PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209892
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209892
According to Stratistics MRC, the Global Safety Drives and Motors Market is expected to grow at a CAGR of 8.42% during the forecast period. A motor is a crucial piece of equipment for any industrial sector to operate. Because there are so many dangerous areas in the main industrial sectors, safety motors are now absolutely necessary. These safety motors are equipped with features that enable system speed and torque control, as well as significant energy savings and ideal process control. The demand for safe equipment and an increase in industrial safety standards are anticipated to fuel market expansion in the upcoming years.
According to GE, unplanned outages due to moto failure can result in a refinery revenue loss of USD 1.1 million for each half-hour offline. As a result, the use of VFDs (Variable Frequency Drives) to control flow and prevent energy waste in throttling valves is growing rapidly in the oil and gas industry.
Increasing need of safety in industrial sectors is driving the market growth
Oil and gas, as well as other industries, have always been concerned with safety. The adoption of risk assessment requirements for increased safety and non-sparking motors by the IEC standards are recent developments aimed at improving the safety level of electrical machines used in hazardous areas. These specifications aid manufacturers in testing their designs and, if the risk levels are higher than acceptable, equipping their products with special accessories. Additionally, industrial power distribution systems frequently use low-voltage (LV) motor control centres (MCCs). Due to the close interactions between operator and maintenance personnel and the MCC, safety is frequently a concern.
The complexity of standards, which apply to both safety drives and motors, presents a challenge to the market. The limited applications or lack of flexible functionality in various zones of safety motors is a problem. However, the main factor slowing down the market is likely to be the expansion of regulatory restrictions.
Rapid adoption of the internet of things (IoT)
The internet of things (IoT) rapid utilisation and integration with industrial automation's machinery and control systems to boost output and production have fueled the demand for market. Moreover, the vendors concentrate on releasing electric drives with IoT capabilities for various industrial applications. Safety drives help to decrease machine downtime, which in turn increases productivity. In addition, there are numerous uses for hybrid safety drives in low, medium, and high voltage equipment across a range of end-user industries.
Slowdown in mining industry
The market's expansion is being held back by a significant slowdown in the mining sector. The mining market has experienced slow growth or, in some cases, decline in all of the major mining giants, including nations like Canada, Australia, Ukraine, Russia, etc. The main factor slowing down the market is likely to be the expansion of regulatory restrictions. Therefore, the market's potential for growth is effectively minimized by these factors.
The COVID-19 pandemic had a significant impact on manufacturing facilities, including the closure of factories and plants as well as travel bans and restrictions. As a result, there was a decline in the demand for drives across various industry verticals, including oil & gas, construction machinery, and power generation, among others. Players in the industry are preparing for delivery and construction delays, either as a result of the shutdown of industrial operations to stop the virus' spread or because workers have tested positive. The production of variable frequency drives has been hampered over the past two years by the decline in manufacturing activities in the US and China.
The oil and gas segment is expected to be the largest during the forecast period
Over the forecast period, the oil and gas is anticipated to be the largest segment. Oil and gas production and distribution, oil pumping systems, and compression drive trains for gas infrastructure all heavily rely on electric drives and motors. Drives are used by the compressors and pumps to smoothly start big motors and continuously change speed to control flow. In order to control the flow and prevent energy waste in the throttling valves, VFDs (Variable Frequency Drives) are being used more and more in the oil and gas industry. Increasing from USD 18.6 billion as of 2016, the sales value of VFD is anticipated to reach USD 24.8 billion. The motor is also shielded from starting inrush currents and control valve maintenance costs, reducing downtime. Such aspects propel the segments growth.
The Drives segment is expected to have the highest CAGR during the forecast period
During the forecast period, the Drives segment is expected to grow at the highest CAGR. In drives the AC Drive segment is expected to register the highest growth. AC Drive is mainly used to control the motor's speed in the oil & gas, water & wastewater treatment, and metals & mining industries Companies in the metals & mining industry deploy equipment such as conveyors, mills, grinders, crushers, and fans/blowers, which require AC drives. These drives also find applications in wind turbine power generation, water supply pumping, HVAC systems, boiler feed pumps, power generators, and flow hydronic systems which are boosting the segment growth.
Region with largest share:
The North American region is expected to hold the largest market share during the forecast period. North America is the One of the biggest markets for safety drives and motors. The upstream oil and gas industry as well as the industrial segment have high demand in the region. In fact, it is among the largest industry 4.0 policy adopters globally. Demand from the industrial sector is anticipated to be primarily driven by US government policies to boost production and rely less on exports. Additionally, the National Outer Continental Shelf Oil and Gas Leasing Program (National OCS Program) for 2019-2024, under which the United States Department of the Interior (DoI) plans to permit offshore exploratory drilling in about 90% of the outer continental shelf (OCS) acreage, is anticipated to boost the region's oil and gas industry.
Region with highest CAGR:
Europe is anticipated to grow at the highest CAGR over the forecast period. The need for cost-effective systems, industry safety standards, and consumer demand for safe equipment are the main drivers contributing to the growth of global safety drives and motors market in this region. Moreover, the need for systems with reliable functionality and high levels of flexibility, as well as the high degree of cost effectiveness that these safety drives come with, are the factors propelling the global market for safety drives.
Key players in the market
Some of the key players profiled in the Safety Drives and Motors Market include ABB Ltd, Beckhoff Automation GmbH, Kollmorgen Corporation, Rockwell Automation Inc., Sigmatek Safety Systems, Siemens AG, Hoerbiger Holding AG, Pilz International, WEG SA, CG Global and KEBA Corporation.
In July 2017, ABB acquired BandR. After this acquisition, ABB became the only industrial automation provider that offers customers in process and discrete industries the entire spectrum of technology and software solutions, around measurement, control, actuation, robotics, digitalization, and electrification.
In June 2017, WEG SA acquired CG Power USA Inc. This acquisition, in addition to complementing the WEG product line, increased the company's market share in the North American market. CG has a relevant market share in transformers for wind sites and solar farms in the United States. This acquisition, combined with WEG SA production platforms in Brazil, Colombia, Mexico, and South Africa, allowed the two companies to rapidly advance in the transmission and distribution business internationalization.
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