Industrial Motor
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Industrial Motors Market Outlook

• Manufacturing of industrial motors requires huge amounts of raw materials, which make up for around 50% of the total industrial motor cost.
• Copper and steel are the major raw materials and are abundantly available which makes the supplier power low.
• Currently, there is no technology or product that provides an alternative solution to industrial motors for buyers.
• However, within the electric motor market, the threat of substitution is high. The low-efficient motors could be substituted with higher-efficiency motors and AC motors can be substituted with PM motors or sync motors in few applications.
• The industrial motor market has high barriers to entry as the segment is capital intensive and is required to comply with regulations.
• Industry motor manufacturers must have proven credentials in a particular segment and are required to be approved by consultants and opinion leaders (such as electrical consultants). Without these approvals, it is difficult for them to compete against global players.
• The sourcing channels include original equipment manufacturers (OEM), distributors, and system integrators.

Global Industrial Motors Market Overview

• Asia Pacific (APAC) will remain the epicenter for lucrative growth opportunities in the industrial motors market over the forecast period. 
• With the fast-paced industrialization, APAC is shifting toward internet-driven industrial operations in each vertical. Japan, South Korea, and Australia are increasingly unlocking the potential of leading-edge services and connected technologies. 
• Moving ahead, APAC is the leading manufacturer of automobiles across the world. In 2018, the region produced over 50 million commercial automobiles. In that region, the industrial motor market in India is grabbing huge attention from stakeholders. 
• Also, regulations governing the replacement of existing motors with premium efficiency motors, especially in North America and Europe, are further expected to drive the demand for industrial motors.

Industrial Motors Market Size and Trend

• 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, the regulation 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.

Global Industrial Motors Drivers and Constraints

Drivers

• Increasing demand from downstream industries is expected to primarily influence the global industrial motors market outlook.
• Heating, ventilation, and air conditioning (HVAC) systems are among the key building components of modern infrastructure, particularly for shopping malls or large office buildings. Electric DC motors are broadly utilized in HVAC systems as they help achieve greater efficacy in the airflow systems and optimize their energy usage and service life.
• Energy costs account for around 96% of the total lifetime costs of running electric motors. With the increase in energy prices globally, there would be an increased demand for higher-efficiency electric motors.
• The development of new electric motors will boost the usage of such products in new applications. Major manufacturers are increasing their spending on R&D to differentiate their products from those of competitors.
• The global automotive sector is turning to electric mobility with notable changes in electric vehicle (EV) technology. Governments in Europe have taken proactive measures for decarbonization, triggering the adoption of EVs, and thus auguring well for the electric motor market.

Constraints

• Various barriers to the 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. Coupled with a 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.
• Fluctuating prices of raw materials such as steel bars, permanent magnets, copper wires, and precision thin metals - specialty alloys - which are used to manufacture electric motors.

Industrial Motors Market Overview

• The global industrial motors market is highly raw material intensive with the raw materials contributing to around 50 percent of the total industrial motor cost.
• Copper and steel are the major raw materials and are abundantly available which makes the supplier power low.
• Currently, there is no technology or product which provides an alternative solution to industrial motors for a buyer.
• However, within the electric motor market threat of substitution is high. The low efficient motors could be substituted with higher efficiency motors and AC motors can be substituted with PM motors or Sync motors in few applications.
• The industrial motor market has high barriers to entry as the segment is capital intensive and is required to comply with regulations.
• Industry motor manufacturers are required to have proven credentials in a particular segment and required to be approved by consultants and opinion leaders (like electrical consultants). Without these approvals, it is difficult for them to compete against global players.
• The sourcing channels include OEMs, distributors, and system integrators.

Pricing Models

• Details about the different pricing models in the industrial motor market are given in the report with the inherent pros and cons of each.
• The components that have the greatest impact on the cost and pricing are raw materials, design, and labor.
• The two main models are the contractual and direct buying models.

There are different metals that are the main price drivers of the electric motor market. Each of these price drivers is analyzed individually and described. This helps understand the pricing dynamics of the market.  In addition, labor and electricity also have a direct influence on the electric motor market trends.

• Copper
• Pig Iron & Ferrous Scrap
• Carbon Steel
• Grain Oriented Electrical Steel

Why You Should Buy This Report

• The electric motor market report gives information about industrial motor market size, overview, trends, electric motor market analysis, and drivers and constraints.
• Regional industrial motors market outlook for North America, APAC, EMEA, and LATAM regions with detailed facts and figures of each region is given.
• Porter’s five forces analysis of the global industry motors market gives an overview of the market dynamics and competitive factors.
• Supplier profile and market share of key players in the electric motor market.
• Cost structure, price driver analysis, price trend, and forecast.
• The price driver analysis includes the details of labor as well as the source metals that drive the price of motors such as copper, pig iron & ferrous scrap, carbon steel, and grain-oriented electrical steel.
• Learn about electric motor market size, best procurement practices, sourcing channels, etc.
• Electrical Motors such as AC motors (Alternating Current Motor), DC motors (Direct Current Motor), induction motor, torque converter, motion controller, single-phase motor, three-phase motor and variable drive, etc.
• The supply-demand,  manufacturing, and production analysis for electrical motor segments in the market such as AC motor, DC motor, BLDC motor (Brush Less Direct Current Motor), foot mount motor, flange mount motor, geared motor, gearless motor, squirrel cage motor, synchronous motor, stepper motor, Servo motor, and BLDC Motor.
• There are constant innovations in the market. The report details the more salient developments and innovations in the industrial motor market. Features that improve efficiency and safety are the most in demand. 
• There are constant innovations in the industrial motors industry. The report details the more salient developments and innovations in the market. Features that improve efficiency and safety are the most in-demand.