The market for medium and high power motors around the world is considerable and expanding quickly. The manufacturing sector, the HVAC sector, the transportation sector, the renewable energy sector, and even the aerospace sector all make extensive use of these motors. Because of their reliability and durability under stress, medium and high power motors are indispensable in a wide variety of industrial settings. Increasing investments in renewable energy projects, such as wind and solar power generation, will be a prominent driver driving the growth of the global medium and high power electric motors market over the period 2023-2031, at a CAGR of roughly 6.7%.
The increased use of medium and high-power electric motors can be attributed in large part to rules requiring them to be more energy efficient. Higher efficiency motors are desirable due to their lower energy consumption and cost savings, and these standards set minimum efficiency levels for electric motors. The Energy Policy Act (EPAct) of 1992 and the Energy Independence and Security Act (EISA) of 2007 are two pieces of legislation that give the United States Department of Energy (DOE) authority over automobile efficiency regulations. In 2009, energy efficiency regulations for motors were enacted in Europe by the European Commission under the Eco-Design Directive of the European Union. Energy-efficient motors are advantageous because of their low maintenance and carbon footprint. The United States Department of Energy estimates that switching to energy-efficient motors can reduce monthly energy bills by up to 30 percent. In addition, with less energy needed, the carbon footprint is lessened, making for a greener tomorrow.
The need for automation is also contributing to the rise in popularity of high and medium powered electric motors. Manufacturing, the automobile industry, and the aerospace industry are just some of the many that have embraced automation. Electric motors provide for more precise control, faster operation, and less frequent maintenance in automated systems. The number of robots sold in 2020 hit a new high of 373,000, according to the International Federation of Robotics (IFR). These robots couldn't function without electric motors, and as the need for automation increases, the need for electric motors will undoubtedly rise as well.
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Increasing reliance on alternative power sources is a third factor pushing the market towards high- and medium-power electric motors. Electric motors are necessary in renewable energy systems like wind turbines and solar panels so that the power can be transformed into useful electricity. The need for electric motors has grown in tandem with the popularity of renewable energy. According to the International Energy Agency (IEA), in 2019 renewable energy sources provided 72 percent of net new global electricity capacity. The International Energy Agency predicts that by 2025, about 90% of new power capacity additions will come from renewable energy sources, indicating that this trend is projected to continue. Manufacturers of medium and high-power electric motors will benefit from the rising demand for electric motors used in renewable energy systems.
Although there are many factors pushing the market for medium and high-power electric motors, the high cost of entry is a major barrier to entry. Medium- and high-power electric motors cost more to acquire and set up than their lower-power equivalents. These motors are more expensive since their components are larger and more complicated, and they require more sophisticated control systems. Additional cost increases could result from the use of industry-specific motor requirements. A 500 hp medium-voltage electric motor, for instance, can cost anywhere from $20,000 to $80,000, depending on the specifications and features required, as reported by the Electric Power Research Institute. A 50-horsepower low-voltage motor, on the other hand, can be purchased for as little as $1,000. Some industries, especially those with smaller budgets or profit margins, may struggle to break even due to the high initial investment expenditures. However, it's worth noting that medium- and high-power electric motors can provide a return on investment because to their higher efficiency and lower operating costs. However, the high price tag of these motors could slow down their widespread use in certain sectors.
Due to its adaptability and broad use across a variety of applications such pumps, compressors, fans, and conveyors, AC motors accounted for nearly 60% of the medium and high-power electric motor market in 2023. This is why AC motors are so widely used in manufacturing and other commercial settings. In addition, AC motors are less expensive than DC motors because they don't need a dedicated power source for variable speed operation. Since the motor's overall price is decreased, it can be used in more situations.
Market revenue for medium and high-power electric motors is currently being driven mostly by the automobile sector. Revenue share for the automobile industry is projected to be at least 50% of the total market revenue, though this may vary by location and firm performance. Since electric vehicles (EVs) and hybrid vehicles, which also rely on electric motors for propulsion, are in great demand, the automotive sector is predicted to have the largest income. Governments throughout the world are enacting legislation and incentives to promote the use of EVs in response to mounting concerns over climate change and the need for sustainable mobility. As a result, this should increase demand for vehicles equipped with electric motors. In addition, improvements in electric motor technology, such as the creation of permanent magnet motors, are anticipated to enhance the efficiency and performance of electric vehicles, thereby contributing to the expansion of the automotive industry's demand and revenue. The demand for highly efficient electric motors in autonomous vehicles is also anticipated to contribute to the automotive sector's revenue growth.
Approximately 45% of the global market revenue for medium and high-power electric motors was generated in Asia-Pacific in 2023. The rapid industrialization and urbanisation in the region, the rising demand for electric vehicles and renewable energy, and government initiatives to promote sustainable transportation and renewable energy all contribute to Asia Pacific's dominance in the medium and high-power electric motors market. Depending on the time period and market conditions, Asia Pacific's share of revenue from the medium and high-power electric motors market can fluctuate.
