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Industrial Motors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·6-min read

The Global industrial motors market was valued at USD 19. 81 billion in 2020, and it is expected to reach USD 23. 48 billion by 2026, registering a CAGR of 2. 97%, from 2021 to 2026. - Motors are the driving force of industrial production.

New York, July 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Industrial Motors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06101208/?utm_source=GNW
New approaches to motor monitoring, alignment, testing, and connections save time and costs while improving safety. At the same time, energy-saving motors and intelligent drives are boosting efficiency and performance while facilitating troubleshooting.
- The market for industrial motors is primarily driven by the growing focus towards industry 4.0. Industrial automation drives the manufacturing sector toward more efficient productivity in various regions, which is expected to show strong growth during the forecast period. As per Industrial Energy Accelerator, approximately 70% of all electrical energy consumed by industry is used by the millions of electrical motors installed worldwide. Responsible for driving both core industrial processes as well as auxiliary systems such as compressed air generation, ventilation, and water pumping, motors are critical to almost every industry.
- AC motors are generally more reliable with low maintenance requirements, and their service life is often limited only by the bearing life. Since they do not need commutators, brushes, or slip rings, they don’t have parts that wear out regularly. This makes them ideal for applications where the motor must be continuously available to operate, is not easily accessible, or will operate without supervision for long periods of time.
- The size of motors is dependent on the electric supply and voltage at the site of applications; therefore, their size and weight are needed to be maintained. The key trend exhibited in the market is the development of high power to weight ratio electric motors. Manufacturers are developing electric motors with a high power-to-weight ratio, as large electric motors have portability and high energy consumption issues.
- COVID-19 has negatively impacted the market growth, mainly due to stoppage in discrete manufacturing industry operations. For instance, according to the Monthly Survey of Manufacturing, 2021 by the Government of Canada, Manufacturing sales fell 2.1% to USD 57.1 billion in April 2021, on lower sales in 11 of 21 industries.

Key Market Trends
Low Voltage has the largest Share in the market

- The industry standards for low voltage motors vary largely. Several manufacturers have different classifications of motors that are considered to be low voltage motors. However, according to the International Electro-technical Commission’s (IEC) IEC 600038 standard, any motor with a rating up to 1000 V is considered to be a low voltage (LV) motor.
- When compared to other motors in the market, low voltage motors have a wide range of applications across multiple industries. Some of the primary applications of low voltage motors are found in the mid-stream and downstream oil and gas industry, water, wastewater industry, food and beverage industry, etc.
- In July 2021, the EU Ecodesign Regulation addressed this for LV motors by establishing and enforcing International Efficiency (IE) classes defined by the International Electrotechnical Commission (IEC), It set IE3 as the minimum standard and IE5 as an ultra-premium rating, including motors used with VSDs.
- Furthermore, over the forecast period, rising oil prices are expected to create a strong rebound in the demand for LV motors from the oil and gas industry. Several large projects that were previously delayed, due to higher operational costs and pending equipment purchases are being taken up.
- In order to expand its product offering into international markets, General Electric sold its mid-and low-voltage motor business, known as SIM to Wolong Electric. The Wolong signed a 10-year trademark license agreement with GE to sell Monterrey, Mexico-manufactured products under the brand “GE Industrial Motors, a Wolong company” to the United States.

Asia-Pacific Holds the Largest Market Share

- Manufacturing is one of the pillars of the Chinese economy and is undergoing a rapid transformation. This large-scale transformation has put the country in a leading position in the market. The country has evolved in its capabilities, from producing low-cost goods to make more advanced products, over the last two decades.
- The adoption of industrial motors in the country is also expected to be driven by smart manufacturing initiatives. According to the Ministry of Industry and Information Technology, the country initiated several smart manufacturing pilot projects. As per the 13th five-year plan of Smart Manufacturing, the country also aims to establish its intelligent manufacturing system and complete the key industries transformation by 2025.
- Automakers have been expanding their manufacturing facilities in China, which is expected to drive the demand for industrial motors in the country during the forecast period. For instance, in Jan 2020, Mercedes-Benz announced that it is set to build smart electric cars with China’s Zhejiang Geely Holding Group. The facility was capable of producing 150,000 vehicles in a year. The two carmakers may invest CNY 5.4 billion (USD 780.3 million) to support the development of the global headquarters in Ningbo and distribution centers in China and Germany.
- Furthermore, in Feb 2020, Henkel Adhesives Technologies officially opened its new EUR 50 million production facility in Kurk Kumbh, near Pune, India, to serve the growing demand for the Indian industries for high-performance adhesives, sealants, and surface treatment products. The 100,000 sq. m facility is designed as a smart factory, equipped with a wide range of Industry 4.0 operations to meet the highest sustainability standards.
- With the Oil Ministry’s announcement in Oct 2019, related to the spending of around USD 118 billion in the oil and gas exploration sector and setting up of natural gas infrastructure in the country over the next few years, the market is expected to witness demand for industrial motors.

Competitive Landscape
The intensity of competitive rivalry in the industrial motors market is high, owing to the presence of large-scale companies, such as the General Electric Company, ABB Group, Siemens AG, Emerson Electric Co. Inc., and Johnson electric. Sustainable competitive advantage can be attained through innovation, but it has become increasingly difficult for firms to differentiate themselves from market competition. Because the concentration of buyers is high, people have the option to choose different buyers. Although the market comprises various players, only a handful are prominent in the market for their high standards and excellent quality.

Some of the key players in the industry are GE, ABB, and Siemens AG. Some of the recent developments in the industrial motors market are:
- February 2020 - GE successfully delivered the variable-speed drive system (VSDS) and an e-house to a petrochemical plant by Shell Nederland Chemie BV. GE’s VSDS, comprising a high-speed induction motor and a variable speed drive, can steadily reach over 90% energy efficiency for the compressor train.
- June 2020 - ABB launched its AXW 315 and 400 IEC water-cooled motors, which offer more watts per kilogram than conventional totally-enclosed fan-cooled (TEFC) motors. These motors deliver an average of 40% more power over conventional fan-cooled designs. With the increasing requirement for energy-efficient motors in the industry, these products create a point of difference in the market.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06101208/?utm_source=GNW

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