Growth in the Medium Voltage Motors Market

  Enquire / contact me

Driven by emerging economies & low cost manufacturers

Growth in the Medium Voltage Motors Market
Growth in the Medium Voltage Motors Market

The global market for medium voltage (MV) motors experienced a significant contraction in 2010, declining by more than 20% in revenue terms from pre-recession levels. However, in 2011, developing economies are leading the recovery in this estimated $4.1 billion market. According to the 2011 Medium Voltage Motors study, recently published by IMS Research, developing economies are expected to outperform the global market through 2015, when it is estimated that the market will top $5.7 billion.
Emerging economies, such as those in China, India, and Brazil, usually have low-cost labor forces, indigenous sourcing of raw materials, and rapid growth in industry sectors that use MV motors, like metals, mining, and oil & gas. A combination of these factors is expected to generate double-digit revenue growth during the forecast period. In contrast, the established economies of North America and Western Europe, where MV motor revenues contracted by an estimated 30% in 2010, face a longer recovery period, with only modest single-digit growth forecast to 2015. The market's recovery to pre-downturn levels is not expected until 2013 at the earliest.
According to senior research analyst Mark Meza, "Developing countries with highly favorable conditions were able to continue growing their domestic MV motor markets during the global recession, while developed economies struggled mightily. In addition, MV motor suppliers in these regions have been concurrently gaining share in Western countries due to growing exports as a result of a notable increase in quality of their products." In the last two years, Asian motor manufacturers in particular have been able to capitalize on increased price sensitivity in heavy industries that use MV motors. This has been evidenced by a significant drop in average selling prices (ASPs) in the OEM space, which has experienced an influx of lower priced MV motors that well established manufacturers have not been able to match.
Replacement of MV motors made by American and European powerhouses with low-cost motors produced in other regions of the world has made these companies take notice. Meza adds, "The entrenched suppliers have certainly taken notice of an estimated $480 million worth of MV motors sold by suppliers from developing nations in 2010. This has been especially true in markets where 'off the shelf,' non-specialized MV motors can be sold in large volumes at low cost." It is expected that once the global economy begins to regain momentum, the leading European and American manufacturers will again be able to leverage the value propositions of durability, reliability and support and service after the sale that have traditionally driven sales of their MV motors.

Posted on July 15, 2011 - (205 views)
by
Related articles
Honeywell Demonstrates Security Threats of USB Devices
A Lab Oscilloscope for an Electric Superbike
US Healthcare Sector Votes for Cogeneration
Motion Solutions for Clean Energy Applications
Freeing up technicians to build an aircraft
Energy Efficiency & Renewable Energy: Harnessing the Power of the Consumer
A New Name for SPS IPC Drives in 2019
Link3D Presents its Technology to Boost Additive Manufacturing at Formnext 2018
Emerson will Modernize a Gas Processing Plant in Algeria
Intelliconnect at Electronica 2018
New JD Mini for Maximum Efficiency
Sensing Innovation in Process and Control
Connect Everything with e-Factory
System-based High Precision Linkages
Ultrasonic Flowmeter for Air
Reflowable Thermal Switch
Mobile, Multi-protocol Diagnostics Mercury
Microscope Optics for IR cameras
Level Switches RFS-9 and RFS-12
Digital Multimeter, Gas Soldering Iron and Carrying Case
Verigo Model PB3 Reusable Temperature Data Logger
Compact Power Modules
Modular Compact CPU Board
Absolute Modular Encoders
Connector for Data Transmission
Mass Flow Controller FMA-2600A Series
High-Performance Box PC
Compact True Color Sensor
A new performance class in inductive displacement measurements
Positioning System
Verigo Model PB3 Reusable Temperature Data Logger
Ultrasonic Flowmeter for Laboratory
Co-Creating the Industry of the Future
Ultra-Low Power Accelerometer for IoT
New JD Mini for Maximum Efficiency
Bonfiglioli BSR Synchronous Reluctance Motors
Reflowable Thermal Switch
Measuring the Position of Hydraulic and Telescopic Cylinders
AI Convention Europe Presents KAPTAIN
Ultrasonic Flowmeters for Compressed Air