Market Trends of North America Alternating Current (AC) Motor Industry
This section covers the major market trends shaping the North America Alternating Current (AC) Motor Market according to our research experts:
Oil and Gas Industry is Analyzed to Hold Major Share
- The oil and gas industry is the major shareholder of the market in 2021 and is analyzed to maintain its position throughout the forecast period owing to the significant deployment of AC motors. Onshore and offshore drilling operations rely on drilling rig equipment to extract oil and natural gas from reservoirs in the oil and gas industry.
- Drill rig equipment employs motors as their power source, and these motors must be able to survive vibration, extreme temperatures, consistent hits, corrosive environments, and other harsh circumstances characteristic of oil and gas settings. Throughout onshore and offshore drilling operations, induction motors and synchronous generators supply power for various purposes.
- The dependence of the oil and gas industry on automation has grown in the last decade, and many rounds of industry layoffs were announced that left market players with less skilled workers. This led to the increasing dependence of the United States oil and gas companies on automation to complete processes without any delay. In the last few years, the United States exports of crude and LNG (liquefied natural gas) and refined products continued to grow, which aligned with the new administration's motto of 'energy dominance for the United States.
- In 2018, the United States surpassed Saudi Arabia as the world's leading crude oil producer, a position it held until 2020. Crude oil generated in the United States and other countries is obtained by US oil refineries. Crude oil is supplied to the global market by a variety of companies.
- Crude oil is produced by almost 100 countries. In 2021, five countries accounted for around 51% of global crude oil production, with the United States holding 14.5% of the share. Crude oil is produced in 32 states and coastal waters off the coast of the United States. Five states accounted for over 71% of total crude oil output in the United States in 2021. (Source: US Energy Information Administration).
- Further, with 79% of the region's total installations, the United States is the region's top industrial robot consumer. These factors are significantly boosting the market growth rate in the country during the forecast period.
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United States is Expected to Register the Major Growth Rate
- The United States is the major shareholder of the market in 2021 and is analyzed to maintain its position throughout the forecast period owing to the presence of various manufacturing industries. The significant investments and expansions in food and beverage, chemical and petrochemical, and discrete industries are analyzed to bolster the demand for AC motors.
- Motors used in the food and beverage industries frequently have specific and demanding criteria in sectors such as meat, poultry, fish, dairy, and baking items, and applications such as grinders, mixers, and conveyors. Machines must also perform faultlessly, for longer periods, and at the highest feasible level of energy efficiency throughout the lifecycle.
- The growing food and beverage sector in the country is set to boost the market growth rate during the forecast period. For instance, monthly retail sales of US food & beverage stores have witnessed a significant surge in 2022. For instance, according to US Census Bureau, in February 2022, the retail sales of food & beverage stores accounted for USD 78,099 million. With this, the food and beverage packaging companies are focusing on incorporating sustainable labels or tags.
- USDA stated in July 2021 that it would invest USD 500 million in American Rescue Plan money to expand meat and poultry processing capacity, giving farmers, ranchers, and consumers more options in the market. USDA also announced more than USD 150 million in funding for existing small and very small processing facilities to assist them in dealing with COVID, competing in the market, and obtaining the help they need to reach new customers.
- Further, Nestle announced in July 2021 that it is expanding its frozen food factory in South Carolina, United States. Stouffer's Lean Cuisine, two of the company's most well-known brands, will benefit from the USD 100 million investment.
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