Global Market Outlook on Industrial Motors

APAC will continue to dominate the market in terms of driving the demand for industrial motors.Increasing demand from industrial consumers in the emerging and developed countries backed by increasing investment in infrastructural development is expected to drive the industrial motors demand globally. Also, regulations governing the replacement of existing motors with premium efficiency motors especially in North America and Europe is further expected to drive the demand for industrial motors

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Global Industrial Motors Market Overview

Increasing demand from downstream industries is expected to be the primary driver for increase in the global industrial motor sales, especially in the emerging economies. In the developed economies, regulations demanding that consumers upgrade to higher efficiency motors will boost motor sales

Industrial Motors Market Size and Trend

  • The global industrial motors market was estimated to be around $ 51.6 billion in 2017 and is expected to reach $ 51.6 billion by 2019, growing at a CAGR of 6-7 percent during 2016-2019. 
  • Global industrial motors production accounts for about 2 percent of the global electric motors production in 2013 but accounted for $ 40 billion (42 percent) of $ 95 billion global electric motors market in 2013. This can be accounted to the relatively higher average price of industrial motors compared with that of non-industrial motors 
  • The global replacement demand forms a considerable portion of the overall industrial motors demand. With the increasing legislative norms, the market for replacements and repairs is expected to grow, especially in emerging economies 
  • The major end-user applications for industrial motors are pumps, blowers, industrial fans, material handling and processing applications
  • The number of industrial motors shipped in 2013 was estimated to be around 193 million units and is expected to reach 257 million units by 2019, growing at a CAGR of 4-5 percent between 2014-2019 
  • Integral horsepower motors (i.e. units above 0.75 KW) dominates the industrial motors segment and holds a market share of around 57 percent 
  • In most of the developed markets, like North America and Europe, retrofit and replacement are expected to drive the demand for IHP motors 
  • For higher operational excellence and enhanced return on investments, there is an increased preference by industrial users for custom made motors compared to standard motors due to space constraints and extreme operating conditions. Industries like mining, cotton and pulp and paper industries are expected to drive the demand for custom made motors

Global Industrial Motors Drivers and Constraints

Drivers

  • Increasing demand from downstream industries is expected to be the primary driver for increase in global industrial motor sales
  • Regulations demanding that consumers upgrade to higher efficiency motors will boost motor sales in relevant geographies. Most geographies are expected to switch to premium efficiency motor systems by 2017
  • Energy costs account for around 96 percent of the total lifetime costs of running electric motors. With increase in energy prices globally, there would be an increased demand for higher efficiency electric motors
  • Development of new electric motor technologies is expected to boost use of such products in new applications. Major manufacturers are increasing spend on R&D so as to differentiate their products from those of competitors

Constraints

  • Various barriers to adoption of high efficiency industrial motors involve customer sentiment such as buyers being cost oriented and focusing on short term savings as opposed to life cycle cost assessments. Further, motor users prefer to repair the existing motors rather than replace them, due to concerns regarding costs and production downtimes
  • High competition among industrial motor manufacturers leads to low profit margins within the industry, and coupled with product lifecycle which is typically over 15 years, this restricts the growth of smaller manufacturers, especially in emerging markets. Such suppliers typically compete on price terms, which affects the quality of the products they manufacture