Demand Surges for Medium-Voltage Motor Control Centers

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Demand Surges for Medium-Voltage Motor Control Centers
Demand Surges for Medium-Voltage Motor Control Centers

Spurred by high energy prices and government spending on infrastructure, the oil and gas business along with the water and wastewater industry in the coming years will generate the largest growth of all application markets for medium-voltage motor control centers (MCCs) and soft starters.

Revenue for MCCs and soft starters used for oil and gas extraction, manufacturing and transportation will rise to $287 million in 2016, increasing at a compound annual growth rate (CAGR) of 6.9 percent from $206 million in 2011, according a new report from IMS Research. Meanwhile, the water and wastewater segment in 2016 will generate $117 million in demand for MCCs and soft starters, growing at a CAGR of 5.4 percent from $90 million in 2011. In comparison, the overall market for MCC and soft starters used in all applications will expand by a CAGR of only 5.5 percent during the same period.

"Brent oil prices in 2011 and 2012 remained inflated, at $111 and $112 per barrel, respectively," said Jared Kearby, analyst at IHS. "Because of this, oil companies invested capital to increase production capacity, thus generating sales and shipments of medium-voltage MCCs and soft starters. Meanwhile, MCCs and soft starters are seeing increased demand from the water and wastewater market as governments seek to replace outdated systems. Furthermore, growth in this segment is being fueled by new installations required for increased capacity, and the need to mitigate environmental impact."
Investment in water and wastewater as well as oil and gas industries is particularly strong in emerging markets such as India, the Middle East and China.

Posted on April 25, 2013 - (474 views)
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