Monday, 22 July 2019

Energy Efficient Motor Market estimated to be $41.57 Billion by 2023

According to the new market research report on the "Energy Efficient Motor Market by Efficiency Level (IE1, IE2, IE3, and IE4), Type, Application (HVAC, Fans, Pumps, Compressors, Refrigeration, Material Handling, and Material Processing), Vertical and Geography - Global Forecast to 2023", the energy efficient motor market is expected to reach USD 41.57 Billion by 2023 from USD 30.34 Billion in 2018, at a CAGR of 6.5% between 2018 and 2023. The major factors driving the growth of the energy efficient motor market are saving of energy and subsequent cost over traditional motors, increasing support from governments worldwide for the adoption of energy efficient motors, rising need to diminish greenhouse effect, and increasing adoption of energy efficient motors in the industrial sector. 

 
IE2 (high efficiency) expected to hold largest share of energy efficient motor market for efficiency level, in terms of value, during forecast period

IE2 motors have efficiency levels equivalent to the CEMEP EFF1 class and EPAct level. IE2 motors can be used with inverters as an alternative to the IE3 motors. Moreover, the market has witnessed a significant shift from IE1 motors to IE2 motors as IE2 motors have greater efficiency than EFF2 motors and produce less residual heat. Further, IE2 has become mandatory minimum energy performance standard (MEPS) in all the regions, which would positively impact the growth rate of the market for IE2 motors. These factors would continue to assist the growth of the energy efficient motor market for the IE2 efficiency in the coming years too.

Energy efficient motor market for HVAC application would grow at highest CAGR during forecast period

Energy efficient electric motors are used in heating, ventilation, and air conditioning (HVAC) solutions, especially used in commercial buildings. HVAC systems are based on the laws of thermodynamics, and principles of fluid mechanics and heat transfer. These motors are equipped in the electromechanical products such as pumps, fans, compressors, and refrigerators. The main objectives of the HVAC systems are to maintain good indoor air quality through sufficient ventilation through the filtered air and provide thermal comfort. The growth of the market for the HVAC application is propelled by the government support, increasing industrialization and urbanization, development of advanced solutions, and growing demand for energy-efficient devices.

Industrial vertical held largest share of the overall energy efficient motor market, in terms of value, in 2017

Energy efficient motors are extensively used in various industries, including oil and gas, marine, power and energy, mining, and water and wastewater to bring down energy consumption along with, consequently, reducing the operational cost. Electric motors account for ~60–70% of the total electricity consumed in the industrial sector, which is encouraging the electric motor manufacturers to improve the motor efficiencies. The growing need for the energy efficient motors has resulted into increase in adoption of these motors. Energy consumption is one of the major economic and environmental issues associated with the electric motor systems. The demand for energy efficient motors in various industries is increasing to reduce the electricity consumption and lower carbon dioxide (CO2) emissions.

Energy efficient motor market in Asia Pacific to grow at highest CAGR during forecast period

APAC is likely to be one of the fastest-growing regions in the energy efficient motor market by 2018, and the market in this region is expected to grow at the highest CAGR during the forecast period. According to Asian Development Bank (ADB), the share of the region to the global energy consumption is expected to increase from 34% in 2010 to 56% by 2035. ADB has made investments worth USD 970 million in energy efficiency projects, which would help APAC countries to meet their national target for energy efficiency and greenhouse gas emission reduction by 2020.

The report profiles the most promising players in this market. The key players in this market are ABB (Switzerland), Siemens (Germany), WEG (Brazil), GE (US), Schneider Electric (France), Nidec (Japan), Rockwell (US), CG (India), Bosch Rexroth (Germany), Kirloskar Electric (India).

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