Analysis of the Brazilian Electric Motors Market

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Report Excerpt

In 2009, the Brazilian government approved a law requiring the use of more efficient motors. This requirement drove 2010 market growth, allowing the market to recover to levels reached before the 2009 crises.

Alternating current (AC) motors that are asynchronous were in greatest demand in 2011; they contributed percent to market revenue. By the end of the study period, 2016, this scenario will remain the same, but the revenue contribution for asynchronous AC motors will grow to percent.

Direct current (DC) electric motors are expected to grow in terms of revenue. However, in terms of revenue percent, the DC segment will experience a large drop because many DC motors will be replaced by AC motors designed to be more user friendly and easier to maintain.

In terms of power output, the most preferred motors among all industries are the small and medium types. These types are expected to have the higher growth rates.

Miniature motors are used for microelectronic applications. As Brazil develops, they are expected to have high growth rates because the technology will improve.

Commoditization is one of this market’s most immediate challenges and one of its greatest restraints. Commoditization for electric motors increases the price sensitivity of the market and, thus, becomes the most important purchasing factor.

Other important purchasing factors include after-sales services, maintenance services, and delivery time availability. Thus, customers want both the products and the services associated with them, which leads to the development of solutions from partnerships between clients and customers.

In addition to water and wastewater, transportation is the vertical that demands the most electric motors. Furthermore, other important verticals include petrochemicals and refineries as well as power generation.

Because the 2014 World Cup and 2016 Olympic Games will be held in Brazil, there will be more investments in transportation and power generation.

Petrochemicals and refineries is a vertical that the country is focusing on. With the discovery of the Pre-salt layer, this sector is becoming even more promising.