Electric AC Motors Market Analysis By Type, By Voltage, By End-use And Segment Forecasts From 2018 To 2025

Industry Insights

The global electric AC motors market size was estimated at USD 78.6 billion in the year 2016. These have applications in HVAC equipment which is installed in commercial and residential buildings. The surging demand for HVAC systems is likely to fuel the demand for AC motors from 2018 to 2025. Moreover, AC motors are used in several types of equipment like household appliances, conveyor belts, and fixed cranes.

The market is predicted to register substantial growth due to the rapid automation and modernization of industrial processes. The increasing penetration of the power generation sector and oil & gas industry has escalated the demand for industrial automation, for which these motors serve as major components in cost-saving.

These products are cost-effective due to their minimal maintenance cost. They do not consist of accessories like brushes, commutators, or slip rings that need regular maintenance. The design of these products comprises cast iron construction, high-integrity seals, and oversized bearings, which guarantee better operating life and higher reliability in difficult working conditions.

The steady increase in commercial construction projects among developing and developed countries coupled with a rise in HVAC installations is expected to augment market growth. Moreover, large-scale consumption of conventional energy sources like fuels, and their constant depletion have pushed various countries to alter their energy regulation policies. All these factors have resulted in an imputed demand for electric AC motors during the projected period.

Type Insights

The induction segment held a dominant share in 2016 of the global electric AC motors market and is predicted to register a CAGR of over 5% during the projected period. The growth is attributed to the simple design, operating efficiency, and effective costs of the product.

However, the synchronous segment is anticipated to register a CAGR of above 7% across different sectors due to its advantages like sturdy construction, efficient torque, and accurate control of speed & position. These products are best suited for low-speed drives (less than 300 rpm) since their power factor is adjustable up to 1.0. These products can operate at ultra-low speeds by enabling high-power electronic convertors that generate low frequencies.

Synchronous motors are highly used for different applications due to their ability to attain different speeds from a variable frequency system. Moreover, they are used for uninterrupted power operating equipment like centrifugal pumps, ammonia, and air compressors, fans, and blowers.

Voltage Insights

The fractional HP output segment accounted for the largest share in the electric AC motor market in 2016 due to the support of increased power when enabled in single-phase AC motors, among automobile and residential sectors.

These motors are compact and cost-effective. However, HP output motors are expected to grow at a higher pace owing to their application in three-phase motors, which helps in reducing electricity consumption. An integral horsepower motor comprises different types of controls that regulate speed. This is likely to augment the segment growth.

End-Use Insights

The motor vehicle segment was valued at over USD 30.0 billion in 2016 and is predicted to register a CAGR exceeding 5% by 2025. The surging automotive industry and the demand for electric vehicles have led to the rising need for AC motors in the motor vehicle industry due to their better safety, efficient torque, and easy installation.

However, the HVAC equipment division is anticipated to observe the fastest growth with a CAGR of above 9% over the forecast period. The infrastructural developments across various regions are expected to boost segment growth in the near future. The industrial machinery segment is anticipated to register a CAGR of above 8% from 2017 to 2025 becoming the second-fastest-growing segment. The growth is attributed to the rising industrialization among developing and developed nations. Other segments like household appliances and aerospace & transportation are expected to observe stable growth during the projected period.

Regional Insights

Asia Pacific is anticipated to register high growth by 2025 with a CAGR of over 7%. This is because countries like Japan, India, and China have a higher rate of commercialization and industrialization as compared to other emerging nations.

North America is expected to witness growth with a CAGR of above 6.0% due to the strict regulations by the government for lowering the greenhouse effect. Additionally, U.S. manufacturers started a gradual shift towards adopting electric motors as a substitute for gas turbines. Latin America and Europe are expected to observe substantial growth in the upcoming years. These regions together held around 30% of the overall market share in 2016 with a revenue exceeding USD 20 billion. Furthermore, rapid industrialization in these regions is likely to augment market growth.

Electric AC Motors Market Share Insights

The industry comprises small-scale and large-scale manufacturers. The major participants like ABB Ltd., Toshiba, Siemens AG, and Baldor Electric Co. acquired the majority of the market share in 2016. Organizations are primarily investing in R&D to launch compact and cost-effective products.

The key players have opted for inorganic growth strategies like mergers & acquisitions, and joint ventures to combat prevailing competition and maintain their position in the market. Additionally, the companies are also focusing on the development of electric AC motors integrated with speed controllers to cater to different consumer needs.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global electric AC motors market based on types, voltage, end-user, and regions:

• Type Outlook (Revenue, USD Billion; 2014 - 2025)
    • Synchronous AC Motors
    • Induction AC Motors

• Voltage Outlook (Revenue, USD Billion; 2014 - 2025)
    • Integral HP Output
    • Fractional HP Output

• End-Use Outlook (Revenue, USD Billion; 2014 - 2025)
    • Industrial Machinery
    • Motor Vehicles
    • HVAC Equipment
    • Aerospace & Transportation
    • Household Appliances
    • Others

• Regional Outlook (Revenue, USD Billion; 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa