Asia-Pacific AC Electric Motor Market Size

APAC Ac Electric Motor Market Analysis

Asia-Pacific AC Electric Motor market is expected to grow at 5.1% CAGR during the forecast period of 2021-2026. Industrial automation, which drives the manufacturing sector worldwide, is expected to show strong growth during the forecasted period. The Asia-Pacific region is expected to open up new growth opportunities in the AC electric motor market over and beyond the forecast period. However, the higher initial investment for procuring new equipment and upgrading existing equipment and portability issues with AC motors could restrain the market's growth.

• Electric vehicles are expected to boost the growth of the market studied over the forecast period. The number of new EV cars registered in the Asia Pacific hit an unprecedented market share in 2019, with the developed economies supporting this trend. With the leading automotive companies increasingly adopting AC electric motors into EVs, the regional demand is expected to increase, thus driving the market growth.
• In May 2019, the American Chamber of Commerce in China found that 40% of its surveyed members had either begun to shift their production facilities outside of China or were thinking of moving their production out of the country. Of those planning to leave the country, more than half listed Southeast Asia as the prime location they consider relocating. This will further boost Southeast Asia's industrial production, therefore driving the growth of the market.
• Manufacturers across the Asia Pacific region have been identified to integrate PMAC motors into their manufacturing facilities, to increase the plant's operational efficiency. It has been proved that PMAC motors operate with around 4% higher productivity at full speed, 7%-12% higher efficiency at half the pace, and about 24% higher efficiency at 1/6th speed, as compared to conventional motors.
• Major manufacturers are switching to PMAC motors in the region, also creating opportunities for the market. For instance, in September 2019, Tata Motors announced the use of a PMAC motor in its new range of EVs to replace the AC induction motor it has employed previously. Tata Motor's previous EV, the Tigor EV, had a 30kW 72V AC induction motor coupled with a 16.2kWh battery, giving it a maximum range of 88 miles. The new Ziptron EV, using a PMAC motor, claims to have a range of 155 miles with fast charging capability.
• The industrial sector in Asia-Pacific is also expected to witness massive growth due to various government initiatives like 'Make in China 2025' and 'Make in India,' which may promote the usage of AC electric motors, thereby driving its growth in the region.
• Industrial manufacturing companies are grappling with the immediate effect of the COVID-19 pandemic as both their manufacturing and supply chain operations are disrupted, and their customers' operations face similar threats. This exponentially affects the whole supply and distribution network, hitting Industrial Equipment companies with a lag. This will act as a significant challenge for the Asia-pacific AC electric motor market for a considerable period.
• According to World Bank statistics, China's industrial production is expected to decrease by 22.6% compared to the previous year. The effect of COVID-19 containment measures is visible in data on industrial production in China, which has fallen by 13.5% in January and February combined, compared with the previous year.