Market Trends of United Kingdom AC Motors Industry
Recent Initiatives to Revive the Industrial Sector in the UK to Support Market Growth
- The industrial sector is among the key pillars of the United Kingdom's economy. Although the industry has lagged recently due to several factors, it remains among the major contributors to the country's GDP. For instance, according to the House of Commons Library, from October to December 2023, about 9.3% of the UK's total economic output and about 8.1% of employment were attributed to the manufacturing sector.
- According to Make UK, the manufacturer's organization, the UK's manufacturing industry ranks 8th globally in terms of output value. In 2023, the country witnessed a significant jump in manufacturing output, reaching GBP 224 billion (~USD 284.5 billion). Similarly, according to the Office of National Statistics, in 2023, the gross value added (GVA) of the manufacturing sector in the United Kingdom reached GBP 199.79 billion (~USD 253.78 billion) compared to GBP 197.34 billion (~USD 250.67 billion) in 2022.
- Owing to the recent outbreak of COVID-19 and other macroeconomic factors, such as the economic instability the country has faced, the UK government has taken several initiatives to support the growth of its industrial sector. For instance, the government's Industrial Strategy aims to boost productivity by backing businesses throughout the country to create good jobs with investments in skills, industries, and infrastructure.
- In 2023, the UK government announced the National Semiconductor Strategy to enhance the country's prominence in semiconductor design, research, and advanced chip leadership. As part of the strategy, the government plans to invest up to GBP 1 billion (~USD 1.3 billion) in the next decade to improve access to infrastructure, support research and development, and facilitate higher international cooperation. Hence, such trends and developments are anticipated to drive opportunities in the market studied.
Understand The Key Trends Shaping This Market
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Discrete Industries to Hold a Significant Market Share
- Discrete industries, such as automotive, electronics, clothing, toys, and recreation, continue to hold a significant share in the manufacturing landscape of the United Kingdom. Over the years, these industries have transformed significantly, leading to a higher uptake of automation and robotics technologies, creating a favorable outlook for the market's growth as AC motors are widely used to drive industrial machinery, conveyors, robots, etc.
- For instance, the United Kingdom is among the major automotive markets globally, as the demand for automobiles is growing across different segments. The country is also among the major automobile producers across Europe. According to the Society of Motor Manufacturers and Traders (SMMT), automobile production in the United Kingdom stood at 1,025,474 units in 2023, with about 905,117 cars and 120,357 commercial vehicles produced during the year. According to SMMT, the production output was 17.0% higher than the previous year.
- Considering a stable demand, the country has several major automobile manufacturers, including Bentley, Aston Martin, Daimler, Jaguar, Lagonda, and Land Rover. According to the Office of National Statistics, the country has 2,380 VAT/PAYE-based enterprises in the automotive, trailers, and semi-trailers manufacturing industries in the 0-4 employment size band.
- Furthermore, the United Kingdom is also witnessing notable growth in the adoption of consumer electronics goods, especially smartphones. Several factors influence the demand for smartphones in the country, including the growing proliferation of digital technologies and the entry of several new vendors in the market, giving consumers a variety of options to choose from. Moreover, the arrival of 5G is also anticipated to influence the adoption rate of smartphones in the country, creating a favorable ecosystem for the market's growth.
