The electric motor market is expcted to regiter a CAGR of 6. 97% , reaching USD 169 billion by 2027 from USD 103 billion in 2020. The COVID-19 pandemic affected the market variably for different end-user applications.
New York, May 19, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Electric Motor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06279497/?utm_source=GNW
The automotive segment, where electric motors are heavily deployed in electric vehicles, did not witness any tough hurdles for the market growth in 2020. Factors such as increasing residential usage of the electric motor, increasing adoption of electric vehicle (EV), and increasing automation in various industrial processes, are expected to drive the electric motor market. However, the restraints like the life expectancy of these assets due to harsh operating conditions and fluctuating prices of raw materials are expected to hamper the market growth.
The industrial segment dominated the market in 2021 and is expected to witness similar trend during the forecast period.
The technological developments for the advancement of electric motor technology create tremendous opportunities for the market. As an example, emerging technologies like axial flux, in-wheel, etc., are gaining popularity. Axial flux motor technology offers numerous benefits like increased power and torque density and a pancake form factor ideal for integration in various scenarios.
The Asia-Pacific region is expected to ace the market during the forecast period due to the progress in the industrial sector currently witnessed in the region.
Key Market Trends
Industrial Sector Expected to Dominate the Market
In the Industrial Sector, electric motors are used in pumping systems, compressors, and other turbomachinery equipment for the manufacturing and processing of products in various industries such as chemicals, oil and gas production and refining, mining, food and beverages industry.
In Chemical Industry, electric motors are used in the production of polyolefin, polymers, lacquers, synthetic rubbers, adhesives, resins, and fertilizers. Further, according to American Chemistry Council, the revenue generated by chemical industry decreased from USD 4,140 billion to USD 3,817 billion in 2020 which was mostly due to lower capital investment, lower demand, and COVID-19 pandemic.
However, fertilizer production continues to grow, as food producers struggle to keep pace with the expanding population across the world. Fertilizer production plants require large exhaust systems, as well as the turbomachinery systems, which deploy electric motors for their functioning.
Countries worldwide are witnessing a surge to cut down fertilizer import bills and promote domestic production of fertilizers. Countries across the world, including India and China, have undertaken significant overhaul steps in the fertilizer sector, such as the Make in India initiative for the chemical sector. There is a rising trend of re-opening closed fertilizer plants and setting up new ones across the world, which is expected to support the electric motor market’s growth during the forecast period.
Similarly, Electric motors have widespread applications in the oil and gas industry. Further, an increase in the price of crude oil and natural gas is going to drive the demand for electric motor, for instance the crude oil price grew from USD 66 barrels in December 2021, to about USD 107.5 May 2021.
Furthermore, Russia’s invasion of Ukraine has changed Europe’s energy future as European Union is aiming to reduce its energy dependence on Russia, which will lead to new oil and gas projects globally directly aiding the demand for electric motors.
The implementation of technologies, such as hydraulic fracturing (fracking) and horizontal directional drilling, has resulted in a considerable rise in the production of natural gas. Owing to the cost-competitiveness and environmental benefits offered, natural gas consumption has also increased, and it is expected to witness similar trends in the near future. This is likely to result in an increased uptake of natural gas-based infrastructure projects, which, in turn, is likely to increase the demand for electric motors at a global level.
Such developments are expected to accelerate the demand for electric motors in the industrial sector during the forecast period.
Asia-Pacific Expected to Dominate the Market Growth
Asia-Pacific is currently 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, and it is among the top players in the petrochemical and refining industries. ?A number of new industrial projects are queued up in the country to get added to the national industry portfolio.
Recently, new refinery projects have been approved by the Chinese government with foreign companies’ participation. In January 2022, an Aramco-led joint venture took the final investment decision for the development of 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 2021, Arcelor Mittal announced a plan to set up a large greenfield steel plant in Odisha. The company has made a 60:40 joint venture with Japan’s Nippon Steel for the project. The expected production capacity of the plant is about 12 million tons per annum (mtpa), which will be included in India’s portfolio, which currently has 140mtpa of installed capacity. The plant will be operational within three to four years.
Such developments are likely to have an overwhelming impact on the electric motor market in the coming years.
The electric motor market is moderately fragmented. Some of the major companies are ABB Ltd. AMETEK Inc., Johnson Electric Holdings Limited, Siemens AG, Rockwell Automation, Toshiba Corp., Hitachi Ltd, and Toshiba Corp.
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