Emerging Economies & Low Cost Manufacturers Driving Growth in the Medium Voltage Motors Market
Date: 14 July 2011

The global market for medium voltage (MV) motors experienced a significant contraction in 2010, declining by more than 20% in revenue terms from pre-recession levels. However, in 2011, developing economies are leading the recovery in this estimated $4.1 billion market. According to the 2011 Medium Voltage Motors study, recently published by IMS Research, developing economies are expected to outperform the global market through 2015, when it is estimated that the market will top $5.7 billion.

Emerging economies, such as those in China, India, and Brazil, usually have low-cost labor forces, indigenous sourcing of raw materials, and rapid growth in industry sectors that use MV motors, like metals, mining, and oil & gas. A combination of these factors is expected to generate double-digit revenue growth during the forecast period. In contrast, the established economies of North America and Western Europe, where MV motor revenues contracted by an estimated 30% in 2010, face a longer recovery period, with only modest single-digit growth forecast to 2015. The market’s recovery to pre-downturn levels is not expected until 2013 at the earliest.

According to senior research analyst Mark Meza, “Developing countries with highly favorable conditions were able to continue growing their domestic MV motor markets during the global recession, while developed economies struggled mightily. In addition, MV motor suppliers in these regions have been concurrently gaining share in Western countries due to growing exports as a result of a notable increase in quality of their products.” In the last two years, Asian motor manufacturers in particular have been able to capitalize on increased price sensitivity in heavy industries that use MV motors. This has been evidenced by a significant drop in average selling prices (ASPs) in the OEM space, which has experienced an influx of lower priced MV motors that well established manufacturers have not been able to match.

Replacement of MV motors made by American and European powerhouses with low-cost motors produced in other regions of the world has made these companies take notice. Meza adds, “The entrenched suppliers have certainly taken notice of an estimated $480 million worth of MV motors sold by suppliers from developing nations in 2010. This has been especially true in markets where ‘off the shelf,’ non-specialized MV motors can be sold in large volumes at low cost.” It is expected that once the global economy begins to regain momentum, the leading European and American manufacturers will again be able to leverage the value propositions of durability, reliability and support and service after the sale that have traditionally driven sales of their MV motors.

Editors Note :

This report presents the world market for medium voltage motors, defined as having a voltage rating of at least 1kV. The report presents the total market by geographic region, industry sector, and various technical segmentations such as power rating, voltage, enclosure, and others. The study uses 2010 as the base year, with forecasts provided through 2015 in terms of both revenues and unit shipments. An analysis of the competitive environment with market share estimates for the leading suppliers of medium voltage motors based on 2010 sales is also presented in the study.

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, custom research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan, South Korea, and Japan. To find out more, contact IMS Research: enquiries@imsresearch.com; T: +44 (0) 1933 402255; http://imsresearch.com

Related Reports

Medium Voltage Motors - World - 2011