Market Trends of Asia-Pacific AC Electric Motor Industry
This section covers the major market trends shaping the APAC Ac Electric Motor Market according to our research experts:
Low Voltage Segment is Expected to Grow at a Significant Rate Over the Forecast Period
- The industry standards for low voltage motors vary widely. Several manufacturers have different classifications of motors that are considered to be low voltage motors. However, according to the International Electro-technical Commission’s (IEC) IEC 600038 standard, any motor with a rating of up to 1000 V is considered a low voltage (LV) motor.
- Compared to other motors in the market, low voltage motors have a wide range of applications across multiple industries. Some of the primary usages of low voltage motors are the midstream and downstream oil and gas industry, water and wastewater industry, food and beverage industry, etc.
- Companies like Wolong, ABB, and Siemen are the major producers of low voltage AC electric motors in the current market scenario controlling almost 50% of the sales in the region. Also, several technological developments and increasing demand form virtually all the end-user segments are expected to create considerable demand for these motors in the future.
- Demand for low voltage AC motors in water treatment is exceptionally high from the Asia Pacific region, owing to high demand from China. Over the forecast period, China is expected to be one of the fastest-growing markets for low voltage motors due to increasing industrial activity.
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Oil & Gas Industry Segment is Expected to Hold a Significant Share Throughout the Forecast Period
- Motors are an integral part of the oil and gas industry, widely used in different elements such as drill rig and powering pumps in the refineries. These motors are made explosion-proof with improved efficiency to meet industry standards. With the increasing investment in oil and gas upstream and midstream sectors, the AC motor is expected to witness high growth over the forecast period.
- Furthermore, the oil and gas upstream companies are gradually investing in the oil production activity, which will boost the replacement rate of AC electric motors, thereby bolstering the market growth.
- For example, an Indonesian state-owned oil and natural gas corporation, Pertamina, has invested approximately USD 2.5 billion in 2019 with the upstream activity.
- The outbreak of the COVID-19 has added a significant layer of uncertainty to the global oil market outlook at the start of the forecast period. In 2020, the oil demand is expected to contract for the first time since the major global recession of 2009. In this case, oil demand in China suffers a lot in the first quarter, with a YoY fall of 1.8 million barrels per day, where the global demand drops by 2.5 mb/d. This will affect the growth of this segment slightly.
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