Motors and drives in the process industry: Key market research findings
- Implementation of efficiency transformation legislation drives market growth
- APAC dominates the market geographically
- Key vendors – ABB, Danfoss, Rockwell Automation, Siemens, and WEG
Technavio’s market research analyst predict the global motors and drives market in the process industry to grow at a CAGR of over 7% between 2016 and 2020. The introduction of new motor efficiency transformation legislation is the primary driving force behind the growth of this market. Benchmarks imposed by the US government regarding carbon emission and fuel efficiency prompts vendors to focus on improving motor efficiency. Industries are calling for the replacement of old electric motors with certified motors of higher operating efficiency because of these new regulations. During 2015, APAC dominated the global motors and drives market in process industries with a market share of over 40%. Increased investments in manufacturing hubs such as China and India are expected to fuel growth in the motors and drives market in process industries in APAC in the coming years.
The new market research report from Technavio presents a breakdown and analysis of the motors and drives segments based on the type.
“Of late, there has been a significant rise in the demand for International Electrotechnical Commission (IEC) motors. The IEC motor market has been thriving in North America, primarily in the US and the Canadian end-user markets, especially in the offshore oil and gas in midstream and upstream pumping applications over the past three years. These market dynamics are resulting in a growing need for replacement IEC machinery, spurring the growth of a market of over 120 million per year,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research.
By 2020, the motors segment is expected to continue its market dominance with a share of more than 61%. Industry verticals such as oil and gas, chemical, and petroleum are increasingly adopting low voltage motors. The global motors and drives market in process industries can be categorized into four broad segments that include compressors, pumps, fans, and others, with the compressor segment accounting for the majority share of the revenue. The emergence of next-generation compressed air systems with low-maintenance and eco-friendly features is likely to encourage manufacturers to promote IE3 and IE2 motors in compressors, resulting in market growth.
The key vendors in the market include ABB, Danfoss, Rockwell Automation, Siemens, and WEG. The market appears highly fragmented due to the presence of several large and small-scale vendors. Major companies account for a considerable share of the market and have started undergoing strategic partnerships and channel partners to expand their global presence. Constant technological advancements have induced drives and electric motor manufacturers to invest heavily in R&D to design more affordable and energy-efficient motors and drives. This will result in the introduction of advanced products in the market, which will intensify vendor competition in the next four years.
A more detailed analysis is available in the Technavio report, Global Motors and Drives Market in Process Industries 2016-2020.
We can customize reports by other regions and specific segments upon request.
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