Perpetual motion is the motion of bodies that continues forever in an unperturbed system. A perpetual motion machine is a hypothetical machine that can do work infinitely without an external energy source. This kind of machine is impossible, as it would violate either the first or second law of thermodynamics, or both.
These laws of thermodynamics apply regardless of the size of the system. For example, the motions and rotations of celestial bodies such as planets may appear perpetual, but are actually subject to many processes that slowly dissipate their kinetic energy, such as solar wind, interstellar medium resistance, gravitational radiation and thermal radiation, so they will not keep moving forever.
Thus, machines that extract energy from finite sources will not operate indefinitely, because they are driven by the energy stored in the source, which will eventually be exhausted. A common example is devices powered by ocean currents, whose energy is ultimately derived from the Sun, which itself will eventually burn out.
In 2016, new states of matter, time crystals, were discovered in which on a microscopic scale the component atoms are in continual repetitive motion, thus satisfying the literal definition of "perpetual motion". However, these do not constitute perpetual motion machines in the traditional sense or violate thermodynamic laws because they are in their quantum ground state, so no energy can be extracted from them; they exhibit motion without energy.
History
The history of perpetual motion machines dates back to the Middle Ages. For millennia, it was not clear whether perpetual motion devices were possible or not, but the development of modern theories of thermodynamics has shown that they are impossible. Despite this, many attempts have been made to construct such machines, continuing into modern times. Modern designers and proponents often use other terms, such as "over unity", to describe their inventions.
Basic principles
There is a scientific consensus that perpetual motion in an isolated system violates either the first law of thermodynamics, the second law of thermodynamics, or both. The first law of thermodynamics is a version of the law of conservation of energy. The second law can be phrased in several different ways, the most intuitive of which is that heat flows spontaneously from hotter to colder places; relevant here is that the law observes that in every macroscopic process, there is friction or something close to it; another statement is that no heat engine (an engine which produces work while moving heat from a high temperature to a low temperature) can be more efficient than a Carnot heat engine operating between the same two temperatures.
In other words:
In any isolated system, one cannot create new energy (law of conservation of energy). As a result, the thermal efficiency—the produced work power divided by the input heating power—cannot be greater than one. The output work power of heat engines is always smaller than the input heating power. The rest of the heat energy supplied is wasted as heat to the ambient surroundings. The thermal efficiency therefore has a maximum, given by the Carnot efficiency, which is always less than one. The efficiency of real heat engines is even lower than the Carnot efficiency due to irreversibility arising from the speed of processes, including friction.
Statements 2 and 3 apply to heat engines. Other types of engines that convert e.g. mechanical into electromagnetic energy, cannot operate with 100% efficiency, because it is impossible to design any system that is free of energy dissipation.
Machines that comply with both laws of thermodynamics by accessing energy from unconventional sources are sometimes referred to as perpetual motion machines, although they do not meet the standard criteria for the name. By way of example, clocks and other low-power machines, such as Cox's timepiece, have been designed to run on the differences in barometric pressure or temperature between night and day. These machines have a source of energy, albeit one which is not readily apparent, so that they only seem to violate the laws of thermodynamics.
Even machines that extract energy from long-lived sources - such as ocean currents - will run down when their energy sources inevitably do. They are not perpetual motion machines because they are consuming energy from an external source and are not isolated systems.