Market Trends of Soft Starter Industry
This section covers the major market trends shaping the Soft Starter Market according to our research experts:
Oil and Gas Industry to Drive the Market Growth
- Soft starter technology provides significant benefits for the pump, compressor, blower/fan, and centrifuge applications in the oil and gas offshore and onshore industry. The reduced start current minimizes stress on the electrical supply, particularly useful for remote applications, such as offshore oil rigs or isolated pumping stations.
- In the oil and gas upstream sector, the EPC market has primarily driven by the onshore segment, mainly due to lower investment requirement, lesser complexity, easier access to sites, and lower risk, compared to the offshore segment.
- According to IEA, the global demand for natural gas is expected to witness significant growth with additional consumption of 370 billion cubic meters (bcm) by 2022, up from 3,630 bcm in 2016, representing a growth of 1.6% a year between 2016 and 2022. The significant investment in the oil and gas sector is anticipated to provide the necessary demand for soft starter, thus augmenting the market growth.
- Besides, the increasing number of oil and gas projects in various countries such as the United States, Canada with abundant oil reserves, and oil sands resources could most likely provide robust growth opportunities for the market during the forecast period. The United States is one of the largest producers of natural gas and crude oil, accounting for around 14.1% and 20.0% of the global production, respectively, in 2019.
- Moreover, pipeline construction projects such as Jupiter Pipeline in Texas, Roanoke Expansion Project by Kinder Morgan, are destined to be completed by the end of 2020. The initiation of more such projects is expected to create a considerable demand for soft starters in the US over the next few years.
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Europe is Expected to Experience Significant Growth
- Europe is attracting many foreign manufacturers, which is enhancing the market’s growth. Motortronics is one of the world’s largest soft starter and control manufacturing specialists with operations in the USA, UK, Korea, and China. In August 2019, Motortronics UK was established to spearhead the groups’ growth in the European market following the acquisition of Fairford Electronics in 2018. In November 2019, the company launched its largest range of soft starters, as a part of its European operation for motor control solutions.
- Further, major vendors are expanding their product portfolio, which is expected to drive the market’s growth positively. For instance, in November 2019, Siemens Smart Infrastructure expanded its soft starters portfolio for motors, with the launch of Sirius 3RW50 and Sirius 3RW55 Failsafe. The Sirius 3RW55 Failsafe soft starters are the first to feature the integrated Safe Torque Off (STO) function. The Sirius 3RW55 Failsafe soft starters are ideal for starting and stopping high-power motors' operations with a rated output of 5.5 to 560 kilowatt (kW) at 400 volts (V).
- Aiitionally, the mining and quarrying activities are flourishing in the region, encouraging several market players to innovate and invest in capital. According to Eurostat, the mining and quarrying turnover in France amounted to USD 5,538.72 million in 2018 and is expected to reach USD 5786.7 million by the end of 2024.
- However, the COVID-19 has affected the production cacapacity of the vendors which is a major concerns revolving around global supply chains and can affect the growthb of the market. For instance, sectors such as the global wind industry stated they are already witnessing logistical delays.
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