Japan AC Motor - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Japan AC Motor Market size is estimated at USD 1.15 billion in 2024, and is expected to reach USD 1.29 billion by 2029, growing at a CAGR of 3.69% during the forecast period (2024-2029).

Key Highlights

• Japan has been significantly transforming into an automated industrial economy through its Industrial version 4.0 strategies, and the country has emerged as a manufacturing hub for factory automation products and supplies to other regional markets in Asia-Pacific.
• For instance, the Government of Japan allocated USD 1.62 billion to support Japanese small and medium-sized enterprises, which includes assisting businesses in upgrading their manufacturing plant equipment, according to the report of the International Trade Administration, which would fuel the adoption of AC motors and accelerate market growth.
• The rising concern about saving energy costs by improving energy efficiency has driven the adoption of AC motors in Japan across various high energy-intensive industries such as industrial manufacturing, power generation, discrete industries, oil and gas, aerospace and defense, and mining.
• Moreover, the Japanese government’s proactive approach to reducing carbon emissions has led to supportive policies encouraging industries to embrace energy-efficient solutions. This has further increased the adoption of AC motors in various industries, including transportation and industrial automation.
• Also, Japan's food and beverage industry is prospering, owing to factors such as a higher share of the urban population and changing food consumption habits. For instance, according to the Global Organic Trade Guide, the consumption of packaged organic food in Japan is anticipated to reach a value of USD 427.1 million by 2025, compared to USD 401.4 million in 2018, thus supporting the adoption of AC motors in the food and beverages industry. Several obstacles are impeding the country's implementation of AC motors. The significant costs for the motors are the energy, maintenance, and initial purchase costs.

Japan AC Motor Market Trends

Induction Motors Hold Significant Market Share

• An induction motor is also called an AC electric motor. In an induction motor, the electrical current in the rotor required to generate the torque is obtained through electromagnetic induction from the rotating magnetic field of the stator winding. The rotor of an asynchronous motor can be a squirrel cage or a wound rotor.
• AC induction motors are highly efficient, flexible, and relatively simple in design, which allows them to match the load demand for almost any electrical application. Induction motors are widely used in various industries and applications, such as pumps, fans, compressors, conveyors, cranes, and elevators.
• They are also categorized into two main types: single-phase and three-phase induction motors. Single-phase induction motors are used more widely than the three-phase system for domestic, commercial, and sometimes industrial purposes. Three-phase induction motors are used for commercial and industrial purposes and are ideal for higher-power applications.
• There are many benefits to single-phase motors. For starters, single-phase motors are less expensive to manufacture than other motors. As the transmission voltage is high, the current through the line will be lower. This means the conductor can be lightweight and compact, making the supporting tower lighter. The unit is a portable one. Another benefit of lower current is reduced I2R losses, increased transmission efficiency, and optimized operation.
• Two-phase motors can be used for propulsion in different industrial applications, such as machine tools, printing presses, and conveyor systems. In addition, they might be used in home equipment, such as air conditioners and washing machines. However, due to the widespread use of three-phase electricity in contemporary electric motors, two-phase motors are far less popular now. Due to their increased efficiency and smoother operation, three-phase motors are becoming more popular in various industrial applications.
• In power distribution systems, three-phase induction motors drive transformers and switchgear. These devices increase or decrease the voltage and turn power transmission and distribution circuits on and off. According to METI, as of September 2023, the number of solar power plants in Japan amounted to approximately 4.03 thousand, making up the renewable energy source with the largest number of power stations.
• Moreover, major players such as ABB offer a range of low-voltage, three-phase electric motors whose rotating power is based on electromagnetic induction. ABB’s low voltage induction motors cover the power range from 0.06 to 1000 kW.

Growing Oil & Gas Industry will Support the Market Growth

• The demand for AC motors in oil and gas is increasing as the country's oil and gas is witnessing a notable growth in activities such as infrastructure upgrades and the establishment of new plants, which, in turn, is creating a favorable ecosystem for the market's growth as utilities operating in the country continue to increase the adoption of automation solutions.
• AC motors drive pumps, compressors, and turbines in the oil and gas industry. These devices extract, process, and transport oil and gas from wells through refineries to consumers.
• AC motors are used to power a centrifugal pump that moves crude oil from wells to pipelines or storage tanks, drive a compressor that pressurizes natural gas for transportation or storage, and run a turbine that generates electricity for offshore platforms or remote locations.
• The government is taking several initiatives to increase the production of the country's oil and gas sector, which will further fuel the demand in the AC motor market. For instance, in October 2023, the Japanese government announced extending domestic oil product subsidies to mitigate the impact of soaring energy prices.
• Similarly, in January 2023, Inpex Corp, Japan's largest oil and natural gas producer, announced an accelerated expansion of liquefied natural gas LNG production and sales as it expects the LNG market to remain tight in the medium term due to structural changes in the global natural gas market after the Russian invasion of Ukraine.
• Also, according to METI, Japan's natural gas production volume amounted to around two billion cubic meters in 2023. This decreased from the previous year, with almost 2.2 billion cubic meters.

Japan AC Motor Industry Overview

The Japanese AC motor market is competitive with various large, medium, and small players. The Japanese AC motors industry players are introducing new innovative products to cater to growing consumer demands. Major players in the market include Siemens AG, Nidec Corporation, WEG Germany GmbH, TECO Electric Europe Ltd, and ABB Limited. Technological advances in various industries, including healthcare, energy, and infrastructure, will boost the market growth.

In May 2024, Regal Rexnord announced that the LEESON brand would be extended significantly by adding NEMA AC induction motors smaller than 182T in height to the LEESON product family.

In March 2024, ABB announced that a set of AC motors have higher efficiencies to combat growing concerns. According to the company, ABB BaldorReliance SP4 motors are a drop-in replacement of traditional AC induction motors but have increased efficiency by 20%. These performance gains can be achieved via direct online operation without a variable speed drive. However, ABB claims they are even more significant combined with an engine.

Additional Benefits:

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

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