Industrial Motor Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Industrial Motor Category Overview

The industrial motor category is anticipated to grow at a CAGR of 4.9% from 2023 to 2030. The rising demand for EVs, industry 4.0, IE4 competent low voltage motors for energy savings and VFD boosting IE2/IE3 AC LV motor efficiency are driving the category growth. As industry 4.0 is rising, the world of electric motors is anticipated to see various changes. Additionally, due to the rising robotics technology, manufacturers are focusing on electric motor engineering to keep up with the robotics designs. Industrial motors are categorized as AC and DC motors. Brushless DC motors are used in conveyors, extrudes, aircraft, automobiles, elevators, and all other speed control applications. AC (alternating current) motors are widely used in industrial motors.

Industries worldwide are increasingly emphasizing on energy efficiency and sustainability. Consequently, manufacturers are actively exploring energy-efficient motor alternatives to lower both energy usage and operational expenditures. IE4 efficiency motors present substantial energy conservation advantages compared to outdated, less efficient models. Additionally, numerous regulations and standards exist, either mandating or offering incentives for the adoption of these energy-efficient motors. For instance, the EU Ecodesign Directive provides a structured framework within which manufacturers of energy-consuming products are required to minimize energy consumption and mitigate other adverse environmental effects throughout the entire product life cycle.

To reduce carbon dioxide emissions, various government authorities have proposed standards. For instance, the U.S. Department of Energy (DOE) approved new energy efficiency standards for electric motors to leverage investments made by manufacturers to meet standards and reduce planet-warming emissions. The DOE adopted energy conservation standards for 100-250HP electric motors at super premium or IE4 efficiency levels whereas motors rated from 500-750HP at premium/IE3 efficiency level.

The industrial motors industry relies on suppliers for materials such as copper, steel, and electronic components. While there are multiple suppliers available, the quality and cost of these materials can impact the cost of motor manufacturing. Large motor manufacturers may have more bargaining power with suppliers due to their purchasing volume, while smaller companies may face higher costs.

While manufacturing the industrial motor, raw materials, labor, machinery, land and construction, utilities, distribution, and marketing are some of the cost components in the category. The major portion of the cost goes towards the cost of raw materials such as steel, copper wires, magnets, electronic components, and insulation materials. Various factors such as power rating, efficiency, enclosure type, and construction materials affect the manufacturing cost of the motor. Motors made from high-standard materials such as stainless steel, and aluminum are more expensive as compared to motors made from standard materials such as cast iron.

The price of electric motors in the small to medium size category, featuring power ratings spanning from 1/4 HP to 5 HP, may vary between USD 100 and USD 500. These types of motors are used in fans and small machinery. As the power rating of motors rises and they are engineered for more challenging tasks, the corresponding prices generally experience an uptick. In the case of industrial-grade electric motors with higher power ratings, suitable for heavy-duty machinery or extensive industrial operations, the typical price span can extend from a few hundred USD to several thousand USD.

Suppliers in the category prefer a hybrid engagement approach, consisting of in-house and full-service outsourcing. Suppliers opt to have a complete manufacturing assembly line in-house whereas outsourcing some aspects such as procuring raw materials, marketing, and transportation services can benefit the company over the long run. China, Germany, and Mexico are the top exporting countries in the category. Germany is one of the leading countries in electric motor manufacturing. Having a good partnership with raw material (steel, copper wires) suppliers and having open and transparent communication with the suppliers regarding requirements of the motor such as speed and torque requirement, efficiency rating, and customization. Additionally, evaluating suppliers offering motors for different applications such as compressors, pumps, conveyors, and fans, and suppliers offering value-added services are key to sourcing the category.

Industrial Motor Procurement Intelligence Report Scope