US demand to rise 5.4% annually through 2018
The US market for electric motors is forecast to expand 5.4 percent per year through 2018 to $16.2 billion, accelerating from the 2008-2013 period. Electric motors are key components in many durable goods, and as a result, suppliers will benefit from solid gains in heating, ventilation, and air conditioning (HVAC) equipment, machinery, and motor vehicle output. Rising demand for more efficient, more expensive motor products will also boost market value. However, pricing pressure from original equipment manufacturers (OEMs), as well as competition from lower cost imports, will limit value gains moving forward to a certain extent.
AC electric motors to outpace DC motors
US demand for AC motors will grow faster than the market for DC motors and remain the largest product category, with 2018 sales of $9.6 billion. Motor vehicles are expected to make up approximately one-third of incremental AC motor dollar gains, the result of a rise in hybrid and electric vehicle (H/EV) production. H/EVs use integral horsepower (IHP) AC synchronous motors for motive power, and as a result, this product will register by far the fastest gains of any major type. Increased shipments of HVAC equipment and machinery, industries that are heavy users of AC motors, will provide additional support moving forward.
Demand for DC motors will approach $6.7 billion in 2018. DC motors are used extensively in transportation applications, and suppliers will benefit from increases in motor vehicle output and aerospace and other nonautomotive transportation equipment shipments. Universal motors, which can run on AC or DC power and are grouped with DC motors for the purpose of this study, are widely used in HVAC equipment and machinery, and higher shipments of these products will boost motor use.
Motor vehicles remain largest & fastest growing market
Motor vehicles are expected to post the most rapid gains and remain the largest domestic market for electric motors through 2018. In addition to an increase in total motor vehicle output, as well as a significant rise in H/EV production, gains will be spurred by the growing number of electric motor-dependent systems in the average vehicle. The HVAC and machinery markets will also provide significant sales opportunities for electric motor suppliers as shipments climb. HVAC electric motor demand will be spurred by greater construction spending, which will require the installation of entirely new systems, while machinery motor sales will be supported in part by replacement demand driven by efficiency mandates.
IHP motors to outpace FHP models in value & volume
Through 2018, fractional horsepower (FHP) motors, those with a power rating of less than one, will continue to account for a greater share of the electric motor market, in both value and volume terms, than IHP models. FHP motors are utilized in the mechanical systems of products ranging from aerospace and HVAC equipment to motor vehicles, all of which will enjoy favorable growth prospects. Nevertheless, demand for IHP motors is projected to grow faster than that for FHP motors in both value and volume terms. IHP motor sales gains will be fueled by greater H/EV production and increased HVAC equipment output. Additionally, the cost savings to industrial firms for buying more efficient equipment like IHP motors will further bolster the market.