Electric motors market on the roll

  • Industry News
  • May 30,22
While growth in electricity consumption and sales in electric vehicle sales & robots are driving the demand for electric motors, rising raw material price is a cause of concern for the manufacturers.
Electric motors market on the roll

Rise in electricity consumption, use of electrical equipment and machines in different industries and booming renewables sector are driving the demand of electric motors market. As per MarketsandMarkets (MnM) report, the global electric motor market is projected to grow from $ 113.3 billion in 2020 to $ 169.1 billion by 2026, at a CAGR of 6.9%. The increasing demand for higher operating efficiency motors is likely to fuel the requirement of electric motors across different industries. Industries such as electronic, textile, and pulp & paper are using electric motors to offer higher-functioning products with additional features (for example, quieter washing machines and fans and improved low voltage to allow solar water pumps and deliver better performance on overcast days).

Demand driver
Heating, ventilation, and air conditioning (HVAC) systems provide thermal comfort and ensure the air quality in indoor spaces. They are one of the core building blocks of modern infrastructures, especially for large office buildings or shopping malls. Electric DC motors are widely used in HVAC systems to achieve high efficiency in airflow systems and maximize their life and power. The demand for HVAC systems is increasing in Asia Pacific, especially in China and India, owing to the continuous growth in their industrial and commercial sectors. According to a report by Timetric Construction Intelligence Center (CIC), a market intelligence company, $ 1.08 trillion is expected to be invested in the global construction sector, especially for the development of industrial buildings during the next four to five years. Moreover, As per the latest market estimates, the use of brushless DC motors, which is an important type of electric motor in automotive and HVAC applications is expected to be high. With significant changes in electric vehicle technology, the total count of brushless DC motors installed in electric vehicles (EV)/hybrid electric vehicles (HEV) has increased. The continuous growth of the industrial and commercial sectors in China and India has also led to an increase in the demand for HVAC systems in Asia Pacific, thereby driving the electric motor market.

Fluctuating prices of raw materials a concern
The prices of raw materials such as permanent magnets, steel bars, copper wires, and precision thin metals such as specialty alloys, which are used to make electric motors, are controlled by a few manufacturers in China. There is not much product differentiation and the price of the product determines the dominance of certain suppliers in the market. The resulting price fluctuations have to be borne by the other manufacturers/suppliers in the market. For instance, when manufacturers and suppliers face fluctuations in the prices of rare-earth permanent magnets during the manufacturing processes, they are unable to pass the price change to end-use customers. Hence, the profit margins of raw material suppliers are negatively affected.

Currently, over 95% of all rare-earth oxides are sourced from China, which controls the entire market. China is also having dominance with over 65% of hard ferrite and almost half of aluminum nickel cobalt and samarium cobalt production. Additionally, China also has imposed export quotas and export taxes of up to 25% for rare-earth elements. Hence, these quotas can restrain the growth of Europe electric motor sales market.

Robotics opening up opportunities
Emerging robotics technology is likely to offer several opportunities for the players in the Europe electric motor sales market in the near future. Robots are extensively used in industries for simple repetitive tasks, and are also used in hazardous environment involving direct exposure to explosive chemicals and radioactive substances. This technology is used to perform specific tasks such as assembly-line work, space exploration, military services, warehouse delivery, surgical assistance, clearing mines, underwater exploration, duct cleaning, and commercialized agricultural activities.

The global automotive industry is transitioning toward electric mobility with significant changes in electric vehicle technology. In Europe, the proactive measures taken for the decarbonization of society are leading to the increased adoption of electrical vehicles that use electric motors. Advancements in battery technologies have lowered battery costs and improved their charging speed. Increasing government support - in the form of tax redemptions and incentives to promote eco-friendly electric vehicles – is also propelling the demand for electric motors.

Source: MarketsandMarkets

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