Europe Industrial Motors Market Size, Share & Trends Analysis Report By Type of Motor (Alternating Current Motor (AC) Motors, Direct Current (DC) Motors, Other Types of Motors (Servo and Electronically Commutated Motors (EC))), 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) and By Country(U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, Rest of Europ) Forecasts, 2022-2030

Market Overview

By 2030, the Europe industrial motors market size is estimated to be worth USD 8.37 billion, increasing at a CAGR of 3.85 % over the forecast period (2022–2030).

A machine that converts electrical energy into mechanical energy is known as an industrial 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.

In recent years, the industrial motor sector in Europe has seen great technological improvements. Furthermore, as end-user sectors become more environmentally conscious, the appeal of items powered by electric motors, such as electric cars and machines, is increasing.

Market Dynamics

Key market drivers

Government regulations have increased the demand for energy efficiency 

Given the substantial technological breakthroughs in the present period, electric motors may be produced for a wide range of industries, including automotive, construction, agriculture, and other industrial sectors. Every industrial company's main objective nowadays is to increase production efficiency. As industrial engineers are well aware, motor consumption can put a strain on a company's operating budget. Operating the motor accounts for between 70% and 90% of the motor's total life-cycle cost, depending on the price of power per kilowatt-hour. Energy consumption has a significant impact on the cost of an electric motor's life cycle. The average lifespan of an electric motor is 20 years, during which time its energy consumption covers nearly 90% of the whole life-cycle cost. As it becomes older, its energy consumption rises, resulting in greater operational costs. This necessitates the replacement of old, inefficient motors with new, more energy-efficient motors, resulting in an increase in demand for industrial motors. As a result, the use of energy-efficient motors can help businesses cut costs and boost productivity, resulting in increased market potential.

Green Transition towards Electric Vehicles 

Environmental concerns are rising are people are becoming more aware about sustainability and hence Electric vehicles have benefited greatly from European government policies. Many European countries have seen the effects, with electric vehicles accounting for a large fraction of the total automobile population. Because of their supportive government policies, Norway and France are well positioned to lead the electric vehicle market and with increase in demand of electric vehicles, industrial motor demand will also get accelerated.

Key market restraints

Temperature sensitive motors

EV batteries are similar to Goldilocks porridge in that they are either too hot or too cold, but somewhere in the middle is just right.

Extreme heat can hasten the depreciation of an electric vehicle's battery pack, while extreme cold might reduce the vehicle's range. As a result, you'll need to be more aware of the temperatures your EV is exposed to, as direct sunlight or freezing temps will only harm it and this impede the growth of both E Vehicles and industrial motors.

Key market opportunities

Opportunity in HVAC System

As HVAC systems are the main energy consumers in a building, demand for energy-efficient industrial motors in HVAC is increasing. Manufacturers are also working on smart industrial motors that save energy and shorten payback time. As a result, this particular end use is expected to present manufacturers with the most revenue-generating prospects.

Regional Analysis

Europe is the second-largest market for industrial motors, with a projected market value of 8.37 USD billion in 2030. In February 2021, increased export demand lifted industrial activity in Germany to a 36-month high, but COVID-19 lockdown measures pushed the services sector even lower. By 2025, 84 percent of German manufacturers plan to invest EUR 10 billion per year in smart manufacturing technologies, with the automotive industry (1.2 billion per year), machinery, equipment, and plant engineering and construction (1.5 billion), electronics and microelectronics industry (817 million per year), and metalworking industry (800 million per year) leading the way (817 million per year). 75 percent of German enterprises have integrated digital solutions in most industries, and Germany's advanced manufacturing industries directly and indirectly employ 15 million people. As a result, German manufacturers' plans to develop in numerous domain industries are expected to raise demand for industrial motors over the anticipated period.

The automobile sector is very important in the French economy. The annual manufacturing of automobiles has been about 2.2 million for several years. As a result, France continues to be one of Europe's leading automobile producers and hence industrial motor in anticipated to get increase in France.

There are presently 120 onshore oil and gas sites in the United Kingdom, with 250 active wells producing 20,000 to 25,000 barrels of oil equivalent per day. UKOG primarily operates in the Weald Basin, which has a long history of oil and gas exploration in South East England and the sector is growing continuously as the demand for energy is increasing with increase in industrialisation and development. Hence, industrial motor demand is likely to get increased in UK.

Segmental Analysis

The Europe industrial motors market is divided into four categories: motor type, voltage, end-user, and geography.

Based on motor type, the industrial motors market is divided into alternating current (AC) motors, direct current (DC) motors, and other types of motors. The market for alternating current (AC) motors was estimated at USD 16.46 billion in 2021, and it is expected to grow at a CAGR of 3.38 percent to USD 22.05 billion by 2030.Companies with high processing needs and the need to enhance or reduce the flow of the process according to demand and supply are driving the need for AC motors. These motors are used in a variety of industries, including food, chemical, oil and gas, wastewater, and heavy machinery. As a result, there is a growing demand for automated and efficient systems that aid in the improvement and reduction of power costs with each unit produced.

The industrial motors market is divided into three categories based on voltage: high, medium, and low. The low voltage motors market was worth USD 14.31 billion in 2021, and it's expected to grow to USD 19.08 billion by 2030, with a CAGR of 3.33 percent over the forecast period.

Low voltage (LV) motors have several uses in a variety of sectors. Low-voltage motors are utilised in a variety of industries, including midstream and downstream oil and gas, water and wastewater treatment, food and beverage processing, and so on. In terms of maintenance, however, LVs have a considerable benefit because replacement and refurbishing costs are substantially lower, making them appropriate for large-scale applications. As a result, the demand for LVs is increasing.

Oil and gas, power generation, mining and metals, water and wastewater management, chemicals and petrochemicals, discrete manufacturing, and others are all segments of the industrial motors market. The oil and gas segment were worth USD 3.43 billion in 2021 and is expected to grow to USD 4.53 billion by 2030, with a CAGR of 3.25 percent over the projection period.

Industrial motors are utilised in a variety of applications in the oil and gas industry, ranging from drilling rigs to refinery pumps. To satisfy industry standards, these motors have been made explosion-proof and more efficient. Demand for industrial motors is expected to rise as investment in the oil and gas industry's upstream and midstream sectors increases.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• Siemens announced the inclusion of new servo motors to their Sinamics S210 single-cable servo drive system in April 2021. The Simotics S-1FS2 is a stainless-steel motor with IP67/IP69 protection and high-resolution 22-bit absolute multi-turn encoders, allowing for a wider range of applications in the food and beverage and pharmaceutical industries.
• In 2021, Franklin Electric Co. Inc. announced that it had paid USD 27.9 million in cash for Gicon Pumps & Equipment Inc., situated in Lubbock, Texas. The purchase would widen the company's geographic reach while also growing its distribution network for water-related products like motors and pumps.