IHS Report: Process industry markets up four percent in 2017

By Ivan Campos, Research Analyst, Manufacturing Technology, IHS Markit
Highlights
- The global process industries collectively grew by 4 percent, from 2016 to 2017, accounting for $3.7 billion in revenue and is forecasted to reach $4.4 billion by 2022. In terms of global growth, process industries outpaced discrete industries by roughly 1 percent.
- Half of the process sector revenues were dominated by four vendors: ABB; Wolong; Siemens; and WEG. Regal Beloit, Nidec and other vendors are smaller, but have a considerable presence, as well.
- The oil and gas industry and the water and wastewater industry were the top two industries in the process markets in 2017, accounting for almost half of all low-voltage motor revenues in process sectors.
The low-voltage motor market contracted in 2016. Process industries were hit the hardest, largely due to depressed oil prices and oversupply concerns in the projects business. In 2017 the market experienced a recovery, and the process industries experienced the strongest upswing, especially the oil and gas sector. The top process industries grew at a faster rate than the top discrete industries in 2017, and this trend continued in 2018, according to the “Low Voltage Motors Report” from IHS Markit.
Rising oil prices led to a strong rebound in the oil and gas industry, which meant large projects that were previously delayed due to pending equipment purchases needed to capitalize on the industry’s growth. Most of the purchasing came from projects that were pushed in the Middle East, as well as additional investment into the United States. As the industry continues to receive more investment, global low-voltage motor sales in 2018 are expected to grow 9.1 percent, which is higher than the 6.1 percent growth in 2017.
Global low-voltage motor sales in the water and wastewater industry also experienced modest growth, with revenues growing at an estimated 3.7 percent rate in 2017. The growth in sales was caused by a 6.3 percent increase in global residential and nonresidential construction spending, which is projected to increase by 7.1 percent in 2018.
Ongoing droughts in Southeast Asia have also boosted demand for motors used in pumping applications. Since irrigation infrastructure in the region has aged, many motors were purchased to upgrade existing pump systems. China continues to show strong growth in water utilities and recycling sales, boosting the industry in the Asia-Pacific region with roughly 3.5 percent revenue growth in 2017. North America and Western Europe, on the other hand, are lagging behind the market average. Most opportunities in these regions will come from the energy industry, as oil and gas plants require large amounts of water to operate.
Global low-voltage motor sales for the metal processing industry grew 2.3 percent in 2017, compared to the previous year, due to increased investment in Vietnam, Iran, Algeria, Qatar, Mexico and other growing economies. India’s manufacturing sector is also experiencing growth, thanks to continued government infrastructure spending, which boosted the construction and mining activity required for India’s manufacturing sector.
U.S. tariffs on steel and aluminum imports have increased demand for domestic steel, causing U.S. steel manufacturers to heavily invest in new equipment to keep up with demand. The future of U.S.-imposed tariffs, and the sustainability of the corresponding recent growth in the US metal processing industry, remains uncertain.
On the other hand, China has been suffering from closures of multiple metal processing factories, caused by the Chinese Ministry of Ecology and Environment crackdown on facilities that are not in compliance with new environmental standards. Since China produces half of the global output of aluminum, the decline in production stifled the global metal processing industry growth rate.
The IHS Markit 2018 "Low-Voltage Motors Report" provides qualitative and quantitative analysis of the market. Comprehensive global, regional and country level market sizes are presented, with five-year forecasts, allowing key opportunities to be identified. This report also offers global and regional-level market shares.

Check out our free e-newsletters
to read more great articles.
MORE WHITE PAPERS NEWS
-
Calculating Acceleration for Linear Motion
By H2W Technologies
Determining the right motion control solution may require some calculations to match the specifications found on a given... -
Evaluation of Different Additive Manufacturing Processes with Liquids and Pastes
By Viscotec
The use of additive manufacturing processes is increasing within industrial applications, as they bring some significant customer... -
FDT Standardized Mobility Solutions and User Interface for Agile Operations
The following article describes how ongoing technology developments by FDT Group will help optimize industrial organizations and their maintenance...
-
Timeless Technology Standardizes IIoT Connectivity
The industrial revolution now underway, commonly referred to as Industry 4.0, is powered by advancements that include smart manufacturing, advanced...
-
All the Data without the Trouble
The following article describes how technology collaboration between two open, automation industry standards organizations is changing the paradigm...
RELATED
-
Carnegie Mellon research aims at identifying causes for defects in 3D Printing
New research published today in Science, led by researchers from Carnegie Mellon University and Argonne National Laboratory, has identified how and...
-
Inside the Advantages of Sensorless Closed Loop Control
By Mark Checkley, KEB Automation
While feedback devices may be the usual choice for control of motors, sensorless closed loop control can provide... -
ISA announces release of Fluid Mechanics of Control Valves: How Valves Control Your Process
The book reflects the latest understanding of how fluid mechanics and acoustics affect control valve performance.
-
Maplesoft and Sigmetrix announce direct operations in China
The two Cybernet Group companies now have an office in Shanghai that is staffed by local experts to provide products and solutions to their...
-
Phoenix Contact announces Benton Central Jr./Sr. High School as winner of Nanoline Contest
For designing and building an automated Paint Brush Cleaner, this is the second consecutive win and third overall for a Benton Central team