The market for inverter duty motor is expected to grow at a CAGR of over 5% during the forecast period of 2020 – 2025. Factors such as rising urbanization, growing industrialization, and huge investments in leveraging the performance of industries are expected to drive the market during the forecast period. Also, the growing demand for energy-efficient motors is likely to propel the demand for inverter duty motor market during the forecast period. However, a decrease in greenfield investments by the oil and gas industry i.e. owing to continuous fall in oil prices and high installation costs are the major factors that are expected to hinder the market growth.
- Pumps segment is expected to witness significant demand during the forecast period, owing to its advantages like higher energy efficiency when compared to other applications.
- Growth in the fixed speed applications (for example mobile drainage pumps, which always need to deliver a maximum output or an industrial plant that runs at a fixed speed) is likely to provide huge opportunities for the market studied.
- Asia-Pacific is expected to the fastest growing market during the forecast period, with majority of the demand coming from countries like China and India.
Key Market Trends
Pumps Application to Witness Significant Demand
- An inverter duty motor is controlled by a Variable Frequency Drive (VFD), also called as Variable Speed Drive (VSD). VFDs control alternating current (AC) motor speed and torque by varying motor input frequency and voltage. They make it possible for pumping systems to change speed and maintain peak efficiency when output demand changes.
- In terms of rotodynamic pumping which includes centrifugal, mixed, axial flow, and other specialized pumps, it is evident that the transition to inverter duty motors is real and accelerating globally.
- Two decades ago, approximately 60% of new pump motor installations involved standard efficiency constant speed motors. Ten years later, industry demand had shifted in favor of inverter duty products, with two in three requiring variable speed approx. The shift has continued since then, with VFD’s included in 80% of rotodynamic pump installations.
- As the inverter duty motor is controlled by a VFD, there is a less frequent cause of motor failure i.e. electrical current that goes through the bearing. The only solution to avoid this failure is all depends on pump and motor installation because causes of pump bearing failure can be due to resonance, improper greasing etc.
- Proper selection and installation of pump based on the requirement helps reducing the bearings failure, which, in turn, is expected to create a positive impact on inverter duty motor market.
- In addition to energy conservation, many pump motors in installation base (status) are expected to benefit from the constant pressure and flow along with improved system reliability that inverter duty motors provide.
- Also, increasing industrial activities and growing oil & gas sectors in the United States and the Middle-East regions are driving the demand for inverter duty motors.
- Therefore, based on the above-mentioned factors, pumps segment is expected to witness significant demand on inverter duty motor market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is witnessing huge economic growth, which resulted in the development of industrial infrastructure. The industrial infrastructure in the region is witnessing growth, with policy level focus on driving the industrial sector.
- The increasing rate of manufacturing, rising demand for energy-efficient motors, and increasing demand from the metal & mining sector are some of the significant factors that are expected to drive the demand for inverter duty motor market in Asia-Pacific region.
- China is the largest importer of oil and gas. The primary energy consumption in China is dominated by coal, which accounted for more than 58% of total energy consumption in 2018. However, owing to the air pollution and environmental concerns, the country is employing policies to increase the share of oil and gas, and reduce the share of coal in the total energy mix. As the share of the oil and gas industry is increasing, hence the demand for the inverter duty motor is expected to increase further.
- Also, China has diverse and extensive reserves of minerals. Since the adoption of the Mineral Resources Law in 1986, which opened private investment in the mining sector, the mining industry in the country has experienced substantial growth and rapid modernization, which, in turn, increases the demand for inverter duty motor market during the forecast period.
- Even India’s mining sector has a substantial advantage in terms of cost of production and conversion costs, particularly for alumina and steel. The country is rich with mineral resources and produces about 95 different minerals, including four fuel related minerals, ten metallic minerals, 23 non-metallic minerals, three atomic minerals, and 55 minor minerals.
- Thus, high investments, policies, and various industries are likely to propel the inverter duty motor market in the region, during the forecast period.
The inverter duty motor market is moderately consolidated. Some of the major players includes Regal Beloit Corporation, Rockwell Automation, Inc., Nidec Motor Corporation., Bison Gear & Engineering Corporation, and Havells India Ltd.
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