LOW VOLTAGE MOTOR CONTROL CENTER MARKET ANALYSIS

The global low voltage motor control center market size was valued at USD 3,807.5 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.17% from 2023 to 2030. The global low voltage motor control center market is likely to show strong growth in the future.  This is mainly due to increasing demand from commercial end user industries such as hotel and restaurants, office complexes, and retail businesses. The market is also anticipated to be driven by increased investments in industrialization

Global Low Voltage Motor Control Center Market: Regional Insights

North America among regions is projected to witness significant growth in the global low voltage motor control center market during the forecast period. This is due to increasing adoption of new MCC/IMCC in industries such as life sciences, owing to expansion of existing capabilities, digital transformation, and rising newer plants in the industry. For instance, in November 2019, Eli Lilly and Company announced the US$ 400 million investment in its facilities. Moreover, growing use of low voltage MCC in food processing industry across the region is also anticipated to fuel growth of the market in North America.

Asia Pacific is anticipated to show significant growth in the global low voltage motor control center market during the forecast period due to rising adoption of automation across several end user industries across the region. Moreover, due to rise in energy concerns, the adoption of low voltage electrical equipment is increasing, and this is further encouraging several companies to create compact and energy-efficient equipment and devices. This in turn is driving growth of the market in Asia Pacific region. Along with this, the growth of manufacturing industry in the region is also driving the demand for low voltage MCC in the region.

Figure 1: Global Low Voltage Motor Control Center Market Share (%), By Region, 2022

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Global Low Voltage Motor Control Center Market Drivers:

Rise in industrial automation across the globe to fuel the market pace

The growing adoption of Industry 4.0 concept across industries is bringing several advancements in productivity and efficiency along with changes in the way industrial processes operate. The conventional business operations are likely to change due to growing connectivity of the network to the manufacturing process as well as advancements in production efficiency. This is further expected to create lucrative opportunities for the market. The demand for automated systems in the processes is increasing due to high cost of labor and competitive rivalry. Due to this, demand for intelligent MCC is likely to increase, which in turn is expected to fuel growth of the global low voltage motor control center market during the forecast period.

Rise infrastructural developments to boost the market pace

The end user industries of this market rely on heavy capital investments for adoption of novel low voltage motor control centers or for shifting to IMCC. There is a rise in investment in power management solutions across heavy industries such as metal and mining, oil and gas, and petrochemical among others. Moreover, the food and beverage along with water and wastewater industries are also likely to witness infrastructural developments in the near future. Thus, this factor is expected to propel growth of the global low voltage motor control center market during the forecast period.

Global Low Voltage Motor Control Center Market Opportunities:

Increase in consumer propensity towards adopting connected solutions is likely to bring lucrative opportunities in the global low voltage motor control center market during the forecast period. Consumers of the market are looking for upgrading their systems and are increasing adopting connected solutions. Thus, vendors in the market are focusing to offer integrated solutions that includes various standalone MCCs components. Market vendors are thus likely to increase their product offerings towards integration and connectivity software and hardware solutions in the coming years. This in turn will bring growth opportunities in the global low voltage motor control center market.

Rise in demand from end user industries in developing nations is anticipated to create multiple opportunities in the global low voltage motor control center market during the forecast period. The demand for MCCs is likely to decrease due to rise in adoption of IMCCs in developed regions such as North America and Europe, as consumers demand upgrade of their existing systems. However, demand for low voltage MCC is increasing in end user industries such as water and wastewater, food and beverage, and oil and gas industries in developing countries, due to lack of such infrastructure. This is further expected to create growth opportunities in the market over the forecast future.

Global Low Voltage Motor Control Center Market Trends:

Increasing adoption in organic food processing sector is a growing trend

The demand for organic food is growing in European region, especially in Germany. This is further driving the adoption of IMCC among organic food processing firms. This in turn is expected to drive the market growth in this region. Moreover, the number of wastewater treatment plants replacing the existing MCCs and IMCCs in Europe is growing, due to the groundwater directives and water framework directives in the region.

Rise in government investment in increasing power generation capacity is a recent trend

Governments of several countries, especially in Asia Pacific region are increasingly making investments to increase their power generation capacities. For instance, government of China allocated budget to increase its power generation capacity of 455 GW during 2010 to 2020. From this budget for 850 power plants, more than 75% is nuclear and coal-based. Thus, such investments by government of countries is a growing trend in the global low voltage motor control center market, which in turn is likely to drive growth of the market.

Global Low Voltage Motor Control Center Market Restraints:

Fewer amount of replacement sales to hamper the market growth

The life of a motor is an important consideration during its adoption. Soft start and loss detection of the motors help to save energy as well as to reduce the replacement rates of the motors. For an MCC, an average of 20-30 years is expected to be a useful life period, which further reduces demand for retrofitting MCC and components. Along with this, replacing old MCC with new one can be expensive as the costs of new engineering design drawing, consultants, lost production time, and new field wiring. This in turn is expected to hinder growth of the global low voltage motor control center market during the forecast period.

Sluggish investment from oil and gas industry to limit the market growth

Motor control centers and switchgears are used in the oil and gas industry in the onshore and offshore oil industry to supply power to operations and utilities on a bigger scale. Thus, stagnant investment from this industry is likely to hamper the global low voltage motor control center market. Moreover, the outbreak of COVID-19 pandemic and the growing shift towards renewable energy is disrupting several industries, due to which the demand for low voltage MCC is impacted in these industries. This in turn is expected to restrain growth of the global low voltage motor control center market during the forecast period.

Global Low Voltage Motor Control Center Market Segmentation:

Figure 2 : Global Low Voltage Motor Control Center Market Share (%), By Type

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Global Low Voltage Motor Control Center Market Segmentation:

The global low voltage motor control center market report is segmented into Type, and End User Vertical.

Based on Type, the market is segmented into Traditional MCC, Intelligent MCC. Out of which, Traditional MCC is expected to dominate the global market over the forecast period and this is attributed to the constant demand for traditional MCC among various industries. Motor control centers are made to be used in industrial environments that are often dirty, wet, potentially corrosive, and subjected to larger changes in temperatures. The use of Traditional Low voltage motor control center MCCs offer various benefits due to which demand for these MCCs continues to grow in several industries, which in turn is expected to drive growth of this segment in the near future.

Intelligent MCC segment is also expected to witness significant growth in the near future and this is owing to the rise in adoption of IoT devices and sensors, due to which demand for MCCs with intelligent devices is increasing. The amount of data requested to be made available for SCADA and DCS systems is higher, which in turn is driving the demand for intelligent MCC.

Based on End User Industry, the market is segmented into Oil and Gas, Metal and Mining, Power Generation, Automotive and Transportation, Chemicals and Petrochemicals, Water and Wastewater, Food and Beverage, and Life Sciences, Other End user Industries. Out of which, Oil and Gas is expected to dominate the global market over the forecast period and this is attributed to the increasing investment in power management solutions by several companies in oil and gas industry. The power management systems in this industry mainly include low voltage, medium voltage, and high voltage switchgear plus motor control center and sets of emergency generators. The demand for low voltage MCCs is high in this sector, which in turn drives the market growth.

Metal and Mining segment is also expected to witness significant growth in the near future and this is owing to the rise in demand due to energy-draining characteristics of the industry. Use of LV MCC offers capabilities of potential predictive maintenance and cost-efficient capabilities. As the industry is high machine-intensive, several equipment operate simultaneously. Thus, to protect the machinery and reduce power consumption, demand for low voltage motor control center is high in this industry, which in turn is driving growth of this segment.

Global Low Voltage Motor Control Center Market: Key Developments

In February 2021, ABB announced the launch of ReliaGear Low Voltage Motor Control Center, which is developed to offer durability, simplicity, and safety.

In June 2021, Siemens Energy received a contract from UPM-Kymmene for supplying EAD (electrification, automation, and digitalization) package for its next-generation biorefinery that is being developed in Germany.

In February 2020, Eaton Corporation formed a joint venture with Abunayyan Holding for production and service of low and medium voltage switchgear in the Middle East. The venture is likely to operate in locations in Dubai, Dammam, Saudi Arabia, and the UAE, as Eaton Arabia.

In January 2020, Rockwell introduced a new motor protection circuit breakers offering cost, time, and space savings. These circuit breakers are UL approved for group installation, which can reduce installation and wiring time, panel space, and the total cost.

Global Low Voltage Motor Control Center Market: Key Companies Insights

The global low voltage motor control center market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global low voltage motor control center market are Tesco Controls Inc., ABB Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Allis Electric Co. Ltd., Siemens AG, Weg SA, Rockwell Automation Inc., and Eaton Corporation PLC.

*Definition:

Low Voltage Motor Control Center is a type of electrical control equipment that is used for controlling the speed of electric motors. These units are a key part of electrical controls systems and are often found in manufacturing plants that need power for their processes.