The North America AC Electric Motor Sales in Oil & Gas Market is poised for notable expansion, driven by increasing automation across the oil & gas sector, heightened demand for energy-efficient machinery, and strong investments in modernization of oil extraction and processing infrastructure. With technological advancements such as IE3 and IE4 motors seeing rapid adoption, alongside expanding digitalization in upstream, midstream, and downstream operations, the regional market remains highly competitive. Key players focus on product innovation and broad distribution networks to meet rising demand from segments like drilling, gas compression, and pipeline transportation. The market size for AC electric motors in North America's oil & gas industry is projected to reach USD 4,850 Million by 2025, expanding at a CAGR of 5.6% through 2035.

The market share of AC electric motors by type in North America's oil & gas sector is dominated by induction motors, holding approximately 48% of the market in 2025. Their proven reliability and efficiency make them the preferred choice for heavy-duty applications such as drilling and pipeline transportation. Synchronous motors capture 26% market share, largely owing to their application in large-scale compressors and pumps, while shaded pole and split phase motors collectively account for 19%. The remainder (7%) is occupied by other specialized motors used for niche operations. This distribution underscores the ongoing preference for tried-and-tested technologies while also leaving room for innovation and custom solutions in specialized segments.

Oil extraction remains the largest application segment for AC electric motors in North America's oil & gas market, accounting for 35% of sales due to extensive mechanized operations. Gas compression follows at 27%, driven by the expansion of midstream infrastructure and rising LNG demand. Refining takes up an 18% share, reflecting ongoing investments in upgrading facilities, while pipeline transportation and drilling each cover 10% of the market. The diverse application spread reveals the critical role of AC motors in every phase of the oil & gas value chain, with continuous upgrades fueling further adoption across all operational segments.

The market has seen steady growth, with revenue increasing from USD 3,800 Million in 2020 to an expected USD 4,850 Million in 2025. Projecting forward, the market is expected to reach approximately USD 8,750 Million by 2035. This growth trajectory is fueled by consistent investment in upstream digitalization, the modernization of refineries, and rigorous energy-efficiency mandates being implemented across North America. As digitalization and electrification efforts intensify, AC electric motor adoption is expected to accelerate further.

The year-on-year (YOY) growth rate averaged 4.8% from 2020 to 2025, with a forecasted uptick to 5.6% between 2025 and 2035. The YOY growth shows momentum from increased investments in oil & gas automation, new project tenders in the US and Mexico, and the drive for high-efficiency motors. While supply chain disruptions caused temporary dips in 2022–2023, recovery is underway, and the outlook till 2035 is robust, especially with new energy mandates being enforced.

The United States dominates the North America AC electric motor sales market in oil & gas, accounting for 71% of total regional demand in 2025. Canada holds a 17% market share, benefiting from investments in oil sands and LNG, while Mexico contributes 12% on the back of upstream modernization programs. This distribution highlights the US's prominence due to its vast hydrocarbon infrastructure and rapid technological adoption, while Canada and Mexico continue to present growth opportunities through targeted infrastructure upgrades and new exploration projects.

ABB leads the competitive landscape in 2025 with a 17% market share, closely followed by Siemens at 14% and WEG at 13%. Other key players such as Toshiba, General Electric, and Nidec Corporation collectively represent 39%, while smaller regional and niche vendors make up the remaining 17%. This environment is characterized by aggressive innovation, growing R&D expenditure, and increased strategic alliances to address both standard and specialized oil & gas applications.

Large organizations make up the largest buyer segment, accounting for 61% of market demand as they execute major oil & gas projects and extensive retrofit programs. Medium-sized enterprises represent 25%, capitalizing on supportive policies and incentives for energy efficiency upgrades. Smaller entities account for 14% but are expected to increase their share as more affordable, plug-and-play efficient motors enter the market. This buyer distribution signals robust demand from established industry participants, with growing momentum among medium and small entrants.