Europe Alternating Current (AC) Motor Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

The Europe Alternating Current (AC) Motor market is expected to register a CAGR of 4.2% over the forecast period (2022-2027). The demand for AC motors is rising owing to their capability to operate at higher voltages and energy efficiency with greater torque and speed.

Key Highlights

• The AC motors are comparatively easy to maintain and are being used increasingly in the production of motor vehicles. Also, the growing adoption of energy-efficient motors for industrial applications and low energy consumption are the major factors responsible for the increasing demand for electric motors in Europe.
• The new EU eco-design measures for electric motors and variable speed drives came into effect on 1 July 2021, aimed at improving the energy efficiency of these products across the EU. The new regulation reflects technological progress and market evolution. Furthermore, according to European Commission, the overall effect of the newly revised regulation will increase to 110 TWh by 2030, which is equivalent to the electricity consumption of the Netherlands. Such initiatives of the EU for the deployment of super-efficient appliances and increasing focus on energy-efficient electric motors & drives are creating demand for AC motors in the region.
• Moreover, the growing adoption of AC motors in the automation of industrial processes, increasing demand for electric AC motor-operated household appliances, and growing use in HVAC applications are responsible for the growth of the electric AC motors market. However, motors with high powers generate extensive vibration and require high maintenance, hindering market growth.
• According to the Ministry of Foreign Affairs, Europe is a larger market for AC motors as Germany is one of the large importers of AC motors, followed by Italy, France, and the Netherlands. China is a strong and price-competitive supplier, dominating supplies of AC motors to Europe.
• The global supply chain disruptions due to the Covid-19 pandemic are the recent case of impacts on the AC motors in the region. The slowdown of several industries created due to the shutdown affected the market. Further, the trade war between the US and China halted the supply chain between Europe and China for motor components and spare parts as the major regional countries largely import the motors and related spare parts from China.

Key Market Trends

Discrete Industry is Expected to Grow Significantly

• AC motors find robust applications across the discrete manufacturing industry, which deals with the mass production of automobiles, aircraft, defense equipment, electronic products, semiconductors, and textiles.
• In an effort to increase speed and reduce downtime, automotive OEMs are increasingly adopting factory automation solutions, giving rise to the rapid adoption of advanced AC motors. As a result, more and more companies are increasingly moving toward implementing electric aspects into their offerings. For instance, Toyota, Nissan, Citroen, BMW, Mercedes, Kia, Opel, Fiat, Hyundai, and Volkswagen have added a selection of electric models to their portfolio.
• The UK government passed the law in 2019 to reduce greenhouse gas emissions to net-zero by 2050, and the green industrial revolution initiative pledges to stop the sale of fossil fuel vehicles by 2030, which could boost the adoption of electric cars creating the demand for AC motors.
• The spending on manufacturing and R&D has increased, with the annual investments in the EU region in the past few years by the major players of different industries. For instance, in March 2022, Intel announced the first phase of its plan to invest EUR 80 billion in the EU over the next decade along the entire semiconductor value chain from research and development (R&D) to manufacturing to state-of-the-art packaging technologies. The growth in the manufacturing operations is expected to create a wide scope for the market.

Germany is Expected to Hold Significant Share

• Rising industrialization and the growing adoption of automation across various industries are propelling the demand for electric motors in the country. Further, the demand for AC motors is rising in various end-user industry verticals as large, and energy-efficient motors are required to minimize the additional cost of production.
• According to the Organization for Economic Co-operation and Development (OECD), Germany invests 2.88% of its GDP in manufacturing innovation, above the OECD average of 2.4%. The German automotive sector has drastically strengthened its global position in car manufacturing during the last few years. Furthermore, the manufacturing sector's sustainability is projected to be a significant driver for the market.
• The strict wastewater treatment laws, which even domestic sewage treatment facilities need to abide by, and the requirement to reduce the energy consumption of pumps, as laid down in the European Union (EU) legislation, will drive the demand for energy-efficient AC motors in the country.
• Furthermore, as the population is rising and shifting towards urban areas, the government is focusing on improving infrastructure and existing utility water infrastructure. This is expected to further propel the demand for AC motors during the forecast period.

Competitive Landscape

The Europe alternating current motor market is fragmented owing to the presence of domestic and global players such as ABB, Nidec Corporation, Siemens, etc., in the market that offers reliable products with technological advancement. The competition will likely intensify due to rising activities such as mergers & acquisitions, capacity expansion, and product innovation by vendors to enhance their presence in the market.

• October 2021 - NORD DRIVESYSTEMS introduced the IE5+ permanent magnet synchronous motors with ventilated or smooth versions up to a power of 4.0 kW. The motors are characterized by high efficiency and a wide torque range. These new IE5+ motors are equally interesting for intralogistics and hygiene-sensitive areas in the food and pharmaceutical industries.

Additional Benefits:

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

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