Servo Drives Market is expected to reach US$ 9.28 Billion by 2031

Surge in Demand for Automation and Industrial Robots Boosts Servo Drives Market Growth

According to our latest study titled “Servo Drives Market Forecast to 2031 – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Drive, Category, Voltage, and Application,” the market was valued at US$ 6.34 billion in 2024 and is projected to reach US$ 9.28 billion by 2031; it is estimated to register a CAGR of 5.8% from 2025 to 2031. The report includes growth prospects in light of current servo drives market trends and factors influencing the market growth.

As industries strive for greater efficiency, productivity, and precision, automated systems are increasingly replacing manual processes in sectors such as automotive, electronics, pharmaceuticals, food and beverage, and logistics. The need for accurate motion control is central to these automated systems, wherein servo drives play a critical role. The rise of smart factories and the implementation of Industry 4.0 technologies further amplify this demand, as servo drives are integral to real-time data feedback and closed-loop control systems. According to the projections provided in the World Robotics 2024 Report published by the International Federation of Robotics, a record 4.28 million industrial robots would have been operational in factories worldwide by 2024, reflecting a 10% year-over-year increase. Notably, annual installations of robots have surpassed the half-million mark for three consecutive years, underscoring the sustained demand for automation solutions. Regional data further emphasizes Asia's dominant role in automation, accounting for 70% of all new robot deployments in 2023, followed by Europe at 17% and the Americas at 10%. These figures highlight the expanding footprint of robotics in global manufacturing, with Asia leading the charge. As industries continue to scale their automation infrastructure, the demand for advanced servo drive systems that are capable of supporting high-speed, high-precision operations grows in tandem, solidifying their role as a foundation of next-generation industrial performance.

Servo Drives Market – by Region, 2024 and 2031

Source: The Insight Partners Analysis

The operation of collaborative robots (cobots), which work safely alongside humans, relies heavily on high-performance servo systems to ensure responsive and accurate motion control. As manufacturers invest in automation to meet rising demand, reduce labor costs, and improve product quality, the need for reliable, efficient, and intelligent servo drive solutions is expected to grow substantially in the coming years as well.

The servo drives market analysis has been carried out by considering the following segments: drive, category, voltage, and application. In terms of drive, the market is bifurcated into AC and DC. Based on the category, the market is divided into digital and analog. In terms of voltage, the market is segmented into low, medium, and high. Based on application, the servo drives market is divided into oil and gas, metal and mining, packaging, automotive, semiconductor and electronics, pharmaceutical and healthcare, and others. The semiconductor and electronics segment held the largest servo drives market share in 2024. 

The scope of the servo drives market report is primarily segmented into North America (US, Canada, and Mexico), Europe (Russia, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East and Africa (UAE, Saudi Arabia, South Africa, and Rest of Middle East and Africa), and South and Central America (Brazil, Argentina, and Rest of South and Central America). Asia Pacific accounted for the largest servo drives market share in 2024. A large servo drives market size in the region can be ascribed to rapid industrialization, significant growth in the manufacturing sector, and the increasing adoption of automation across industries such as automotive, electronics, and packaging. Governments of China, Japan, South Korea, and India are actively promoting smart manufacturing and Industry 4.0 initiatives, which has led to a surge in demand for high-performance motion control systems, including servo drives. Additionally, the expanding robotics industry, particularly in China and Japan, is driving the need for precise and efficient motor control solutions. Technological advancements and acceptance, and strong export-oriented economies attract investments in factory automation in the region. The burgeoning trend of EVs, rising demand for consumer electronics, and the push for energy-efficient solutions are encouraging manufacturers to adopt advanced servo systems to enhance productivity, precision, and energy savings.

On July 25, 2024, Cisco and Rockwell Automation announced a strategic collaboration to drive digital transformation across the industrial market in Asia Pacific, Japan, and Greater China. Through their joint efforts, which were formalized via a Memorandum of Understanding, the two global leaders aim to implement cutting-edge automation solutions such as connected factories and industrial IoT, directly supporting the infrastructure needed for advanced motion control technologies such as servo drives. By enabling manufacturers to optimize operations, improve productivity, and secure their industrial networks, this partnership aligns seamlessly with the region's broader push toward smart manufacturing, which is expected to be a major catalyst for the servo drives market growth.

ABB Ltd, Fuji Electric Co Ltd, Hitachi Ltd, Bosch Rexroth AG, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, Infranor, and Beckhoff Automation GmbH & Co. KG are among the key players profiled in the servo drives market report.

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