|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 155.6 billion
|
|
CAGR (2023-2028)
|
7.29%
|
|
Fastest Growing
Segment
|
Output &
Fractional Horsepower
|
|
Largest Market
|
Asia Pacific
|
Market Overview
Global Electric Motors Market has valued
at USD 155.6 billion in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 7.29% through 2028. Increasing awareness of
energy efficiency and sustainability has driven the demand for high-efficiency
electric motors. Many industries and businesses are adopting more efficient
motors to reduce energy consumption and operating costs.
Key Market Drivers
Industrial
Growth and Modernization
Indonesia, with its vast and diverse
industrial landscape, has been a key driver for the electric motors market. The
industrial sector plays a pivotal role in the economic growth of the country,
encompassing manufacturing, mining, agriculture, and more. As these industries
continue to expand and modernize, the demand for electric motors, which are the
workhorses powering a multitude of processes and machinery, has been on the
rise.
Manufacturing industries in Global have
seen significant growth, catering to both domestic and international markets.
Electric motors find applications in a wide range of manufacturing processes,
including assembly lines, conveyor systems, and material handling. As
manufacturers seek to enhance productivity and efficiency, they are
increasingly investing in state-of-the-art electric motors that offer better
performance and reliability.
Furthermore, Indonesia's agricultural
sector is a crucial driver for electric motor demand. Electric motors power
irrigation systems, grain handling equipment, and ventilation systems in the
farming industry. With the modernization of agriculture practices and the need
for increased food production, the demand for electric motors in this sector
remains strong.
The mining sector is another major
consumer of electric motors in Indonesia. Electric motors are used to drive
various mining equipment, such as crushers, pumps, and conveyors. As the mining
industry expands to meet the growing demand for raw materials, the requirement
for reliable electric motors that can withstand harsh working conditions
continues to increase.
In summary, the industrial growth and
modernization in Indonesia, particularly in the manufacturing, agriculture, and
mining sectors, are significant drivers for the electric motors market. As
industries evolve and adopt more advanced technologies, the demand for
efficient, durable, and high-performance electric motors is expected to grow.
Electric motor manufacturers are presented with opportunities to provide
innovative solutions that cater to the unique needs of Indonesia's diverse
industrial landscape.
Energy
Efficiency and Environmental Awareness
Energy efficiency and environmental
sustainability have become major drivers for the electric motors market in
Indonesia. This shift is not unique to Global but is part of a global trend as
the world seeks to reduce energy consumption and mitigate the environmental
impact of industrial operations.
Businesses and industries in Indonesia,
like elsewhere, have recognized the benefits of energy-efficient electric
motors. These motors convert more of the electrical energy they consume into
mechanical work and produce less waste heat. As a result, they help lower
operational costs and reduce the carbon footprint of businesses. This financial
and environmental incentive has led to a growing demand for high-efficiency
electric motors.
Government regulations and incentives
further bolster this driver. In response to the need for energy conservation,
the Indonesian government has implemented policies and standards that encourage
the use of energy-efficient technologies, including electric motors. Businesses
that meet or exceed these standards are often eligible for incentives, tax
breaks, or other forms of support.
Additionally, there is a broader trend
of environmental awareness. Companies and consumers alike are increasingly
conscious of their environmental impact. This has prompted many businesses to
voluntarily adopt more sustainable practices, including the use of electric
motors with better efficiency ratings.
The need for energy-efficient electric
motors extends across various sectors. In manufacturing, for instance,
businesses are switching to high-efficiency motors for conveyor belts, pumps,
and HVAC systems. In commercial and residential buildings, electric motors
power air conditioning, refrigeration, and ventilation systems, making them
more energy-efficient.
In conclusion, the growing focus on
energy efficiency and environmental sustainability is a significant driver for
the electric motors market in Indonesia. Businesses and industries are actively
seeking ways to reduce energy consumption and their environmental footprint,
creating a strong demand for energy-efficient electric motors that align with
both financial and environmental goals.
Government
Initiatives and Regulations
Government policies and regulations play
a pivotal role in driving the electric motors market in Indonesia. In the quest
for energy efficiency and sustainability, governments often implement
initiatives and standards that encourage the use of efficient electric motors
in various sectors. Global is no exception, with government-driven initiatives
significantly influencing the market landscape.
One of the primary drivers is the
government's focus on energy efficiency. The Indonesian government has
introduced energy efficiency standards and labels for various products,
including electric motors. These standards specify minimum efficiency levels
that motors must meet. Businesses and industries are encouraged to adopt motors
that comply with these standards, as they contribute to lower energy
consumption and operational costs.
In addition to standards, the government
has introduced various incentives to promote the use of energy-efficient
electric motors. These incentives may include tax benefits, grants, or
subsidies for businesses that invest in high-efficiency motors. Such incentives
not only reduce the financial burden of upgrading to efficient motors but also
act as a strong motivator for businesses to make the switch.
Environmental regulations also drive the
adoption of electric motors in certain applications. For example, in the
maritime sector, the International Maritime Organization (IMO) has implemented
regulations to reduce emissions from ships. Electric motors that are more
energy-efficient can help ship owners meet these emission reduction targets,
prompting investments in advanced propulsion systems.
Government initiatives and regulations
are not limited to energy efficiency alone. They may also address safety,
quality, and reliability standards for electric motors, further enhancing the
market by ensuring that products meet specific performance and safety criteria.
In summary, government initiatives and
regulations are powerful drivers for the electric motors market in Indonesia.
By setting energy efficiency standards, offering incentives, and addressing
environmental concerns, the government plays a crucial role in shaping the
market landscape. Electric motor manufacturers and suppliers must align their
offerings with these regulatory requirements to remain competitive in the
Indonesian market.
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Key Market Challenges
Price
Sensitivity and Cost Pressures
One of the foremost challenges in the Global
electric motors market is the price sensitivity of customers and the cost
pressures faced by manufacturers. This challenge stems from the competitive
nature of the market, where consumers, including industrial and commercial
enterprises, are often focused on cost-effective solutions.
Indonesian businesses, especially small
and medium-sized enterprises (SMEs), are price-conscious and tend to prioritize
upfront affordability over long-term energy savings. This price sensitivity can
make it difficult for manufacturers to introduce high-efficiency electric
motors, which are often more expensive than their less-efficient counterparts.
As a result, manufacturers may be compelled to cut costs in various ways,
potentially compromising the quality and performance of their motors.
Moreover, the competitive environment in
the electric motors market can lead to price wars, with manufacturers
continuously striving to lower prices to gain a competitive edge. This
intensifies cost pressures, making it challenging for manufacturers to invest
in research and development to create more efficient and innovative motor
solutions.
The dilemma faced by manufacturers is
how to balance the need for affordable solutions with the imperative to produce
efficient and environmentally friendly electric motors. This challenge may
require innovative pricing strategies, such as financing options or incentives,
to encourage the adoption of high-efficiency motors, thereby addressing the
issue of price sensitivity while delivering long-term cost savings to
consumers.
Energy
Infrastructure and Reliability
The reliability and quality of the
energy infrastructure in Global present a substantial challenge to the electric
motors market. Inconsistent power supply, voltage fluctuations, and unreliable
grid infrastructure are common issues in the country. Electric motors,
particularly those used in critical industrial applications, are highly
sensitive to power quality and reliability.
Frequent power outages and fluctuations
can lead to motor failures, increased maintenance costs, and reduced
operational efficiency for businesses. In addition, these power quality issues
can result in higher energy consumption, as motors may need to work harder to
compensate for unstable voltage or provide additional power during
fluctuations. This not only increases operational costs but also undermines the
potential energy savings that energy-efficient motors could provide.
The lack of reliable energy
infrastructure can be attributed to factors like aging power grids, inadequate
maintenance, and the challenge of supplying electricity to remote or
less-developed areas of the country. While the Indonesian government has been
working on infrastructure improvement projects, addressing these issues
comprehensively remains a long-term endeavor.
To overcome this challenge, electric
motor manufacturers and end-users must consider investing in technologies like
voltage stabilizers and motor protection devices. Manufacturers may need to design
motors that are more robust and less sensitive to power quality issues.
Government and industry collaborations to enhance the reliability of the power
supply are also crucial to address this challenge.
Lack
of Local Manufacturing Capability
The electric motors market in Global faces
the challenge of limited local manufacturing capability, particularly for
high-tech and energy-efficient motors. The country relies heavily on imported
electric motors to meet its demands, and this dependency presents several
challenges.
First, it results in Global being
vulnerable to global supply chain disruptions, as seen during the COVID-19
pandemic. Delays in the production and delivery of imported electric motors can
disrupt various industries, affecting manufacturing and essential
infrastructure projects.
Second, imported motors may not always
align with the specific requirements and environmental conditions of the
Indonesian market. Local manufacturing allows for the customization of motors
to suit local needs, including those related to voltage, humidity, and other
environmental factors.
Additionally, domestic manufacturing can
stimulate the economy by creating jobs and fostering the growth of a skilled
labor force. The lack of a robust local manufacturing ecosystem for electric
motors limits these opportunities.
Addressing this challenge requires
investment in domestic manufacturing capabilities, including research and
development to produce motors tailored to the Indonesian market's unique
demands. Collaboration between the government and industry players, along with
initiatives to incentivize local production, can help promote a more
self-reliant electric motors market in Indonesia. Furthermore, encouraging
technology transfer and partnerships with foreign motor manufacturers can
contribute to the development of local manufacturing expertise.
In conclusion, while the electric motors
market in Global holds significant potential, it faces challenges related to
price sensitivity, energy infrastructure, and local manufacturing capabilities.
Overcoming these challenges requires innovative solutions, investments, and
collaborative efforts from both the government and industry stakeholders.
Key Market Trends
Adoption of High-Efficiency Electric Motors
One significant trend in the Global Electric
Motors Market is the increasing adoption of high-efficiency electric motors
across various industries. This trend is driven by a growing awareness of
energy conservation and environmental sustainability, aligning with global efforts
to reduce carbon emissions and energy consumption.
Businesses in Global are recognizing the
long-term benefits of high-efficiency electric motors, which convert a greater
percentage of electrical input into mechanical output, thus reducing energy wastage
and operational costs. In industries where electric motors are extensively
used, such as manufacturing, agriculture, and transportation, the shift towards
high-efficiency motors is becoming more prominent.
One driving force behind this trend is
government regulations and incentives aimed at improving energy efficiency.
Indonesian authorities have implemented energy efficiency standards and
labeling programs for electric motors, specifying minimum efficiency levels
that motors must meet. Incentives, such as tax benefits and grants, are often
offered to businesses that invest in high-efficiency motors. This regulatory
push encourages the adoption of more efficient electric motors.
Manufacturers and suppliers are
responding to this trend by offering a wider range of high-efficiency electric
motors tailored to various applications. These motors not only help businesses
reduce energy consumption but also align with corporate sustainability goals
and environmental commitments. Moreover, in sectors like agriculture, where
electric motors power irrigation systems and grain handling equipment, the
transition to high-efficiency motors can result in substantial water and energy
savings.
This trend is likely to continue as
businesses increasingly prioritize energy efficiency to reduce their operating
costs and environmental impact. As technology advances, electric motor
manufacturers are expected to develop even more efficient and environmentally
friendly solutions, further propelling the adoption of high-efficiency electric
motors in Indonesia.
Digitalization
and Smart Motor Solutions
Another significant trend in the Global Electric
Motors Market is the integration of digitalization and smart motor solutions.
This trend reflects the broader global movement toward Industry 4.0 and the
Internet of Things (IoT), where industrial processes are becoming increasingly
connected and data-driven.
Digitalization of electric motors
involves the use of sensors and data analytics to monitor motor performance in
real-time. These sensors can measure parameters such as temperature, vibration,
and load, providing insights into the motor's health and efficiency. Smart
motor solutions leverage this data to enable predictive maintenance, optimize
motor performance, and reduce downtime.
One of the drivers of this trend is the
desire for greater operational efficiency. Industries in Global are looking for
ways to maximize productivity while minimizing downtime and maintenance costs.
Smart motor solutions help achieve these objectives by providing real-time data
on motor health, which enables proactive maintenance rather than reactive
repairs.
Furthermore, this trend aligns with the
growing demand for remote monitoring and control. Businesses in Global are
increasingly adopting remote monitoring solutions to oversee their operations
from anywhere. Smart electric motors can be integrated into these systems,
allowing for the remote control and adjustment of motor performance, which is
particularly valuable for applications in hard-to-reach or hazardous locations.
The adoption of digitalization and smart
motor solutions is supported by advancements in data analytics, artificial
intelligence, and the availability of cost-effective sensors. As these
technologies continue to mature, electric motor manufacturers are incorporating
them into their products, offering smarter and more efficient motor solutions
to meet the evolving needs of industries in Indonesia.
In conclusion, the adoption of
high-efficiency electric motors and the integration of digitalization and smart
motor solutions are two prominent trends in the Global Electric Motors Market.
These trends are driven by a combination of energy efficiency goals, government
regulations, and the desire for greater operational efficiency and remote
monitoring capabilities. As technology continues to evolve, the electric motor
market in Global is expected to see continued growth and innovation in these
areas.
Segmental Insights
Motor Type
Insights
The DC Motor segment
emerged as the dominating segment during 2022. DC motors are widely used in
various industrial applications, such as conveyor systems, pumps, and
manufacturing machinery. The industrial sector in Global has been growing,
driving demand for DC motors. These motors are preferred in situations where
precise control over speed and torque is required.
The manufacturing sector in Global has
been a significant driver for the DC motor segment. Manufacturers often use DC
motors in automated systems for tasks like material handling, packaging, and
assembly. The adoption of automation in Indonesian industries has boosted the
demand for DC motors.
DC motors have applications in
transportation, particularly in electric vehicles and certain types of public
transportation systems. As Global explores cleaner and more sustainable
transportation options, there's potential for growth in the DC motor segment,
especially in electric and hybrid vehicles.
The agriculture sector in Global relies
on electric motors for tasks like irrigation, grain handling, and machinery
used in farming. DC motors are preferred in situations where precise control
and variable speed are necessary, making them valuable in agriculture.
DC motors are known for their
efficiency, and this feature aligns with the growing emphasis on energy
efficiency in the country. As businesses and industries seek to reduce energy
consumption and operational costs, the demand for energy-efficient DC motors is
expected to increase.
In conclusion, the DC motor segment in
the Global Electric Motors Market has shown promise, particularly in
industrial, manufacturing, transportation, and agriculture applications.
Application
Insights
The Industrial segment
is projected to experience rapid growth during the forecast period. The
manufacturing sector in Global has been a prominent driver for the electric
motors market, particularly for industrial applications. Electric motors are
extensively used in various manufacturing processes, such as conveyor systems,
assembly lines, and material handling. The demand for these motors in
manufacturing is expected to continue to grow as the sector modernizes and
expands.
Energy efficiency is a significant
concern for industries in Indonesia. Many businesses are looking to reduce
energy consumption to lower operating costs and minimize their environmental
footprint. This has led to a growing demand for high-efficiency electric
motors, which can result in substantial energy savings in industrial
applications.
Industries often require electric motors
customized to their specific needs. Industrial applications vary widely, and
electric motors need to be tailored to suit these diverse requirements.
Manufacturers that offer customization services have a competitive advantage in
this segment.
The adoption of automation and robotics
in Indonesian industries has increased the demand for specialized electric
motors. These motors are used in robotic arms, CNC machines, and other
automated systems. As industries continue to automate processes for improved
efficiency, the demand for electric motors in this niche segment is likely to
grow.
Electric motors are integral components
in pumps and compressors used in various industries, including oil and gas,
petrochemical, and water treatment. The growth of these sectors drives the
demand for electric motors that are reliable and capable of operating in
challenging environments.
In summary, the industrial segment of
the Global Electric Motors Market is driven by manufacturing, automation,
energy efficiency, customization, and various industrial applications.
Government initiatives, infrastructure development, and the growing importance
of reliability and maintenance are also shaping this segment.
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Regional Insights
Asia-Pacific is the best host for the
electric motors industry and is expected to continue its dominance in the
coming years on account of rapid growth in the industrial sector. Industries
such as automotive, chemical, fertilizers, and petrochemical are witnessing
steady growth in the region, which is expected to offer tremendous growth
opportunities for the global electric motor players.
China has been instrumental in driving
the manufacturing sector globally. The country is the global leader in the
steel, chemical, power, and cement industries, among the top players in the
petrochemical and refining industries. Several new industrial projects are
queued up in the country to get added to the national industry portfolio.
Recently, the Chinese government
approved new refinery projects with foreign companies' participation. In
January 2022, an Aramco-led joint venture took the final investment decision to
develop a major integrated refinery and petrochemical complex in Northeast
China. The new complex will be located in Panjin City. It is expected to be
operational by 2024, with a capacity of 300,000 BPD.
India is the second-largest producer of
crude steel at the global level, and the progress is still on. In April 2023,
Nippon Steel Corporation (NSC) announced its plan to set up the world's largest
steel plant facility in Odisha, India. The company will invest around INR 1.02
lakh crore. The company already has a presence in Odisha with LN Mittal-led
Arcelor Mittal.
In January 2023, AMNS India, a joint
venture between Nippon Steel and Arcelor Mittal, received approval for a USD
4.68 billion steel plant project from the government of Odisha. The annual
production capacity of the plant will be around 7 million tons.
Such developments will likely
overwhelmingly impact the electric motor market in the coming years.
Recent Developments
- In 2018, Siemens merged with PT.
Trafoindo Prima Perkasa to form a joint venture that would manufacture and sell
low-voltage electric motors in Indonesia.
- February 2023: Electronic component
maker Flash announced a technical collaboration with Slovenia-based GEM motors
to develop electric motors. Under the partnership, both brands will manufacture
hub motors for various electric vehicle segments in the range of 1 kW to 15 kW.
- November 2022: Nidec Corporation
announced an investment of USD 715 million in Mexico to manufacture electric
motors and e-axle drives for electric vehicles. The plant was anticipated to
have a production capacity of 1 million units annually when it became
operational.
- In July 2023, Innomotics has been
established as a distinct legal entity in Germany. This entity, which is the
subsidiary of Siemens AG, unifies the diverse business operations of the motors
and large drives supplier, incorporating activities related to low- to
high-voltage motors, geared motors, medium-voltage converters, motor spindles,
and associated project and service offerings, all under one umbrella.
Key Market Players
- ABB Sakti Industries
- Siemens
- WEG Industries
- Teco Electric & Machinery
- TMEIC Industrial Systems Indonesia
- Menara Sinar Agung
- Dynatech International
- Lautan Luas Tbk
- Bhumi Raya Electric
- Surya Timur Sakti Jaya
|
By Output Power
|
By Application
|
By Motor Type
|
By Voltage Rating
|
By Region
|
- Integral
Horsepower
- Output
& Fractional Horsepower
|
- Industrial
- HVAC
- Medical Equipment
- Industrial Machinery
- Home Appliances
Others
|
|
- Low Voltage (Up to 690V)
- Medium Voltage (691V - 3300V)
- High Voltage (Above 3300V)
|
- North America
- Europe
- South America
- Middle East & Africa
- Asia Pacific
|
Report Scope:
In this report, the Global Electric
Motors Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
·
Global Gas Pipeline Market, By Output
Power:
o Integral Horsepower
o
Output
& Fractional Horsepower
·
Global Gas Pipeline Market, By
Application:
o Industrial
o HVAC
o Medical Equipment
o Industrial Machinery
o
Home
Appliances Others
·
Global Gas Pipeline Market, By Voltage Rating:
o Low Voltage (Up to 690V)
o Medium Voltage (691V - 3300V)
o High Voltage (Above 3300V
·
Global Gas Pipeline Market, By Motor Type:
o AC Motor
o DC Motor
·
Global Gas Pipeline Market, By Region:
o
North America
§ United
States
§ Canada
§ Mexico
o
Asia-Pacific
§ China
§ India
§ Japan
§ South
Korea
§ Indonesia
o
Europe
§ Germany
§ United
Kingdom
§ France
§ Russia
§ Spain
o
South America
§ Brazil
§ Argentina
o
Middle East & Africa
§ Saudi
Arabia
§ South
Africa
§ Egypt
§ UAE
§ Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Electric Motors Market.
Available Customizations:
Global Electric Motors Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Electric Motors Market is an upcoming report
to be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]