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The Asia Pacific induction motor market is expected to register a CAGR of 4.2% over the forecast period (2022-2027). Induction motors are mostly used in machinery, as they are beneficial and powerful compared to conventional motors. Unique robustness makes it a suitable choice for automotive and manufacturing applications, as it requires less maintenance. The ability of these motors to work under varying climatic conditions is another factor driving their demand.
- The increasing demand for electrical energy to sustain global development requires consistent heavy investments in power supply generation that have driven the application of induction motors in the electricity sector.
- Moreover, the growing urbanization in emerging economies such as India and China has increased the demand for washing machine, refrigerator, HVAC, pumps, and other applications in which induction motor has a key role in their functioning. For instance, Japanese major player Daikin has announced that it has finished the purchase agreement for a 75-acre plant at Sri City (Andhra Pradesh) with an investment of 1,000 Crore to set up a large air-conditioner manufacturing plant, which will come up in phases.
- The industrial sector in Asia-Pacific is likely to grow as a result of several initiatives by the government, such as ‘Make in China 2025’ and ‘Make in India,’ which will boost the demand for induction motors, thereby driving the growth in the region.
- The growth in industrialization and commercialization creates more automation opportunities across the region. Also, households have grown exponentially over the last two decades. The United Nations expects that urbanization in Asia will reach 64.1% by 2050. Such factors are further expected to drive demand in several sectors like manufacturing, and power generation, where induction motor finds its application on a large scale. However, introducing alternatives for induction motors is the major restraining factor for the market's growth.
- Several leading fast-moving electrical goods (FMEG) companies are introducing new products that use induction motors for the product's function. For instance, in March 2022, Havells India Limited announced the launch of a new range of technologically advanced fans equipped with ECOACTIV super-efficient BLDC and induction motors.
- The Covid-19 pandemic has negatively impacted the region's market growth due to the stoppage of manufacturing industry operations. On the demand side, containment measures and economic disruptions related to covid-19 have led down production and mobility in the region, producing a significant drop in demand for induction motors.
Scope of the Report
Induction motors are the AC electric motor in which the rotor needed to produce torque is obtained by electromagnetic induction from the rotating magnetic field of the stator winding. These motors are used in various end-use industries with several advantages such as reliability and reducing loads. Also, its lightweight has been making it quite popular and giving it an edge over other motor. The Asia-Pacific Induction Motor Market is segmented By Type, End-user, and Country.
Key Market Trends
Industrial Applications to Register Significant Growth Rate
- Three-phase induction motors are used in over 70% of industrial machinery for different applications owing to their several benefits, such as being cost-effective, durable, maintenance-free, and can work in any environmental condition. These motors are used in mining, automotive, oil and gas, healthcare, and manufacturing industries and are part of pumps, lifts, cranes, crushers, conveyors, etc.
- The Japanese government has adopted a plan, 'Rebirth of Japan,' which aims to further boost the manufacturing sector by investing USD 1.3 trillion. This is also expected to be a significant catalyst in the country's transition from traditional manufacturing to advanced manufacturing processes using advanced machinery and a driving force for sustainable growth in the Japanese manufacturing sectors, consequently driving the market studied.
- India has been experiencing steady demand for induction motors in industrial applications. The country has been planning to reach around 175 GW of installed renewable capacity, which includes solar and wind power, by 2022. The country has also planned to derive about 40% of the energy from renewable sources by 2030, which is currently at around 15%. Hence, the demand for an induction motor is expected to grow significantly.
- Moreover, other countries in the region, such as Australia, Singapore, and Australia, are focusing on taking initiatives like industry 4.0 in the region, driving the demand for induction motors by implementing energy-efficient systems in the manufacturing of food and beverage industry, textile and clothing, automotive industry.
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China is Expected to Hold Major Share
- The industrial production of China has been showing continuous growth over the past few years, and it is expected to result in new projects and industrial expansions, which, in turn, may drive the demand for induction motors.
- Moreover, with China setting a target to combat climate change by speeding up the reductions in emissions to reach carbon neutrality before 2060, several measures to improve energy efficiency are expected to play a vital role in helping the industry and infrastructure to reduce their emissions.
- The country has recognized the importance of efficient electric motors as a matter of policy, with the launch of a new national standard that requires the motors to have a minimum efficiency level of IE3 coming into effect on June 1, 2021.
- Automakers have been expanding their manufacturing plants in China which is expected to drive the demand for induction motors in the forecast period. For instance, in February 2022, Tesla announced that it is planning to start work on a new plant in Shanghai as a part of a plan to more than double production capacity in China to meet the growing demand for its cars in the country's export markets.
- In addition, China’s internal population migration to cities is causing growth in the number of waste water treatment plants to meet the demand. At the beginning of the millennium, China had around 500 municipal wastewater treatment plants, reaching above 4,000.
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The Asia-Pacific induction motor market is fragmented owing to the presence of local and international players that offer induction motors with technological advancements. The key vendors in the market are taking initiatives such as mergers, acquisitions, and product launches to enhance their presence in the market.
- January 2022 - With efficient solutions in the mining sector, WEG supplied a slip ring motor from the M Mining line, frame 560, 1,300 kW, 3,300 V, four poles, and 50 Hz to drive the ball mill of a mining company in Argentina.
- December 2021 - Nidec Global Appliance has initiated a substantial production capacity expansion. The additional capacity will support variable speed motors under the U.S Motors and Rescue brands, focused on heating, ventilation, and air conditioning (HVAC) systems. The investment of approximately USD 18 million will increase production capacity by 1.5 million units per year.
Table of Contents
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
4.2 Industry Attractiveness - Porters Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Need for Higher Energy Efficiency
5.1.2 Rising Need of Power Savings in Residential and Industrial Sectors
5.2 Market Challenges
5.2.1 Availability of Alternative Options
6.1 By Type
6.1.1 Single Phase Induction Motor
6.1.2 Three Phase Induction Motor
6.2 By End-user Industry
6.2.1 Oil & Gas
6.2.2 Chemical & Petrochemical
6.2.3 Power Generation
6.2.4 Water & Wastewater
6.2.5 Metal & Mining
6.2.6 Food & Beverage
6.2.7 Discrete Industries
6.2.8 Other End-user Industries
6.3 By Country
6.3.4 South Korea
6.3.5 Australia & New Zealand
6.3.6 Rest of Asia-Pacific
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 ABB Ltd
7.1.2 Nidec Corporation
7.1.3 Siemens AG
7.1.4 Regal Rexnord Corporation
7.1.6 WEG SA
7.1.7 Fuji Electric Co., Ltd.
7.1.8 Kirloskar Electric Company
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Asia-Pacific Induction Motor Market market is studied from 2020 - 2027.
What is the growth rate of Asia-Pacific Induction Motor Market?
The Asia-Pacific Induction Motor Market is growing at a CAGR of 4.2% over the next 5 years.
Who are the key players in Asia-Pacific Induction Motor Market?
Nidec Corporation, Regal Rexnord Corporation, Siemens AG, TMEIC, ABB Ltd are the major companies operating in Asia-Pacific Induction Motor Market.