Double-digit growth for global large motors market

An example of a large motor

The Middle East has emerged as a ‘notable’ regional market for large motors, contributing significantly to the global sector’s double-digit revenue and unit growth in 2008, which peaked at US$3.5 billion, according to the latest statistics from IMS Research.

Power generation, metals and oil and natural gas comprised the major market segments in 2008, accounting for 56% of total revenues. A total of 28 000 units were shipped during last year. Full order books were reported by suppliers and manufacturers, with lead times averaging six months to a year.

This buoyancy is expected to carry the growth over into 2009, when the large motors market is forecast to increase by over 5% in revenue terms over 2008 levels. The full impact if the global economic downturn is only expected to be felt in 2010, when revenues are predicted to dip by more than 15%, and unit shipments are projected to decline by over 13%.

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A gradual and prolonged market recovery is expected to result in relatively flat growth in 2011, according to the report. However, growth will bounce back to double-digit figures by 2012, assuming that the anticipated global economic recovery gains momentum. The global market for large motors is forecast to grow by a compound annual growth rate of 1.9% in revenue terms through 2013.

“Industry sectors that have links to population growth and increased urbanisation, such as oil and natural gas, power generation and water and wastewater, have held up relatively well during the recession,” commented Alex Chausovsky, research manager at the motors and drives group at IMS Research.

“By contrast, heavy industry sectors such as marine, metals, mining and pulp and paper have suffered greatly as a result of the downturn,” said Chausovsky.

ABB and Siemens continue to dominate the large motors market in terms of market share, together accounting for nearly half of all market revenues in 2008. Other notable suppliers include Converteam, GE, Teco and TMEIC.