AC Servo Motors and Drives Market Size, Share, Key Drivers and Analysis, 2027
According to Fortune Business Insights™ , the global AC servo motors and drives market size stood at USD 6.80 billion in 2020 and is projected to reach USD 10.79 billion by 2027, growing at a CAGR of 12.00% from 2020 to 2027. This remarkable growth is primarily driven by the increasing adoption of industrial robots and smart machinery, which are fueling demand for advanced AC servo systems globally.
Market Overview
An AC servo system —comprising AC servo motors and drives—is a closed-loop control system that uses real-time position feedback to regulate speed, motion, and final machine positioning. The AC servo drive, functioning as an electric amplifier, precisely controls the motor. These systems are increasingly adopted across industrial manufacturing for developing highly automated machinery with closed-loop feedback. Key benefits include superior stability, reduced sensitivity to parameter variations, and enhanced overall performance.
Competitive Landscape
The global AC servo motors and drives market is consolidated, with leading players making significant investments in innovation, expansion, and strategic collaborations to strengthen their market positions.
Key Players:
ABB Group (Switzerland)
Delta Electronics, Inc. (Taiwan)
FANUC Corporation (Japan)
Fuji Electric Co., Ltd. (Japan)
Kollmorgen Corporation (USA)
Mitsubishi Electric Corporation (Japan)
Nidec Corporation (Japan)
Rockwell Automation, Inc. (USA)
Schneider Electric SE (France)
Siemens AG (Germany)
Yaskawa Electric Corporation (Japan)
Source: https://www.fortunebusinessinsights.com/ac-servo-motor-market-103513
Market Drivers
1. Increasing Adoption of Industrial Robots
According to the International Federation of Robotics, approximately 373,240 industrial robots worth USD 13.8 billion were installed globally in 2019—28% in automotive and 24% in electronics industries. This growing automation demand is significantly boosting the market for AC servo motors and drives, particularly in high-volume production settings.
2. Rising Demand for Smart Servo Systems
Emerging need for flexible, long-lasting, and high-performance AC servo systems is propelling market adoption. These systems enable faster industrial processes, improved motion control, and longer operational cycles, aligning well with Industry 4.0 standards.
Segmentation
By Product Type:
The market is segmented into servo motors and servo drives. In 2019, servo motors held the dominant market share and are expected to continue leading throughout the forecast period. This growth is attributed to their widespread application in manufacturing processes for automation and motion control. Among the motor types, synchronous AC servo motors equipped with permanent magnets are particularly favored for their high precision and efficiency, making them ideal for aerospace applications such as powering hydraulic pumps and controlling wing flaps.
By Voltage Range:
Based on voltage range, the market is divided into low voltage (<230V), medium voltage, and high voltage. The low-voltage segment emerged as the market leader and is projected to register the highest CAGR during the forecast period. Its dominance is driven by its compatibility with mobile robotic systems and its relatively low maintenance requirements, which make it well-suited for dynamic and compact industrial environments.
By Phase Type:
The phase type segmentation includes two-phase and three-phase configurations. Three-phase AC servo motors dominated the market in 2019 due to their ability to deliver high torque, better efficiency, and superior speed control. These motors are highly preferred in heavy-duty industrial automation processes where consistent performance is essential.
By Communication Protocol:
Communication protocols include Fieldbus, Industrial Ethernet, and Wireless. Fieldbus led the market share owing to its ease of integration, simple network structure, and flexible topology. However, Industrial Ethernet is anticipated to experience significant growth, driven by its high-speed data transmission and real-time control capabilities. It supports advanced protocols such as EtherCAT, PROFINET, and EtherNet/IP, commonly used in modern servo amplifiers like Mitsubishi Electric’s MR-J4 series.
By End-Use Industry:
The market is categorized into aerospace & defense, automotive & transportation, semiconductors & electronics, printing & packaging, food & beverage, and chemicals & petrochemicals. In 2019, the automotive and transportation sector accounted for the largest market share and is expected to retain its dominance. The increasing use of robotics in vehicle manufacturing — especially in flexible flow lines and automated assembly — has significantly improved operational efficiency, product consistency, and cost-effectiveness. As a notable trend, the U.S. had approximately 228 industrial robots per 10,000 employees in 2019, highlighting the rapid adoption of automation in the sector.
Regional Insights
Asia Pacific
Valued at USD 2.35 billion in 2019 , Asia Pacific leads the global market, driven by industrial growth in China, Japan, South Korea, and India . Key companies like Yaskawa Electric , Mitsubishi Electric , and Fuji Electric are headquartered here, and the region accounted for a majority of global robot installations in 2019.
North America
The region registered significant market share in the base year due to the widespread use of robotic arms in manufacturing. The U.S. remains a key hub for smart automation and innovation.
Europe
Europe is expected to witness strong growth, bolstered by well-established manufacturing sectors. In December 2020, Yaskawa Electric invested USD 28.03 million in its new European headquarters, reflecting confidence in regional market potential.
Rest of the World
Moderate growth is anticipated, supported by increased industrial automation and rising demand for high-efficiency electronic devices across diverse industry verticals.
What the Report Provides
This report offers:
In-depth market size , growth trends , and segment-wise analysis
Comprehensive regional insights
Detailed competitive landscape , with key strategies and product launches
Insights through PESTEL and PORTER’s Five Forces analysis
Key industry drivers, restraints, and opportunities
Recent Industry Developments
July 2020 – Kollmorgen Corporation launched an integrated motion system that includes:
AKD2G servo drive
AKM2G single-cable servo motors
2G Motion System
This package supports EtherCAT, CANopen , and FSoE (Functional Safety over EtherCAT) protocols, enhancing performance and system integration across industrial automation sectors.
