North America 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(US, Canada) Forecasts, 2022-2030

Market Overview

By 2030, the North America industrial motors market is estimated to be worth USD 7.24 billion, increasing at a CAGR of 4.05 % over the forecast period (2022–2030).

An electric motor is a machine that converts electrical energy into mechanical energy. It operates on the electromagnetic induction principle, which states that in the presence of a magnetic field, a current-carrying conductor senses a force. Electric motors have a long service life, low energy usage, low maintenance, and a high voltage tolerance. Electric motors are widely used in a variety of industries, including industrial machinery, automobiles, household appliances, HVAC (heating, ventilation, and air conditioning) equipment, aircraft, and transportation.

In North America, the market for industrial motors is primarily driven by the industries' increased focus on industry 4.0. In the region, industrial automation is driving the manufacturing industry toward more efficient goods, with high growth projected over the projection period.

Market Dynamics

Market drivers

• Industries increasing attention to Industry 4.0: In North America, the market for industrial motors is primarily driven by the industries' increased focus on industry 4.0. In the region, industrial automation is driving the manufacturing industry toward more efficient goods, with high growth projected over the projection period. This pattern would result in a desire for new machinery that uses industrial motors. The expansion of industrial automation is expected to be evenly distributed across all industries, with discrete manufacturing and the North American oil and gas sector driving growth. As a result, the industrial motors market is predicted to develop in response to the growth of industrial automation.

• Growing Popularity of Electric Vehicles: Rising per capita earnings, along with growing environmental concerns in the North American Region, have prompted the replacement of gasoline-powered autos with electric vehicles, boosting demand for electric motors. The demand for electric vehicles is expected to increase exponentially in future keeping in mind the issues related with conventional petroleum vehicles and thus demand for electric motors will also accelerate with this.

Market restraints

• Purchase of new equipment requires a large initial investment: Industrial motors have many advantages but it comes with a high initial cost and requires a good amount of initial investment which can be a restraint in the market growth. The adoption of energy-efficient motors is hampered by a number of factors. The original purchase price, energy costs, and maintenance charges are all substantial expenses for most motors. A company's total cost of ownership assessment aids in the selection of the most cost-effective motor.

Market opportunity

• Key Players Have a New Product Development Opportunity: Users of production equipment have shifted their focus to a lifetime strategy when investing in critical equipment to gain the best return on investment, thanks to the growing industrial internet of things (IIoT) application (RoI). As a result, thorough study and product adoption of Industry 4.0 standards are likely to yield lucrative opportunities. A Genteq Ensite motor, for example, is an electronically commutated motor built for furnace applications by Regal Beloit Corporation. It enables end users to meet the requirements of the US Department of Energy's Fan Energy Rating regulation framework. The motor provides Internet of Things (IoT) and predictive maintenance capabilities at a low cost, thanks to Electron wand compatibility, excellent Black Box motor testing technology, and Near Field Communication capabilities.

Regional Analysis

In North America Industrial Motors Market is primarily driven by the industries' increased focus on industry 4.0. In the region, industrial automation is driving the manufacturing industry toward more efficient goods, with high growth projected over the projection period.

The United States is expected to lead the market. The industrial revolution is driving demand for industrial motors in the United States, which includes automotive, aerospace, and defence, as well as the region's attempts to become a dominant exporter of oil and gas exports. Energy efficiency regulations are also followed by domestic industrial participants in the region. As the United States began to reap the benefits of the fourth industrial revolution, local firms began to use data on a broad scale for production in order to keep energy usage in check at the industry level. Industrial motors are driven by the variables described previously. Chemical businesses in the United States may build plants, expand, and automate their operations thanks to favourable government policies and low-cost natural gas. As a result, the North American chemical industry's automation boom is predicted to propel the region's researched market forward.

The industrial motor market in Canada is expected to grow modestly in the next years due to increased infrastructure construction and industrial sector expansion. The market is growing due to the strengthening of the vehicle sector and increased government initiatives to limit the use of fossil fuels. One of the most important sectors for the deployment of electric motors is agriculture. The rapid move of the vehicle industry to electric motors is due to the increasing efficiency of electric motors.

Mexico has issued a standard (NOM033ENER2019) which establishes new mandatory energy efficiency needs for air-cooled alternating current motors with a nominal voltage of up to 240 volts and a nominal power of at least one watt but less than 180 watts, two, four, and six poles, as well as electronically switched motors.

Segmental Analysis

The North America 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

• In 2021, Johnson Electric Holdings Limited has introduced a new line of LVDC motors for smart furniture. LVDC motor solutions are used in smart recliners, height-adjustable desks, hospital beds, and other smart furniture products. JE advanced motor technology is used in the new LVDC motor platforms to give high torque, a 17 percent longer life, and low operation noise (48dBA) in a small footprint.

• 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.