# U.S. AC Electric Motor Sales in Oil and Gas Market

> US AC electric motor sales in oil and gas reach USD 2.18 billion in 2025 and USD 3.65 billion by 2035, a 5.27 percent CAGR, as Permian grid power and electric compression spread.

Publisher: Douglas Insights  
Author: Douglas Insights Research Desk  
Report code: DI-EP-10936  
Published: 2026-11-08  
Last updated: 2026-11-08  
Next review: May 2027  
Page: https://www.douglasinsights.com/u-s-ac-electric-motor-sales-in-oil-and-gas-market/

## Key figures

| Measure | Value | How it is built |
| --- | --- | --- |
| Market size · 2025 | $2.18 Bn | About 112,000 motors x USD 19,500 = USD 2.18 billion. |
| Forecast · 2035 | $3.65 Bn | Base case: 3.0% units and 2.2% price per motor a year. |
| Revenue CAGR · 2026–2035 | 5.27% | (1.030 x 1.022) minus 1. |
| Units · 2035 | About 150,500 motors | Permian grid power, electric compression, record output and efficiency upgrades, less slower fracturing and dear copper. |
| Leading segment | Upstream production, 31.0% | ESP, rod pump and gas-lift motors replaced every 2 to 4 years. |
| Fastest segment | Gas compression, 6.7% | USD 546.0 million to USD 1.04 billion as electric motor drive compressors replace engines. |
| Largest region | Permian Basin, 35.0% | USD 764.4 million to USD 1.42 billion as ERCOT grid lines reach the Delaware Basin. |
| Market leader | WEG, about 15% (estimate) | Douglas Insights estimate; ABB about 14%, Siemens about 9%. |
| Event | Motor makers report robust oil and gas orders | ABB, 20 October 2026: Motion orders up 14% on robust oil and gas outside the Middle East; WEG North America revenue up 31.1%. |

## Key takeaways

- The U.S. AC electric motor sales in oil and gas market is worth USD 2.18 billion in 2025 and USD 3.65 billion in 2035, a 5.27% CAGR.
- About 112,000 motors at an average USD 19,500 form the 2025 base; units grow 3.0% a year and price 2.2%.
- Upstream production and artificial lift hold 31.0% of value, but gas compression motors grow fastest at 6.7% a year.
- ERCOT expects Permian oil and gas load of 14,705 megawatts by 2038, letting operators swap gas engines for electric motors.
- The Permian Plug-In Ledger puts new grid-tied motors at about 615,000 horsepower a year, worth about USD 147 million.

ABB said on 20 October 2026 that "robust demand in oil & gas" lifted its Motion business, whose third-quarter orders rose 14% to USD 2.46 billion, while its United States Motion orders rose 1%, its [third-quarter 2026 results](https://library.e.abb.com/public/8954633d5ea54a4fb35da2ddbd1834f7/ABB-Q3-2026-press-release-English.pdf) show; a day later WEG reported North American external revenue up 31.1% to USD 722.8 million, naming oil and gas among the strongest users of its low-voltage motors, per its [results of 21 October 2026](https://ri.weg.net/). The U.S. alternating current (AC) electric motor sales in oil and gas market covers new induction, synchronous and permanent magnet AC motors sold to American oil and gas sites: electric submersible pump (ESP) and surface pumping motors, drilling rig and electric fracturing motors, compressor and pipeline pump motors, and refinery and petrochemical motors. Douglas Insights sizes it at USD 2.18 billion in 2025, about 112,000 motors at an average USD 19,500 each at manufacturer prices, and at USD 3.65 billion in 2035, a 5.27% compound annual growth rate (CAGR). The study sits in our [oil and gas equipment and services coverage](https://www.douglasinsights.com/industry/oil-gas-equipment-services/), beside the [Enhanced Oil Recovery Market](https://www.douglasinsights.com/enhanced-oil-recovery-market/), [3 Phase Switched Reluctance Motor Market](https://www.douglasinsights.com/3-phase-switched-reluctance-motor-market/) and [Electric Control Panel Market](https://www.douglasinsights.com/electric-control-panel-market/) reports, and every figure follows the Douglas Insights [research methodology](https://www.douglasinsights.com/research-methodology/).

## Which application carries the most AC motor value in U.S. oil and gas: artificial lift, compression, drilling or refining?

Upstream production and artificial lift carry the most, 31.0% of 2025 value or USD 677.0 million, Douglas Insights estimates. Gas compression motors grow fastest, at 6.7% a year to USD 1.04 billion by 2035.

| Application | Share 2025 | Value 2025 | CAGR 2026-2035 | Value 2035 |
| --- | --- | --- | --- | --- |
| Upstream production and artificial lift | 31.0% | USD 677.0 million | 5.0% | USD 1.10 billion |
| Gas compression | 25.0% | USD 546.0 million | 6.7% | USD 1.04 billion |
| Refining and petrochemicals | 20.0% | USD 436.8 million | 4.4% | USD 671.9 million |
| Drilling and completions | 13.0% | USD 283.9 million | 3.4% | USD 396.6 million |
| Pipeline pumping and liquefied natural gas | 11.0% | USD 240.2 million | 6.2% | USD 438.4 million |

Upstream production leads because almost every producing horizontal well in the Permian, Eagle Ford and Bakken is lifted by an ESP, a rod pump or a gas-lift compressor, and each is turned by an electric motor that fails and is replaced every 2 to 4 years, Douglas Insights estimates. American wells produced a record 13.7 million barrels a day of crude oil in 2025, and the U.S. Energy Information Administration (EIA) expects 13.9 million in 2026 and 14.3 million in 2027, its [Short-Term Energy Outlook of 6 October 2026](https://www.eia.gov/outlooks/steo/report/petro_prod.php) shows. Production motors grow 5.0% a year to USD 1.10 billion as replacement cycles follow that record output.

Gas compression, USD 546.0 million, grows fastest at 6.7% because grid power lets operators replace gas engines with electric motor drive compressors at Permian and Haynesville gathering stations. Refining and petrochemicals, USD 436.8 million, grow 4.4% on pump, fan and compressor replacements at Gulf Coast plants. Drilling and completions, USD 283.9 million, grow 3.4%, the slowest, because frac activity is falling, while pipeline pumping and liquefied natural gas (LNG), USD 240.2 million, grow 6.2% as export trains add large compressor motors. Application values for 2035 sum to USD 3.65 billion, 0.14% above the USD 3.65 billion headline.

## Which motor type leads: low-voltage induction, medium-voltage induction or synchronous and permanent magnet?

Low-voltage induction motors of 600 volts or less lead with 47.0% of 2025 value, about USD 1.03 billion, Douglas Insights estimates. Synchronous and permanent magnet motors grow fastest, 6.9% a year to USD 723.6 million by 2035.

| Motor type | Share 2025 | Value 2025 | CAGR 2026-2035 | Value 2035 |
| --- | --- | --- | --- | --- |
| Low-voltage induction (600 volts or less) | 47.0% | USD 1.03 billion | 4.6% | USD 1.61 billion |
| Medium-voltage induction (2,300 to 13,800 volts) | 36.0% | USD 786.2 million | 5.6% | USD 1.36 billion |
| Synchronous and permanent magnet | 17.0% | USD 371.3 million | 6.9% | USD 723.6 million |

Low-voltage squirrel-cage motors win on count: about 96,300 of the 112,000 motors sold in 2025, or 86%, were low-voltage units for pumps, fans, coolers and small compressors, and many carry explosion-proof enclosures for hazardous areas, Douglas Insights estimates. They grow 4.6% a year to USD 1.61 billion.

Medium-voltage induction motors, USD 786.2 million, run reciprocating and screw compressors of 1,000 to 5,000 horsepower and pipeline pumps, and grow 5.6% as electric compression spreads. Synchronous and permanent magnet machines, USD 371.3 million from only about 1,680 units, power LNG refrigerant compressors and large centrifugal compressors; Baker Hughes booked "electric motor-driven centrifugal compressors for low-pressure gas compression" in an order listed in its [results of 27 October 2026](https://www.sec.gov/Archives/edgar/data/0001701605/000170160526000033/earningsreleaseex991093020.htm). They grow 6.9% a year. Type values for 2035 sum to USD 3.69 billion, 1.10% above the headline.

## What drives AC motor sales in U.S. oil and gas: Permian grid power, electric compression, record output or efficiency upgrades?

Motor units sold rise 3.0% a year in our base case, from about 112,000 in 2025 to 150,500 in 2035. Four drivers add 3.65 gross points a year; slower fracturing and dear copper remove 0.65 points.

### Permian grid power replaces engines: 1.10 points

Grid power in the Permian is the largest driver, worth 1.10 points. The Electric Reliability Council of Texas (ERCOT) forecasts Permian oil and gas peak load of 11,964 megawatts in 2030 and 14,705 megawatts in 2038, within a total Permian load of 26,400 megawatts in 2038, its [reliability plan updated on 25 July 2024](https://www.ercot.com/files/docs/2024/06/28/Reliability-Plan-For-The-Permian-Basin-Region.pdf) shows. The Public Utility Commission of Texas (PUCT) approved the plan in September 2024, at an estimated USD 13.8 billion for the 765-kilovolt option, [Utility Dive reported](https://www.utilitydive.com/news/texas-regulators-approve-permian-basin-reliability-plan/728269/) on 27 September 2024, and authorised the first 765-kilovolt lines in ERCOT, a [Texas Senate release of 25 April 2025](https://www.senate.texas.gov/members/d29/press/en/p20250425a.pdf) states. Douglas Insights estimates each 1,000 megawatts of new oilfield load connects about 1.8 million horsepower of motors at a 75% load factor.

### Electric motor drive compression for record gas: 1.00 points

Electric compression adds 1.00 points. American gas output was a record 107.6 billion cubic feet a day in 2025 and EIA expects 112.2 billion in 2026, [Reuters reported](https://boereport.com/2026/10/16/us-energy-firms-left-the-rig-count-unchanged-this-week-baker-hughes-says/) on 16 October 2026. Kodiak Gas Services ran about 4.5 million horsepower of compression at about 98% utilization on 30 June 2026 and cited "a tight supply environment for compression equipment" in its [results of 6 August 2026](https://ir.kodiakgas.com/news-events/press-releases/detail/85/kodiak-gas-services-reports-second-quarter-2026-financial/). Douglas Insights estimates electric motor drive units take about 30% of new contract compression horsepower in the Permian in 2025, against about 15% five years earlier, because a motor needs no fuel gas, emits nothing on site and needs less maintenance than an engine.

### Record crude output and active rigs: 0.85 points

Record output adds 0.85 points. U.S. crude production reaches 14.3 million barrels a day in 2027 in the [EIA October 2026 outlook](https://www.eia.gov/outlooks/steo/report/petro_prod.php), from 13.7 million in 2025, and the Permian produced about 6.6 million barrels a day in 2025, almost half of the total, EIA's [analysis of 22 January 2026](https://www.eia.gov/todayinenergy/detail.php?id=67045) states. The U.S. rig count held at 603 on 16 October 2026, 55 rigs or 10% above a year earlier, with 459 oil rigs and 133 gas rigs, Baker Hughes data reported by [Reuters](https://boereport.com/2026/10/16/us-energy-firms-left-the-rig-count-unchanged-this-week-baker-hughes-says/) show. Douglas Insights estimates each new horizontal well adds 2 to 4 motors and each 1% rise in producing wells adds about 1,100 motor sales a year.

### Efficiency upgrades and variable speed retrofits: 0.70 points

Efficiency upgrades add the last 0.70 points. From 1 June 2027 the Department of Energy (DOE) requires higher efficiency for general-purpose motors under its [direct final rule of 1 June 2023](https://www.federalregister.gov/documents/2023/06/01/2023-10019/energy-conservation-program-energy-conservation-standards-for-electric-motors), which moves mid-range motors to International Efficiency class 4 (IE4), and ABB notes a 200-horsepower motor must reach 96.2% efficiency, its [guide to the 2027 standards](https://new.abb.com/news/detail/132268/understanding-the-2027-doe-motor-standards) states. Douglas Insights estimates about 9% of refinery and midstream motors older than 20 years are replaced early with IE4 motors and variable frequency drives (VFDs) by 2030. Summed, 1.10 + 1.00 + 0.85 + 0.70 = 3.65 points; after 0.65 points of headwinds the 3.0% unit leg times the 2.2% price leg gives the 5.27% revenue rate.

## What holds back AC motor sales in oil and gas: slower fracturing or dear copper?

Two headwinds remove 0.65 points a year from unit growth: slower hydraulic fracturing takes 0.35 points and dear copper, which delays motor projects, takes 0.30 points, Douglas Insights estimates.

Fracturing is slowing. Halliburton's North America revenue fell to USD 2.16 billion in the third quarter of 2026, down about 8.6% from USD 2.36 billion a year earlier and 5% from the second quarter, "primarily driven by lower pressure pumping services in U.S. Land", its [results of 20 October 2026](https://www.sec.gov/Archives/edgar/data/0000045012/000004501226000070/livemastererdocument.htm) state; its 2027 outlook "does not require any recovery in North America hydraulic fracturing". Electric frac fleets carry 20 to 30 large motors each, so each idle fleet removes about USD 1.5 million of motor orders, Douglas Insights estimates. Fewer new frac fleets remove 0.35 points.

Copper takes 0.30 points. A presidential proclamation of 30 July 2025 placed a 50% duty on the copper content of semi-finished copper products and intensive copper derivatives from 1 August 2025, the [White House text](https://www.whitehouse.gov/presidential-actions/2025/07/adjusting-imports-of-copper-into-the-united-states/) shows, and WEG blamed higher U.S. import duties and copper costs for a gross margin of 32.9%, against 33.6% a year earlier, in its [results of 21 October 2026](https://ri.weg.net/). Douglas Insights estimates copper windings and rotor bars make up about 20% to 25% of the cost of an induction motor, so higher copper prices push some retrofits a year later.

## Which region uses the most oil and gas AC motors: Permian, Gulf Coast, gas basins, Rockies or the West?

The Permian Basin uses the most, about USD 764.4 million or 35.0% of 2025 value, Douglas Insights estimates. It also grows fastest, at 6.4% a year to USD 1.42 billion by 2035, as ERCOT grid lines replace field engines.

| Region | Value 2025 | Share 2025 | Value 2026 | CAGR 2026-2035 | Value 2035 |
| --- | --- | --- | --- | --- | --- |
| United States | USD 2.18 billion | 100% | USD 2.30 billion | 5.27% | USD 3.65 billion |
| Permian Basin (Texas and New Mexico) | USD 764.4 million | 35.0% | USD 813.3 million | 6.4% | USD 1.42 billion |
| Gulf Coast refining and LNG belt | USD 633.4 million | 29.0% | USD 664.4 million | 4.9% | USD 1.02 billion |
| Appalachia and Haynesville gas basins | USD 327.6 million | 15.0% | USD 344.6 million | 5.2% | USD 543.9 million |
| Rockies and Mid-Continent | USD 262.1 million | 12.0% | USD 271.5 million | 3.6% | USD 373.3 million |
| California, Alaska and offshore | USD 196.6 million | 9.0% | USD 203.0 million | 3.3% | USD 272.0 million |

The Permian leads because it produced about 6.6 million barrels a day in 2025, nearly half of U.S. crude, per [EIA](https://www.eia.gov/todayinenergy/detail.php?id=67045), and because its oil and gas load in the Texas portion rises from 11,964 megawatts in 2030 to 14,705 megawatts in 2038 in the [ERCOT plan](https://www.ercot.com/files/docs/2024/06/28/Reliability-Plan-For-The-Permian-Basin-Region.pdf). ERCOT notes that transmission is "relatively sparse in the Delaware Basin subregion", so new lines release pent-up motor installations there first. The Permian grows 6.4% a year to USD 1.42 billion.

The Gulf Coast belt from Corpus Christi to Lake Charles, USD 633.4 million, grows 4.9% on refinery motor replacements and LNG compressor trains. Appalachia and Haynesville, USD 327.6 million, grow 5.2% as gas output rises toward 112.2 billion cubic feet a day. The Rockies and Mid-Continent, USD 262.1 million, grow 3.6%, and California, Alaska and offshore platforms, USD 196.6 million, 3.3%. Regional values sum to USD 2.30 billion in 2026, 0.09% below the headline, and USD 3.63 billion in 2035, 0.44% below it.

## Who supplies AC motors to U.S. oil and gas, and how concentrated is the field?

WEG holds about 15.0% of 2025 value, a Douglas Insights estimate, ahead of ABB at 14.0% and Siemens at 9.0%. The top three hold about 38.0%, and the eight companies below hold about 68.0%.

| Company | Main motor lines in U.S. oil and gas | Latest filed or announced fact | Estimated share 2025 |
| --- | --- | --- | --- |
| WEG | Low- and medium-voltage induction, Marathon and explosion-proof lines | North American external revenue USD 722.8 million, up 31.1%, third quarter 2026 | 15.0% |
| ABB | Baldor-Reliance low-voltage, large induction and synchronous motors | Motion orders USD 2.46 billion, up 14%, third quarter 2026 | 14.0% |
| Siemens | Low-voltage and large drive motors | Douglas Insights estimate | 9.0% |
| Nidec | U.S. Motors vertical pump and induction motors | Douglas Insights estimate | 8.0% |
| Baker Hughes | ESP motors, motor-driven compressors | Production Solutions revenue USD 983 million, third quarter 2026 | 7.0% |
| SLB | ESP motors | Douglas Insights estimate | 7.0% |
| Toshiba International | Medium-voltage motors made in Houston | Douglas Insights estimate | 4.0% |
| TECO-Westinghouse | Medium-voltage and large custom motors | Douglas Insights estimate | 4.0% |

WEG, which owns the Marathon brand after buying Regal Rexnord's industrial motors and generators business, gained most; its third-quarter release of 21 October 2026 lists oil and gas, mining and data centre cooling among the strongest outside-Brazil users of its motors, while external revenue reached a record 62.5% of its 10.86 billion Brazilian reais of net revenue, per its [investor relations release](https://ri.weg.net/). We place about USD 330 million of U.S. oil and gas motor sales with WEG. ABB's Motion margin fell 1 point to 19.1% while revenue rose 11% to USD 2.32 billion, and it said Middle East oil and gas was weak but other markets robust, per its [20 October 2026 release](https://library.e.abb.com/public/8954633d5ea54a4fb35da2ddbd1834f7/ABB-Q3-2026-press-release-English.pdf).

The ESP makers buy or build their own submersible motors. Baker Hughes' Production Solutions revenue rose 2% to USD 983 million and its North America oilfield revenue was USD 955 million in the third quarter of 2026, its [27 October 2026 release](https://www.sec.gov/Archives/edgar/data/0001701605/000170160526000033/earningsreleaseex991093020.htm) shows. Regal Rexnord, now focused on gearing and power transmission, reported Industrial Powertrain Solutions sales of USD 649.5 million, down 1.9%, with "strength in discrete automation and energy markets", its [results of 3 November 2026](https://www.sec.gov/Archives/edgar/data/0000082811/000008281126000236/a3q2026earningsannouncement.htm) state. GE Vernova, Hyundai Electric and many motor repair shops share most of the remaining 32.0%.

## What does an oil and gas AC motor cost, from explosion-proof low-voltage units to large synchronous machines?

An AC motor sold to U.S. oil and gas sites costs about USD 19,500 on average in 2025 at manufacturer prices, Douglas Insights estimates, from about USD 10,700 for a low-voltage unit to about USD 221,000 for a synchronous or permanent magnet machine.

Douglas Insights splits units into three tiers: low-voltage induction motors at an average USD 10,657, with 86% of units and 47% of value; medium-voltage induction motors at about USD 56,160, with 12.5% of units and 36% of value; and synchronous and permanent magnet motors at about USD 221,000, with 1.5% of units and 17% of value. Explosion-proof enclosures for Class I hazardous areas add about 30% to 60% to a low-voltage motor's price. The 2.2% price leg takes the average to about USD 19,929 in 2026 and USD 24,241 in 2035.

Copper, electrical steel and efficiency content set most of the price path. The 50% duty on copper content from 1 August 2025, per the [proclamation](https://www.whitehouse.gov/presidential-actions/2025/07/adjusting-imports-of-copper-into-the-united-states/), raises the cost of imported windings and motors that count as copper derivatives. Regal Rexnord booked USD 46.6 million of refunds of earlier tariffs over nine months of 2026, its [3 November 2026 release](https://www.sec.gov/Archives/edgar/data/0000082811/000008281126000236/a3q2026earningsannouncement.htm) shows, which signals how much duty cost moved through motor pricing. Douglas Insights expects IE4 content to add about 0.9 points a year to the price leg to 2030, metals about 0.8 points and mix shift toward medium voltage about 0.5 points.

## Which rules and standards govern oil and gas AC motors, from the DOE efficiency law to copper import duties?

Four rule sets govern these motors: DOE efficiency standards from 1 June 2027, the National Electrical Code for hazardous areas, American Petroleum Institute (API) motor specifications and the Section 232 duty on copper content.

The DOE rule covers three-phase induction motors from 1 to 750 horsepower, sets IE4 for mid-range ratings and keeps International Efficiency class 3 (IE3) for smaller and larger ones from 1 June 2027, and adds fractional motors from 1 January 2029, ABB's [guide](https://new.abb.com/news/detail/132268/understanding-the-2027-doe-motor-standards) to the [Federal Register rule](https://www.federalregister.gov/documents/2023/06/01/2023-10019/energy-conservation-program-energy-conservation-standards-for-electric-motors) explains. Submersible, liquid-cooled, synchronous and inverter-only motors are exempt, so ESP motors and large synchronous compressor motors stay outside the efficiency floor. ABB cites a DOE estimate that the rule saves businesses USD 8.8 billion over 30 years.

Site rules shape the specification. Motors in oil and gas plants follow the National Electrical Code (NEC) Class I, Division 1 and Division 2 hazardous-location rules, and refiners and pipeline operators buy large motors to API 541 for induction and API 546 for synchronous machines, Douglas Insights notes from industry practice. The Section 232 copper proclamation of 30 July 2025 also set a review of refined copper by 30 June 2026, with possible duties of 15% from 2027 and 30% from 2028, the [White House text](https://www.whitehouse.gov/presidential-actions/2025/07/adjusting-imports-of-copper-into-the-united-states/) states. Douglas Insights expects these rules to hold about 0.9 points a year of the price leg in efficiency content to 2030.

## What if fracturing slows or grid power arrives early: how large is the market in 2035?

The market ends 2035 between USD 2.94 billion and USD 4.43 billion across three cases, around a USD 3.65 billion base. The pace of Permian grid build-out and the frac cycle set most of the spread.

| Case | Unit leg | Price leg | Revenue rate | 2035 value |
| --- | --- | --- | --- | --- |
| Slower | 1.80% | 1.20% | 3.02% | USD 2.94 billion |
| Base case | 3.00% | 2.20% | 5.27% | USD 3.65 billion |
| Faster | 4.10% | 3.10% | 7.33% | USD 4.43 billion |

In the slower case oil falls back near USD 60 a barrel, the 765-kilovolt lines slip past 2032 and fracturing keeps shrinking, taking 1.2 points off units and 1.0 point off price. In the faster case grid lines energise on time, electric motor drive units take half of new compression horsepower and copper duties widen to refined metal, adding 1.1 points to units and 0.9 points to price. One extra point of yearly revenue growth adds about USD 362 million to 2035 value, and one point less removes about USD 332 million, Douglas Insights estimates.

Live signals sit near the base case. EIA expects West Texas Intermediate at USD 88 a barrel in 2026 and USD 80 in 2027, and the rig count is 10% above a year earlier, while Halliburton's North America revenue fell 8.6%, the sources above show. Our 5.27% sits between rising output and falling frac work.

## Douglas Exclusive: the Permian Plug-In Ledger

The Permian Plug-In Ledger is a Douglas Insights model built from 12 inputs: 6 government or regulatory documents and 6 company releases. It tracks how fast grid power turns oilfield engine horsepower into AC motor orders.

| Date | Input | What it moves |
| --- | --- | --- |
| 1 June 2023 | DOE motor rule, IE4 from 1 June 2027 | Price leg |
| 25 July 2024 | ERCOT Permian oil and gas load 11,964 megawatts in 2030 | Grid-tied units |
| 26 September 2024 | PUCT approves the Permian reliability plan | Grid timing |
| 25 April 2025 | First 765-kilovolt lines authorised | Grid timing |
| 30 July 2025 | 50% duty on copper content | Price leg |
| 22 January 2026 | EIA: Permian 6.6 million barrels a day in 2025 | Production units |
| 6 August 2026 | Kodiak fleet about 98% utilised | Compression units |
| 6 October 2026 | EIA: crude 14.3 million barrels a day in 2027 | Production units |
| 16 October 2026 | Rig count 603, up 10% | Drilling units |
| 20 October 2026 | Halliburton North America revenue down 8.6% | Frac units |
| 20 October 2026 | ABB Motion orders up 14% | Supplier pricing |
| 21 October 2026 | WEG North America revenue up 31.1% | Supplier volume |

The finding, a Douglas Insights estimate: ERCOT's path adds about 2,741 megawatts of Permian oil and gas load between 2030 and 2038, about 343 megawatts a year, and a similar pace from 2025 to 2030. At 1.8 million horsepower of motors per 1,000 megawatts, that is about 615,000 horsepower of new grid-tied motors a year, worth about USD 147 million at an average USD 240 a horsepower, or 6.7% of 2025 market value. About 70% of it replaces gas engines already in the field rather than adding new wells, so grid lines, not rig counts, set most of the Permian motor curve.

The ledger changes how to read 2027 and 2028. Motor orders for compression and artificial lift follow line energisation by two to three quarters, so the first 765-kilovolt segments set a step in medium-voltage orders even if the rig count is flat. Makers with Texas stock and service shops, such as WEG, ABB and Toshiba International, capture these short-lead orders first. If the first lines energise by 2029, the base case holds; if they slip to 2032, the slower case comes closer.

## How does the methodology turn 112,000 motors into USD 2.18 billion?

Our methodology multiplies about 112,000 AC motors sold to U.S. oil and gas sites in 2025 by an average manufacturer price of USD 19,500 to reach USD 2.18 billion, then grows units 3.0% and price 2.2% a year.

The model covers 5 applications, 3 motor types and 5 U.S. regions, using 58 data points, 20 sourced and 38 modelled. Units come from producing wells, rigs and frac fleets, compression horsepower, pipeline stations and refinery capacity, with replacement rates by motor class; prices come from tier mix, metals and efficiency content, all Douglas Insights estimates. Arithmetic: 112,000 x USD 19,500 = USD 2.18 billion; USD 2.18 billion x (1.030 x 1.022)^10 = USD 3.65 billion, within 0.05% of the headline. Units reach about 115,400 in 2026 and 150,500 in 2035.

Two cross-checks agree. First, our USD 330 million for WEG is about 11% of its USD 2.89 billion annualised North American external revenue in the third quarter of 2026, consistent with oil and gas as one of its leading end markets. Second, our USD 306 million for ABB is about 3.3% of its USD 9.28 billion annualised Motion revenue in the third quarter of 2026, in line with oil and gas as one of several process end markets ABB names for that business. AI tools help draft the text and automated checks test the arithmetic and links; the Douglas Insights research desk chooses the sources, builds the model and approves publication, as our [editorial standards](https://www.douglasinsights.com/research-methodology/) explain.

## What counts in the U.S. oil and gas AC motor study, and what is excluded?

The study counts new AC induction, synchronous and permanent magnet motors sold to U.S. upstream, midstream and downstream oil and gas sites, including ESP motors, at manufacturer prices. Direct current motors, drives sold alone, motor repair and rewinds, and gas turbines are excluded.

The study splits value by 5 applications, 3 motor types and 5 U.S. regions: the Permian Basin, the Gulf Coast refining and LNG belt, the Appalachia and Haynesville gas basins, the Rockies and Mid-Continent, and California, Alaska and offshore. Motors sold inside packaged compressors and pumps count at the motor's transfer price. Magnet-free reluctance machines are covered in our [3 Phase Switched Reluctance Motor Market](https://www.douglasinsights.com/3-phase-switched-reluctance-motor-market/) report, motor control enclosures in our [Electric Control Panel Market](https://www.douglasinsights.com/electric-control-panel-market/) study and steam and gas injection in our [Enhanced Oil Recovery Market](https://www.douglasinsights.com/enhanced-oil-recovery-market/) report.

## Market by segment

| Segment | Share | Value |
| --- | --- | --- |
| Upstream production and artificial lift | 31% | $677.0 Mn |
| Gas compression | 25% | $546.0 Mn |
| Refining and petrochemicals | 20% | $436.8 Mn |
| Drilling and completions | 13% | $283.9 Mn |
| Pipeline pumping and LNG | 11% | $240.2 Mn |

## Market by region (USD million)

| Region | 2025 | 2026 | 2035 | CAGR 2026-2035 |
| --- | --- | --- | --- | --- |
| United States | 2,184 | 2,299 | 3,648.7 | 5.27% |
| Permian Basin | 764.4 | 813.3 | 1,421.5 | 6.4% |
| Gulf Coast refining and LNG belt | 633.4 | 664.4 | 1,021.9 | 4.9% |
| Appalachia and Haynesville gas basins | 327.6 | 344.6 | 543.9 | 5.2% |
| Rockies and Mid-Continent | 262.1 | 271.5 | 373.3 | 3.6% |
| California, Alaska and offshore | 196.6 | 203 | 272 | 3.3% |

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 2,184 | USD million |
| Market size 2035 | 3,648.7 | USD million |
| Revenue CAGR 2026-2035 | 5.27 | percent |
| Volume CAGR 2026-2035 | 3 | percent |
| Price per unit CAGR 2026-2035 | 2.2 | percent |

## Frequently asked questions

### How big is the U.S. AC electric motor sales in oil and gas market in 2025 and 2035?

USD 2.18 billion in 2025, from about 112,000 motors at USD 19,500 each, rising to USD 3.65 billion by 2035 at a 5.27% CAGR.

### Which oil and gas application buys the most AC motors?

31.0% of 2025 value, about USD 677.0 million, comes from upstream production and artificial lift; gas compression grows fastest at 6.7% a year.

### Which companies lead AC motor sales to U.S. oil and gas?

15% of 2025 value sits with WEG, about 14% with ABB, 9% with Siemens and 8% with Nidec, Douglas Insights estimates.

### How does Permian grid power affect AC motor sales?

1.10 points a year are added to unit growth as ERCOT lines let operators replace gas engines with electric motors; oil and gas load reaches 14,705 megawatts by 2038.

### Which U.S. region uses the most oil and gas AC motors?

35.0% of 2025 value, about USD 764.4 million, is in the Permian Basin, which grows 6.4% a year to USD 1.42 billion by 2035.

## Sources

- [ABB, ABB Q3 2026 results](https://library.e.abb.com/public/8954633d5ea54a4fb35da2ddbd1834f7/ABB-Q3-2026-press-release-English.pdf)
- [WEG, WEG 3Q26 results release](https://ri.weg.net/)
- [US EIA, Short-Term Energy Outlook, October 2026](https://www.eia.gov/outlooks/steo/report/petro_prod.php)
- [US EIA, Near-term US crude production near 2025 record](https://www.eia.gov/todayinenergy/detail.php?id=67045)
- [ERCOT, Reliability Plan for the Permian Basin Region](https://www.ercot.com/files/docs/2024/06/28/Reliability-Plan-For-The-Permian-Basin-Region.pdf)
- [Utility Dive, Texas OKs Permian Basin reliability plan](https://www.utilitydive.com/news/texas-regulators-approve-permian-basin-reliability-plan/728269/)
- [Texas Senate, PUCT approves 765 kV for the Permian](https://www.senate.texas.gov/members/d29/press/en/p20250425a.pdf)
- [Reuters via BOE Report, US rig count unchanged at 603](https://boereport.com/2026/10/16/us-energy-firms-left-the-rig-count-unchanged-this-week-baker-hughes-says/)
- [Kodiak Gas Services, Kodiak Gas Services Q2 2026 results](https://ir.kodiakgas.com/news-events/press-releases/detail/85/kodiak-gas-services-reports-second-quarter-2026-financial/)
- [Halliburton (SEC), Halliburton Q3 2026 results](https://www.sec.gov/Archives/edgar/data/0000045012/000004501226000070/livemastererdocument.htm)
- [Baker Hughes (SEC), Baker Hughes Q3 2026 results](https://www.sec.gov/Archives/edgar/data/0001701605/000170160526000033/earningsreleaseex991093020.htm)
- [Regal Rexnord (SEC), Regal Rexnord Q3 2026 results](https://www.sec.gov/Archives/edgar/data/0000082811/000008281126000236/a3q2026earningsannouncement.htm)
- [US DOE / Federal Register, Energy conservation standards for electric motors](https://www.federalregister.gov/documents/2023/06/01/2023-10019/energy-conservation-program-energy-conservation-standards-for-electric-motors)
- [ABB, Understanding the 2027 DOE motor standards](https://new.abb.com/news/detail/132268/understanding-the-2027-doe-motor-standards)
- [The White House, Adjusting imports of copper into the United States](https://www.whitehouse.gov/presidential-actions/2025/07/adjusting-imports-of-copper-into-the-united-states/)

## How to cite

Douglas Insights, "U.S. AC Electric Motor Sales in Oil and Gas Market", DI-EP-10936, updated 2026-11-08, https://www.douglasinsights.com/u-s-ac-electric-motor-sales-in-oil-and-gas-market/