According to a new report from the tech-focused research firm, the global electric motors market is growing at a CAGR of 6.3% from 2015-2019.
Analysts predict that the increasing popularity of electric vehicles will stimulate the electric motor market over the forecast period. Additionally, demand from the HVAC sector, and an increasing number of motor-driven household appliances will contribute to strong projections in this sphere.
Electric motors: Highly fragmented market expected to see many mergers and acquisitions
There is intense rivalry in the market among local and international vendors.
“Many major vendors, including Franklin Electric, Huali and Siemens are finding it hard to compete with low-cost manufacturers from China, and the low number of entry barriers has made the market ultra-competitive,” says Faisal Ghaus, Vice President of Technavio.
“The only way vendors can enhance their market share is by reducing prices to cater to cost-driven end-users.”
Analysts expect that major players will either merge or acquire small manufacturers in a bid to increase their sales and expand into new regions. This will also allow them to diversify their product offerings over the next four years.
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Technavio is a leading global technology research and advisory company.
Founded in 2003, Technavio has about 200 analysts globally and develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries.
Technavio analysts employ primary and secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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