Electric Motors (Russian Market)

2024: Motor sales growth 0.6% to 31 million units

In 2024, the volume of sales of electric motors in Russia increased by 0.6% compared to 2023 and amounted to 31 million units. The growth of the market was made possible by the restoration of imports from China, which took more than 80% of all foreign supplies. This is evidenced by data from BusinesStat analysts, released in January 2025.

As follows from the analysis, 2022 has become a turning point for the electric motor market in Russia. Then the volume of sales decreased to 29 million units, which became the minimum indicator for the five-year period. The reasons for this fall were the withdrawal from the Russian market of the world's largest manufacturers of electrical equipment, such as ABB, Schneider Electric and Siemens, as well as the imposition of sanctions prohibiting the supply of electric machinery and equipment from Western countries.

Against the background of a reduction in supply, the Russian market faced a shortage of products and a significant increase in prices. The restructuring of supply chains and the search for new suppliers took a considerable time, which led to a decrease in demand in 2022. However, already in 2023, recovery began due to an increase in supplies from China, whose share in the import of electric motors increased from 50% in 2020-2021 to more than 80% in 2023-2024.

BusinesStat experts note that the stabilization of supplies from China has satisfied the pent-up demand. Electric motors are widely used in various industries - from industrial production and construction to household consumer devices. Under the conditions of sanctions pressure, the Russian market focused on Asian manufacturers who offered comparable products in terms of characteristics, often differing in lower prices.

According to the report, such a market restructuring avoided long-term shortages and stabilized sales volumes. In 2024, sales of electric motors returned to the level of 2023 - 31 million units, which demonstrates the adaptation of the Russian market to new economic conditions.^[1]

2023: Reduction in electric motor output by 5% to 1.17 million electric motors

In 2023, approximately 1.17 million electric motors were produced in Russia. For comparison, a year earlier, the volume of production was 1.24 million units. Thus, a drop of 5.4% was recorded. This is evidenced by the statistics of BusinesStat, published on June 7, 2024.

The review considers universal electric motors (AC/DC), DC devices, as well as single-phase and multi-phase AC motors of various powers. Among the key market players are named "Technology Company Schlumberger," "Novomet-Perm," "Shadrinsky Automobile Aggregate Plant," "Center Electroconverting Installation Service" and "Sarapul Electric Generator Plant."

In 2019, it is estimated that about 1.45 million electric motors were manufactured in Russia. A year later, production decreased by 6.5% to 1.36 million units. In 2021, an increase of 2.8% was recorded - up to 1.39 million units. And in 2022, another decline followed: about 1.24 million electric motors were produced, which is 11.1% less on an annualized basis.

The main problems of the Russian market are called high dependence on the import of raw materials, as well as the lack of domestic production capacities and their technical equipment. The country lacks the rare earth metals needed to make permanent magnets, cooling plants and batteries for electric motors. At the same time, the bulk of components are imported from abroad, in particular, from China. As a result, the cost of domestic engines is often much higher than that of foreign analogues, the demand for them is less, and production is not profitable.

On the other hand, the departure from Russia of large foreign manufacturers of electrical equipment (ABB, Schneider Electric and Siemens) against the background of the current geopolitical situation stimulates the development of domestic production. Russian companies are striving to occupy the vacant niches and are expanding the range of products, gradually increasing the level of localization.^[2]

2022: 24.9% decline in motor sales to 29.4 million units

In 2022, 29.4 million electric engines were sold in Russia, which is 24.9% less than a year earlier. Such data analysts BusinesStat released in November 2023.

Researchers attributed the tangible drop in the electric motor market to a shortage of imported products amid sanctions and the departure of foreign manufacturers. In 2022,, and EU Great Britain Japan Switzerland limited the supply of electrical machinery and equipment to, Russia including electric motors and DC generators. In addition, their business in the Russian Federation was curtailed, and. ABB Schneider Electric Siemens

As noted in BusinesStat, parallel imports have become a loophole that allowed to partially restore supplies, but product prices and delivery times have increased significantly. The combination of a shortage of imported products, a lack of components to establish their own production within the country and reduce consumer solvency was an "ideal storm" for the market, experts added.

Electric motors are used everywhere: from consumer devices (computers, laptops, refrigerators, vacuum cleaners, etc.) to industrial machines used in the field of construction, transport, shipbuilding, oil production, etc. At the same time, the volume of domestic production is not enough to cover the needs of the market, and more than 90% of the electric motors sold in 2018-2022. were imported, analysts emphasized.

They noted that in 2021, sales of electric motors were actively recovering and by the end of the year increased by 14.6%, which was due to the need to replace long-functioning and failing electric motors, previously postponed due to the crisis of previous years.

The following companies were named the largest Russian manufacturers of electric motors in 2022:

• IEC Holding;
• "PC Wrestler";
• "Technology Company Schlumberger";
• "Elcom ";
• Novomet-Perm^[3]

2020: Sales growth by 22% over 5 years to 34.2 million units

From 2016 to 2020, sales of electric motors in Russia increased by 22%: from 28.1 to 34.2 million units. Electric motors sold on the Russian market are mainly represented by products of foreign manufacturers. In 2016-2020, imports exceeded the volume of domestic production by an average of 21 times. The main suppliers are China (on average 50% of all imports in 2016-2020), Germany (10% of supplies), and Switzerland (6%).

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