According to a new market report published by Credence Research Inc “Electric Motors Market – Growth, Share, Opportunities, Competitive Analysis, and Forecast 2015 – 2022,” the Electric market was valued at US$ 86.51 Bn in 2014, and is expected to reach US$ 135.68 Bn by 2022, expanding at a CAGR of 7.1% from 2015 to 2022.
In the global electric motors market demand is rapidly shifting towards high and premium energy efficient electric motors with rising awareness about the benefits of energy efficient electric motors and mandatory regulations to use energy efficient electric motors. International Electrotechnical Commission (IEC) is actively working in collaboration with several national regulatory bodies to develop new efficiency classes to design, develop and deploy electric motors.
Following are types of standard international energy efficiency classes currently followed across the world.
- IE1: Standard efficiency
- IE2: High efficiency
- IE3: Premium efficiency
- IE4: Super premium efficiency
Countries across the world are introducing mandatory regulations to high efficiency (IE2) and premium efficiency (IE3) class motors in order to reduce electricity consumption and emission of greenhouse gases. This is expected to increase the demand for energy efficient electric motors across the world through the forecast period 2015 – 2022.
At present, Energy Policy Act (EPAct) and National Electrical Manufacturers Association (NEMA) are two electric motor energy efficiency standards are effective in North America. EPAct has similar efficiency requirements included in IE2 class and NEMA follows IE3 premium efficiency class. At present, IE2 and IE3 efficiency standards are effective in European Union, China and Japan. This is increasing the demand for energy efficient electric motors in these markets.
Developed and developing countries across the world are focusing to reduce greenhouse gas effects and introducing stringent regulations for the same. U.S., Japan, UK, and Australia are by providing incentives to replace low efficient or outdated electric motors used in industrial facilities. Moreover, credits facilities are provided to households to purchase efficient HVAC and home appliances to reduce residential electricity consumption. All these above factors are expected to drive the demand for energy efficient electric motors.
The global electric motors industry comprises large numbers of recognized international and small and medium size domestic players. Rising standardization in electric motor designing and manufacturing reduces the product differentiation and increasing market competition. Market competition is further expected to increase in the future with rising market collaboration in the industry. Some major players in the global electric motors industry include Baldor Electric Company, Inc., Tesla Motor, Siemens AG, Franklin Electric Co., Inc., Regal Beloit Corp., Rockwell Automation Inc. and Ametek, Inc.
- Shifting trend towards energy efficient electric motors
- Incentives and subsidiaries for replacement of outdated low energy efficient electric motors
- Introduction of mandatory standards to use high energy efficient and premium energy efficient electric motors particularly in developed markets such as U.S., Europe, Japan, China and Australia
- Rising standardization in designing and manufacturing of electric motors
- High degree of market competition