Impact of COVID-19 on the Electric Motors Industry

19 January 2021

Industrial electric motors translate electrical energy into mechanical energy. These motors are used across industries in various industrial machine such as conveyors, pumps, fans, and other industrial machinery. The electric motors market is segmented into two types – AC and DC motor. Electric motors account for around 40% of overall global energy use. Industries are another major global energy user, and motors used in industrial plants usually use between 65% and 80% of total plant electricity. Thus, an energy efficient motor is anticipated to create a trend of promoting sustainability in the market in the coming years. Under electromechanical instruments, the company comprise of electrical interconnects, technical motors and systems, and electric motors for floor care and other specialty applications. Industrial motor sales in the APAC region are anticipated to have a steady growth and key drivers include increase in expenditure on infrastructure and industrial production growth. In addition to continuing to press for higher performance class motors, the market for variable speed drives (VSDs) is projected to fuel demand for industrial electric motors. In 2019, the VSD market gained momentum as retrofitted VFDs for IE2 motors, which proved to be an alternative to IE3 and IE4 motors. The competition among the electric motors market is expected to intensify further with an increase in product/services extensions, technological innovations, and M&As.

Read: Industrial Motors Market Global Outlook and Forecast 2021-2026

Demand for IE4 Efficiency Low Voltage Motors and Increase in Automation Expenditure

The consumption of electricity is expected to double by 2050 across the geography. In a global scale, industrial motor account for approximately 25% of the worlds overall energy consumption. Approximately 300 million industrial motor worldwide operate at full power for long period of time. In Europe, the upcoming transition from IE2 or IE3 motor to IE4 was scheduled to begin in 2017, however, it is anticipated to increase further in the future. The growing need to mitigate the greenhouse effect is fueling the need for energy-efficient solutions that will boost the development of the energy-efficient electric motors market. The global industrial motor market is growing continuously as the demand for integrated and scalable products in industries is at an all-time high to meet the growing demand. As, the conventional IT principles continue to combine with manufacturing technology, companies are using the concept of “digital manufacturing works or factory,” which provides a distinctive competitive advantage to companies in their respective industries.

Impact of Covid-19

The trading conditions remained difficult throughout the third quarter, because of the continuing COVID-19 pandemic. Demand for motor decreased year-on-year in all regions despite a strong rebound in China, which led to improved order production, especially in robotics and other industries. Due to COVID-19, the vendors have been facing sudden shutdowns of factories of manufacturing units, thereby disrupting the ability to produce or supply goods and services. The pandemic has had a negative effect on the global manufacturing market and has resulted in the closure of industrial development units in a variety of sectors over the past few months. Decreased demand for industrial machinery due to disturbances in the supply chain, due to lockdowns enforced across countries to mitigate the spread of the virus is expected to adversely impact the development of the global electric motors market.

Read: Pump Market in India Industry Outlook and Forecast 2021-2026

FAQs about the Industrial Motors Market:

Q. What is the market size of the industrial motors?

A. The global industrial motors market is projected to reach revenues of over USD 88 billion by 2026.

Q. What is the market growth of industrial motors?

A. The global industrial motors market is projected to grow at a CAGR of around 8% during the forecasted period.

Q. What is the global market segmentation of the industrial motors?

A. The global industrial motors market is segmented by product, voltage, efficiency, end-user, sales channel, power output, and geography.

Q. What is the market insight of the industrial motors?                                                                            

A. The US industrial motors market share is expected to reach a revenue of over USD 21 billion by 2026 on account of strict regulations, increased motor demand from the oil & gas industry, and the growth of the F&B industry.

Q. What are the major regions in the global industrial motors?

A. The leading regions in global industrial motors market includes APAC, Europe, Latin America, North America, Middle East, and Africa.

Read: Machine Tools Market Global Outlook and Forecast 2021-2026

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