eDrive 2011 Resource Guide - (Page 4)

Feature article Industrial Motors and Drives Markets Poised for Strong Growth in 2011 Alex Chausovsky, Research Manager - Electric Motors Research Group IMS Research The global markets for industrial motors and drives, valued at an estimated $26 billion in 2010, according to the latest data from IMS Research, had mixed performances during the year but are all poised for growth in 2011. The difference in the performance of individual product markets can be attributed to the fact that sales of low voltage motors and drives are heavily dependent on demand for machinery, while sales of medium voltage motors and drives rely mainly on the performance of large process industries and the amount of capital investment occurring in these sectors. Because worldwide machinery production grew more than 15 percent during 2010, the markets for low voltage motors and drives witnessed robust double-digit growth compared to 2009 levels. In contrast, 2010 was a down year for the medium voltage motor and drive markets, as many large projects continued to face significant financial difficulties, and the recovery of process industries occurred much slower than that of the discrete sectors. After several years of healthy growth, the low voltage AC motors market declined by 21.1 percent in 2009 to just over $9 billion. Although the market decline was globalized, the overall Americas, Asia Pacific and EMEA regional motor markets experienced different rates of contraction, while the Chinese and Indian motor markets continued to grow during the recession. Motor manufacturers in North America began to report signs of recovery beginning in the fourth quarter of 2009, while many European motor suppliers did not report improvement until well into 2010. IMS Research believes that the world market for low voltage AC motors was worth approximately $10.2 billion in 2010, with more than 34.7 million units shipped during the year. This means that revenue growth was 12.8 percent, and the markets recovered about half of the losses caused by the recession. Driven by various motor efficiency legislations being enacted around the world, the low voltage AC motors market is forecast to surpass pre-recession levels in 2011. Furthermore, the medium-term forecast projects that by 2014 revenues for the total low voltage AC motors market will more than double 2009 levels, with average revenue growth of 16.6 percent per year. In 2010, IE1 (standard efficiency) motors accounted for more than 55 percent of the market’s revenues. These products were sold mainly in the EMEA, Asia Pacific and South American markets. IE2 (high efficiency) motors represented nearly 39 percent of market revenues during the year, and the main market for these motors was in North America. IE3 (premium efficiency) motors accounted for about 3 percent of global revenues, while squirrelcage PM motors represented approximately 1 percent of global low voltage AC motor revenues. The efficiency breakdown of the low voltage AC motors market is forecast to be very different by 2014, with IE1 motors comprising less than 18 percent of total revenues, while the IE2 and IE3 motors make up the majority of the market with respective shares of 57 percent and 21 percent. Although sales of squirrel-cage PM motors are expected to grow faster than the overall market, rare-earth magnet price and supply concerns are expected to persist, and these motors are still expected to account for less than 2 percent of the market by 2014. In contrast to the low voltage motors market, sales of medium voltage motors grew in 2009 but were down significantly in 2010, with revenues contracting by more than 25 percent to about $4 billion and unit shipments falling to just over 30,000. This market is a mature and stable one, and its performance is driven by several key factors including prices of commodities (such as oil, natural gas, metals and other minerals), the availability of financ- Figure 1. Legislative Timeline for Motor Efficiency Class Transition Figure 2. Low Voltage AC Motors Market Product Type Composition 2010 vs. 2014 4 2011 Resource Guide www.e-DriveOnline.com http://www.e-DriveOnline.com

Table of Contents for the Digital Edition of eDrive 2011 Resource Guide

eDrive 2011 Resource Guide
Industrial Motors and Drives Markets Poised for Strong Growth in 2011
AC Motor & Drive Systems
Automation Components
Automation Systems
Brakes & Speed Reduction
Brushless Motors
Cables
Canned Hermetic Motors
Capacitors
Coils & Coil Windings
Components
Connectors
Consulting Services & Training
Controls & Switches
Converters
Couplings
DC Motor & Drive Systems
Displays & Interfaces
Drives
Electric Actuators
Electric Motors & Systems
Electric Motor Repair
Electronic Systems
Enclosures
Encoders & Sensors
Energy Efficiency
Explosion-Proof Motors
Filters
Gear Boxes, Heads & Reducers
Gear Motors
Hydraulic Pumps & Motors
ICs & Semiconductors
Instruments
Insulation Materials
Linear Motor & Drive Systems
Magnets
Micro Motors
Motion Control Systems
Noise & Vibration Control
Nuclear Motors
Permanent Magnet DC Motors
Power Supply & Conversion
Repair & Maintenance
Rotary Motor & Drive Systems
Safety & Testing Equipment
Servo Motors
Software
Solar Power
Stepper Motors
Thermal Control
Transformers
Variable Speed Motors
Wind Power
Motors & Drives
Power Management
Motion Control
Industry News
Marketplace
Calendar of Events

eDrive 2011 Resource Guide