KEY FACTORS SHAPING ELECTRIC MOTORS MARKET
Increasing Number of Mergers & Acquisitions by Leading Players
- Surge in mergers and acquisitions by leading players or manufacturers in the electric motors market over the last few years has driven the global market growth. Ongoing market consolidation can be primarily attributed to the increasing demand for organizational efficiency, product innovation, technological advancements and market expansion. Large-scale industries acquire small-scale industries to increase their market presence and expand their business. Over the years, owing to several acquisitions, the electric motor industry has evolved.
- For instance, some of the prominent acquisitions are:
- In 2019, Bosch completely acquired EM-motive, an electric motor manufacturer.
- In 2018, WEG S.A. acquired Antriebstechnik KATT Hessen GmbH, a manufacturer of high-speed motors.
- In 2017, Nidec acquired the electric motor business of Emerson Electric Company.
- In 2017, WEG acquired Bluffton Motor Works LLC, an electric motor manufacturer.
New Developments Diversify Application
- Manufacturers are continuously focusing on R&D to develop new and effective electric motors to meet consumer demand. Increasing concerns, such as environmental pollution and regulations, are forcing manufacturers to develop electric motors that reduce vibration and increase efficiency. For example: A synchronous electric motor is around 80% more efficient than an induction electric motor.
- Another example can be the development of a new type of steel for electric motors, which reduces the weight of the electric motor and makes it more efficient and powerful. This new type of electric motor will be small in size and cost effective, which will raise demand from residential and commercial applications.
- For instance, in June 2017, Arc Systems Inc. developed the squirrel cage induction electric motor with class-H insulation materials, which can sustain high temperature.
Regulations Focused on Minimizing Energy Consumption
- About 2/5 of the total energy used in industries is consumed to drive electric motors, mostly to power equipment such as industrial pumps, compressors etc. A favorable regulatory environment will be promoting the use of high-efficiency electric motors. Stringent regulations will compel industries to replace existing electric motors and use motors with high efficiency, which in turn, will drive market growth.
- The Minimum Energy Performance Standard (MEPS) set by the European Commission mandates minimum efficiency standard for industrial electric motors. The legislation has been imposed in three stages. According to the third stage of EU MEPS, IE3 is the minimum efficiency class required for three-phase induction motors (in the range of 0.75-7.5 kW) and IE2 motors can be used but with a variable speed drive.
- Similarly, Greenhouse and Energy Minimum Standards (GEMS) Act 2012 creates framework for electric product efficiency in Australia.
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Electric Motors Market Structure Analysis
- The electric motors market landscape is highly fragmented with a large number of big, small-scale, and regional players in the market.
- Over the last few years, there are manufacturers who offer intelligent electric motors and export them to developing regions.
- The global electric motors market has been witnessing an increase in the number of acquisitions and collaborations, product launches, and investments in new manufacturing facilities by leading manufacturers to complement their business model and strengthen their footprint in regional markets.
- In recent times, the competition in the global market has become intense, which is leading to creation of opportunities for collaboration with sales and distributor companies.
- Such activities will help enhance market presence of leading players and drive the sales of electric motors.
- Many China-based players are offering low-cost electric motors, which are supporting sales in the Asian region, but negatively affecting the growth in market share of players from the U.S., the U.K., Germany, France, and Italy.
- Online sales platforms and portfolio extension are also identified to remain key developmental strategies adopted by manufacturers of electric motors.
Electric Motors Market: Taxonomy
The global electric motors market is segmented in detail to cover every aspect of the market and present complete market intelligence to the reader.
- AC Motors
- Induction Motors
- Synchronous Motors
- DC Motors
- Brushed DC Motors
- Brushless DC Motors
- Less than 1 HP
- 1-500 HP
- Above 500 HP
- General Machinery
- Centrifugal Machinery
- General Machinery
- Centrifugal Machinery
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excluding Japan (APEJ)
- Middle East and Africa