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The motor control contactors market size is estimated to grow at a CAGR of 4.75% between 2022 and 2027. The market size is forecast to increase by USD 72.43 million. The growth of the market depends on several factors such as growing demand for motor protection devices, gradual recovery in upstream activity and replacement of outdated electric motors. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by end-user (process industries and discrete industries), type (IEC standard and NEMA standard), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Motor Control Contactors Market Forecast 2023-2027
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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.
The adoption of new technology trends, such as the Industrial Internet of Things (IIoT), has driven the replacement of traditional electric motors with smart motors. The IIoT came into existence in 2012 and it gained popularity in industries and achieved momentum after 2016. End-user industries realized that the advantages of implementing the industrial IoT that could arise during implementation are more than the challenges. However, the need to advance market shares and gain advantages over competitors drives the demand for IIoT in end-user industries.
In addition, the adoption of the industrial IoT has given rise to smart equipment and machinery. This helps streamline industrial processes and add high profit margins to industries. Therefore, the need to enable IIoT and streamline industrial processes will fuel the adoption of smart high-voltage motors, which, in turn, will boost the demand for motor control contactors and drive the market growth during the forecast period.
In combination with the overload relays, miniature contactors are used to control motors and other electric loads remotely and offer them protection. Miniature contactors are ideally best suited for the areas that have a crisis of space. Currently, most manufacturers choose equipment that is compact in size and occupies less space and these miniature contactors are the flattest among all the contactors present in the market and, thus, can be used in all modular and compact applications. Furthermore, the auxiliary contactors are used for protecting a wide range of control circuits.
Moreover, the term auxiliary refers to helper and the term contactor indicates a mechanically operated switch that is used for switching an electric power circuit. Generally, they are used in devices where there is signal switching and defaults. Thus, the emergence of miniature and auxiliary contactors will immensely contribute to the market growth during the forecast period.
The availability of cheap labour, land, and raw materials has made many Asian countries attractive to investors in the manufacturing sector. Additionally, consumers in the region are investing in power-efficient machinery and solutions. Major motor control contractor vendors are establishing relationships with subcomponent suppliers that offer affordable hardware products. However, over the past few years, there has been a significant increase in cheap imports from China and other Asian countries entering American and European markets. This has made it difficult for established vendors in those regions to succeed in Asian, African, and Middle Eastern markets as Asian manufacturers produce motor control contactors at a significantly lower cost.
Moreover, to address cost-related issues, global vendors should consider horizontal integration through mergers and acquisitions, which will enable them to increase their market shares and explore new territories. Hence, the intense competition from low-cost Asian manufacturers will hinder the growth of the global motor contactors market during the forecast period.
The process industries segment will account for a major share of the market's growth during the forecast period. In the oil and gas industry, motors are increasingly used for drilling and mooring, as well as in service rigs, pumping stations, and draw works. This leads to expansions in the need for motor control contactors in the industry to eliminate the chances of high currents drawn at the switching.
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The process industries segment was the largest and was valued at USD 163.27 million in 2017. In addition, the increasing emphasis on integrating international standards of safety and quality in industrial plants, the rising requirement for petrochemical products, and expanded investments and projects in India, Indonesia, the UAE, Saudi Arabia, and Brazil will drive the growth of the market. Hence, due to all such factors, the process industries segment in the global motor control contactors market will grow significantly, which in turn drives the market growth during the forecast period.
Based on the type, the market has been segmented into IEC standards and NEMA standards. The IEC standard segment will account for the largest share of this segment. The IEC is a non-profit, non-governmental international standards organization. IEC prepares and publishes international standards for all electrical, electronic, and related technologies. Moreover, original equipment manufacturers (OEM) desire more IEC standard contactors because of the size of the devices, which are smaller and less expensive when compared with NEMA standard contactors. Companies have the option to select their own accessories and integrate them together. Thus, the IEC standard segment will grow in the global control contractors market during the forecast period.
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North America is estimated to contribute 50% 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. In 2020, North America dominated the global motor control contractor market, mainly owing to the growth of end-user industries such as oil and gas, chemicals and petrochemicals, and automotive in the region. The automotive industry in the region is anticipated to grow with Mexico being a major contributor due to its proximity to the US and Canada, as well as other countries in South America and the presence of favourable government policies and tax incentives. Therefore, for both the international and domestic markets, Mexico is a key production hub for automobiles.
In addition, the increase in investments is owing to the availability of inexpensive feedstock for refineries because of the shale supply glut. The availability of low-cost crude oil increased the profit margins of companies that manufactured petrochemicals in the US as the by-products of crude oil are a key feedstock in the chemical industry. Such factors are expected to drive market growth in the region during the forecast period.
In 2020, the outbreak of the COVID-19 pandemic affected sales of prominent industries such as automotive, oil and gas, and power. However, the government initiations, such as conducting massive vaccination drives across the region resulted in the resumption of manufacturing activities. This increased industrial machine maintenance, which stimulated the demand for motor control contractors in North America. The growing demand for smart industrial automation solutions will significantly contribute to the growth of the global motor control contactors market in the region. Thus, the global motor control contactors market in the region will grow significantly 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.
ABB Ltd. - The company offers motor control contactors such as AF contactor technology which includes 3 pole contactors and overload relays for motor starting and power switching, 4 pole contactors and contactor relays for auxiliary circuit switching.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., AMETEK Inc., Danfoss AS, Eaton Corp. Plc, Emerson Electric Co., Fuji Electric Co. Ltd., GlobalSpec LLC, HIMEL Hong Kong LTD., Mitsubishi Electric Corp., Panasonic Holdings Corp., Rockwell Automation Inc., S and P Global Inc., Schaltbau Holding AG, Schneider Electric SE, Siemens AG, TAIGENE inc., TECO GROUP, Toshiba Corp., WEG Equipamentos Eletricos S.A., and Zhejiang CHINT Electrics Co. Ltd.
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 motor control contactors 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.
Motor Control Contactors Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.75% |
Market growth 2023-2027 |
USD 72.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.83 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 50% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., AMETEK Inc., Danfoss AS, Eaton Corp. Plc, Emerson Electric Co., Fuji Electric Co. Ltd., GlobalSpec LLC, HIMEL Hong Kong LTD., Mitsubishi Electric Corp., Panasonic Holdings Corp., Rockwell Automation Inc., S and P Global Inc., Schaltbau Holding AG, Schneider Electric SE, Siemens AG, TAIGENE inc., TECO GROUP, Toshiba Corp., WEG Equipamentos Eletricos S.A., and Zhejiang CHINT Electrics Co. Ltd. |
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, 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. |
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