$4450
$3560
The servo drives market size is projected to reach US$ 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.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Servo Drives Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Servo Drives Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The market is expected to reach a value of US$ 9.28 billion by 2031.
The market is anticipated to expand at a CAGR of 5.8% during 2025-2031.
Increase in demand for automation and industrial robotics, and advancements in technology are driving the market growth.
ABB, Hitachi, Ltd., Bosch Rexroth Corporation, Schneider Electric, and Siemens AG are major players in the market.
Increase in demand for automation and industrial robotics, and advancements in technology are driving the market growth.
The List of Companies - Servo Drives Market
- ABB Ltd
- Fuji Electric Co Ltd
- Hitachi Ltd
- Bosch Rexroth AG
- Rockwell Automation Inc
- Schneider Electric SE
- Siemens AG
- Beckhoff Automation GmbH & Co. KG
- Infranor GmbH
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to Servo Drives Market
Jul 2025
Optical Measuring Machine Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Equipment [Profile Projectors, Optical Digitizers and Scanners (ODSs), Coordinate Measuring Machines (CMMs), Measuring Microscopes, Video Measuring Machines (VMM) or Vision Measuring Systems, Profilometers, and Others], Optical Digitizers And Scanners (ODSS) Type (3D Laser Scanners, Structured Light Scanners and Laser Trackers), Application (Straight (Prismatic) Parts and Turned Parts), Turned Parts Type (Shafts, Bushings, Rings, and Others), Type (Contact and Noncontact), Industry Vertical (Automotive, Aerospace and Defense, Energy and Power, Electronics Manufacturing, Industrial, Medical, and Others), and Geography
Jul 2025
Smart Casing Running Tools Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Hardware [Remote Display, Sensor Kit (Torque and Tension Sensor, Position Sensor, Data Transmission Sensor, and Others), Head Assembly, Gripping Assembly, Circulator Assembly, Power Supply, and Other Accessories], Software (Inbuilt and Optional), Sales [Direct Sales and Aftermarket (Parts and Accessories and Service and Rental)], Application (Onshore and Offshore), Technology (Fully Automated CRT, Remotely Operated CRT, and Hybrid CRT), and Geography
Jul 2025
Spark Detection System Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component [Infrared Spark Detection Systems and Ultraviolet (UV) Spark Detection Systems], Application (Wood-Based Panel Industry, Textile Industry, Pulp and Paper Industry, Bioenergy, Food Industry, and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America)
Jul 2025
Remote Access Solution Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type [Secure Remote Access-VPN, Identity and Access Management (IAM) Solutions, Multi-Factor Authentication, Single Sign-On (SSO), Endpoint Security, and Others], Mode of Deployment (Cloud and On-Premise), End-Use Industry (IT and Telecommunications, BFSI, Healthcare, Government, Manufacturing, and Others), and Geography
Jul 2025
Process Instrumentation Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Technology (Flow Meter, Pressure and Temperature Sensor, Analytical Instrument, and Level Meter), Flow Meter (Mass Flow, EMF, Vortex, Ultrasonic, and Others), Level Meter (High Frequency Radar, TDR, and Others), Application (Oil and Gas, Energy and Power, Water and Wastewater, Food and Beverage, Marine, Petrochemical, Chemical, and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America)
Jul 2025
Hall Effect Teslameter Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Analog Hall Effect Teslameters and Digital Hall Effect Teslameters), End Users (Automotive, Industrial, Healthcare, Aerospace, Laboratory, and Others), and Geography
Jul 2025
Automotive Board to Board Connector Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Pin Headers, Sockets, Floating Connector, and Card Edge Connector), Pin Headers (Stacked Headers and Shrouded Headers), Application (Powertrain Control Systems, Infotainment and Navigation Systems, Advanced Driver Assistance Systems (ADAS), Electric Vehicles (EV) and Hybrid Vehicle Systems, Lighting Control Systems, Autonomous Vehicles, and Others), Pitch (Less Than 1 mm, 1–2 mm, and More Than 2 mm), Number of Pin (2–12 Pin, 13–30 Pin, 31–50 Pin, 51–100 Pin, and 100+ Pin), and Geography
Jul 2025
Radiation Hardened Motor Controller and Motor Drive Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Motor Controller and Motor Drive), Motor Drive (AC Drive, DC Drive, and BLDC), Application (Space Exploration, Military and Defense, Nuclear Power Plants, and Others), and Geography