Market Trends of United States AC Motor Industry
Rapid Industrialization and Increasing Infrastructure Development Will Drive the Market Growth
- Industrial automation in the United States has witnessed notable growth over the last few years, owing to the growing need to develop cost-effective production methods, comply with global quality standards, and support government regulations.
- The increasing focus on Industry 4.0 primarily drives the United States AC motors market. In the United States, industrial automation drives the manufacturing sector toward more effective productivity, which is expected to grow strongly during the forecast period. AC motor technology is widely applied in many areas, such as vehicles, power generation, oil & gas production, mining, and manufacturing.
- As AC motors offer high reliability with low maintenance requirements, and their service life is often limited only by the lifetime of the bearing, the demand for AC motors in the industrial sector is increasing. They do not have any parts that wear out regularly, so they do not require commutators, brushes, or slip rings. Therefore, it makes them ideal for applications where the motor must be continuously operated, has little access, or will operate without supervision for long periods.
- The rising government investment in infrastructure development projects will support the market growth during the projected timeline. For instance, in September 2023, the US government announced it would invest USD 100 million in expanding recycling infrastructure and waste management systems nationwide.
- In October 2023, the government announced the investment of USD 3.46 billion for 58 projects across 44 states to strengthen electric grid resilience and reliability across America. These transformative projects will all support the President's Justice40 Initiative to benefit disadvantaged communities, help to bring more than 35 gigawatts of new renewable energy online, and invest in 400 microgrids.
- Several players operating in the market focus on introducing new products to meet the growing demand. For instance, in October 2023, WEG announced its new W51 High Density (HD) motor line, which utilizes high-density technology to focus on high performance and lower resource consumption. The W51 HD motors are customizable, compact, and suitable for various applications, delivering better performance and longer durability.
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Growing Food & Beverages Industry will Support the Market Growth
- AC motors used in the food & beverages industry are commonly characterized by specific and challenging application requirements, including meat, fish, chicken, poultry, cake making, and dairy, as well as machinery like mixers, flour mills, or conveyors. In the food and beverage sector, AC motors help to carry out applications in which raw material handling, processing, or transfer is used, as well as packaging and storage, without compromising performance and quality, thus supporting the demand for AC motors.
- Food processing is one of the major manufacturing industries in the United States. According to the US Department of Agriculture, 16% of the value of the shipments from all the manufacturing plants in the country comes from food processing plants.
- In November 2023, according to the US Census Bureau, the total sales of US retail and foodservice for the August 2023 through October 2023 period were up 3.1% from the same period a year ago.
- The growing urbanization, changing demographics, and steady growth in retail have propelled the food processing industry in the United States. This increased demand has led to a surge in production from food & beverage companies. These companies are capitalizing on the growing middle-class population by introducing new products and expanding their existing product lines, further creating demand in the market.
- Also, the growing investments by the leading players in the country to expand their manufacturing capacity are expected to drive the market's growth. For instance, Nestle announced investing USD 43 million to expand its Wisconsin factory to increase capacity for its Boost and Carnation Breakfast Essentials ready-to-drink (RTD) products.
