Mushrooming electric vehicle (EV) development and the requirements for reducing the power consumption in high-energy-consuming industries drive the need for energy-efficient electric motors leading the global electric motor market revenue to rise to $ 195.1 billion by 2030.
According to the recent report by P&S Intelligence, the provider of market research and consulting services, the global market for electric motors stood at $ 105.5 billion in 2020 and is anticipated to grow at a CAGR of 6.3% from 2020 to 2030.
As per the International Energy Agency (IEA), from 2019 to 2020, the sales of electric cars surged from 2.1 million to around 3.24 million units. In addition, the share of EVs in global vehicle sales is expected to rise from nearly 3% in 2020 to 7% in 2023 and reach around 5.4 million units. This is fueling the requirement for electric motors as they are among the most integral components of EVs, the report said.
The ballooning requirement for reducing the power consumption in high-energy-consuming industries is predicted to drive the advance of the electric motor market in the coming years. These devices can account for nearly 70% of the total power consumption of a manufacturing facility. Therefore, to reduce power consumption and operating expenditure, many industries are employing energy-efficient electric motors.
The implementation of partial or complete lockdowns in several countries to mitigate the spread of the COVID-19 infection has negatively impacted the progress of the electric motor market, the research firm said. In addition, the restrictions on the movement of goods and operations of factories brought down the sale of automobiles and machinery. Therefore, leading automakers, such as BMW, Tesla, Daimler, Kia Motors and Nissan, witnessed a massive slowdown in their operations due to the pandemic, further affecting the market.
Some of the leading global electric motor market players include Nidec, Regal Beloit, ABB, Mitsubishi Electric, Wolong Holding, Johnson Electric, WEG Equipamentos Elétricos Denso, Ametek, Rockwell Automation, Valeo, BorgWarner, Robert Bosch and Siemens.
The electric motor market was dominated by the transportation category in the past, under the application segment. This was because of the large-scale deployment of EVs due to government subsidies and the surging demand for eco-friendly automobiles.
Alternating Current
The alternating current (AC) motor category is expected to register the highest CAGR in the electric motor market within the type segment in the coming years. This is credited to AC motors' high energy efficiency and ability to operate at higher voltages, speed, and torque than other motors. Additionally, they are easier to maintain and need less wire. As a result, they are increasingly used in various industrial applications and EVs.
Geographically, the Asia-Pacific (APAC) region is predicted to be the fastest-growing region in the electric motor market in the coming years. This will be because of numerous manufacturing plants in emerging economies, such as India, China, Indonesia, and Bangladesh. Moreover, many major players are making huge investments in the untapped countries of the region, which is also propelling the advance of the APAC market, the market research and consulting services provider said.
Courtesy: P&S Intelligence. NB: Photo is representational; courtesy: ABB & Mitsubishi Electric.