INDUSTRIAL MOTORS MARKET ANALYSIS

The global industrial motors market size was valued at US$ 3,430 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 3.54% from 2023 to 2030. Key factors driving the Industrial Motors market include increasing oil and gas production, technological advancements, and a growing demand for energy-efficient solutions. Increasing demand for energy-efficient motors and government initiatives to address climate change are key factors driving the Industrial Motors market.

Global Industrial Motors Market: Regional Insights

By regions, the global industrial motors market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

North America is anticipated to show substantial growth in the global industrial motors market during the forecast period, owing to rise in demand for industrial motors as the region is witnessing industrial revolutions across various sectors including aerospace, automotive, and defense among others. Moreover, continuously growing economy of Canada, and the U.S., the manufacturing sector of these country is likely to show significant growth in the near future. This in turn is expected to drive growth of the global industrial motors market in North America during the forecast period. 

Asia Pacific is projected to gain major share in the global industrial motors market over the forecast period. This can be attributed to rapidly transforming manufacturing industry in China, as the country is evolving in its production capabilities from producing low-cost goods to developing highly advanced products. Furthermore, rise in smart manufacturing initiatives in countries such as Japan are also driving the adoption of industrial motors in the region. These factors are thus expected to augment growth of the global industrial motors market across the region.

Figure 1: Global Industrial Motors Market Share (%), By Region, 2022

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Global Industrial Motors Market Drivers:

Government regulations driving the demand for energy efficiency to boost the market growth

Due to significant technological advancements, several opportunities have been generated in the market for development of electric motors in variety of industries such as construction, automotive, agriculture, and others. Several governments around the world are imposing regulations regarding energy consumptions. This in turn is driving the demand for energy efficiency, leading to manufacturing organizations pursuing optimized production efficiency as their main goal. As per the U.S. Energy Information Administration, about half of the consumption of electricity in the manufacturing sectors is caused for powering motors such as pumps, fans, compressors, and conveyors. Nearly two-thirds of this consumptions is attributed to food, bulk chemicals, petroleum, and coal products, paper, and primary metals industries. Thus, demand for industrial motors in these industries is increasing rapidly, which is further expected to boost growth of the global industrial motors market during the forecast period.

Rising inclination toward smart motors to augment the market pace

The market for industrial motors is witnessing strong growth in recent years. As the emergence of smart technology is growing, the design and deployment of traditional motors has changed majorly. This factor is thus supporting growth of the market. With increasing technological advancements, industrial motors are becoming smarter and more flexible through computer technology. Such smart motors enable predictive diagnosis of machine, which further decreases the downtime, as it optimizes the process. Thus, inclination towards smart motors is increasing all over the world, which is expected to drive growth of the global industrial motors market during the forecast period.

Global Industrial Motors Market Opportunities:

Emergence of Industry 4.0 concept is expected to create growth opportunities for the global industrial motors market during the forecast period. With growing adoption of Industry 4.0, several industries are revolutionizing, with significant advancements in utility and energy sector. Along with this, several governments around the world are imposing regulations to decrease consumption of energy, reduce carbon dioxide regulations, and offer highly secure power supply systems. This in turn is driving the demand for industrial motors, which is expected to bring growth opportunities in the market.

Increase in developments in power plant projects are likely to bring multiple opportunities in the global industrial motors market during the forecast period. For instance, in May 2020, General Motors entered into a power purchase agreement (PPA) with Tennessee Valley Authority (TVA) for 100 MW of electricity, as the company plans to use 100% renewable energy to power its manufacturing plant in Tennessee by 2022. Thus, such developments in power plant projects are expected to generate business opportunities in the global industrial motors market during the forecast period.

Global Industrial Motors Market Trends:

Growing adoption of automation in food industry is a growing trend in the market

There is an increase in adoption of automation by manufacturers in the food industry to adhere to the regulations and guidelines that are set by the industry associations in order for maintaining the product quality. For instance, the Food Safety Modernization Act from the Food and Drug Administration implemented regulations necessitating major food manufacturer to meet preventative controls. Moreover, motors utilized in the food and beverage sector are in demand in segments such as meat, fish, poultry, and baking goods, along with applications such as mixers, conveyors, and grinders. Thus, with increasing automation of the food industry, demand for industrial motors is likely to increase, which in turn is expected to fuel growth of the market.

Increasing developments in automobile industry is a recent trend

With increasing developments in automobile industry, the market is likely to witness strong growth, as the demand for industrial motors is growing in the industry. For instance, in February 2021, BorgWarner introduced its new High Voltage Hairpin (HVH) electric motor 320, which comes with 800-volt capabilities and can be utilized in light-duty passenger cars as well as heavy-duty commercial vehicles. Moreover, it can also supply power to different electric and hybrid applications for automobile manufacturers. Thus, this trend is likely to grow in the market over the forecast future.

Global Industrial Motors Market Restraints:

Portability issues of industrial motors to hamper the market growth

Larger the industrial motors, higher is the power needs for their operations in respective applications. Vendors are manufacturing electric motors with larger size in order to achieve higher and better performance in various industrial applications. These motors need high energy, due to which, its overall cost increases. The size of these motors depends on the electric voltage and supply at application site, due to which the weight and size are required to maintain. This in turn affects their portability, which is one of the major factors expected to hinder growth of the global industrial motors market during the forecast period.

High cost required to procure new equipment and upgrade existing one to hinder the market pace

The initial investment required for procuring new equipment as well as upgrading of existing equipment can be high. The overall cost of using industrial motors include the initial purchase cost, maintenance cost, and energy costs. Calculating the overall costs during the life cycle can help organizations to select motor that is the most cost effective. In most of the cases, it is found that, the high-efficiency motors help in cost reduction, even though the initial cost can be high. Thus, this factor is anticipated to impede growth of the global industrial motors market during the forecast period. However, market players are focusing on development of cheaper solutions without affecting their efficiency to cater the growing demand.

Figure 2: Global Industrial Motors Market (%), By Type Of Motor , 2022

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Global Industrial Motors Market Segmentation:

The global industrial motors market report is segmented into Type of Motor, Voltage, and End User.

Based on Type of Motor, the market is segmented into Alternating Current (AC) Motors, Direct Current (DC) Motors, and Other Types of Motors. Out of which, Alternating Current (AC) Motors is expected to dominate the global market over the forecast period and this is attributed to the higher demand for AC motors in various applications. As per the International Energy Agency (IEA), electric motors cause nearly half of the consumption of electricity globally. AC motors are utilized for powering various applications such as mixers, conveyors, fans, pumps, crushers, and hoists. Thus, growing demand for these AC motors, due to their various benefits across such applications is driving growth of the segment.

Direct Current (DC) Motors segment is also expected to witness significant growth in the near future and this is owing to the extensive use of DC motors in several industries among others. DC motors are widely used in aluminum and steel industry. These motors are designed for generating a constant torque with a given range of speed. These motors are used in various applications including bar mills, steckel mills, rod mills, and hot strip mills. Demand for DC motors is increasing several applications, which is further driving growth of this segment.

Based on Voltage, the market is segmented into High Voltage, Medium Voltage, and Low Voltage. Out of which, High Voltage is expected to dominate the global market over the forecast period and this is attributed to the higher preference for high voltage motors in multiple industries. High voltage motors are widely used in industries such as petrochemical, oil and gas, pulp and paper, water and wastewater, marine, steel, electric utility, air separation and mining. Due to increasing growth of these industries, the demand for high voltage motors is increasing, which further is driving growth of this market.

Medium Voltage segment is also expected to witness significant growth in the near future and this is owing to the rising applications of medium voltage motors in several industries from production of pulp and paper to utilities and raw material processing. These applications include driving large conveyors, compressors, fans, crushers, pumps, and related machines at variable or fixed speeds.

Based on End User, the market is segmented into Oil and Gas Power, Generation, Mining and Metals, Water and Wastewater Management, Chemicals and Petrochemicals, Discrete Manufacturing, and Other End users. Out of which, Oil and Gas is expected to dominate the global market over the forecast period and this is attributed to the increasing investment in oil and gas midstream and upstream sectors, driving the demand for industrial motor. Companies in the oil and gas industries are increasingly investing in activities of oil production, which is likely to increase the replacement rate of conventional motors. Thus, the oil and gas segment is likely to show strong growth in the near future.

Power Generation segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for gas turbines in developing regions. The dependency of these region on wind energy is increasing, which is further boosting the industrial motor applications with growing use of turbines. Thus, the segment is expected to show increasing growth in the market across the forecast future.

Global Industrial Motors Market: Key Developments

In February 2020, General Electric Company, announced successful delivery of the variable-speed drive system (VSDS) and e-house to Shell Nederland Chemie BV. The VSDS system of GE comprises a high-speed induction motor along with a variable speed drive that is capable of steadily reach over 90% energy efficiency for the compressor train.

In January 2020, ABB introduced its AXW 315 and 400 IEC water-cooled motors that offer high watts per Kg than traditional totally-enclosed fan-cooled motors. These motors can deliver 40% higher power compared to traditional fan-cooled designs.

In February 2020, Rockwell Automation Inc., announced the acquisition of the ASEM SpA, who offers a complete range of Industrial PCs, remote access capabilities, Human-Machine Interface hardware and software, and secure Industrial IoT gateway solutions.

In January 2021, Rockwell Automation completed acquisition of Fiix Inc. This acquisition will make addition of Fiix advances to software strategy and enhances capabilities of Rockwell Automation in its Lifecycle Services business.

Global Industrial Motors Market: Key Companies Insights

The global industrial motors market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global industrial motors market are Menzel Elektromotoren GmbH, General Electric Company, ATB Austria Antriebstechnik AG, ABB Ltd., Fuji Electric Co. Ltd., Allen-Bradly Co. LLC (Rockwell Automation Inc.), Franklin Electric Co. Inc., Siemens AG, Maxon Motor AG, Amtek Inc., Nidec Corporation, Arc Systems Inc., Toshiba International Corporation, Johnson Electric Holdings Limited, and Emerson Electric Co.

*Definition: Industrial Motors convert electrical energy into mechanical energy, making them the heart of most industrial machinery. These incredibly durable and highly-efficient electric machines are also convenient to use and have a wide range of applications, from conveyors and cranes to hoists and machine tools.