Asia-Pacific Induction Motor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Asia Pacific induction motor market is expected to grow at a CAGR of 4.2% over the forecast period (2022-2027). The induction motors are mostly used in machinery, as they are beneficial and powerful compared to the conventional motors. Unique robustness makes it a suitable choice for the automotive and manufacturing applications, as it requires less maintenance. The ability of these motors to work under varying climatic conditions is another factor that is driving its demand.

Key Highlights

• The increasing demand for electrical energy to sustain global development requires consistent heavy investments in power supply generation that have driven the application of induction motors in the electricity sector.
• Moreover, the growing urbanization in the emerging economies such as India, China has increased the demand for washing machine, refrigerator, HVAC, pumps, and other applications in which induction motor has a key role in their functioning. For instance, Japanese major player Daikin has announced that it has finished the purchase agreement for a 75-acre plant at Sri City (Andhra Pradesh) with an investment of 1,000 Crore to set up a large air-conditioner manufacturing plant, which will come up in phases.
• The industrial sector in Asia-Pacific is likely to grow as a result of several initiatives by the government, such as ‘Make in China 2025’ and ‘Make in India,’ which will boost the demand for induction motors, thereby driving the growth in the region.
• The growth in industrialization and commercialization creating more opportunities for automation across the region. Also, households have grown exponentially over the last two decades. The United Nations expects that urbanization in Asia will reach 64.1% by 2050. Such factors are further expected to drive demand in several sectors like manufacturing, and power generation, where induction motor finds its application on a large scale. However, the introduction of alternatives for induction motors is the major restraining factor for the growth of the market.
• Several leading fast moving electrical goods (FMEG) companies are introducing new products that uses induction motors for the products functioning. For instance, in March 2022, Havells India Limited announced the launch of new range of technologically advanced fans equipped with ECOACTIV super-efficient BLDC and induction motors.
• The Covid-19 pandemic has negatively impacted the market growth in the region due to stoppage of manufacturing industry operations. On the demand side, containment measures and economic disruptions related to covid-19 has led down production and mobility in the region producing a significant drop in demand for induction motor.

Key Market Trends

Industrial Applications to Register Significant Growth Rate

• Three-phase induction motors are used in over 70% of industrial machinery for different applications owing to their several benefits, such as being cost-effective, durable, maintenance-free, and can work in any environmental condition. These motors are used in mining, automotive, oil and gas, healthcare, and manufacturing industries and are part of pumps, lifts, cranes, crushers, conveyors, etc.
• The Japanese government has adopted a plan, 'Rebirth of Japan,' which aims to further boost the manufacturing sector by investing USD 1.3 trillion. This is also expected to be a significant catalyst in the country's transition from traditional manufacturing to advanced manufacturing processes using advanced machineries and a driving force for sustainable growth in the Japanese manufacturing sectors, consequently driving the market studied.
• India has been experiencing steady demand for induction motors in industrial applications. The country has been planning to reach around 175 GW of installed renewable capacity, which includes solar and wind power, by 2022. The country has also planned to derive about 40% of the energy from renewable sources by 2030, which is currently at around 15%. Hence, the demand for an induction motor is expected to grow significantly.
• Moreover, other countries in the region, such as Australia, Singapore, and Australia, are focusing on taking initiatives like industry 4.0 in the region, driving the demand for induction motors by implementing energy-efficient systems in the manufacturing of food and beverage industry, textile and clothing, automotive industry.

China is Expected to Hold Major Share

• The industrial production of China has been showing continuous growth over the past few years, and it is expected to result in new projects and industrial expansions, which, in turn, may drive the demand for induction motors.
• Moreover, with China setting a target to combat climate change by speeding up the reductions in emissions to reach carbon neutrality before 2060, several measures to improve energy efficiency are expected to play a vital role in helping the industry and infrastructure to reduce their emissions.
• The country has recognized the importance of efficient electric motors as a matter of policy, with the launch of a new national standard that requires the motors to have a minimum efficiency level of IE3 came into effect on June 1, 2021.
• Automakers have been expanding their manufacturing plants in China which is expected to drive the demand for induction motor in the forecast period. For instance, in February 2022, Tesla announced that it is planning to start work on a new plant in Shanghai as a part of a plan to more than double production capacity in China to meet growing demand for its cars in the country and export markets.
• In addition, China’s internal migration of population to cities is causing growth in the number of wastewater treatment plant to meet the demand. At the beginning of the millennium China had around 500 municipal wastewater treatment plants which is now reached above 4,000.

Competitive Landscape

The Asia Pacific induction motor market is fragmented owing to the presence of local and international players in the market that offers induction motors with technological advancement. The key vendors in the market are taking initiatives such as mergers, acquisitions and product launches by vendors to enhance their presence in the market.

• January 2022 - With efficient solutions in the mining sector, WEG supplied a slip ring motor from the M Mining line, frame 560, 1,300 kW, 3,300 V, 4 poles, 50 Hz to drive the ball mill of a mining company in Argentina.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.