The Asia Pacific (APAC) industrial motor market is estimated to grow at a CAGR of 5.22%, reaching US$15.156 billion in 2028 from US$10.611 billion in 2021.
One of the primary factors driving the market in the APAC region is the increasing use of electric motors in industrial processes and auxiliary systems such as compressed air generation, ventilation, and water pumping. Initiatives for smart manufacturing are also anticipated to be a major factor in the use of industrial motors in the nation.
The government started several smart manufacturing pilot projects. For instance, in October 2022, the Indian government declared that it had opened 42 oil and gas blocks to worldwide competitive bidding for exploration and development. To increase local output and reduce dependency on imported fuel, India will more than quadruple the area under research for oil and gas extraction to 0.5 million square kilometers by 2025 and 1 million square kilometers by 2030. This would increase the need for industrial motors in the oil and gas sector.
Growing oil and gas industry
According to the Asia Investor Group on Climate Change's Asia's Net Zero Energy Investment Potential report, this industry is the world's largest and fastest-growing energy consumer and CO2 emitter. The continent has evolved into the biggest threat to the world's efforts to achieve net zero due to a single factor: the total dominance of the fossil fuel industry, with coal serving as the main source of electricity. Another key contribution is Asia's oil and gas sector, which will grow dramatically over the following years. Since industrial motors are utilized extensively in the petroleum business, their demand will rise in the coming years as Asia's oil and gas industry expands along with an increase in oil and gas consumption. For instance, as per the BP Statistical Review of World Energy 2021, total gas consumption in Asia Pacific increased from 866.9 thousand barrels per day in 2020 to 918.3 thousand in 2021.
Governmental Initiatives to drive market growth.
Further, government initiatives like "Make in India" and "Make in China" are also expected to promote and expand the use of industrial motors and accelerate the region's development. A Chinese corporation, Sinopec, is anticipated to invest over USD 31 billion in upstream exploitation in 2022, particularly for the crude oil in the Shunbei and Tahe areas and natural gas reserves in the Sichuan province and the Inner Mongolia region.
Additionally, an order enabling 100% foreign investment in oil and gas public sector Units was granted by the Indian government in July 2021. Furthermore, upstream and private sector processing projects for 100% foreign direct investment from investors.
The oil and gas segment end-user segment is expected to grow steadily over the forecast period.
The increasing use of industrial motors in the oil and gas sector is anticipated to increase demand for industrial motors in the coming years. Majorly these industrial motors are used for powering pumps and drilling rigs in refineries. The growing investment in oil and gas refineries in countries such as India and China will provide an edge for the market growth of industrial motors.
China remains the dominant market in the Asia Pacific region.
The growing demand for industrial motors by enterprises operating across different industry verticals in China is anticipated to be one of the key factors augmenting the market growth. According to the Integrated Report 2021 by industrial motor manufacturer Mabuchi Motor, the company stated the sales of its motors, including industrial motors. China held the major share with about 33% of the company's total global sales, which was way ahead of the Americas at 18.1% and Europe at 21.3%.
The major share of China in sales of globally renowned industrial motor manufacturers is one of the major reasons for the market propulsion in the coming years. In another instance, according to the September 2022 Resources and Energy Quarterly Report by the Department of Industry, Science and Resources, Australian Government, the consumption of refined copper by China increased from about 2.4 K tons in June 2021 to approximately 3.5 K tons by June 2022, which resulted in more than half of the total global consumption.
The growing consumption of refined copper correlates with the ever-increasing demand for crucial raw materials like copper for industrial motor manufacturing in China, implying market potential.
Market Developments:
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2021 | US$10.611 billion |
| Market Size Value in 2028 | US$15.156 billion |
| Growth Rate | CAGR of 5.22% from 2021 to 2028 |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Motor Type, Voltage, End-User, and Country |
| Regions Covered | Japan, China, India, South Korea, Indonesia, Taiwan, Thailand, Others |
| Companies Covered | ABB, Ametek, Emerson Electric, Rockwell Automation, Siemens, Schneider Electric, Toshiba Corporation, Technosoft, Fuji Electric, Nidec Corporation |
| Customization Scope | Free report customization with purchase |
Market Segmentation: