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Frost & Sullivan says energy costs driving European Motor Market

  • July 13, 2010
  • News

Summary

July 13, 2010 - Industrial growth, new technologies and the need for automation are key factors that determine the demand for electric motors in Europe. Vital industries, such as metals and mining, life sciences and power generation, among many, require energy-efficient products to reduce carbon emissions and conserve energy, thereby driving the European low voltage (LV) alternating current (AC) integral horsepower (IHP) motors market.New analysis from Frost & Sullivan, European Low Voltage AC IHP Motors Market, finds that the market earned revenues of $2,273.3 million in 2009 and estimates this to reach $3,046.1 million in 2016. The end users covered in this research service include chemicals and petrochemicals, oil and gas, power generation and utilities, water and wastewater, pulp, paper and packaging, heating, ventilation and air conditioning (HVAC), automotive, transportation and shipbuilding industry, food and beverage and others.“The European manufacturing sector is increasingly becoming conscious about energy consumption,” says Frost & Sullivan Program Manager – Abhishek Gokhale. “Energy efficiency programs and policy interventions are expected to increase the uptake of new LV AC IHP motors.”Following the introduction of new energy classes (IE classification) and stringent market regulations, the motors market will witness an increase in the number of adoptions of innovative energy-efficient motors. Compliance with energy regulations and soaring energy costs will facilitate the recovery of the market, leading to sustainable growth in the future.However, price plays a dominant role, hindering manufacturer ability to evaluate product development capabilities as compared to customer price expectations. The pricing of motors has become the decisive factor for customers in selecting a supplier.Greater focus on the renewable energy sector and effective after-sales service network are the keys for growth in the European LV AC IHP motors market. Competitive prices and value-addition to justify pricing will help to differentiate from the competitors.“Flexible manufacturing practices will help the European LV motor manufacturers to stay operationally efficient and have a firm control over operational costs,” concludes Mr Gokhale. “This would help them sustain their profit margins in the short-term despite the declining demand.”European Low Voltage AC IHP Motors Market is part of the Power Transmission Growth Partnership Services programme, which also includes research in the following markets: European Medium Voltage AC IHP Motors Market, Indian Integral Horse Power Motors Market, North American Alternating Current Integral Horse Power Low Voltage Motors Market, North American Alternating Current Integral Horse Power Medium Voltage Motors Market, and South African Fractional Horsepower Motors Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.About Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. Learn More

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