Servo Drives Market Size and Growth 2031

The servo drives market size is projected to reach US$ 9.28 billion by 2031 from US$ 6.34 billion in 2024. The market is expected to register a CAGR of 5.8% during 2025–2031. The rising popularity of advanced feedback systems is likely to bring new trends into the market in the coming years.

Servo Drives Market Analysis

A servo drive is an essential electronic device that receives command signals from a controller and dynamically adjusts or amplifies them to supply the precise voltage and current necessary to achieve the desired motor motion. By regulating the current, these drives generate the required torque, while varying voltage and current levels enable them to control position and speed, along with torque. Functioning as the nervous system of the servo mechanism, servo drives communicate detailed instructions to motors regarding actions required, and how and when to execute them. This continuous process of receiving feedback and responding accordingly establishes a closed-loop control system, which is critical for maintaining real-time coordination between components in CNC machinery and other automated systems. As a result, a servo drive is a vital component, and any malfunction can lead to failure or inaccuracies in the entire machine operation. Through real-time adjustments based on constant feedback, servo drives ensure precise, reliable, and predictable motor movement—controlling speed, direction, and operation alongside enabling the high level of accuracy required in modern automated and industrial applications.

Servo Drives Market Overview

Factors such as an increase in demand for automation and industrial robotics, and advancements in technology bolster the servo drives market. Moreover, expansion of the packaging industry and growth in EV production generate growth opportunities in the market. The rising popularity of advanced feedback systems is one of the key trends in the market. However, complex setup and tuning, and high initial costs and maintenance requirements hamper the servo drives market growth.

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Servo Drives Market Drivers and Opportunities

Advancements in Technology

Ongoing technological innovations are playing a pivotal role in propelling the servo drives market forward. Manufacturers are continuously enhancing servo drive systems with features that improve performance, flexibility, and cost-effectiveness. One of the most significant areas of advancement is energy efficiency. As industries face burgeoning pressure to reduce energy consumption and meet sustainability targets, modern servo drives are being designed with regenerative braking capabilities and optimized power usage, allowing for lower operational costs and reduced environmental impact. In addition, miniaturization and compact design trends are reshaping how servo drives are integrated into machinery. With a significant emphasis on optimal space utilization, smaller and lighter servo drives are being designed without compromising performance—especially for their application in robotics, semiconductor equipment, and compact automation solutions. This facilitates more flexible and efficient system designs, particularly in applications such as cobots, mobile platforms, and medical devices.

Recent innovations by industry leaders exemplify the technological advancements benefitting the servo drives market. On May 6, 2025, ECM PCB Stator Tech, a US-based electric motor design software firm, unveiled a cutting-edge servo motor featuring an integrated 50:1 gear ratio harmonic drive engineered to deliver exceptional torque density, precision, and compactness. Similarly, in July 2023, MACCON introduced its ultra-compact NANO series of servo drives designed to operate at low voltages while handling high motor phase currents. These drives are characterized by their high power density and efficient heat dissipation, facilitating seamless integration into autonomous driverless transport systems (AGVs), autonomous mobile robots (AMRs), robotic joints, and mobile medical technology applications. This level of compactness and performance addresses the growing demand for precise speed and position control in space-constrained environments, reinforcing the market’s shift toward miniaturized, energy-efficient, and highly capable servo drive solutions. Such innovations underscore the continuous enhancement of servo drive technology, supporting the broader trend of Industry 4.0 and smart automation across diverse sectors.

Expansion of Packaging Industry

The global packaging industry is experiencing rapid growth driven by increasing consumer demand, e-commerce proliferation, and rising sustainable and innovative packaging needs. This expansion presents a significant opportunity for the servo drives market, as modern packaging machinery relies heavily on precise and flexible motion control systems to meet the high-speed, accuracy, and customization requirements of packaging processes. Servo drives are integral to various packaging applications, including filling, labeling, sealing, sorting, and palletizing, where they provide the accurate control of speed, position, and torque necessary to maintain product quality and minimize waste. As packaging lines evolve to accommodate a broader range of product sizes and shapes, servo drives enable quick changeovers and enhanced adaptability without compromising efficiency. Further, with increasing automation in packaging facilities, servo drives will be instrumental to enabling synchronized multi-axis movements essential for complex packaging tasks, in turn, improving throughput and reducing downtime.

Significant investments and expansions within the packaging industry in recent times underscore the mounting demand for advanced automation technologies. For example, in January 2025, Eagle Flexible Packaging announced plans to build a new US$ 5 million, 52,000-square-foot facility in Waupun Industrial Park. Similarly, Genpak LLC, a leading food service packaging manufacturer, committed nearly US$ 7 million to expand its plant in Scottsburg, Indiana, in the same month. Further, the Governor of Luzerne County announced a US$ 1.5 million investment from the Commonwealth to support REV Copack’s expansion, wherein the company is investing US$ 3.1 million to more than double its manufacturing capacity. In February 2025, Serioplast SpA, a rigid plastic packaging manufacturer, revealed plans to invest US$ 25.7 million to establish a 140,000-square-foot industrial facility in Shenandoah County, Virginia. These expansions indicate robust growth in the packaging sector, directly driving the demand for precise motion control solutions such as servo drives, which are essential to meet the industry’s requirements for efficiency, speed, and accuracy in automated packaging operations.

Servo Drives Market Report Segmentation Analysis

Key segments that contributed to the derivation of the servo drives market analysis are drive, category, voltage, and application.

• The servo drives market, by drive, is segmented into AC and DC. The AC segment held a larger share of the market in 2024.
• The servo drives market, by category, is segmented into digital and analog. The digital segment accounted for a larger market share in 2024.
• The servo drives market, by voltage, is segmented into low, medium, and high. The low-voltage segment held the largest share of the market in 2024.
• The servo drives market, by application, is segmented into semiconductor and electronics, automotive, packaging, oil and gas, metal and mining, pharmaceutical and healthcare, and others. The semiconductor and electronics segment held the largest share of the market in 2024.

Servo Drives Market Share Analysis by Geography

The geographic scope of the servo drives market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East and Africa, and South and Central America. North America held a significant market share in 2024. The market in North America is primarily driven by accelerated automation across various sectors, including automotive, aerospace, food and beverage, and consumer electronics. With a prime aim to improve operational efficiencies and reduce labor costs, companies in this region increasingly invest in automated machinery that relies heavily on precise motion control. Thus, surging investments in smart factories and the integration of AI and IoT into manufacturing are fueling demand for high-performance and energy-efficient servo drives capable of supporting real-time data feedback and remote diagnostics. The presence of leading automation companies and technology developers in the US and Canada further propels the adoption of advanced servo drive systems. Regulatory support for energy-efficient systems and increased awareness about predictive maintenance also contribute to the upward trajectory of the servo drives market in North American countries.

In March 2025, Hyundai marked a significant milestone with the inauguration of its new US$ 7.6 billion EV manufacturing facility in Georgia, simultaneously unveiling plans to expand its production capacity by two-thirds to reach an annual output of 500,000 vehicles. This strategic investment underscores the accelerating momentum of EV manufacturing in North America. As EV production demands precise, high-speed automation and motion control across assembly lines, battery systems, and robotics, the increased scale of operations results in a substantial demand for advanced servo drives, which are essential for ensuring the accuracy, efficiency, and reliability required in modern automotive manufacturing processes.

Servo Drives Market Regional Insights

The regional trends and factors influencing the Servo Drives Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Servo Drives Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Servo Drives Market Report Scope

Servo Drives Market Players Density: Understanding Its Impact on Business Dynamics

The Servo Drives Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Servo Drives Market are:

1. ABB Ltd
2. Fuji Electric Co Ltd
3. Hitachi Ltd
4. Bosch Rexroth AG
5. Rockwell Automation Inc
6. Schneider Electric SE

Disclaimer: The companies listed above are not ranked in any particular order.

Servo Drives Market News and Recent Developments

The servo drives market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the market are listed below:

• Beckhoff has developed two new drive series—the AX1000 economy servo drives and the AF1000 economy variable frequency drive—on a shared platform, incorporating a host of innovative ideas. These new additions perfectly complement its existing portfolio, particularly by expanding coverage for cost-sensitive applications. The development focused heavily on ensuring high-cost efficiency and minimizing complexity. (Source: Beckhoff, Press Release, March 2025)
• Siemens announced signing an agreement to acquire Altair Engineering, a leading software provider in the industrial simulation and analytics market. This move strengthens Siemens’ position as a leading technology company and its leadership in the industrial software field. By combining Altair’s capabilities in simulation, high-performance computing, data science, and artificial intelligence with Siemens Xcelerator, Siemens AG expects to create the world’s most comprehensive AI-driven design and simulation product portfolio. (Source: Siemens, Press Release, November 2024)

Servo Drives Market Report Coverage and Deliverables

The "Servo Drives Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Servo drives market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Servo drives market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Servo drives market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the servo drives market
• Detailed company profiles