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Market Insight

Medium-voltage motor market posts strong performance despite global economic uncertainty

August 01, 2019

Alexander Bourgeois Alexander Bourgeois Research Analyst – Manufacturing Technology, IHS Markit

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Highlights:

  • Global revenue for the medium-voltage (MV) motor market reached $4.6 billion in 2018, rising 3.3 percent from 2017. Historically, growth in the MV motor market has remained consistent. Despite increasing global economic instability, manufacturing and production indexes have remained strong, generating a robust performance for the MV motor industry in 2018. Growth is forecast to continue through 2023. Total revenue from the MV motors market is forecast to grow at a compound annual growth rate (CAGR) of 4.1 percent from 2018 to 2023.

  • From 2018 to 2019, IHS Markit expects revenue growth in all three major global regions. We forecast growth of 3 percent, 6 percent and 2 percent for Europe, the Middle East and Africa (EMEA); the Americas; and Asia Pacific respectively. Unit shipment growth for EMEA remained flat, while growth for the Americas and Asia Pacific totaled 3 percent and 1 percent respectively.

 

  • Typically, key regional countries have a significant impact on the growth of the overall market. Asia Pacific is forecast to experience slow growth because of the deceleration in the Chinese gross domestic product (GDP) and the continuation of the US-China trade war. The Americas region is forecast to grow with strong performance from smaller players like Venezuela and Chile, as well as above-average growth in the United States. Lastly, EMEA is forecast to grow at a below market average rate due to Germany’s slowing GDP and fears of a recession among members of the European Union.

Analysis:

  • Since 2014 there have been significant changes that have directly affected the global size of the medium voltage motors market. Geopolitical issues between major countries like China and the United States and overcapacity/price erosion in the market are forcing large MV motor players to adopt a wait-and-see approach to anticipate any shifts in market share.

  • Downstream oil and gas is forecasted to be one of the standout segments of the oil and gas business, with the highest CAGR from 2018 through 2023. This is as a result of improved gasoline cracks in the Atlantic basin, which are nearing 2018 levels after spending much of the winter at five-year lows. This phenomenon is also due to a forecasted reduction in the magnitude of the potential fuel oil surplus in early 2020. Furthermore, a strong surge in commodity prices, including copper, iron ore and aluminum, comes as an encouraging sign that the MV motor industry will continue to perform strongly.

  • A major factor driving the performance of the MV motor industry is the strength of the most significant industry drivers. Oil and gas accounted for 23 percent of 2018 global revenues, tied with power generation at 23 percent and followed by metals at 15 percent. Despite uncertainty in the global economy, all signs point to these key industries remaining strong.

Medium Voltage Motor Intelligence Service 

The annual Medium Voltage Motor Intelligence Service from IHS Markit investigates the size and growth of the medium voltage motor market, providing base-year data for 2018 and forecasting growth through 2023. In addition, numerous market segmentations are provided, including industry sector, geographic region and product size. The study also provides a qualitative analysis of product trends, growth drivers and an overview of the competitive environment, including market shares by product type for each major geographic region.

Research by Market
Manufacturing Technology
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