Asia Pacific Industrial Motors Market

Market Overview

A machine that converts electrical energy into mechanical energy is known as an electric motor. It works on the electromagnetic induction principle, which asserts that a current-carrying conductor detects a force in the presence of a magnetic field. Electric motors have a long service life, consume little energy, require little maintenance, and have a high voltage tolerance. Industrial machinery, autos, household appliances, HVAC (heating, ventilation, and air conditioning) equipment, aviation, and transportation all employ electric motors.

By 2030, the Asia Pacific industrial motors market is estimated to be worth USD 9.60 billion, increasing at a CAGR of 2.75% over the forecast period (2022–2030). Over and beyond the forecast period, the Asia-Pacific region is likely to open up new growth prospects in the AC electric motor market. However, the larger initial investment required to purchase new equipment and upgrade old equipment, as well as the portability limitations associated with AC motors, may limit market expansion.

Market Dynamics

Key Market Drivers

• Growing Oil and Gas Industry: Asia is both the world's largest and fastest-growing energy user and CO2 emitter, according to the Asia Investor Group on Climate Change's Asia's Net Zero Energy Investment Potential report. Due to a single cause – the entire dominance of the fossil fuel industry, with coal as the dominant source of electricity – the continent has become the greatest threat to global net-zero ambitions. Asia's oil and gas industry, which will expand significantly over the next decade, is another big contributor. Due to the growth in Oil and Gas industry in Asia, the demand of industrial motors is going to increase in coming times as it is used in abundance in Petroleum Industry.

• Government Initiatives like “Make in India” and “Make in China”: The industrial sector in Asia-Pacific is also predicted to increase dramatically as a result of government efforts such as "Make in China 2025" and "Make in India," which may encourage the use of AC electric motors, boosting the region's growth. With more industrialisation, there would be more need of motors in the processes and hence this is a significant driver in the market growth.

Key Market Restraints

• Exceptional upkeep Costs that limit market expansion: The high maintenance cost of the motor is a crucial concern that could limit vital industry growth. In other circumstances, the operational cost is also very high, which may prevent customers from adopting it. When a high horsepower motor is combined with a poor load factor, for example, the cost per hour of operation skyrockets. However, other motors, such as induction motors, do not have a self-starting torque. As a result, market growth may be hampered as a result of such circumstances.

• Industrial motors have a high cost of raw materials: The high cost of raw materials used to create industrial motors could be a major impediment to the market's expansion. The cost of raw materials such as metals such as steel and aluminium, as well as insulating materials, is relatively high. Furthermore, these industrial motors use more electricity, increasing the cost per unit. Another factor that may limit market expansion is the availability of low-quality industrial motors. Leading industrial motor manufacturers are experiencing fierce competition from local motor manufacturers who sell low-cost, low-quality AC and DC motors to exploit local markets, effectively competing with global suppliers in those areas. The adoption of energy efficient industrial motors will be greatly influenced as a result of the aforementioned causes, hampering industry expansion.

Key Market Opportunities

• Growing Chemical and Petrochemical Industry: One of the primary reasons expected to boost the market during the forecast period is rising demand for industrial motors in the chemical and petrochemical sectors. The chemical and petrochemical industries have advanced considerably in terms of developing and automating new methods for processing chemicals. The petrochemical market is expected to grow even more even future, which will in turn increase the demand for these industrial motors.

Segmental Analysis

The Asia Pacific industrial motors market is classified into four segments: motor type, voltage, end-user, and geography.

The industrial motors market is classified into three categories: alternating current (AC) motors, direct current (DC) motors, and other motor types. The market for alternating current (AC) motors was anticipated to be worth USD 16.46 billion in 2021, with a CAGR of 3.38% expected to reach USD 22.05 billion by 2030. The demand for AC motors is driven by companies with high processing needs and the need to boost or lower the flow of the process based on demand and supply. Food, chemical, oil and gas, wastewater, and heavy machinery are among the industries that use these motors. As a result, there is an increasing demand for automated and efficient systems that help enhance and reduce electricity costs with each unit produced.

The market for industrial motors is classified into three voltage categories: high, medium, and low. The market for low voltage motors was worth USD 14.31 billion in 2021, and it's predicted to increase to USD 19.08 billion by 2030, with a CAGR of 3.33%. Low voltage (LV) motors are used in a wide range of industries. Low-voltage motors are used in many industries, such as midstream and downstream oil and gas, water and wastewater treatment, food and beverage processing, and so on. However, LVs offer a significant advantage in terms of maintenance because replacement and refurbishment costs are far lower, making them suitable for large-scale applications. As a result, there is a growing need for LVs.

The industrial motors market includes areas such as oil and gas, power generation, mining and metals, water and wastewater management, chemicals and petrochemicals, discrete manufacturing, and others. With a CAGR of 3.25% over the forecast period, the oil and gas segment were valued USD 3.43 billion in 2021 and is predicted to expand to USD 4.53 billion by 2030.In the oil and gas business, industrial motors are used in a variety of applications, from drilling rigs to refinery pumps. These motors have been improved explosion-proof and more efficient to meet industry standards. As investment in the upstream and midstream sectors of the oil and gas industry grows, demand for industrial motors is likely to climb.

Regional Analysis

Asia-Pacific is the largest market for industrial motors, with a market value of USD 7.45 billion in 2021. In China, smart manufacturing activities are projected to promote industrial motor use. The country has initiated many smart manufacturing pilot projects, according to the Ministry of Industry and Information Technology. According to the 13th Smart Manufacturing five-year plan, the government also plans to improve its intelligent manufacturing system and complete the main industries transformation by 2025. The Chinese Oil Ministry announced in October 2019 that it will invest USD 118 billion on oil and gas exploration and the construction of natural gas infrastructure in China over the next several years, which is expected to drive demand for industrial motors. As a result, demand for industrial motors in Asia-Pacific is expected to increase significantly throughout the forecast period.

China, Japan, and India account for the majority of revenue in the APAC low voltage electric motors market. The general rising infrastructure development, as well as various forthcoming construction projects, will continue to play a key role in these countries' low voltage electric markets. Also, growing automotive industry in Japan is contributing in increase for demand of these industrial motors.

The growing construction activity in India is helping to strengthen the industrial motor market. The biggest industrial motor markets in India are Gujarat, Maharashtra, and Madhya Pradesh. These states have been critical in the market's income generation. In the projection period, the market would be boosted by a growing number of government programmes such as the Green Energy Corridor in Gujarat, Maharashtra, and Madhya Pradesh.

Recent Developments

• Mabuchi Motors stated in 2021 that it has completed a 100% acquisition of Electromag SA for a total capital of CHF 0.1 million (USD 0.11 million). Mabuchi's portfolio will be bolstered by new brushless motors utilised in healthcare applications such as ventilators and dental treatment.

• Siemens announced in 2021 that the Simotics SD motor series' versions will now be designed to provide Super Premium Efficiency (IE4) category output in order to comply with the European ErP Directive 2019/1781. Electric motors with power ratings ranging from 3 HP to over 1,300 HP, as well as diverse pole types, will be offered in the IE4 spectrum, according to the business.

Asia Pacific Industrial Motors Market Segmentation

By Motor Type

• Alternating current (AC) motors
• Direct current (DC) motors
• Other motor types

By Voltage

• High Voltage
• Medium Voltage
• Low Voltage

By End-User

• Oil and gas
• Power generation
• Mining and metals
• Water and wastewater management
• Chemicals and petrochemicals
• Discrete manufacturing
• Others

By Region

• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific