ELECTRIC MOTOR CORE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Electric Motor Core Market Drivers:

• Increasing adoption of electric vehicles globally: Rising adoption of electric vehicles (EVs) worldwide is a major driver for the electric motor core market. EVs use electric motors instead of internal combustion engines, thereby creating strong demand for electric motor cores. Government incentives and schemes are further accelerating EV adoption. For instance, in September 2020, the rapidly growing global EV market will boost demand for efficient and high-performance electric motor cores.
• Rapid industrialization and automation in emerging economies: Emerging economies like China, India, Mexico, Brazil, and others are undergoing rapid industrialization and adopting automation across various industries like automotive, metals, electronics, chemicals, aviation, food & beverage (F&B), and others. Process automation increases the use of electric motors and drives, in turn, propelling the demand for motor cores. For example, Made in China 2025, a strategic plan by the Chinese government to upgrade and modernize Chinese industries, is leading to increasing automation and Industrie 4.0 adoption in the country. Similar initiatives are being undertaken in other emerging economies as well. The industrial automation trends in these markets provide significant growth opportunities for electric motor core manufacturers.
• High efficiency, lower maintenance, and longer life of electric motors: Electric motors are highly efficient with over 90% efficiency in converting electrical energy into mechanical motion. They have lower friction losses as compared to engines and require less maintenance due to absence of fluids or lubricants. The life span of an electric motor can be over 10 years with proper care. These advantages over alternate technologies like internal combustion engines and hydraulic motors are fueling electric motor adoption in diverse applications ranging from electric vehicles, industrial machinery, HVAC   (Heating, Ventilation, and Air Conditioning) systems, aerospace systems, robotics, appliances, and others. The expanding use cases and demand for electric motors will drive the electric motor core market.
• Increasing g demand from the automotive industry: The automotive industry is the largest end-use sector for electric motors. They are used in various applications like electric power steering, HVAC systems, engine cooling fans, seat adjustment, door locks, windshield wipers, and others. Increasing proliferation of electric motors in modern vehicles to enhance safety, comfort, and fuel efficiency is fueling demand for motor cores. Further, the rising production of motor vehicles globally especially in emerging economies is driving automotive industry growth.

Electric Motor Core Market Opportunities:

• Growing adoption of robotics and industrial automation: Increasing adoption of robotics, IoT (Internet of Things), Industry 4.0 and process automation across industries such as automotive, healthcare, electronics, logistics, and others presents major growth opportunities for electric motor core manufacturers. Robots extensively use servo motors, stepper motors, and other precision electric motors. For instance, collaborative robots deployed across many factories use servo motor technology. Increasing demand for robotics and automation will boost the adoption of associated electric motors and cores.
• Development of axial flux electric motors: Axial flux electric motors have emerged as an efficient motor technology due to benefits like high torque density, low noise, compact size, and others. These motors find applications in EVs, industrial machinery, robotics, and other fields. Many companies are investing in research and development (R&D) to develop axial flux motor technologies. For example, Yasa, an U.K.-based company designs innovative axial flux electric motors and controllers. The expected rise in demand for axial flux motors will open up new avenues for electric motor core manufacturers.
• Potential applications in renewable energy sector: Renewable energy sectors such as hydro, tidal, wind, and geothermal power generation deploy large electric generators and motors. For instance, offshore wind turbines use high-capacity electric generators. Moreover, electric propulsion is also gaining popularity in the marine sector. Growing renewable energy market globally will create fresh demand for specially designed and high-performance electric motor cores. Market players can gain by capitalizing on opportunities in these eco-friendly sectors.
• Replacement demand for outdated low efficiency motors: Replacement of outdated, derated, and low efficiency electric motors with new energy efficient motors is expected to create fresh demand for motor cores. Many old factories and industrial facilities continue to use standard efficiency electric motors purchased long ago. Regulations on enhancing industrial energy efficiency and incentives are accelerating replacements. Motor core manufacturers can tap into this replacement demand.

Electric Motor Core Market Restraints:

• High initial and maintenance costs: The high costs that are associated with procuring and maintaining electric motors are a key factor restraining adoption in many cost-sensitive applications. Electric motors are priced higher than comparable internal combustion engines. Moreover, maintenance costs are also significant due to the need for highly skilled personnel. These costs are further compounded by long lead times and supply chain issues. The high initial investment and maintenance required continue to limit uptake.
• Counterbalance: The high costs of procuring the electric motors need to be affordable so that it can be easily acquired by the companies.
• Performance limitations in high power applications: Conventional electric motors have certain torque density, speed, and heat dissipation limitations which restrict their use in very high-power applications. For instance, traction motors above 300 kW capacity that are required for long-range heavy duty EVs remain challenging. Oil & gas industry applications also often demand very high-power ratings not achievable by standard electric motors. Overcoming these performance barriers restricts growth opportunities to some extent.
• Raw material price volatility: Key materials like electrical steels, aluminum alloys, copper windings, magnets, that are used in electric motor core manufacturing experience severe price volatility due to cyclical supply-demand dynamics. For instance, electrical steel prices rose fourfold in 2021 due to supply bottlenecks. Such raw material price fluctuations affect the overall costs and margins of motor core manufacturers. It poses a risk of hampering production growth if input costs rise significantly.