The North America AC Electric Motor Sales in Oil & Gas Market was valued at USD 3,450 Million in 2025 and is expected to reach USD 6,810 Million by 2035, growing at a CAGR of 6.9% from 2024 to 2035. The market growth is driven by increasing investments in oil & gas exploration and the transition towards energy-efficient motor technologies. Technological advancements and modernization of oilfield operations are also providing a boost to the demand for AC electric motors across the region.
The economic impact of tariffs on "North America AC Electric Motor Sales in Oil & Gas Market".
Market Growth Drivers
Rising Focus on Energy Efficiency and Emissions Reduction: With regulatory bodies such as the U.S. Environmental Protection Agency (EPA) enforcing stringent emissions standards, oil & gas operators are prioritizing energy-efficient equipment. This has led to a higher adoption of premium efficiency AC electric motors, such as those provided by Siemens Energy, to reduce energy consumption, operational costs, and carbon footprint.
Growth in Unconventional Oil & Gas Exploration: The continued increase in shale oil extraction, especially in regions like the Permian Basin, requires robust and reliable AC electric motors for various upstream and midstream processes. Companies like GE Vernova have seen increasing orders from these sectors, attributing this growth to the rising demand for continuous motor-driven operations.
Market Trends
Integration of Digital Technologies and Smart Motors: The adoption of IoT-enabled electric motors is accelerating, offering real-time monitoring and predictive maintenance functionalities. ABB recently launched a range of smart AC motors compatible with digital asset management platforms, enabling oil & gas companies to optimize maintenance schedules and reduce unplanned downtime.
Expansion of Electrification Initiatives in Oil & Gas: Major oil & gas operators are expanding electrification of drilling and production sites to reduce reliance on traditional fossil-fuel-powered machinery. Schneider Electric has partnered with several North American upstream firms to provide grid-connected electric solutions, significantly boosting demand for large-capacity AC electric motors.
Market Opportunities
Retrofit and Replacement of Legacy Equipment: Many oil & gas facilities in North America still operate with aging motor systems. This presents a strong opportunity for market players to offer retrofit solutions and modern, energy-efficient AC motors, as seen with Toshiba International Corporation's recent service contracts.
Growth in Canadian Oil Sands Electrification: The push for lower-emissions operations in Canada’s oil sands is creating opportunities for AC electric motor suppliers to deploy high-performance motors in upgrading and processing plants, supported by governmental incentives.
North America AC Electric Motor Sales in Oil & Gas Market Revenue (USD Million), 2020-2035
The chart illustrates steady growth in market revenue from 2020 through 2035, with the market nearly doubling over this period. Fuelled by technological advancements, regulatory focus on energy efficiency, and the gradual electrification of oil & gas operations, revenue rises from USD 2,210 Million in 2020 to USD 6,810 Million in 2035. Notably, the period between 2025 and 2030 shows accelerated growth, reflecting significant investments in modernizing legacy infrastructure and the rising importance of shale oil extraction, with great contributions from the U.S. and Canadian regions.
North America AC Electric Motor Sales in Oil & Gas Market by Region Share (%) 2025
The 2025 pie chart reveals that the United States accounts for the majority (68%) of the North America AC electric motor sales in the oil & gas sector, given extensive oil & gas operations in Texas and the Gulf Coast. Canada follows with a substantial 22%, supported by ongoing investments in Alberta’s oil sands modernization. Mexico represents 6%, with emerging upgrades in upstream operations. The rest of North America captures a smaller share of 4%, primarily driven by smaller operators and offshore developments.
Recent Developments
In May 2024, Siemens Energy secured a contract with a leading U.S. oil producer to supply high-efficiency AC electric motors for a major shale field expansion. This deal includes the deployment of over 400 units of IE4-efficiency class motors and reflects growing industry preference for energy-saving solutions in line with both operational and ESG targets.
In June 2024, ABB announced the launch of their Digital Twin platform for AC electric motors, aimed at oil & gas midstream operators in North America. The platform employs real-time analytics to remotely monitor motor performance, predict failures, and manage maintenance, thereby improving uptime and reducing total cost of ownership for pipeline operators.
In April 2024, Toshiba International Corporation entered a partnership with a Canadian oil sands operator to retrofit outdated motor systems with new explosion-proof AC motors. The upgrade enhances safety standards and reliability for hazardous environment applications, while significantly reducing energy consumption in one of Alberta's largest oil processing facilities.
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