U.S. Fractional Horsepower (FHP) Motors Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Fractional Horsepower (FHP) Motors Market Analysis

U.S. Fractional Horsepower (FHP) motors market is experiencing transformative growth driven by the rise in robotics for both home and industrial use is transforming various sectors, from household automation to advanced manufacturing. As humanoid robots such as Tesla’s Optimus and Agibot’s Yuanzheng A2 enter the market, the demand for compact, energy-efficient fractional horsepower motors continues to surge. Key market dynamics include Competition from low-cost imports continues to restrain the growth of the fractional horsepower (FHP) motors market. The steady influx of cheaper products, particularly from countries like China and India, puts significant pressure on domestic manufacturers to lower prices, often at the expense of quality, innovation, and profitability.

Prominent challenges include facing significant challenges related to the environmental impact of manufacturing processes. As regulations around sustainability and emissions become stricter, companies must find ways to balance environmental responsibility with cost-efficiency and performance.

Fractional Horsepower (FHP) Motors Market Size

U.S. Fractional Horsepower (FHP) motors market size was valued at USD 3.67 billion in 2024 and is projected to reach USD 6.59 billion by 2032, with a CAGR of 7.6% during the forecast period of 2025 to 2032. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and PESTLE analysis.

Fractional Horsepower (FHP) Motors Market Trends

• “Electric Drones and UAV Applications Expanding Rapidly”

The rapid expansion of electric drones and Unmanned Aerial Vehicles (UAVs) is creating new opportunities for the U.S. Fractional Horsepower (FHP) motors market. As industries such as agriculture, defense, logistics, and infrastructure inspection increasingly adopt drones for precision tasks, the demand for lightweight, high-efficiency motors is rising. FHP motors play a critical role in enabling precise control, extended flight durations, and enhanced energy efficiency in electric UAVs, making them an essential component in this growing sector.

With advancements in battery technology and regulatory support for commercial drone applications, the adoption of electric UAVs is expected to accelerate further. This presents a lucrative opportunity for FHP motor manufacturers to develop specialized, high-performance motors tailored for drone propulsion, gimbal stabilization, and payload operations. Companies that innovate to meet the evolving needs of drone manufacturers will gain a competitive advantage, this trend, positioning themselves at the forefront of this rapidly expanding market.

Report Scope and Fractional Horsepower (FHP) Motors Market Segmentation

Fractional Horsepower (FHP) Motors Market Definition

The U.S. Fractional Horsepower (FHP) motors market refers to the industry segment that manufactures, distributes, and sells electric motors with power ratings of less than one horsepower. These motors are widely used in various applications, including household appliances, HVAC systems, automotive components, medical devices, and industrial machinery. The market is driven by advancements in energy-efficient motor technologies, regulatory standards, and increasing demand for automation. Key players in this market focus on innovation, cost-effective production, and compliance with industry standards such as NEMA and IEEE to meet diverse consumer and industrial needs.

Fractional Horsepower (FHP) Motors Market Dynamics

Drivers

• Growth in Consumer Electronics

The growth in consumer electronics has significantly driven the U.S. Fractional Horsepower (FHP) motors market. As demand for smaller, more efficient electronic devices such as home appliances, personal gadgets, and automotive technologies increases, the need for fractional horsepower motors typically ranging from a fraction of a horsepower to one horsepower has grown substantially. These motors are essential in powering various devices such as fans, pumps, compressors, and small machinery, owing to their compact size, energy efficiency, and reliability. The expansion of the consumer electronics sector has thus accelerated the adoption of these motors, contributing to the overall market growth.

For instance,

According to the blog published by Oberlo, smartphones are the most popular electronic devices in the U.S., with 97.6% of consumers owning one, reflecting a 1.2% increase from the previous year. Laptops/desktops (68.3%) and tablets (48.4%) follow closely, alongside rising ownership of smartwatches (37.2%) and smart home devices (26.7%). This growing adoption of consumer electronics, particularly devices requiring compact, energy-efficient components, is driving demand in the U.S. Fractional Horsepower (FHP) motors market. These motors power critical functions in gadgets such as smartphones, smart home devices, and wearables, aligning with the steady growth in electronics usage.

• Rise in Robotics for Home and Industrial Use

The rise in robotics for both home and industrial use is a key driver of the U.S. Fractional Horsepower (FHP) motors market. From household appliances such as robotic vacuum cleaners and lawnmowers to advanced industrial robots used in manufacturing, automation relies heavily on compact, efficient motors to perform precise, repetitive tasks. Fractional horsepower motors are ideal for these applications due to their small size, energy efficiency, and reliability. As demand for automation and smart technologies continues to grow across various sectors, the need for these specialized motors is expected to surge, fueling market expansion.

For instance,

In December 2024, according to the blog published by Businesskorea Co., Ltd., LG Electronics unveiled its first home butler robot, Q9, which is set for release next year. This robot is designed to serve as an AI home hub, performing tasks such as controlling home appliances and enhancing emotional interaction with users. Equipped with advanced features such as a gravity compensation device and OpenAI’s GPT-4, Q9 marks a significant leap in home robotics. As robotics in the home sector gains momentum, there is an increasing need for fractional horsepower motors to power the precise, energy-efficient movements of these robots. With more robotics solutions entering both home and industrial markets, the demand for fractional horsepower motors is expected to surge, supporting the growth of this technology-driven market.

Opportunity

• Growth in Automated Agriculture Technologies Using FHP Motors

The increasing adoption of automated agriculture technologies presents a significant opportunity for the U.S. Fractional Horsepower (FHP) motors market. Precision farming, robotic harvesters, automated irrigation systems, and smart greenhouse solutions are increasingly integrating compact and energy-efficient FHP motors to enhance efficiency and productivity. These motors enable precise control over farming equipment, reducing labor dependency and optimizing resource usage. As farmers shift towards automation to address workforce shortages and improve yield, the demand for FHP motors in agricultural applications is expected to grow steadily.

Moreover, advancements in IoT and AI-driven agricultural machinery further accelerate this trend. Automated drones for crop monitoring, self-driving tractors, and robotic milking systems rely on FHP motors for smooth operation and energy efficiency. The push for sustainable and smart farming practices, supported by government incentives for agri-tech innovations, will drive further investments in FHP motor-powered solutions. This creates a strong market potential for manufacturers to develop durable, high-performance motors tailored to the evolving needs of modern agriculture.

For instance,

In December 2023, according to the article published by HowToRobot, the growing adoption of agricultural robots, such as harvesting, weeding, and autonomous tractors, is revolutionizing farming by improving efficiency, precision, and sustainability while reducing labor costs. This surge in automated farming technologies creates a significant opportunity for the U.S. Fractional Horsepower (FHP) Motors Market, as the demand for compact, energy-efficient FHP motors to power these advanced machines increases, driving innovation and expanding market prospects for motor manufacturers in the agriculture sector.

Restraints/Challenges

• Compliance with Evolving U.S. Energy Standards Adds Cost and Complexity

Compliance with evolving U.S. energy standards presents a significant challenge for manufacturers in the fractional horsepower motors market, adding both cost and complexity to production. Stricter efficiency regulations require continuous design modifications, material upgrades, and advanced manufacturing processes, increasing overall operational expenses. Companies must invest in research and development to meet higher energy efficiency benchmarks while ensuring their motors remain cost-competitive in a market already facing pricing pressures.

In addition, adapting to these evolving standards can lead to supply chain disruptions as manufacturers source specialized materials and components that comply with regulatory requirements. The need for extensive testing and certification further prolongs product development cycles, delaying time-to-market for new motor models. As these regulations continue to evolve, manufacturers must navigate an increasingly complex compliance landscape, which could limit the entry of smaller players and favor companies with greater financial and technical resources.

For instance,

In June 2021, the U.S. Department of Energy (DOE) has issued a final rule on testing procedures for small electric motors, effective from February 3, 2021, with mandatory product testing starting on July 6, 2021. This rule, developed over more than a decade, aligns test conditions with industry standards and applies to small electric motors defined by the Energy Policy and Conservation Act (EPCA). Compliance with this updated rule will present challenges for the U.S. Fractional Horsepower (FHP) Motors Market, as manufacturers must adjust their processes and testing methods to meet evolving energy standards. This will likely lead to higher production costs and operational complexities. Continued changes in regulations will also require sustained investments to maintain compliance, placing additional strain on companies in the sector.

• Competition from Low-Cost Imports

Competition from low-cost imports acts as a restraint on the U.S. Fractional Horsepower (FHP) motors market. The availability of cheaper alternatives from countries with lower production costs, such as China, makes it difficult for domestic manufacturers to remain competitive without sacrificing quality or significantly reducing prices. This situation limits the potential for growth, as U.S. manufacturers face pressure to match lower prices, which can erode profit margins and hinder investment in innovation. As a result, the dominance of low-cost imports restricts the market's ability to expand and achieve sustainable growth in the long term.

For instance,

According to the blog published by Volza's, India exported 10,554 shipments of electric motors to the U.S. from March 2023 to February 2024, despite a -21% decline compared to the previous year. However, February 2024 saw a 23% year-on-year growth in shipments, indicating a rebound in exports. India ranks as the third-largest global exporter of electric motors, following China and Vietnam, with 303,990 shipments. The dominance of these low-cost exporters poses a significant restraint on the U.S. Fractional Horsepower (FHP) motors market. The affordable electric motors from countries such as India and China intensifies price competition, making it difficult for U.S. manufacturers to maintain profit margins while competing on cost, thereby hindering market growth and innovation.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Fractional Horsepower (FHP) Motors Market Scope

The market is segmented into six notable segments based on the type, phase, enterprise size, product type, motor type, and end user. The growth amongst these segments will help analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• AC
• DC

Phase

• Single Phase
• Third Phase

Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

Product Type

• Brushed
• Brushless

Motor Type

• Split Phase
• Shaded Pole
• Reluctance

End User

• Automotive and Transportation
  • AC
  • DC
• Household and Commercial Appliances
  • AC
  • DC
• Medical and Healthcare Devices
  • AC
  • DC
• Industrial
  • AC
  • DC
• Building and Construction
  • AC
  • DC
• Water and Wastewater
  • AC
  • DC
• Pulp and Paper
  • AC
  • DC
• Others

Fractional Horsepower (FHP) Motors Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Fractional Horsepower (FHP) Motors Market Leaders Operating in the Market Are:

• Nidec Motor Corporation (U.S.)
• Regal Rexnord Corporation (U.S)
• Bodine Electric Company (U.S)
• ElectroCraft, Inc (U.S)
• ABB (Switzerland)
• Robert Bosch GmbH (Germany)
• MOLON Motor and Coil Corporation (U.S)
• AMETEK.INC. (U.S)
• DR. FRITZ FAULHABER GMBH & CO. KG (Germany)
• ARC SYSTEMS INC (U.S)
• Carter Motor Company (U.S)
• Electric Motor Solutions (U.S)

Latest Developments in Fractional Horsepower (FHP) Motors Market

• In October 2024, Nidec Motor Corporation (“Nidec”), a 100%-owned subsidiary of Nidec Corporation, has announced a supply partnership agreement with leading Indian commercial vehicle manufacturer, Ashok Leyland (“AL”), the Indian flagship of the Hinduja group, to provide an electric motor-controller system (“E-Drive”) as vehicle electrification gains momentum globally and in India
• In Feb 2025, Regal Rexnord’s latest innovation in small frame ECM’s, the HILO and HILO MAXX family of motors and fan packs offer a robust, versatile design with a compact low profile form factor, IP66/67 ingress protection, universal voltage and multiple mounting options for flexible motor placement in a variety of Commercial Refrigeration applications within the Food Retail and Food Service vertical markets
• In November 2024, Bodine Electric Company recently upgraded the design of many of our type WX gearmotors to increase the output torque ratings while maintaining the same long-life rating. Two parts in the gearhead design were changed to accomplish the higher torque ratings: the rotor/armature shaft and the first stage gear. The rotor is the name for the rotating part in an AC Induction motor or a Brushless DC motor. The armature is the name for the rotating part in a Brushed DC motor. Regardless of what it’s called, that rotating part, when in a parallel shaft gearmotor like Bodine’s type WX gearmotor, has a shaft with a pinion cut on the end that engages with the first stage gear in the gearhead
• In September 2024, ElectroCraft, launch of the new "EZ Drive", a cutting-edge motor drive designed specifically for use with brushless DC motors. This innovative product is set to redefine efficiency and ease-of-use in a wide range of applications, from industrial automation to medical and laboratory equipment
• In Oct 2024, ABB expanded the Baldor-Reliance SP4 motor line, which offers up to 20% higher efficiency compared to conventional AC induction motors. These motors are designed as drop-in replacements, facilitating easy upgrades to more efficient systems

SKU-73591