrial scale, the market is also gaining traction from Australia’s AUD 15 billion National Reconstruction Fund, which prioritizes clean energy and advanced manufacturing projects. Demand in the Australia electric motor market is surging across mining automation and EV assembly, sectors that both depend on robust, energy-efficient motors. The Clean Energy Regulator further reported considerable rise in renewable project investments in 2024, reinforcing how large-scale infrastructure expansion is accelerating demand for heavy-duty AC and hermetic motors.

Recent Developments

August 2025

The first significant field test of the Chinese-built electric dual-cab truck, the JAC T9 EV, began in Australia. The trial will subject the UTE to some of the country's toughest conditions, particularly within the mining sector. Mining trials of the JAC T9 EV highlight demand for durable, high-torque electric motors suited to Australia’s harsh industrial environments.

July 2025

Mitsubishi announced plans to introduce its first mass-market electric vehicle (EV) in Australia, local engineers are already significantly influencing how the vehicle will operate on Australian roads. Local engineering input into Mitsubishi’s EV reflects rising need for motors optimized for the nation’s driving conditions and infrastructure, boosting the Australia electric motor market opportunities.

July 2025

Two new electric cars were introduced locally by MG Motor under the new premium sub-brand, IM. Reservations for the new vehicles, the IM5 car and IM6 SUV, were open in Australia. MG’s premium IM models expand motor demand across higher-end EV segments, signaling growth in advanced traction technologies.

June 2025

One of Australia's fastest-growing automakers, BYD, announced that it will be introducing a new electric vehicle later in 2025, which might end up becoming the country's most reasonably priced electric SUV. BYD’s upcoming low-cost SUV underscores Australia electric motor market expansion for mass-produced traction motors supporting mainstream adoption of EVs.

Key Drivers and Trends

Renewable Energy Integration Accelerates Electric Motor Adoption

Australia’s renewable energy shift has been swift, and electric motors are playing a decisive role in enabling this transition. Motors are being embedded in turbines, solar trackers, and grid storage systems. The Australian Renewable Energy Agency (ARENA) reported in 2024 that solar accounted for nearly 28.5% of renewable energy generation. As hybrid renewable farms expand in states like Queensland and Victoria, motor demand for both power conversion and cooling infrastructure has surged, propelling the Australia electric motor market opportunities. Equipment suppliers are increasingly aligning with green standards, building higher efficiency AC motors that meet IE4 and IE5 international efficiency classes, giving them a competitive edge.

EV and Charging Infrastructure Expands Motor Demand

Australia’s EV sales boom is no longer confined to urban commuter cars. Electric buses and commercial fleets are gaining traction under state-led programs like NSW’s Electric Bus Transition Project, targeting 8,000 electric buses by 2047. Motors are central to this buildout, and traction motor suppliers are scaling rapidly to support both lightweight EVs and heavy-duty applications, broadening the Australia electric motor market scope. Industry reports suggest that there were over 180,000 EVs on the road. The charging network, supported by the Driving the Nation Fund with an AUD 500 million allocation, further stimulates demand for auxiliary motors in charging stations, thermal systems, and grid storage solutions.

Mining Sector Electrification Reshapes Heavy-Duty Motor Demand

Mining is one of the major strengths of Australia’s economy, accounting for over 13% of GDP, and the sector is rapidly undergoing electrification. Companies like BHP and Rio Tinto are piloting electric haul trucks and autonomous mining systems, each heavily dependent on high-torque electric motors. According to the Australia electric motor market analysis, mining-related emissions could be reduced by 30% through electrified machinery by 2030. Heavy-duty AC and DC motors are becoming indispensable across conveyor belts, crushers, and drilling equipment. With the government’s net-zero mining initiatives, suppliers of ruggedized motors are finding a lucrative market embedded within Australia’s resource corridors.

Manufacturing Modernization Supports Energy-Efficient Motor Uptake

Australia’s manufacturing sector, previously challenged by global competition, is undergoing renewal through automation and clean technology adoption. Programs under the National Reconstruction Fund earmark significant funds to improve advanced manufacturing capabilities, with a clear emphasis on energy efficiency. Motors certified under Minimum Energy Performance Standards (MEPS) are being rapidly adopted, particularly in food processing and packaging industries. Automation lines with precision DC motors are expanding, propelling the Australia electric motor market opportunities with localization. The emphasis on lowering operational costs while meeting green mandates ensures that demand for innovative, low-loss electric motors will only strengthen in coming years.

Government-Backed Hydrogen Projects Drive Niche Motor Applications

Australia is positioning itself as a hydrogen export hub, and electric motors are integral to this strategy. Hydrogen electrolysis plants require high-efficiency motors for compressors, pumps, and gas transport. The Hydrogen Headstart Program, with AU 2 billion in funding, launched in May 2024 is expected to accelerate large-scale hydrogen projects in Western Australia and Queensland. These facilities are becoming new verticals for motor manufacturers, particularly those offering hermetic and explosion-proof models, further reshaping the Australia electric motor market trends. The push toward hydrogen complements renewables and EVs, diversifying motor applications into chemical processing, gas compression, and large-scale energy storage. For suppliers, this represents a niche but rapidly scaling demand frontier

Australia Electric Motor Market Share

By motor type, AC motors capture the largest share of the market due to grid integration demand

AC motors command the biggest market share because of their wide deployment across renewable energy, HVAC, and industrial processes. These motors are fundamental to wind turbine generators, large-scale compressors, and manufacturing automation. Their robustness and efficiency make them the default choice for heavy-duty applications. Government-backed renewable projects, particularly those in Victoria and South Australia, have accelerated demand for grid-compatible AC motors. Additionally, AC motors have become central to EV charging stations and water utilities infrastructure, where continuous-duty operations are required.

DC motors are gaining momentum in the Australia electric motor market as the country’s EV penetration continues its sharp growth. These motors are vital in electric drivetrains, robotics, and precision industrial automation where variable speed control is essential. The doubling of EV registrations between 2022 and 2023 highlights how transport electrification is fueling DC demand. Moreover, advanced manufacturing sectors are adopting servo and stepper DC motors to improve production efficiency.

By voltage, less than 1 kV motors secure the largest share due to industrial versatility

Motors operating at less than 1 kV are widely used across Australia’s small to medium-scale industrial, commercial, and residential applications. These include HVAC systems, appliances, water pumps, and light manufacturing. Their affordability and adaptability make them a mainstay in industries transitioning toward energy-efficient machinery. Government-led incentives for small businesses to adopt energy-efficient systems have further increased adoption. With Minimum Energy Performance Standards (MEPS) compliance becoming mandatory, sub-1 kV motors are increasingly replacing older inefficient systems, accelerating the Australia electric motor market revenue.

Motors in the 1 kV to 6 kV range are finding robust demand from renewable energy and mining infrastructure. They are critical in operating compressors, conveyor systems, and heavy-duty pumps. As large-scale renewable projects expand, particularly in Queensland and Western Australia, demand for medium-voltage motors has accelerated. Hydrogen production plants and grid-scale storage systems also rely heavily on motors within this voltage band. The rapid electrification of mining operations, transitioning to electrically powered haul trucks and drilling systems, further strengthens this category’s growth in the Australia electric motor market.

Industrial applications hold the largest share of the market due to automation investments

Industrial applications largely contribute to the market growth as factories, mining operations, and energy utilities rapidly modernize operations with high-efficiency motor systems. Electric motors power conveyor belts, pumps, compressors, and automated machinery across production facilities. The push for automation is not just cost-driven but it is also tied to sustainability targets, with energy-efficient motors becoming a central enabler. Industrial clusters in mining-heavy states like Western Australia are leading adoption due to electrification of haul trucks, processing equipment, and ventilation systems.

The automotive sector represents the fastest-growing application, boosting the Australia electric motor market value, as electric mobility expands across passenger cars, buses, and commercial fleets. Electric motors are at the heart of traction systems, with DC and permanent magnet motors gaining traction due to efficiency and torque delivery. Federal and state programs supporting EV adoption and charging infrastructure are propelling market growth. Additionally, public transit electrification initiatives are increasing motor demand for electric buses and trams, creating opportunities for suppliers across both drivetrain and auxiliary systems.

Australia Electric Motor Market Regional Analysis

Western Australia dominates the market share due to mining electrification initiatives

Western Australia leads the market due to its strong mining and resource-driven economy. Mining companies are electrifying equipment fleets, replacing diesel-powered machinery with electric alternatives to meet sustainability mandates. Motors are increasingly used in crushers, conveyors, and heavy-duty drilling rigs. The state’s focus on decarbonization of mining operations creates strong demand for heavy-duty AC and medium-voltage motors. Apart from mining, Western Australia is also home to large-scale renewable projects and hydrogen initiatives, both of which rely heavily on electric motor systems for compressors and turbines.

The electric motor market in Australian Capital Territory (ACT) is witnessing the fastest growth, driven by its progressive clean energy policies and electrification strategies. The territory already achieved 100% renewable electricity in 2020, creating a strong ecosystem for energy-efficient technologies. Electric motors are central to its public infrastructure upgrades, including electric bus rollouts, building electrification, and renewable integration. The ACT government’s aggressive stance on phasing out gas-powered systems has further expanded demand for motors in HVAC, water utilities, and transport electrification.

Competitive Landscape

Most of the Australia electric motor market players are focusing on developing high-efficiency motors that meet Minimum Energy Performance Standards (MEPS), while also designing ruggedized solutions tailored for mining and renewable projects. Opportunities lie in the surge of EV adoption, the electrification of mining fleets, and Australia’s hydrogen economy push.

Australia electric motor companies that can integrate motors into digitalized systems with predictive maintenance capabilities stand to gain market edge. Suppliers are also exploring localized manufacturing to avoid global supply chain disruptions and align with the National Reconstruction Fund, which incentivizes domestic production. The future competitiveness is expected to hinge on the ability to offer motors that combine high efficiency with application-specific resilience, particularly in renewable energy, hydrogen compression, and mining automation.

Key Players

ABB Ltd.

ABB Ltd., established in 1988 and headquartered in Zurich, Switzerland, has cemented its presence in the Australian market through high-efficiency AC and medium-voltage motors. The company emphasizes motors integrated with digital monitoring and predictive analytics, making them highly relevant for mining and renewable energy applications.

Siemens AG

Siemens AG, founded in 1847 and based in Munich, Germany, is a major player in automation and electrification. Siemens provides smart motor solutions that integrate seamlessly into Industry 4.0 systems, enabling predictive diagnostics and operational efficiency. In Australia, Siemens motors are widely deployed across manufacturing, infrastructure, and renewable projects.

Robert Bosch GmbH

Robert Bosch GmbH, founded in 1886 and headquartered in Germany, leverages its strong automotive heritage to supply high-performance electric motors for Australia’s growing EV ecosystem. Bosch has partnered with local vehicle assemblers and bus electrification projects, offering compact, lightweight traction motors that boost energy efficiency.

TECO-Westinghouse

TECO-Westinghouse, established in 1997 and headquartered in Taiwan, is a leading provider of large industrial motors. In Australia, it focuses on serving the mining and energy sectors, offering ruggedized motors designed for harsh operational conditions. TECO-Westinghouse has introduced high-torque AC and synchronous motors tailored for conveyor systems and heavy-duty processing plants.

Other key players in the market are Regal Rexnord Corporation, Toshiba Corp., Weg SA, Johnson Electric Holdings Limited, and Nidec Corporation, among others.

Key Highlights of the Australia Electric Motor Market Report:

• Breakthroughs in high-efficiency IE5 motors and digitalized predictive maintenance solutions for mining and renewable plants.
• Comprehensive profiling of global players and niche Australian manufacturers competing in advanced markets.
• Regional intelligence capturing mining corridors, EV hubs, and hydrogen project hotspots across states.
• Forward-looking investment lens showcasing opportunities in electrified fleets, automation, and next-generation hydrogen compression applications.

Why Rely on Expert Market Research?

• Decades of sector-specific expertise across clean energy, automotive, and industrial automation landscapes.
• Tailor-made advisory delivering actionable strategies aligned with Australia’s electrification roadmap.
• Methodology enriched by direct engagement with policymakers, industry executives, and technology innovators.
• Decision-ready intelligence strengthened by scenario planning and dynamic forecasting tools beyond static models.

Call to Action

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