LAMEA Industrial Motors Market Size & Outlook, 2022-2030

Market Overview

An industrial electric motor is a mechanism that converts electrical energy into mechanical energy. It works on the electromagnetic induction principle, which states that in the presence of a magnetic field, a current-carrying conductor perceives a force. Electric motors offer a long service life, low energy consumption, low maintenance requirements, and a high voltage tolerance. Electric motors are used in industrial machinery, automobiles, household appliances, HVAC (heating, ventilation, and air conditioning) equipment, aviation, and transportation.

By 2030, the LAMEA industrial motors market is estimated to be worth USD 1.92 billion, increasing at a CAGR of 3.72 % over the forecast period (2022–2030). By 2030, the Middle East and African industrial motors market is estimated to be worth USD 0.72 billion, increasing at a CAGR of 2.6% over the forecast period (2022–2030). Government funding will boost market growth potential in Latin America, the Middle East, and Africa in the foreseeable future. Rising demand, mostly from the petroleum and gas sector, rapid mining growth, and strong cement demand in the construction industry help the market in these regions.

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Market Dynamics

• High cement demand in the construction industry: One of the most energy-intensive industrial sub-sectors is the cement industry. It accounts for around 15% of total manufacturing energy use. This industry has implemented and implemented numerous energy efficiency strategies and procedures. The growing construction industry in LAMEA region is expected to increase the demand of industrial motors the region in coming years.
• The Oil and Gas Industry is Growing: The region's most prolific oil and gas producers have been the same for years, and the Middle East oil and gas sector's future does not appear to be changing. Saudi Arabia, Iran, Iraq, the United Arab Emirates, Kuwait, and Qatar have all been key players for a long time, and their investments and forthcoming projects indicate that this will continue for many years. The Middle Eastern oil and gas sector's future appears to be very fascinating in 2020 and beyond.

Market Restraining Factors

• Large initial cost and investment: Industrial motors have several advantages; however, they have a high beginning cost and need a significant initial investment, which can limit market expansion. A number of problems impede the adoption of energy-efficient motors. For most motors, the initial purchase price, energy costs, and maintenance costs are all significant factors. The total cost of ownership analysis of a corporation aids in selecting the most cost-effective motor. Specially, many African countries are having this as a major issue as there GDP and per capita income is not that great.

Key Market Opportunities

• Fast growth of Pulp and Paper Industries: LAMEA’s pulp and paper sector is expanding due to strong demand, sophisticated industrial facilities with genetic engineering solutions, and the highest forestry production per hectare in the world. Pulp and Paper sector needs a lot of processing and processing needs machinery which contains industrial motors, hence with growing pulp and paper industry, the demand of industrial motors will also accelerate.

Regional Analysis

The LAMEA industrial motors market is expected to be worth USD 1.92 billion by 2030, growing at a CAGR of 3.72 percent between 2022 and 2030. The Middle East and African industrial motors market is expected to be worth USD 0.72 billion by 2030, growing at a CAGR of 2.6 percent from 2022 to 2030. Across the near future, government investment will improve market growth potential in Latin America, the Middle East, and Africa. The market in these regions benefits from rising demand, primarily from the petroleum and gas sector, significant mining growth, and strong cement demand in the construction industry.

Rising purchasing power and improving living standards along with the growing awareness regarding good health and fitness is augmenting the demand for processed food and beverage products in the region. The pulp and paper industry in Brazil and Mexico continuously growing owing to healthy demand along with the presence of modern industrial facilities with genetic engineering solutions and highest forestry productivity per hectare. In Latin America, Positive socio-demographic trends, growing housing shortage due to growing population base along with government efforts to regenerate economic growth are boosting the construction industry in the region. All these factors are driving the demand for industrial motors across various end-use industries in South America.

For years, the region's most prolific oil and gas producers have remained the same, and the Middle East oil and gas sector's future appears to be unchanged. Saudi Arabia, Iran, Iraq, the United Arab Emirates, Kuwait, and Qatar have all long been significant actors, and their investments and upcoming projects suggest that this will continue for many years. In 2020 and beyond, the Middle Eastern oil and gas sector appears to have a bright future. Oil and Gas industry specially the upstream sector is involved in a lot of drilling and extraction activities which requires a lot of industrial motors and this is a very significant reason why demand in this region has increased in past few years and the trend is expected to remain same.

Segmental Analysis

The Lamea 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 percent 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 percent. 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 percent 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.

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.

List of key players in LAMEA Industrial Motors Market

1. ABB Ltd
2. Rockwell Automation Inc
3. Siemens AG
4. AMETEK
5. Fuji Electric
6. Emerson Electric Co.
7. Schneider Electric.
8. TECO
9. Middle East Builders Mechanical Group

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Recent Developments

• 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.