Market Trends of Germany AC Motor Industry
Induction Motors Hold Significant Market Share
- An industrial induction AC motor is known for its reliability, low cost, and ability to provide high starting torque as it is operated on the principle of electromagnetic induction, where the electromagnetic induction from the magnetic field generated by the stator produces an electric current in the rotor.
- These motors are generally less expensive than other motors, making them a cost-effective choice for industrial applications. They are commonly used in pumps for water supply, irrigation, and wastewater treatment systems. These motors are used in industrial fans and blowers for ventilation, cooling, and air circulation.
- Also, the increasing water consumption in various verticals, like agriculture, irrigation, public supply, domestic use, and energy production, in Germany will likely drive the growth of the market.
- Also, Germany is one of the classic European mining regions with a long tradition in the extraction and processing of minerals. The country's mining industry has traditionally been focused on extracting lignite, coal, and other minerals. Moreover, Germany plans to increase investment in mining for the future innovation economy and aims to provide the necessary resources for industrial growth.
- Also, the government is focusing on making investments to support the country's mining sector, further supporting the market growth. For instance, in April 2023, the German government announced plans to invest up to EUR 2 billion (USD 2.19 billion) to support mining activities of critical raw materials necessary for the country's green transition, thus driving the demand for AC motors during the projected timeline.
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The Power Generation Industry is Expected to Grow Significantly
- The power generation industry deals with the production and distribution of electricity. AC motors are mainly deployed in these industries to meet the need for power transmission efficiency and waste reduction.
- The demand for AC motors will increase in the power generation industry as they are widely used in cooling systems and steam cycle pumps, exhaust system fans, fuel supply, environmental systems, and various support systems such as compressed air.
- The country has been the global pioneer in applying renewable energy and environmental technologies. Germany aims to cut CO2 emissions by 80% and increase the share of renewable energy in total energy consumption to 60% by 2050. The country continuously invests in grid expansion, offshore wind, photovoltaics, and energy storage projects, along with the implementation of a new, smart energy infrastructure that can balance the fluctuating supply of renewable sources.
- Moreover, the rising government initiative and investment to expand the country's renewable energy sector will further drive the market growth. For instance, in August 2023, the German government announced the construction of hydrogen and gas-fired power plants while offering government incentives, as the government aims for 80% of the electricity consumed in Germany to come from renewable sources by 2030. The European Commission will approve the subsidies.
- Additionally, the rising investment in power plant projects is expected to create opportunities for the market. For instance, RWE, a German utility, announced increased capital expenditure on green projects by investing EUR 55 billion (USD 59.2 billion) across renewable energy (RE), batteries, flexible generation, and hydrogen projects worldwide by 2030.
