Motors and Drives Services Market by Product, Ens-user, and Geography - Forecast and Anlaysis 2023-2027

The Global Motors and Drives Services Market size is estimated to grow at a CAGR of 2.42% between 2022 and 2027. The size of the market is forecast to increase by USD 2,500.27 million. The growth of the market depends on several factors, including increasing demand for servo motors and brushless motors, a focus on increasing energy efficiency in industries, and increased outsourcing of service and maintenance operations.

This report extensively covers market segmentation by Product (motors and drives), End-user (process industry and discrete industry), and Geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Motors And Drives Services Market During the Forecast Period?

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Technavio’s Exclusive Motors and Drives Services Market Customer Landscape

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. 

Global Motors and Drives Services Market Customer Landscape

Key Drivers, Trends, and Challenges

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.    

Key Driver

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. 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.

Significant Trends

The main trend observed in the market is the implementation of an inside sales strategy in developing countries. Local vendors 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 vendors. These service providers and third-party vendors have devised creative strategies, such as adopting e-commerce platforms, to attract end-users and compete with established local vendors in the market. As a result, they have improved their marketing strategies to increase their visibility and promote their services.

Major Challenge

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.

Who are the Major Motors and Drives Services Market Vendors?

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.

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 vendors, including:

• ABB Ltd.
• Altra Industrial Motion Corp.
• 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
• TOSHIBA CORP
• Wolong ELectric Group
• Yaskawa Electric Corp.
• WEG SA
• Yokogawa Electric Corp.

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.  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.  

Motors and Drives Services Market Segmentation by Product, End-User, Geography 

Product Analysis:

The market share growth of the motors segment will be significant during the forecast period. The motors segment was valued at USD 12,208.58 million in 2017 and continued to grow until 2021. 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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ABB Ltd is one of the vendors (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 vendors is likely to drive the growth of the motors segment in the market during the forecast period.

End-User Analysis

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.

Regional Analysis

APAC is estimated to contribute 45% 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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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. 

Covid Recovery Analysis:

The regional motors and drives services market experienced a slowdown in its expansion in 2020 due to the COVID-19 pandemic. Governments in various countries, including China, India, and Japan, implemented nationwide lockdowns which caused the closure of manufacturing units in industries such as automotive, food and beverage, and metals and mining. As a result, the demand for motors and drive services in the region decreased. However, in 2021, the introduction of vaccines led to the easing of COVID-19 restrictions and the resumption of operations in metals and mining projects in the region. An example of this is India's first private integrated greenfield gold mining project in Andhra Pradesh, which received environmental clearance from the Indian Ministry of Environment, Forest and Climate Change in December 2022 and began operations. Additionally, the Indian government is increasing spending in the infrastructure sector to boost economic recovery from the pandemic's negative impact. These factors are expected to lead to growth in the motors and drive services market in APAC during the forecast period.

Segment Overview

The 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. 

• Product Outlook (USD Million, 2017 - 2027)
  • Motors
  • Drives
• End-user Outlook (USD Million, 2017 - 2027)
  • Process industry
  • Discrete industry
• Region Outlook (USD Million, 2017 - 2027)
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Motors And Drives Services Market Scope
Report Coverage	Details
Page number	172
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 2.42%
Market growth 2023-2027	USD  2,500.27 million
Market structure	Fragmented
YoY growth 2022-2023(%)	2.14
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 45%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., Altra Industrial Motion Corp., 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, TECO Electric and Machinery Co. Ltd., TOSHIBA CORP, Wolong ELectric Group, Yaskawa Electric Corp., WEG SA, and Yokogawa 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, 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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What are the Key Data Covered in this Motors And Drives Services Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the motors and drives services market between 2023 and 2027
• Precise estimation of the size of the motors and drives services market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of motors and drives services market vendors

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