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The Global AC Electric Motor Sales in Oil and Gas Market size is estimated to grow by USD 3,250.86 million between 2022 and 2027 accelerating at a CAGR of 5.48%.
The growth of the market depends on several factors, including an increase in oil and gas demand, a rising number of E&P activities, and growing investments in refineries. However, challenges such as the environmental impacts of oil and gas activities might hinder market growth. But industrial experts are focussing on market opportunities such as increasing adoption of modular mini refineries to overcome the challenges and boost the market growth.
This AC electric motor sales in oil and gas market report extensively cover market segmentation by power rating (less than 1kV, between 1 kV and 6.6 kV, and greater than 6.6 kV), type (induction motor and synchronous motor), and geography (APAC, Middle East and Africa, North America, Europe, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global AC Electric Motor Sales in Oil and Gas Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Increasing demand for oil and gas is notably driving the market growth. Rapid urbanization in developing nations is accompanied by a significant rise in energy demand. As a result, more liquid fuels and natural gas are being consumed. Oil and natural gas are in high demand due to the rising global demand for electricity and fuel. Global liquid fuel consumption increased from 99.97 mbpd in 2018 to 100.75 mbpd in 2019, according to the US EIA. Additionally, it is anticipated that by 2021, the world will consume 102.85 mbpd of liquid fuel.
The demand for E&P machines, equipment, and components is growing at the same time as the demand for oil and gas. Hence, the demand for AC electric motors, which have a variety of uses in both the upstream and downstream segments of the oil and gas industry, is also rising. Therefore, the rise in the global demand for oil and gas is driving the growth of the market during the forecast period.
The increasing adoption of modular mini refineries is an emerging trend in the market. For producers of diesel and other petrochemicals in remote areas, modular mini refineries are a flexible and affordable supply option. The simplicity, speed, and relatively low capital cost of modular mini refineries are their main advantages. The best places to use modular mini-refineries are in remote areas and developing nations where there is a high demand for diesel, gasoline, and fuel oil.
Furthermore, refineries that are modular require less land than conventional refineries because they are smaller. The adoption of these refineries is rising because they provide process flexibility and aid in increasing refinery capacity. For instance, the Nigerian National Petroleum Company Limited (NNPC) reports that in March 2023, oil production in Nigeria averaged 1.59 million barrels per day. As the adoption of modular mini refineries in remote areas increases, the demand for modular refinery components such as AC electric motors also increases. Therefore, these factors will drive the growth of the market during the forecast period.
Environmental impacts of oil and gas activities are major challenges impeding the market growth. In addition to being used as fuel for automobiles and buildings, oil and gas are also used in the production of goods like plastic and fertilizer. Oil and gas products certainly make life easier, but oil and gas E&P activities are bad for the environment. Oil spills, air and water pollution from toxic chemical emissions, and climate change from methane emissions are a few of the ways that oil and gas drilling activities harm the environment. Deep-water oil and gas exploration also involves firing air guns across the seabed, which causes strong shocks that can harm various marine species' hearing.
Additionally, the oil and gas industry's activities for oil refining have a significant negative impact on the environment. Different toxic chemicals, such as ammonia, hydrocarbons, sulfides, and phenol, are present in varying concentrations in the effluents of oil refineries. The refineries' ambient environment can be fatally impacted by the toxic effluents, which can also have an adverse effect on the health of the surrounding life forms. Therefore, environmental concerns have an adverse impact on oil and gas activities. It might result in the implementation of strict regulations, which could have an effect on the oil and gas sector and, as a result, would hinder the expansion of the global market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Elektrim Motors - The company designs and manufactures NEMA and IEC Metric low-voltage AC motors. The key offerings of the company include AC electric motors such as Premium A-line series AC electric motors.
FLANDERS Inc. - The company offers motors, DC to AC upgrades, power distribution, controls and automation, field service, and drives and starters. The key offerings of the company include AC electric motors such as MAC motors and ME motors.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market share growth of the less than 1 kV segment will be significant during the thee forecast period. The less than 1 kV segment includes all the AC electric motors having a power rating of less than 1 kV. The segment showed a gradual increase in market share with USD 4,954.20 million in 2017 and continued to grow by 2021. The less than 1 kV segment had the dominating share in the global AC electric motor sales in the oil and gas market in 2022.
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Electric motors play an essential role in power tools, pumps, and other machinery because of rapid industrialization, particularly in the oil and gas sector. The demand for energy-efficient motors is rising as a result of rising electricity prices and stricter power consumption regulations. The need for AC electric motors may increase in a number of industries, including oil and gas, due to the rising demand for motors with higher operating efficiencies. Other key factors that are driving the growth of the market segment are the deployment of electrical equipment and machinery in the oil and gas industries and renewable energy sectors. Hence, all these factors will fuel the segment growth during the forecast period.
Induction motors are used in many different tools used in refineries and E&P operations in the oil and gas sector. Tractor tools, rotary steering systems, formation testing tools, actuators, completion tools, hydraulic pumps, and oil and gas exploration tools are a few of the applications for induction motors. As induction motors are more affordable than synchronous motors, this market is expanding quickly. This is primarily because they have fewer moving parts than synchronous motors and no commutator or brushes. The growth of the segment is also driven by factors such as an increase in oil and gas demand and growing investments in refineries. Thus, such factors will drive the market segment growth during the forecast period.
APAC is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The high demand for oil and gas in APAC is the primary factor behind the high demand for AC electric motors in the region. The regional market is expanding primarily as a result of the rising demand for energy from developing nations like China and India. By 2023, this demand is anticipated to grow further. Sales of AC electric motors in the oil and gas market in the region will also rise as a result of rising investments in the oil and gas industry in China and a few other Southeast Asian nations. Furthermore, as developing nations like India and China take steps to explore the potential for unconventional oil and gas production in the region in addition to conventional production, APAC is expected to see an increase in E&P activities. The increase in E&P activities of unconventional reserves will further boost the growth of the global AC electric motor sales in the oil and gas market during the forecast period. Therefore, the factors mentioned above will drive the growth of the regional market during the forecast period.
In 2020, the COVID-19 outbreak negatively affected the market growth. However, in 2021, due to the vaccination drives organized by several countries, the spread of the pandemic was controlled, and manufacturers started getting back to the production units to resume work. This had a positive impact on the sales of AC electric motors. Hence, there might be a constant rise in AC electric motor sales, which in turn, will boost the market growth during the forecast period.
The ac electric motor sales in oil and gas market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
AC Electric Motor Sales In Oil And Gas Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.48% |
Market growth 2023-2027 |
USD 3,250.86 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.15 |
Regional analysis |
APAC, Middle East and Africa, North America, Europe, and South America |
Performing market contribution |
APAC at 32% |
Key countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Arc Systems Inc., Elektrim Motors, FLANDERS Inc., Franklin Electric Co. Inc., General Electric Co., Hitachi Ltd., Hoyer Motors, Nidec Corp., NOV Inc., Parker Hannifin Corp., Regal Rexnord Corp., Rockwell Automation Inc., Schlumberger Ltd., Siemens AG, TECO-Westinghouse, Toshiba Corp., WEG Equipamentos Eletricos S.A., Wolong ELectric Group, and Yaskawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Power Rating
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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