The global motors and drives market in discrete industries to grow at a CAGR of 11.06% during the period 2016-2020.
Global Motors and Drives Market in Discrete Industries 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Motors and drives are primarily used for moving and controlling an equipment or system in a commercial and industrial set-up. In discrete industries, motors and drives powering mechanical equipment accounted for more than 60% of the total electrical energy consumed in 2015. In an industrial set-up, the power consumed by the motors accounts for 95% of the total expense. Therefore, manufacturing plants need to invest on more efficient motors and drives to sustain in the long run.
One trend impelling growth in the market is the development of customized motors. Siemens offers customized motors as per specific industry requirements. Unlike standard motors, customized motors provide special mechanical properties and system solutions to end-users. In addition, customized motors have higher efficiency than standard motors. Thus, many end-users are adopting customized motors, especially in discrete industries.
According to the report, one driver fostering growth in this market is the rising demand from the HVAC sector. Developing countries, such as China, India, Indonesia, and South Korea, are witnessing a major growth in urbanization and rapid industrial development leading to large-scale investments in the infrastructure projects. Income levels are also increasing rapidly, enabling people to afford costly HVAC equipment.
Further, the report states that one challenge negatively impacting the growth of the market is the volatility in raw material prices. As there are multiple vendors in the market, raw material suppliers are not dependent on a single vendor. This has increased the power of raw material suppliers and led to potential spikes in raw material prices, which will negatively affect low-voltage motor manufacturers. In addition, the main raw materials for motors, such as steel, aluminum, and copper, have volatile prices that hamper their availability and directly impact the operational costs of manufacturers.