Low voltage AC motors revenues to double by 2014, IMS Research said

IMS Research forecasts robust revenue growth expected in this market over the next four years, driven by legislation mandating sales of higher efficiency, more expensive motors. Link to Control Engineering articles about motor efficiency.

02/08/2011


By 2014, IMS Research forecasts that the market for low voltage integral horsepower ac motors will more than double in revenues to $19.4 billion compared to 2009, IMS Research Logowhen the global market was estimated to have contracted by over 20%. Unit shipments are expected to grow steadily at double-digit rates, reaching 51.6 million units at that time. Robust revenue growth expected in this market over the next four years will be driven by regional [national] legislation mandating sales of higher efficiency, and so more expensive, motors. In addition, motor efficiency is an increasing concern among experts interviewed by Control Engineering.

A marked shift has occurred in the low voltage ac motor industry over the past 10 years. Analyst Mark Meza states “We are starting to see how government directives for improved motor efficiencies have resulted in leveling the playing field for motor manufacturers. A supplier’s proprietary technical innovation for efficiency improvements has been supplanted by government directives requiring all motor manufacturers to meet the same efficiency requirements.” Meza adds, “While this might seem like it diminishes a manufacturer’s competitive advantage in the motor marketplace, all industries will benefit greatly from improved motor efficiency leading to a significant reduction in energy costs, which is the prime objective of the legislation.”

With a major transition to IE3 Premium Efficiency having already occurred at the end of 2010, the U.S. and Canada lead the world in motor efficiency standards. As a result, motors sold in North America will be more expensive than in the past. IE3 efficiency class motors have average selling prices (ASPs) that are more than double those of IE1 Standard Efficiency motors. IMS Research estimates that market revenues for IE3 motors will skyrocket 914% in 2011 and the market is expected to be dominated by American motor manufacturers until at least 2015. At this time, the states of the European Union will begin their respective transitions to IE3, with manufacturers such as ABB and Siemens leading the charge in this region.

However, the IE2 High Efficiency market segment is still expected to command the lion’s share of revenues through 2017 and beyond. Meza states, “The impact of China’s influence in the motor market should not be underestimated.” China is required to transition to sales of IE2 motors in July of this year, while concurrently global production of IE1 motors is expected to shift heavily in favor of Asian manufacturers. “By 2014, the IE2 market is expected to account for 57% of global low voltage ac motor revenues, with the large majority of that sum being accounted for by China.” In addition, China is expected to become the leading producer and consumer of squirrel-cage permanent magnet motors. The country has significant short and medium term advantages in the rare earth mineral market, and has been the first to legislate rebates for using these types of low voltage ac motors.

www.imsresearch.com

IMS Research

- Edited by Gust Gianos, CFE Media, Control Engineering, www.controleng.com



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.