Motorized Pulley Market Size Slated to Grow Substantially at 3.26 % CAGR During Forecast Period (2022-2027).
In the past decade, Latin America has been witnessing a significant surge in terms of mining on account of rising demand for metals and commodities in India and China. As per the World Bank, Brazil accounts for 13.43%, Peru accounts for 8.16%, and Chile accounts for 7.55% of the Chinese mineral imports. Together, Latin America accounts for 29.14% of China’s mineral imports, making it the second-largest contributor after Australia (37.3%).
Latin America is also backed by the largest reserves of several bases and precious metals, such as copper, lithium, silver, zinc, nickel, gold, iron ore, and tin. Additionally, the legal hurdles involving mining are relaxing, which is creating a conducive environment for mining activities, further driving the market growth.
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
China, one of the key economies in the world, is a manufacturing behemoth. Naturally, material handling equipment associated with food and beverage, automotive, and mining continues to register strong demand in the country. However, changing investor sentiment toward China due to the COVID-19 outbreak has severely impacted the countries material handling equipment market. Manufacturing has already resumed in China, and it is a matter of time when other countries will follow suit.
The ASEAN region, due to its heavy machinery industry growth, exhibits promise for the drum motor market. Growing real estate, mining activities, and rising government spending in infrastructure development are contributing to the market growth. India is one of the fastest-growing economies, and its latest emphasis on domestic production and the subsequent opening of FDI has created a conducive environment for the market.
India’s mining industry is pegged as a strong driver for the motorized pulley market. Along with mining, food handling and transportation are expected to create significant demand for drum motors due to rising consumerism, which is further driving the food and beverage industry. The construction industry is one of the important fields where conveyor systems are used for material processing. The construction industry is expected to accelerate in the coming years, especially in developing economies, such as India and China, where infrastructural development will be in full swing. The development of smart cities, industrial corridors, railway stations, and mega ports in these countries provide an impetus to the market growth. The industry is projected to grow at a considerable pace and is expected to reach USD 738.5 million by 2022.
Southeast Asian countries such as Singapore, Malaysia, and South Korea are primarily into logistics and have a robust infrastructure in airports. Demand for drum motors is likely to accelerate as these countries have focused on automation and process efficiency, further driving the regional market growth
The global e-commerce industry is growing at an unprecedented rate and is the largest consumer for material handling systems. The number of e-commerce players has increased due to the ease of doing business and rapid development of logistics infrastructure across the globe. With busier lifestyles and technological evolution, consumers are seeking more convenient methods of fulfilling their shopping needs.
Customizations and the use of AI by e-commerce websites are augmenting sales in the industry. Rising consumer income, debouching fashion trends, and increasing standard of living drive the e-commerce market growth. E-commerce is a booming market in the U.K., which registered a 16% growth rate and reached around USD 148 billion in total sales in 2019, further driving the demand for material handling systems.
The industry’s exponential growth has increased the need for distributors near the consumers. With the expanding customer base and a variety of products on a single website, product distribution has become difficult as there are fewer items per order and numerous orders. Thus, distributors seek highly efficient solutions that require low maintenance and are safe, further driving the demand for motorized pulleys as it can combine multiple components into a single piece enclosed shell.
Even though drum motors offer numerous benefits, their market faces several challenges. Conveyor manufacturers and end-users opt for drum motors only in case of space constraints. The market still hasn’t fully adopted variable frequency inverters that allow an easy change in belt speed. The previous method of changing the gear ratio from the reducer was cumbersome as it required removing the motor from the conveyor frame.
Earlier, there were design issues regarding motor cooling. Conventional fan-cooled motors were cooled more efficiently than oil cooled drum motors. High temperatures lead to higher pressure, which resulted in broken seals, a possible hindrance in food processing industries. However, with significant investment in R&D activities, companies have improved on the designs and spurred positive growth in the drum motors market.
Electric vehicles are the future of automobiles and responsible for transforming the prospects of the copper industry. A battery-powered vehicle requires almost 2.5 times the copper as an internal combustion engine. Lithium is one more metal that is needed for low-carbon energy systems. Chile has the world’s largest reserves of copper, as well as lithium. Once the clouds surrounding the U.S.-China trade conflict eases, commodity prices are projected to rise, further creating demand for motorized pulleys.
Conveyor systems are extensively used in mining applications for the continuous transport of materials in all forms, from excavated to crushed rock. However, the emergence of COVID-19 has decelerated the mining activities. Several of the mining companies are adopting strategic decisions to sustain in the current scenario.
Post COVID-19, mining will also be looked at as an important platform for employment generation as millions have lost their jobs. Automation in mining is likely to be a driving factor, subsequently driving the motorized pulley market. As per the OECD, global material use is projected to grow from 79 Gt in 2011 to 167 Gt in 2060. This indicates how massive the scope for material processing is, which eventually will benefit the material handling industry.