INDUSTRIAL MOTORS MARKET ANALYSIS

Market Challenges And Opportunities

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 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.