Global Soft Starter Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Voltage (Low, Medium), By End-Users (Oil And Gas, Food And Beverage, Textile Industry, Energy And Power, Others), And By Geography - Forecasts From 2022 To 2027
- Published : Mar 2022
- Report Code : KSI061614163
- Pages : 130
The Soft Starter market was valued at US$1.698 billion in 2020 and is expected to grow at a CAGR of 5.51% over the forecast period to reach a total market size of US$2.471 billion by 2027.
Soft starters are used to reduce the inrush current generated from motor start-up, so that motors can operate more efficiently and for longer periods of time. The use of motor soft starters is widespread in a variety of industries, including oil and gas, mining, and power generation. In all circumstances, the motor soft starter prevents motor impairment by regulating motor acceleration. Motor soft starters, among other devices, can be combined with compressors, pumps, and fans, among others, in order to control the flow of electric current. The market is growing largely due to the presence of many foreign manufacturers in Europe. A leading manufacturer of soft starters and electronic controls, Motortronics has operations in the United States, the UK, Korea, and China. Having acquired Fairford Electronics in 2018, Motortronics established Motortronics UK to drive the company's growth in the European market. As part of its European operation for motor control solutions, the company introduced its largest soft starter range in November 2019. Soft starter market growth will be driven by the growth of industrial pumps that utilize soft starters, as well as the expansion of HVAC control systems coupled with minimal space requirements and cost-effectiveness. According to Data Centre Dynamics, data centers are expected to be built at a rate of 9% per year through 2019, thereby benefiting HVAC companies. Florida is currently courting hyper-scale data centers, for which HVAC systems will be installed to handle lightning storms, hurricanes, and heat load.
Soft starters can experience growth due to factors such as the increasing application of motors in various industries and the presence of fixed-speed applications. The market's growth is also expected to be driven by major vendors’ expanding their product portfolios. In November 2019, Siemens Smart Infrastructure added the Sirius 3RW55 Failsafe and Sirius 3RW50 Soft Starters to its motor soft starter portfolio.
- Growth is expected to be driven by the oil and gas sector
Coastal and onshore oil and gas industry applications that are supplied with soft starter technology include pumps, compressors, blowers, fans, and centrifuges. In remote locations like offshore oil rigs or isolated pumping stations, where reduced start current is important, it can minimize stress on electrical power supplies. The upstream oil and gas sector is largely driven by the onshore segment, because the onshore segment requires lower investment, has simpler processes, is easier to reach, and is less risky than the offshore segment. As per the International Energy Agency (IEA), by 2022 there will be a considerable increase in natural gas consumption, with additional consumption of 370 billion cubic meters, up from 3,630 bcm in 2016, representing a 1.6% annual growth. Soft starters are likely to be in demand owing to the substantial investment in oil and gas, which is likely to boost the market’s growth. Moreover, the rise in oil and gas exploration opportunities in a number of countries, such as the United States and Canada, with abundant oil reserves and oil sands deposits, will spur the market during the forecast period. As one of the world's top natural gas and oil producers, the United States is one of the world’s largest producers. The oil and gas industry employs 10.3 million people in the United States and accounts for nearly 8% of GDP. A number of different pipeline projects, including the Jupiter Pipeline in Texas and the Roanoke Expansion Project by Kinder Morgan, are scheduled for completion by the end of 2020. Soft starters are expected to be in demand in the US as a result of this increasing number of projects. The major strategic development, the Alaska LNG Megaproject, will be among the largest natural gas developments in the world. The project includes a liquefaction plant complete with a storage and shipping terminal in Alaska's Kenai Peninsula, an 800-mile pipeline from the North Slope to the site, and a gas treatment plant for the facility. This constant expansion of the oil and gas industry globally will boost the market growth for soft starters.
- Preference of VFDs over soft starters
VFDs are preferred over motor soft starters due to their cost-effectiveness and superior functionality. When compared with variable frequency drives (VFDs), soft starters have the biggest drawback. It is possible to limit the current for soft starters, but it can't be used to control the speed of the motor while it is operating. Especially for devices requiring speed control, VFDs can perform this function. Market growth is being constrained by this factor.
The Impact of COVID-19 on the Soft Starter Market: The shutdown of many industries, however, has resulted in a decline in demand for soft starters due to COVID 19. As a result of the outbreak of COVID-19 in December 2019 in China and its gradual spread, the demand and price of crude oil drastically fell. When COVID-19 was reported in December 2019, WTI crude was trading at USD 61.06, but on March 23, 2020, the price reached USD 23.36. The 61% drop in WTI crude caused an imbalance in supply and demand. Thus, the pandemic impacted the market negatively.
Global Soft Starter Market Scope:
|Market size value in 2020||US$1.698 billion|
|Market size value in 2027||US$2.471 billion|
|Growth Rate||CAGR of 5.51% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Voltage, End Users, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Schneider Electric, Siemens, WEG Singapore PTE Ltd., ABB, Invertek Drives, Rockwell Automation, Wolong Electric Group Co. Ltd., Motortronics, Eaton, Danfoss|
|Customization scope||Free report customization with purchase|
- By Voltage
- By End Users
- Oil and Gas
- Food and Beverage
- Textile Industry
- Energy and Power
- By Geography
- North America
- South America
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
Q1. What will be the soft starter market size by 2027?
A1. The global soft starter market is expected to reach a market size of US$2.471 billion by 2027.
Q2. What is the size of the global soft starter market?
A2. Soft Starter Market was valued at US$1.698 billion in 2020.
Q3. What are the growth prospects for the soft starter market?
A3. The soft starter market is expected to grow at a CAGR of 5.51% over the forecast period.
Q4. What factors are anticipated to drive the soft starter market growth?
A4. Soft starter market growth will be driven by the growth of industrial pumps that utilize soft starters, as well as the expansion of HVAC control systems coupled with minimal space requirements and cost-effectiveness.
Q5. How is the global soft starter market segmented?
A5. The soft starter market has been segmented by voltage, end-users, and geography.
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. GLOBAL SOFT STARTER MARKET, BY VOLTAGE
6. GLOBAL SOFT STARTER MARKET, BY END-USERS
6.2. Oil and Gas
6.3. Food and Beverage
6.4. Textile Industry
6.5. Energy and Power
7. GLOBAL SOFT STARTER MARKET, BY GEOGRAPHY
7.2. North America
7.3. South America
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.4. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Schneider Electric
9.3. WEG Singapore PTE Ltd.
9.5. Invertek Drives
9.6. Rockwell Automation
9.7. Wolong Electric Group Co. Ltd.
WEG Singapore PTE Ltd.
Wolong Electric Group Co. Ltd.
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