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Electric Motor Market Overview
The global electric motor market was valued at $108.5 billion in 2017 and is expected to record a compound annual growth rate (CAGR) of 6.2%, during the forecast period. The demand for electric motors posted positive growth during 2013–2017, on account of increasing production of electric vehicles globally, with China being the largest producer of electric vehicles. The production of electric vehicles recorded a growth rate of around 50%, globally; while, the production of non-electric vehicles grew at a CAGR of around 3%, during the period 2013-2017.
On the basis of motor type, the electric motor market has been categorized into AC motor, DC motor, and hermetic motor; of these, AC motor accounted for the largest market share in terms of value in 2017, and is expected to lead the market during the forecast period as well. Key factors driving the growth of this motor type is increasing production of motor vehicles as well as growing adoption of energy efficient motors for industrial applications.
On the basis of AC motor, the market is split into induction motor and synchronous motor. Of these, induction motor accounted for larger revenue share in 2017. This type of motor finds applications in industrial sector, wherein a three-phase induction motor is the most prevalent. In a manufacturing facility, electric motors can account for around 70% of the total energy consumption, the highest consumption of electricity arises from the running of compressors, which majorly use induction motor. Therefore, to curb this, industries are employing more energy efficient electric motors to reduce operating cost.
Based on output power, the electric motor market has been categorized into fractional horsepower and integral horsepower. Among these, fractional horsepower motor held larger revenue share in 2017. This is due to large applications of fractional horsepower motors in automotive and electronic goods sectors.
On the basis of application, the electric motor market has been segmented into motor vehicles, industrial machinery, HVAC equipment, transportation, and household. Motor vehicles accounted for the largest market share in terms of revenue in 2017, owing to surge in demand for combustion-engine vehicles, as well as increasing adoption of electric vehicles supported by increasing fuel prices and global warming concerns.
In North America, governments are supporting the adoption of electric vehicles through the development of infrastructure for electric vehicles like charging stations. Also, governments are offering rebates and incentives like clean energy rebate, which provides $1,500 – 2,500 to consumers purchasing zero-emission vehicles. While, the electric vehicle market in Europe is driven by tight emission standards as well as high fuel taxes. Moreover, rising global warming as well as fluctuating crude oil prices expected to propel the demand for electric vehicles, which in turn, would push the growth of electric motor market year-over-year (Y-o-Y).
Electric Motor Market Dynamics
The key trend exhibited in the electric motor market is the development of high power to weight ratio electric motors. Vendors are developing electric motors with high power to weight ratio, as large electric motors have portability and high energy consumption issues. In April 2015, Siemens AG researchers developed a new type of electric motor weighing 50 kilograms. The motor can deliver a continuous output of about 260 kilowatts, five times more than comparable drive system. The motor was especially designed for use in aircrafts. Moreover, with rise of electric motor-powered vehicles, there is rising need for higher power, lower weight, and smaller electric motors.
Increasing need to reduce energy consumption by high power consumption industries expected to fuel the growth of energy efficient electric motors across the globe. In a manufacturing industry, electric motors can account for around 70% share of the total energy consumption, and the highest consumption of electricity arises from the running of compressors in the industry, wherein half of all the energy consumed is used by electric motors. Therefore, to curb this, industries employ more energy efficient electric motors to reduce the operating cost, thus driving electric motor market growth.
Large electric motors need more power for their operations in their respective applications. However, portability of electric motors is a key restraint of the electric motor market. For higher and better performance, vendors manufacture electric motors of large size for different industrial and commercial applications. These motors require high energy, thus creating additional burden to their overall cost. Size of these motors is dependent on the requirement of electric supply and voltage at the site of applications; therefore, their weight and size are required to be maintained. Portability and installation of large electric motors and their integrated systems are among the major concerns for vendors. The issues associated with heavy electric motors hinder market growth.
Rising concerns to reduce energy consumption and pollution, and the need to develop and implement high energy efficient motors are expected to increase the demand for super premium efficiency IE4 electric motors in the coming years. The IE4 electric motors are more efficient than IE3 motors and can also be operated with frequency converters. The demand for high energy efficient motors and development of IE4 motors, creates huge opportunities for motor manufacturers.
Electric Motor Market - Competitive Landscape
The intensity of rivalry in electric motor market is high, as the market is fragmented with the presence of large number of players. Owing to intense competition, in recent years, companies such as Nidec Corporation and ABB Ltd. were majorly active in mergers and acquisitions to increase their geographical footprint. While, companies such as Toshiba Corporation, Nidec Corporation, and DENSO Corporation were majorly involved in product launches and partnerships to increase their product portfolios.
Some of the other key players operating in the global electric motor market are Emerson Electric Co., Wolong Holding Group Co. Ltd., Johnson Electric Holdings Limited, AMETEK, Inc., Franklin Electric Co., Inc., Mitsubishi Electric Corporation, Regal Beloit Corporation, Robert Bosch GmbH, and Siemens AG.