Africa Low-Voltage Electric Motors Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Africa Low-Voltage Electric Motors Market Analysis
The African low-voltage electric motor market was valued at USD 0.14 billion in the previous year and is expected to grow at a CAGR of 2.30%, reaching USD 0.16 billion over the forecast period.
Low-voltage electric motors are squirrel cage motors with a three-phase power supply, made up of fixed rotation speeds and reduced speed using various mechanical gearboxes.
- Low-voltage electric motors constitute the primary power source in the industrial production system. The growing focus on Industry 4.0 primarily drives the market for induction motors. Industrial automation drives the manufacturing sector toward more efficient productivity in Africa, which is expected to show strong growth during the forecast period. According to ABB Ltd's report on "The Future Is Energy Efficient," global energy usage is expected to grow by 50% by 2050, and electric motors use around 70% of the energy consumed by industry, and there are more than 300 million industrial motor-driven systems in operation.
- Similarly, electric motor systems play a crucial role in reducing CO2 emissions and reducing waste. Government investments and efforts to reduce CO2 emissions may create opportunities for more efficient electric motors. Responsible for driving both core industrial processes as well as auxiliary systems such as compressed air generation, ventilation, and water pumping, motors are critical to almost every industry.
- The demand for electricity is constantly increasing in the African region, and simultaneously, the environmental impact has gained enormous importance in recent years. As a result, several energy projects are gaining traction in the country, which is expected to boost the demand for low voltage motors in Africa.
- The raw materials prices, such as magnets, copper wires, aluminum die, metal bars, and other alloys, have recently seen significant changes. With the pandemic's influence, Africa's precious metal market is further witnessing adverse effects of supply chain issues, which also impact the market prices.
- The COVID-19 pandemic had a negative impact on the sales and production of electric motors, resulting in a slight downfall in the year 2020. The temporary shutdown of various manufacturing units in Africa was a key reason for such a significant decline in sales. Further, the global supply chain is completely disrupted due to the ongoing Russia-Ukraine war, the US-China Trade war, and other geopolitical concerns. The rising inflation, and economic slowdown, increasing interest rates further accelerate the challenges for the key vendors operating in the market.
Africa Low-Voltage Electric Motors Market Trends
Oil and Gas to be the Largest End-user Industry
- Electric motors are of utmost importance in the upstream sector of the oil and gas industry, serving as the primary driving force for various equipment, including pump and compressor systems. Furthermore, Low Voltage Electric Motors are gaining significant traction in offshore drilling operations within the O&G industry. These motors are specifically engineered to function dependably in challenging environments, prioritizing the safety of both personnel and equipment.
- According to the International Energy Agency (IEA), the production of oil and gas continues to play a crucial role in Africa's economic and social progress. However, there is a shift in focus towards meeting domestic needs. The global push for clean energy transition in the Sub-Saharan Africa (SAS) region poses a risk of reduced export revenues for Africa's oil and gas sector. By 2030, approximately two-thirds of African oil and gas production will be consumed domestically, highlighting the need for robust infrastructure, including storage and distribution facilities, to meet the growing demand for transportation fuels and liquefied petroleum gas (LPG) within the continent.
- South Africa, a highly developed nation in sub-Saharan Africa and a prominent economic force in the region possesses proven oil reserves of 15 million barrels as of January 2022, as reported by the Oil & Gas Journal (OGJ). These reserves are exclusively situated offshore in the Bredasdorp Basin and along the western coast near the maritime border with Namibia. Given the widespread utilization of low-voltage integral horsepower motors in various O&G industrial applications, the increasing oil demand is anticipated to generate significant prospects in the area.
- The oil and gas industry in Africa is embarking on a new phase. With the global push towards reducing reliance on fossil fuels, the pressure on oil and gas-producing nations on the continent is increasing. The Energy Institute reports that Africa's share of global oil production will only be 7% in 2022. Nevertheless, the continent has significant untapped potential and abundant natural resources, which are expected to attract investment and require low-voltage electric motors.
- Furthermore, it is anticipated that the conflict in Ukraine will generate substantial demand and investments in Africa's oil and gas sector, presenting significant prospects for market expansion. Europe's need for alternative energy sources, in light of Russian sanctions, is projected to stimulate interest in African energy initiatives that were previously disregarded due to financial constraints and environmental apprehensions. Consequently, African nations with limited or nonexistent oil and gas production, such as Namibia, South Africa, Uganda, Kenya, Mozambique, and Tanzania, are expected to witness substantial O&G investments in the forthcoming years, amounting to billions of dollars.
South Africa is Expected to Witness Significant Growth
- Rapid industrialization, significant investment towards infrastructure development, and a growing focus on expanding the manufacturing sector are presenting major growth prospects for the low-voltage electric-motor markets in the African region. Africa’s developing infrastructure allows populations, services, and industries to prosper across the region, and further investments have made it an impactful sector.
- South Africa is creating an ecosystem conducive to embracing industry 4.0 technologies, thus presenting the trend of industrial automation. The rising industrial automation is also fueling the demand for low-voltage electric motors as it plays a crucial role in automated systems by providing precise control and reliable performance.
- Furthermore, the transition to a cleaner, prosperous economy has become an immediate priority for countries and a sustained effort over the years and decades ahead. For instance, in August 2022, the Government of South Africa adopted “A Framework for a Just Transition,” which will shift South Africa towards a zero-carbon economy in ways that support national development aspirations, ensuring decent work for all, social inclusion, and the eradication of poverty. The framework provides a USD 8.5 billion energy transition partnership, supporting South Africa to phasedown coal, accelerating renewable energy deployment, and spurring innovation in green hydrogen and electric vehicles.
- Also, the countries’ increasing initiatives for renewable energy sources are also creating a demand for the market studied. South Africa has abundant solar resources, making it a prime location for developing solar energy projects. According to the Energy Institute, by 2030, power generation in South Africa is expected to increase by more than 40%, rising from approximately 210 TWh to 300 TWh by the end of the decade. Such developments will demand the use of low-voltage electric motors, thereby boosting the market’s growth.
Africa Low-Voltage Electric Motors Industry Overview
The Africa Low-Voltage Electric Motors Market is fragemented due to the presence of small and large players, like ABB Ltd, Siemens AG, Toshiba International Corporation, WEG, and Nidec Corporation.
- October 2023 - WEG undertook significant steps toward increasing its presence in Uganda and expanding its footprint in the East African market through a partnership with Petrok as a value-added reseller (VAR). This expansion would be facilitated by Petrok's local presence and technology know-how, together with the reliability of WEG products on the market. Through this critical step, the company would improve its market position in Uganda using a series of low-voltage electric motors.
- May 2023 - ABB Ltd successfully concluded the acquisition of Siemens' low voltage NEMA motor business, in line with the Motion business area's strategy for lucrative expansion. This transaction bolsters ABB's standing as a prominent industrial NEMA motor producer while furnishing a more robust foundation for enhanced global customer service capabilities.
Africa Low-Voltage Electric Motors Market Leaders
ABB Ltd
Siemens AG
Toshiba International Corporation
WEG
Nidec Corporation
*Disclaimer: Major Players sorted in no particular order
Africa Low-Voltage Electric Motors Market News
- October 2023 - Nidec and Embraer obtained approval for a collaborative endeavor to develop an Electric Propulsion System for the aerospace industry. Embraer will contribute its extensive knowledge, expertise, and resources about the controller, while Nidec will provide its technological know-how, expertise, and resources about electric motors. According to the company, Nidec Aerospace is anticipated to invest over USD 77.7 million by 2026 and commence mass production in the same year.
- November 2022 - Siemens announced its intention to separate out its motor and drive business into an independent entity. The new motor and drives business would be an amalgamation of five current Siemens businesses/divisions: Large drives, Sykatec, Weiss Spindel technologies, low voltage motors, and geared motors divisions from Siemens Digital Industries.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Investment in Manufacturing Sector
5.2 Market Restraints
5.2.1 Fluctuating Cost of Raw Materials
6. VALUE CHAIN ANALYSIS
7. MARKET SEGMENTATION
7.1 By End-user Industry
7.1.1 Oil and Gas
7.1.2 Chemicals and Petrochemicals
7.1.3 Power Generation
7.1.4 Metal & Mining
7.1.5 Water and Wastewater
7.1.6 Food and Beverages
7.1.7 Automotive and Manufacturing
7.1.8 Other Discrete Industries
7.2 By Country
7.2.1 Algeria
7.2.2 Egypt
7.2.3 Libya
7.2.4 Morocco
7.2.5 South Africa
7.2.6 Tunisia
7.2.7 Others (Sub-saharan Region)
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 ABB Ltd
8.1.2 Siemens AG
8.1.3 Toshiba International Corporation
8.1.4 WEG
8.1.5 Nidec Corporation
8.1.6 Kirloskar Oil Engines Limited
8.1.7 TECO Corporation
8.1.8 VEM Group
8.1.9 ZCL Electric Motor Technology Co. Ltd
8.1.10 Wolong Electric Group Co. Ltd
8.1.11 Bonfiglioli
- *List Not Exhaustive
9. MARKET OUTLOOK
Africa Low-Voltage Electric Motors Industry Segmentation
Low voltage motors are squirrel-cage motors with a three-phase power supply rated between 750 W and 372.8 kW. Electric motors are devices that convert electrical energy into mechanical energy, usually in the form of rotational motion. Low-voltage electric motors are used across various industries, including oil and gas, metal and mining, chemical and petrochemicals, automotive, manufacturing, etc.
The African low-voltage Electric Motors Market is Segmented by End-User Industry (Oil & Gas, Chemicals & Petrochemicals, Power Generation, Metal & Mining, Water & Wastewater, Food and Beverages, and Automotive and Manufacturing) and Geography (Algeria, Egypt, Libya, Morocco, South Africa, Tunisia). The report offers the market size and forecasts in value (USD) for all the above segments.
| By End-user Industry | |
| Oil and Gas | |
| Chemicals and Petrochemicals | |
| Power Generation | |
| Metal & Mining | |
| Water and Wastewater | |
| Food and Beverages | |
| Automotive and Manufacturing | |
| Other Discrete Industries |
| By Country | |
| Algeria | |
| Egypt | |
| Libya | |
| Morocco | |
| South Africa | |
| Tunisia | |
| Others (Sub-saharan Region) |
Frequently Asked Questions
What is the current Africa Low-Voltage Electric Motors Market size?
The Africa Low-Voltage Electric Motors Market is projected to register a CAGR of 2.30% during the forecast period (2024-2029)
Who are the key players in Africa Low-Voltage Electric Motors Market?
ABB Ltd, Siemens AG, Toshiba International Corporation, WEG and Nidec Corporation are the major companies operating in the Africa Low-Voltage Electric Motors Market.
What years does this Africa Low-Voltage Electric Motors Market cover?
The report covers the Africa Low-Voltage Electric Motors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Low-Voltage Electric Motors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Low-Voltage Electric Motors Industry Report
Statistics for the 2024 Africa Low-Voltage Electric Motors market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Low-Voltage Electric Motors analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
