Market Trends of Low Voltage Motor Control Center Industry
This section covers the major market trends shaping the Low Voltage Motor Control Center Market according to our research experts:
Oil and Gas Refineries to Witness the Significant Growth
- Low voltage motor control centers are used in oil and gas refineries to centrally control the electric motors driving various industrial processes such as pumping, production and processing, air compressors, drilling, etc.
- According to the recent report published by the National Petroleum Council (NPC) in the United States total, global energy demand will grow by 50% to 60% between 2019 to 2030. Hence, oil companies would boost its production to meet the surging demand and fuel the growth of low-voltage and medium-voltage control center in the sector.
- Moreover, many global companies are also innovating new features in their low voltage motor offerings, in order to target a vast range of applications in the sector. For instance, in 2019, ABB launched its new low voltage IEC (LV) flameproof motors in frame sizes 80-132 that offer the same safety and efficiency features usually found in the company's larger products. The company has developed these motors, especially for use in hazardous and explosive oil and gas industry environments, such as in offshore oil rig.
- Increased emphasis on safety of the workforce has led to deployment of small and low power robots many areas, which has indirectly fueled the growth of IMCC units, as they are required to control the robots. Furthermore, domestic production plants across the Middle Eastern and American regions are anticipated to increase in number, despite the price changes to cater to the surging demand, according to industry experts.
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Asia-Pacific is Expected to Grow Significantly
Asia-Pacific is one of the most significant markets for the LV motors and LV MCC. The region offers massive growth potentials to the studied market vendors, owing to the growing adoption of automation across the various end-user industries in the region. The energy concern in the region is also increasing the adoption of low voltage electrical equipment and motivating many companies to develop energy-efficient and compact electrical equipment and devices, hence further driving the studied market growth.
- Manufacturing is a major contributor to China's economy and is undergoing a rapid transformation. The industrial control system in the country has emerged across various fields, like the energy, transportation, water, and municipal sectors. Due to the deep integration and rapid development of the IoT, the networked control system is becoming the development trend of industrial automation in China, which is further developing space for the intelligent motor control centers too.
- Asian countries are experiencing factory automation shift to make manufacturing processes more efficient and reduce defect rates. For instance, Korean government is focusing on smart manufacturing and is planning to have 30,000 fully-automated manufacturing companies by 2025. The government aims to achieve this by incorporating the latest automation, data exchange, and IoT technologies
- Moreover, due to low-cost benefits, many of the global manufacturers are shifting their manufacturing facilities in South East Asia. Although the IMCC penetration in this region is low when compared to the other regions, government initiatives to adopt connected technologies with respect to the expansion of the manufacturing sector along with automation can be viewed as a potential boost for the IMCC market over the forecast period.
- The breakout of COVID-19, with significant impact on Chinese production, is likely to impact the market for LV MCC. This maybe because of reduced production and, thereby, sales. Order backlogs are expected to arise because of such unavoidable situations, which is likely to increase the cost of the equipment.
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