Motor manufacturers must incorporate innovative technologies such as IoT, analytics and advanced sensors to bolster revenues streams, finds Frost & Sullivan
MOUNTAIN VIEW, California, Oct. 16, 2015 /PRNewswire/ -- The sudden spurt in end-user activity, especially of hydraulic fracking in the oil and gas industry, is reviving the demand for medium voltage (MV) motors in North America. Further, rising end-user awareness on product quality and its impact on enhanced performance and profitability is opening up a whole new market for premium, energy-efficient motors.
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Recent analysis from Frost & Sullivan, Analysis of the North American Medium Voltage (MV) Motors Market (http://bit.ly/1LSnXO5), finds that the market earned revenues of $721.3 million in 2014 and estimates this to reach $779.0 million in 2019. The study covers the oil and gas, water and wastewater, food and beverage, chemicals and petrochemicals, power generation, pulp and paper, transportation, metals and mining, and cement end-user industries.
For complimentary access to more information on this research, please visit: http://bit.ly/1LFHx00
"The recent fluctuations in oil prices are driving industries in North America towards energy conservation and cost-cutting," said Frost & Sullivan Manufacturing 4.0 Research Analyst Shilpa Ramachandran. "As a result, premium-efficiency motors are heading to the top of end-user investment priorities."
While adoption increases, the influx of low-cost equipment from Chinese suppliers will dampen revenues to a large extent. More than escalating raw material costs, this trend of stiff competition from Chinese vendors is expected to push prices down and limit profits for the next three years.
The subdued economic environment will also stall new product sales in the North American MV motors market. Manufacturers that successfully pull off strategic pricing strategies and effective supply-chain management alone will stay afloat in this mature market.
"Motor manufacturers must turn their attention to integration with the Internet of Things and analytics; key technologies that will anchor the development of next-generation solutions and applications," urged Ramachandran. "Meanwhile, the incorporation of a variety of sensors that aid in monitoring and analyzing the health of process equipment will broaden the purview of MV motors."
Scouting for acquisition and consolidation opportunities will open the door to immense retrofit opportunities in the vast existing installed base, sustaining revenue growth for MV motor vendors in North America.
Analysis of the North American Medium Voltage (MV) Motors Market is part of the Mechanical Power Transmission (http://ww2.frost.com/research/industry/industrial-automation-process-control/mechanical-power-transmission) Growth Partnership Service program. Frost & Sullivan's related studies include: North American Low Voltage (LV) Motors Market, European Industrial Gearboxes and Gear Motors External Services Market, Latin American Electric Motors Market, and Southeast Asian Low-voltage Integral Horsepower Motors Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of the North American Medium Voltage (MV) Motors Market
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