Market Trends of Induction Motor Industry
This section covers the major market trends shaping the Induction Motor Market according to our research experts:
Industrial Application of Induction Motor to Experience Significant Growth
- Motors are used in many industrial applications today, which are critical to the enterprise's productivity. Presently, every manufacturing company pursues optimized production efficiency as its primary goal. As induction motors are cost-effective, robust, maintenance-free, and can operate in any environmental condition, they are increasingly being used in mining, cement, automotive, oil and gas, healthcare, and manufacturing industries. They are part of pumps, lifts, hoists, electric shavers, cranes, crushers, oil extracting equipment, etc. Increasing awareness of environmental protection across industries also contributes to the growth of induction motors, as they have a low emission rate.
- In the past few years, populations shifted from rural to urban areas in search of jobs, which led to urbanization. According to the World Bank, the global urban population as a percentage of the total population stood at 57%. This has driven the demand for resources to construct retail, commercial, and residential housing facilities to accommodate the surging need, which positively impacts the growth of the industrial sector and the demand for induction motors.
- The manufacturing industry has been the significant driver for induction motors as these motors are found in furnaces, conveyors, winders, pumps, wind tunnels, and other industrial equipment. With the manufacturing industry witnessing an upward growth trend, especially after the initial setback created by the pandemic, the demand for induction motors is also expected to grow further. For instance, according to the United Nations Industrial Development Organization (UNIDO), global manufacturing production registered a year-over-year output growth of 4.2 percent in the first quarter of 2022.
- Considering the growing demand, several induction motor providers are focusing on developing new types of induction motors with innovative functionality to fulfil various requirements of new industrial use cases. Such trends are expected to support the growth of the induction motor market in the coming years.
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Asia Pacific is Expected to Register Significant Growth During the Forecast Period
- Asia-Pacific is likely to be the highest contributor to the growth of the induction motor market during the forecast period due to an increase in investment to automate various processing steps in many industries. Moreover, the increasing adoption of induction motors in electric vehicles replaced the DC motors due to their improved efficiency and lightweight.
- Industries, such as oil and gas, automotive, mining and metal, and construction, are witnessing steady growth in the region, which is expected to offer tremendous growth opportunities for the global induction motor players.
- Southeast Asia is a rich source of hydrocarbon resources, like natural gas and petroleum. China is the biggest oil producer in the region, accounting for about 4 million barrels of oil per day in 2021 (Source: British Petroleum). In May 2022, China's National Energy Agency set a target to increase domestic crude oil production to approximately 1.5 billion barrels in 2022 after the government expressed the importance of exploration and production of crude oil.
- Furthermore, the automotive industry in the Asia Pacific region is also witnessing a trend shift, with several countries promoting the adoption of electric vehicles. The supportive government regulation also plays a crucial role in the growth of the electric vehicle industry. For instance, the Chinese government had set up goals of having EVs make up 40 percent of all car sales by 2030.
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