London, 11th January 2024 – The global low voltage (LV) AC motor market witnessed a slowdown in revenue growth during 2023 to 4.2%, with the sector forecast to be heading for an even slower 2024, according to new research from market intelligence specialist Interact Analysis. The market is expected to reach almost $16.6bn this year, with average sale price for motors up by just 1.2%.
The 2023 slowdown follows 16.4% revenue growth in 2022 and double digit growth in 2021, fueled by record price increases in those years. Interact Analysis anticipates 2024 will see a slight contraction of the market amid increasing price competition, with average sales prices worldwide predicted to dip to -2.4%. However, the market is expected to return to historically normal levels of growth during the back end of the forecast period (out to 2028).
Mixed performance during 2023 resulted in a growth rate of just 2.9% for shipments to 63.3m units. Global demand was outpaced by the Asia Pacific (APAC) region, which reclaimed the top spot for revenue growth and saw unit shipment demand climb by an estimated 4.5%.
Significant regional variations in growth during 2023
There were substantial differences between regions during 2023, as APAC outpaced global growth in LV AC motors and revenues rose by 6.4% in real terms. Growth in China returned amid signs of recovery in its manufacturing industry.
Having outperformed EMEA and APAC in 2022, revenue growth in the Americas region fell back to 4.3% in 2023, as economic uncertainty led to a ‘wait and see’ mentality among many customers. Meanwhile, revenue growth was flat in EMEA at 0.1% and it was the only region expected to see unit shipments contract in 2023, as key manufacturing bases such as France, Germany, Italy, and the UK continue to struggle in the short term.
Global market revenue growth is expected to contract in 2024 before bouncing back in 2025
Commenting on the Low Voltage AC Motor Market – 2023 report, Interact Analysis Research Manager Blake Griffin, says,“We are seeing increasing consolidation of the supplier base in the LV AC motor market, particularly in the US. For example, following an increase in its market share of 1.7% during 2021, WEG is expected to continue growing its stake further following its acquisition of Regal Rexnord’s industrial motors business in late 2023.
“Among the leading vendors, ABB remains the largest vendor of LV AC motors and grew its share in 2022. It has now added Siemens NEMA motor business to its portfolio, increasing its 2023 value by approximately $75mn. Siemens has de-emphasized motors and has split the motors business off into its own company: Innomotics. Nidec is expected to experience growth in 2023 after a lackluster 2022, while we predict Wolong will see its share grow as the Chinese market outpaces other regions into 2024.”