Motor Control Centers Market Analysis by Type (Conventional Motor Control Center, and Intelligent Motor Control Center); and by End User (Automotive, Oil & Gas, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4867 | Published Date: Apr 30, 2023
Motor Control Centers Market size is estimated to record a revenue of ~USD 18.31 billion by the end of 2035 by growing at a CAGR of ~9.40% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 6.23 billion in the year 2023. The market growth is mainly owing to a number of factors, including the increasing demand for automation in industrial and commercial settings, the need for energy-efficient solutions to reduce operating costs, and the growing emphasis on safety and regulatory compliance. According to a report, the global industrial automation industry accounted for nearly USD 158 billion in the year 2020. The industry refers to the industry that produces and sells electrical devices that are used to control and monitor electric motors in industrial and commercial settings.
In addition to this, these centers typically include a combination of motor starters, contactors, circuit breakers, and other components that work together to ensure that motors are operated safely and efficiently. The global motor control centers market is also being driven by the increasing adoption of variable frequency drives (VFDs) in industrial and commercial applications. VFDs are used to control the speed and torque of electric motors, which can help to reduce energy consumption and extend the lifespan of the equipment. According to a report, the global industry of VFDs is projected to reach USD 25 billion by the year 2026. As VFDs become more widely adopted, the demand for motor control centers that can integrate with these devices is also likely to increase. Motor control centers that are designed to work with VFDs can help to optimize the performance and energy efficiency of motor-driven equipment, which can be particularly beneficial in applications where motors are used frequently or operate at varying speeds.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9.40% |
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Base Year Market Size (2023) |
~ USD 6.23 Billion |
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Forecast Year Market Size (2035) |
~ USD 18.31 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global industry is segmented and analyzed for demand and supply by end user into automotive, oil & gas, and others. Out of the three types of end users, the automotive segment is estimated to gain the largest market share of about ~35% in the year 2035. The growth of the segment can be accredited to the increasing demand for electric vehicles. The shift towards electric vehicles is driving demand for motor control centers in the automotive industry. According to the International Energy Agency, the number of electric vehicles on the road is expected to increase significantly in the coming years, from 11 million in 2020 to 145 million by the year 2030. The automotive industry is increasingly adopting automation in the manufacturing process, which requires precise and efficient motor control. The adoption of automation in the automotive manufacturing process is driving segmental growth in the market. The automotive industry is increasingly focused on energy efficiency, which is driving demand for motor control centers that can optimize the energy consumption of electric motors. The increasing demand for energy-efficient motor control centers is driving segmental growth in the market. The automotive industry is also focused on safety, and motor control centers can help to ensure safe operation of motor-driven equipment.
The global motor control centers market is also segmented and analyzed for demand and supply by type into conventional motor control center, and intelligent motor control center. Amongst these two segments, the intelligent motor control center segment is expected to garner a significant share of around ~30% in the year 2035. The growth of the segment can be accredited to the increasing emphasis on energy efficiency. iMCCs can help to optimize energy consumption and reduce energy costs by providing real-time data on energy usage and allowing for precise control of motor-driven equipment. As a result, the increasing emphasis on energy efficiency in the industrial and commercial sectors is driving demand for iMCCs. iMCCs are equipped with sensors, communication modules, and software that enable remote monitoring and control of motor-driven equipment. The growing adoption of IoT and automation technologies is driving demand for iMCCs as companies seek to improve efficiency and reduce downtime. iMCCs offer advanced motor protection features, such as overload protection, short circuit protection, and ground fault protection. The increasing need for advanced motor protection in industrial and commercial applications is driving demand for iMCCs.
Our in-depth analysis of the global motor control centers market includes the following segments:
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By End User |
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By Type |
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The motor control centers in the Asia Pacific region, amongst the market in all the other regions, are projected to hold the largest market share of about ~35% by the end of 2035. Regional growth can majorly be attributed to rapid industrialization. The Asia Pacific region is experiencing rapid industrialization, particularly in countries such as China and India. According to the United Nations, Asia accounted for 54% of global manufacturing value added in 2019. This is driving demand for motor control centers in the industrial sector. The Asia Pacific region is also experiencing increasing demand for energy owing to population growth and economic development. According to the International Energy Agency, Asia accounted for 42% of global energy demand growth between 2000 and 2019. This is driving demand for motor control centers that can optimize energy consumption and improve energy efficiency. Several countries in the Asia Pacific region, such as China and India, have launched government initiatives to promote industrial growth and increase energy efficiency. For instance, the Indian government has launched the Make in India initiative to promote manufacturing in the country, which is driving demand for motor control centers.
The motor control centers market in the North America region, amongst the market in all the other regions, are projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to a growing focus on energy efficiency. The North American region is focusing on improving energy efficiency in various industries. For instance, the U.S. Department of Energy has established new regulations to increase the energy efficiency of motors and motor-driven equipment, which is driving the adoption of motor control centers that can optimize energy consumption. The North American region is experiencing an increasing adoption of automation in various industries, such as manufacturing, automotive, and aerospace. This is driving demand for motor control centers that can facilitate automation and enhance operational efficiency. The North American region has aging infrastructure that requires modernization and upgrade. This includes updating electrical systems with advanced motor control centers that can improve system reliability, safety, and efficiency.
Further, the motor control centers in the Europe region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the growing focus on industry 4.0. The Europe region is focused on advancing towards Industry 4.0, which involves the integration of automation, data exchange, and digital technologies in manufacturing. This is driving demand for motor control centers that can facilitate automation and enhance operational efficiency. Europe has aging infrastructure that requires modernization and upgrade. This includes updating electrical systems with advanced motor control centers that can improve system reliability, safety, and efficiency. Europe has a strong automotive industry, with countries such as Germany and France being major automotive manufacturers. This is driving demand for motor control centers in the automotive sector to enhance productivity and operational efficiency. Overall, these growth drivers suggest that the Europe region is a significant market for motor control centers, as companies seek to comply with energy efficiency regulations, advance towards Industry 4.0, modernize aging infrastructure, and meet the needs of a strong automotive industry.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing demand for automation in industrial and commercial settings is the major factor driving market growth.
Ans: The market size of motor control centers is anticipated to attain a CAGR of ~9.40% over the forecast period, i.e., 2023 – 2035.
Ans: The requirement of high initial investment, and the high initial cost is estimated to be the growth-hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Rockwell Automation Inc., Fuji Electric Co., Ltd., Mitsubishi Electric Corporation, Larsen & Toubro Limited, WEG SA, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, end user, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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