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The Motors and Drives Services Market size is forecast to increase by USD 2.36 billion and is estimated to grow at a CAGR of 2.24% between 2023 and 2028. Market expansion hinges on various factors, foremost among them being the rising demand for servo motors and brushless motors across diverse industries. These motors offer superior performance, reliability, and precision, making them indispensable components in automation and robotics applications. Moreover, industries are increasingly prioritizing energy efficiency to reduce operational costs and minimize environmental impact. Servo and brushless motors play a pivotal role in this endeavor, as they are inherently more energy-efficient compared to traditional motors, leading to substantial savings over time.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Market Customer Landscape
The market is experiencing robust growth fueled by factors such as industrial automation and the adoption of robotics. Feedback control, encoders, and potentiometers enable precise control in automated systems, ensuring reliable performance across rotary systems segments. Gearboxes and pulleys enhance efficiency in motor-driven systems, compensating for labor shortages and increasing productivity. However, challenges persist, particularly in emerging countries facing skilled workforce shortages. Preventive maintenance and troubleshooting play pivotal roles in addressing these challenges, ensuring uninterrupted operations. The market's trajectory is shaped by advancements in shunt and separately excited motors, catering to the evolving needs of industries seeking efficient and reliable motor-driven solutions. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The market growth is being notably driven by the increasing demand for servo motors and brushless motors. The utilization of precision motors in harsh industrial processes and environments across industries like oil and gas, power, chemical and petrochemical, and pharmaceutical has led to a surge in demand for these motors. The need for integrated servo motors and brushless motors is also increasing due to evolving technologies. The compact and rugged stainless-steel bodies of these motors ensure not only the safe operation but also a better motor size-to-speed ratio.
Moreover, high precision in rotor movement with high speed, hollow shaft, and low vibration is required in applications such as robotic arms, conveyor belts, metal-cutting machines, textiles, steel processing, and packing, which is provided by brushless and servo motors. These motors offer controlled torque and precision in angular movement, resulting in smoother application operations. The growing use of these motors is expected to play a significant role in boosting the demand for retrofit, maintenance, and installation services during the forecast period.
The main trend observed in the market is the implementation of an inside sales strategy in developing countries. Local companies in countries like India, Indonesia, Taiwan, and China offer key components such as motors and drives at a lower cost. The high demand for these components to power heavy machinery in these countries has created an opportunity for large independent service providers or third-party companies.
Moreover, these service providers and third-party companies have devised creative strategies, such as adopting e-commerce platforms, to attract end-users and compete with established local companies in the market. As a result, they have improved their marketing strategies to increase their visibility and promote their services.
The primary obstacle to market growth is the high cost of maintenance. The cost of maintenance services for motors and drives is significant. These components also require periodic lubrication, cleaning, and monitoring due to the presence of mechanical parts. Various areas where motors and drives require maintenance and monitoring include bearings, rotors or stators, belts, brushes, and motor mounts.
Bearing failure is one of the primary reasons for motor failures, and it can be caused by improper lubrication, misalignment, replacement with the wrong type of bearing, high loading, and hostile environments. Motors are frequently used in industries like oil and gas, chemical, marine, metals and mining, and wind power generation, which are susceptible to harsh environments that can lead to motor and drive wear and tear. However, many small and medium-sized enterprises (SMEs) cannot afford the high cost of maintenance services due to budgetary constraints. As a result, these businesses often forego regular maintenance of motors and drives. These factors are expected to have a negative impact on market growth during the forecast period.
Companies 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.
TECO Electric and Machinery Co. Ltd. - The company offers motors and drives such as IE3, IE4. This segment focuses on designing and manufacturing industrial motors such as induction motors, gear motors, inverter duty motors, synchronous motors, and DC motors in both horizontal and vertical configurations.
Siemens AG- The company offers motors and drive solutions such as low-voltage motors, high-voltage motors, and motion control motors. The company also focuses on the area of passenger and freight transportation, including rail vehicles, rail automation systems, rail electrification systems, road traffic technology, digital solutions and related services.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market share growth of the motors segment will be significant during the forecast period. The use of motors in industries such as automotive, construction, agriculture, and pulp and paper has registered a rapid surge. The pulp and paper industry is one of the major consumers of energy and is classified as an energy-intensive industrial sector. Motors fitted in paper machine dryers, web-fed printing presses, packaging machinery, conveyors, and sprayers require periodic maintenance.
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The motors segment was valued at USD 12.31 billion in 2018 and continued to grow until 2022. ABB Ltd is one of the companies (operating in the global motors services market) offering a wide range of services to maximize performance, uptime, and efficiency. The company offers ABB Ability Smart Sensor Motors that monitor and provide vital motor performance intelligence to help improve uptime, extend motor lifetimes, and increase machine performance and productivity. A wide range of services offered by the companies is likely to drive the growth of the motors segment in the market during the forecast period.
The process industry is leading the market growth under the end-user segment. The process industry includes oil and gas, power, chemical and petrochemical, food and beverage, cement, pulp and paper, and pharmaceutical. All these industries extensively use electric motors and drives to ensure smooth and efficient plant operations. However, with the rapid spread of COVID-19, the usage of motors and drive services has witnessed a major decline. In the process industry segment, most of the revenue is generated by industries such as oil and gas, food and beverage, water and wastewater treatment, and mining. Drives are mainly used in applications such as controlling pumps, conveyors, compressors, and conveyor systems. The industries also use a high-installed base of low- and medium-voltage motors in the abovementioned applications during the manufacturing process. Variable speed frequency drives maintain oil pumps at safe and constant operating speeds despite the fluctuating density of multiphase good fluids that flow through the pumps. Wide applications of motors and drives in the process industries drive the demand for their services, which, in turn, is anticipated to boost the growth of the process industry segment in the global market during the forecast period.
APAC is estimated to contribute 44% to the growth by 2028. 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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APAC constituted the largest share of the market in 2022, owing to a large number of Greenfield projects and a shift from legacy systems and machinery to modern technology and equipment powered by advanced motors and drives. The region has a strong foothold in the power, chemical and petrochemical, cement, and automotive industries. These industries exhibit a high demand for regular motors and drives service and maintenance.
The market in APAC is expected to grow significantly during the forecast period. The growth of the market will be driven by countries China, Japan, India, Vietnam, South Korea, Malaysia, and Australia, among other countries. China, Japan, South Korea, and India are the largest markets for drives in the region because of strong industrial growth, rising demand for medium-voltage and low-voltage motors, and increasing investments in the power, water and wastewater treatment, and food and beverages industries.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is experiencing significant growth propelled by various factors, including the increasing demand for retrofitting and performance upgrades in industrial settings. As industries strive to enhance operational efficiency and reduce energy consumption, digitalization plays a crucial role in enabling these initiatives. Energy efficiency initiatives are driving the adoption of advanced technologies, with utilities focusing on minimizing electrical faults and operational inefficiencies.
Condition monitoring, enabled by IoT connectivity and data analytics, allows for proactive maintenance through predictive algorithms, ensuring optimal asset uptime and equipment effectiveness. System integrators offer comprehensive solutions, from commissioning to training and consulting, to maximize the benefits of these services. Legacy motors and control systems are being upgraded to meet regulatory standards and adapt to the evolving business environment.
Retrofitting and performance upgrades cater to the growing need for modernization, while digitalization enhances connectivity and data-driven decision-making. Utilities leverage advanced technologies to address electrical faults and improve operational efficiencies. Condition monitoring, IoT connectivity, and data analytics enable predictive maintenance, ensuring optimal asset uptime and equipment effectiveness. System integrators provide comprehensive services, including commissioning, training, and consulting, to maximize the benefits of these solutions. Legacy motors and control systems are upgraded to meet regulatory standards and thrive in the dynamic business environment.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.24% |
Market growth 2024-2028 |
USD 2.36 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.17 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
China, US, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Danfoss AS, Delta Electronics Inc., Fuji Electric Co. Ltd., Integrated Power Services LLC, Lenze SE, Mitsubishi Electric Corp., Nidec Corp., OMRON Corp., Regal Rexnord Corp., Rockwell Automation Inc., SEW EURODRIVE GmbH and Co KG, Siemens AG, Toledo Engineering Co. Inc., Toshiba Corp., WEG Equipamentos Eletricos S.A., Wolong Electric Group Co. Ltd., Yaskawa Electric Corp., and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, market trends and analysis, market growth analysis, market research and growth, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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