Low Voltage Motors Market

Low Voltage Motors Market Outlook

In 2018, demand for low voltage motors surpassed US$ 25 Bn, growing at a Y-o-Y growth rate of 8.8% in 2019. After emerging from the recessionary downturn induced by COVID-19, sales are expected to be valued at US$ 36.6 Bn by the end of 2021.

Market Size 2021	US$ 36.6 Bn
Projected Market Forecast 2031	US$ 70.6 Bn
Growth Rate 2021-2031	6.8% CAGR
Most Prominent Market	Asia (7% CAGR)

Long-term growth prospects appear highly optimistic, with an anticipated revenue share of US$ 70.6 Bn as of 2031. Overall, the industry is slated to expand nearly 2x throughout the forecast period of 2021-2031.

Market predictions for low voltage motors from 2016-2020 compared to 2021-2031

Demand for low voltage motors has been elevating on the back of increased applications across the construction, automotive and other critical end use industries. According to Fact.MR’s analysis, demand accelerated at around 5% CAGR from 2016-2020. Usage has increased primarily to attain higher energy efficiency scores.

As the COVID-19 pandemic took root, the global economy plunged into a prolonged recession, impacting major end users of low voltage motors, most notably the automotive and construction industries. The World Economic Outlook predicted that global economic growth contracted by almost 3% during FY2020, with the construction industry registering an over 7% decline.

Fortunately, as restrictions have lifted, combined with speedy vaccination drives, prospects for low voltage motors have heightened considerably. As the construction industry exhibits swift signs of recovery, bulk of low voltage motors are expected to be utilized for commercial HVAC equipment. Based on these aforementioned trends, sales of low voltage motors is poised to experience an incline of 6.8% from 2021-2031.  

How is the Electric Revolution Shaping up Demand for Low Voltage Motors?

Increasing ozone layer depletion due to greenhouse gas emissions has increased demand for electric vehicles in the market, which explains why low voltage motors in the automotive industry are in great demand. A growing market for low voltage motors has been driven by increasing industrialization across the globe. Increasing infrastructural activities by both government and private organizations have increased the demand for low voltage motors on the market recently.

As electric motors have become more useful in home appliances and automobiles, there has been an increase in the demand for low-voltage motors in the market. With the widespread adoption of innovative technologies, various firms are incorporating intelligent technology and monitoring systems that will positively impact the growth of low voltage motors in the industry.

In addition to high-voltage motors, low-voltage motors are gaining considerable attention from businesses seeking to improve their operations. The quality of the motors is of great concern to various firms since low voltage motors are in high demand. Thus, various firms have increased their investments in low-voltage motors.

How has R&D influenced the growth of low voltage motors in the market?

The motors have been subjected to numerous tests to determine their efficiency, reliability, and performance in various industries. To prevent premature failure of motors, various tests have been done to ensure reliable operation and extended motor life. This has affected the growth of low-voltage motors in the market.

Many researchers perform tests to diagnose the health of the motors based on faults that are incapable of being detected before manufacturing. Different test types where each test provides a piece of the puzzle helps to build up to a clearer picture which is essential in determining the health of the low voltage electric motors.

New methods and technologies are being developed to deliver these low voltage motors to the market. Many smart technologies and sensors have been attached to these motors to monitor their performance during operation.

Region-wise Analysis

Why is North America Considered an Opportunistic Low Voltage Motors Market?

North America is regarded as the potential user of low voltage motors in the global market. Rapid industrialization in the U.S market has been cited as one of the major factors contributing to the rising demand for low-voltage motors. The automotive industry is the major reason for the growth of low voltage motors in these markets.

Compared with high voltage motors, low voltage motors are far more efficient and help to save a significant amount of energy. Therefore, low voltage motors have become one of the most important factors fueling the growth of the automation industry in the U.S. The growing demand for home appliances and their reduction in energy consumption has led to an increase in the use of low-voltage motors.

The increased demand to meet the National Electrical Manufacturers Association (NEMA) guidelines for the usage of highly efficient and energy-saving voltage motors has been cited as one of the major causes for the growth of low voltage motors in Canada. The rapid growth of HVAC systems has increased the demand for low voltage motors in this market. To prolong the life of the HVAC system, low voltage motors must be utilized. Low voltage motors perform the same functions as high voltage motors. Hence, all of these factors have contributed to the rise in demand for low-voltage motors in the market. A CAGR of 5% is anticipated for the North American market.

How is the HVAC Industry Encouraging Low Voltage Motors Adoption in Europe?

According to the Construction Products Association (CPA), the European construction industry yields over 63 billion pounds of annual turnover. More than 75% of all construction products are manufactured in the U.K alone. Furthermore, in spite of contracting by 12.5% in 2020 due to COVID-19, it projects that the industry is expected to gain 12.9% value throughout 2021, and a further rise of 5.2% in 2022.

Given this highly promising recovery rate, there is no doubt that resumption of commercial and residential projects will resume in full swing. For instance, the Office for National Statistics established that in the U.K alone, monthly construction output grew 1.3% in volume terms in September 2021. Most of these include residential and commercial buildings.

Consequently, demand for HVAC systems is also expected to incline, which will eventually provide traction to low voltage motors demand. ABB, for instance, offers its range of low voltage motors, including the SynRM motor, which is customizable and applicable across a host of industries, including HVAC, food and beverage and water treatment facilities. The motor helps conserve CO2 emissions, equivalent to 1.3 million passenger cars and 5.5 million households. Fact.MR expects the market for low voltage motors in Europe to surge at a CAGR of 6% through 2031

What is the Growth Outlook for Low Voltage Motors across Asia?

Asia is expected to be amongst the largest markets for low voltage motors in the market, clocking a CAGR worth 7%. The increase in demand for energy-efficient products on the domestic market is generally regarded as the key factor behind the rapid growth of low voltage motors in the market.

Companies such as ABB are placing greater emphasis on India's business. Furthermore, they are expanding their manufacturing facilities to boost production capacity, thereby enabling the market for low voltage motors to grow significantly in the market. Increasing policies and guidelines from the government have also contributed to the rise in demand for low voltage motors in these regions. A new generation of home appliances demands cost-effective and energy-efficient low voltage motors.

Due to various influences of different energy efficiency standards in China, the market for low voltage motors is rapidly growing. As a result of such standards, excessive energy consumption is reduced when using low efficiency and high voltage motors, which led to the growth of low voltage motors.

The commercial application process of the low voltage motors has significantly helped to expedite the manufacturing process of different industries. This has also helped to raise the demand for low-voltage motors in the manufacturing industry. In addition, the use of low voltage motors in compressors has contributed to the increases in demand for low voltage motors. The demand for these compressors in the power and utility industry is also directly linked to the rising demand for low voltage motors in this region.

Category-wise Insights

Why is there High Market Demand for IE 1 Low Voltage Motors?

Growing demand for IE 1 low voltage motors in the mining industry is one of the major factors driving demand for these machines in the market. The ionization energy of the IE 1 low voltage motors is the highest among all the efficiency classes of low voltage motors.

The IE 1 low voltage motors offer a high starting torque and high efficiency, making them ideal for industries that manufacture machines. In addition to reducing noise and allowing for structures to be optimized, the low voltage motors also produce less heat, which is a significant advantage for all industries. A CAGR of 5% is predicted for IE 1 low voltage motors.

Why are Commercial HVAC Low Voltage Motors in High Demand?

The commercial HVAC low voltage motors segment is expected to hold 45% of global revenue share. As commercial buildings look for ways to reduce their energy consumption, the HVAC industry has seen an increase in the demand for low voltage IEC motors. Additionally, these low voltage commercial HVAC motors comply with the NEMA guidelines to meet the industry's standard requirements.

The growing construction of commercial spaces in developing countries has led to an increase in demand for HVAC units, which is why low voltage motors are in high demand in the industrial market. Increasing demand for low emission HVAC units in commercial buildings has grown the demand for low voltage motors in the market.

Competitive Landscape

Strategic collaborations enable manufacturers to increase production and meet consumer demand which will increase revenue and market share. New products and technologies will enable end-users to benefit from products that are eco-friendly by nature.

• On August, 25th 2021, to expand its manufacturing capacity of low voltage motors, ABB recently added a manufacturing line in its Faridabad manufacturing plant. With the new line of development for customers operating in different industries such as food & beverage, water & wastewater, cement, metals and mining, HVAC, textiles, and rubber can get energy-efficient motors up to 55kW. The expansion further enhances the commitment to the "Make in India" initiative
• In March 2021, Siemens acquired an electrical equipment manufacturer C&S Electric after securing approval from the Competition Commission of India. The company acquired 99.22% equity shares in C&S Electric from its promoters for ?21 billion. Through this acquisition, the company plans to enter the Indian market and create a hub for exporting low-voltage products overseas

• In November 2021, WEG Industries announced new investments for its existing electric motor factory in Linhares, Brazil. The investment plan extends up to 2023, in the range of R$ 178.2 million, for the modernization and expansion of the production capacity of electric motors. With this investment, the company aims to expand existing structures to 79,000 square meters

Low Voltage Motors Market Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Nordics China Japan India Malaysia Thailand Singapore Australia Brazil Mexico Argentina GCC South Africa Nigeria Israel
Key Companies Profiled	Efficiency Class Sector Application Capacity Region
Key Companies Profiled	ABB Ltd. Siemens AG WEG Industries Nidec Corporation General Electric Company (GE) Toshiba Corporation Hyosung Corporation Hyundai Heavy Industries Co. Ltd. Shangdong Huali Electric Motor Group Co. Ltd. Regal Rexnord Corporation TECO Electric & Machinery Co. Ltd.
Pricing	Available upon Request

Key Segments Covered

• Efficiency Class

  • IE 1 Low Voltage Motors
  • IE 2 Low Voltage Motors
  • IE 3 Low Voltage Motors
  • IE 4 Low Voltage Motors
  • DC Low Voltage Motors
  • Others Low Voltage Motors

• Sector

  • Commercial HVAC Low Voltage Motors
  • F&B Manufacturing Low Voltage Motors
  • Mining Low Voltage Motors
  • Utilities Low Voltage Motors
  • Other Sectors Low Voltage Motors

• Application

  • Low Voltage Compressors
  • Low Voltage Pumps & Fans
  • Low Voltage Conveyors
  • Low Voltage Crushers
  • Low Voltage Extruders
  • Other Applications

• Capacity

  • 0.75 - 2.1 kW Low Voltage Motors
  • 7.4 kW Low Voltage Motors
  • 7.5 - 45 kW Low Voltage Motors
  • 46 - 75 kW Low Voltage Motors
  • 76 - 110 kW Low Voltage Motors
  • 111 - 375 kW Low Voltage Motors
  • > 375 kW Low Voltage Motors