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The global motor control centers market size stood at USD 5.62 billion in 2019 and is projected to reach USD 8.16 billion by 2027, exhibiting a CAGR of 5.2% during the forecast period.
A motor control center (MCC) is the center of controlling the operation of an electric motor. It is an assembly of one or more enclosed sections having a common power bus containing motor control units. It includes variable frequency drives, fuses, switches, programmable controllers, and metering, and the electrical service entrance for the building. These centers play a crucial role in increasing productivity, efficiency, and minimizing operating costs. They are significantly adopted in manufacturing units to provide paramount protection integrated with smart monitoring and protection against fault. They are majorly used in applications across various industry sectors such as oil & gas, utility, metals & mining, chemicals, petrochemicals, and others.
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Growing Manufacturing & Processing Industry Will Boost the Demand
Increasing investments from the industrial sector, which includes mining and metal, food & beverage, metallurgy, and electronics in the developing economies, would fuel the demand for motor control center application. It is used to control and manage process management and the resultant outputs can be an analog signal or discrete signal in the manufacturing and processing industry. According to the World Investment Report 2018, Asia Pacific held an investment worth USD 476 billion of inflow from foreign direct investment in the year 2017, which was primarily focused by China and Singapore. Hence, the growing investment from the industrial & commercial sector would propel the need for using the product in various end-use industries and manufacturing industry, which includes power generation, food & beverage, metallurgy, metal & mining industry. It would thereby, propel the market growth during the projected period.
Supportive Government Regulations Promoting Energy Savings Across Industries
Supportive government initiatives and regulatory bodies are consistently focusing on leveraging the energy-saving standards in industries and manufacturing plants. Various initiatives taken by the government were improving equipment regulations, promoting energy management in industries, improving the efficiency of operations, and deploying infrastructure for electric and alternative fuel vehicles, as well as retrofitting the existing buildings. For instance, in November 2017, Italy introduced the National Energy Strategy, which is a ten-year plan covering a broad range of energy sector interventions. The strategy includes a target to reduce energy consumption by 30% by 2030. Additionally, in Switzerland, the government announced a new set of energy efficiency standards as part of its broader Energy Strategy 2050. Hence, supportive government regulations and initiatives to improve the operational efficiency of industries are surging the demand for the product.
Increasing Adoption of Automation from Developing Economies to Fuel Market Growth
Industrial automation provides various advantages, which includes lower operating costs, efficient manufacturing, reduction in human error, lower wastage, quality production, faster product lifecycle, and other benefits. These further improve the operation efficiency of the industries. Growing industrial base, increasing capabilities of sensor and automation technology, and rising investment in the adoption of automation would drive the motor control centers market growth. For instance, in November 2018, SoftBank Vision Fund raised USD 300 million in robotic process automation, which leveraged the application of these control center. Hence, the growing adoption of automation from the developing economies would fuel the market growth during the projected period.
Focus of Industries on Higher Reliability and Reducing Plant Downtime to Fuel Demand
Industries are focusing on improving operational efficiency and production time, which would deliver higher efficiency and reliability in industrial operations. According to the European Energy Industry Investments 2017, power utilities planned to invest USD 295 billion between 2021- 2030 under new policy scenarios in transmission and distribution infrastructure, which would yield more efficiency and reliability in the gird. Hence, industries are focusing on improving reliability and reduced plant downtime, which, in turn, would fuel the demand in the forecasted period.
Stagnant Investment from Oil & Gas Industry to Restraint Growth of the Market
The oil & gas industry deploys motor control center and switchgear in the onshore and offshore oil industry for supplying power to processes and utilities on a large scale. Hence, stagnancy in investment from the oil & gas sector would hamper the motor control center market. The global transition towards renewable energy and the outbreak of coronavirus (COVID-19) pandemic are crippling various industries, which have added a major challenge of uncertainty for the industrial sector. It would affect the investment scenario of the oil & gas industry during the projected period. The growing pandemic of COVID-19 has also impacted the industrial sector by rapidly adjusting to the changing needs of the people, demand, and supply. Business continuity risks, sudden changes in volume, workforce productivity, real-time decision-making, and security risks are the emerging factors due to COVID-19 in the industrial sector. Hence, increasing challenges due to COVID-19 and stagnancy in investments from the oil & gas industry would restrain the market growth during the projected period.
Conventional Motor Segment Dominated the Global Market
Based on type, the motor control center market is segmented into conventional motor and smart motor. The smart motor segment is dominating the market owing to its advantages over the conventional motor. It minimizes the number of components required as various functions are integrated into single, smart devices. Therefore, it is leading the global market. The smart motor segment is also increasing its share due to increased safety, improved diagnostics, higher availability, microprocessor-based control, and replacement of hardwiring with network technology. Hence, increasing demand for smart motor owing to its technical advantages would propel the demand for these motors in the global market.
Low Voltage Segment to Remain Dominant in the Market
In terms of voltage, the market is segmented into low voltage and medium voltage segments. The low voltage segment is dominating the market owing to a wide scope of adoption of low voltage motor control centers in various industries. Industries such as paper & pulp, iron & steel, metal & mining, food & beverage, and others are deploying such low voltage control centers at a large scale. Hence, increasing demand for these centers from low voltage applications is expected to boost the growth of this segment during the forecasted period.
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Busbar Segment to Dominate in the Market
In terms of component, the market is segmented into busbar, circuit breaker & fuses, relay, variable speed drives, and other segments. The busbar segment is dominating the market owing to a wide range of applications of motor control centers for electrical components, which include main busbars and auxiliary busbar. The circuit breaker & fuses segment is also increasing its market share due to the increasing application of these centers for switchgear components for safety measures. The variable speed drives segment is also increasing the market share owing to the necessity to control the speed of the motor and improve the performance in industrial plants, offices, shops, and homes. The relay segment and other components, which include a soft starter, pushbuttons, selector switches, and power disconnect, are increasing the market growth. Hence, the rising demand for motor control centers from the busbar segment is expected to drive the growth of the market during the projected period.
Oil & Gas Segment is Dominating the Market during the Projected Period
The end-user segment is further categorized into oil & gas, iron & steel, minerals & mining, food & beverage, automotive, and others. The oil & gas segment is estimated to hold the largest motor control center market share owing to their extensive application in the oil industry for supplying power to processes and utilities. The minerals & mining segment is holding the second largest market share due to the rising adoption of these centers in industries for controlling and monitoring the mining operations. The iron & steel segment is also increasing the market share owing to the increasing application in blast furnaces, continuous casting, pickling lines, cold rolling mills, walking beam furnaces annealing, and galvanizing processes, among other applications. The automotive segment is propelling the demand owing to the increasing application of busbar, circuit breaker, and other electrical components in the automotive industry. Hence, the growing industrial sector is projected to increase the share in the global market during the forecast period.
Asia Pacific Motor Control Centers Market Size, 2019 (USD Billion)
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The motor control centers market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The market is expected to gain momentum in Asia Pacific owing to the increasing investments in industrialization and growing manufacturing & processing industry. For instance, in 2017, India mandated to support the implementation of Make-in-India, particularly by enhancing manufacturing competitiveness, which would drive the demand for industrialization.
North America is expanding its oil & gas industry, which would deploy electrical switchgear and components for supplying power to process industries and utilities. Many iron & steel industries and minerals & mining industries are using the these centers for improving operational efficiency, which adds significant value to the market. Europe will dominate the market due to the increasing expansion of industrial infrastructure and growing investments in power utilities. According to the European Energy Industry Investments report published in 2017, it is estimated to increase the investment in the power industry from USD 58.37 billion in 2011-2020 to USD 86.73 billion in 2021-2030. Hence, growing investments in the industrial infrastructure would offer lucrative growth opportunities for the market.
The countries in the Middle East & Africa are highly dominated by oil and gas companies, which require a reliable power supply. Companies operating oil and gas plants and power utilities are focusing on controlling power stations and processes through a center point. The African countries are mainly focusing on increasing their industrial infrastructure that will add a positive outlook for the growth of the motor control center market during the projected period.
Technological Upgradation in the Automation Industry to Propel the Companies to a Leading Position
The competitive landscape of the market depicts significant advancements in the automation industry, which would improve quality, efficiency, and would increase productivity. The growing adoption of motor control centers by the utilities and industries for processing and controlling a motor are the prominent factors responsible for the dominance of the key players.
However, regional and domestic players such as TES, alfanar, IDS-Technology GmbH, Vidhyut Control, and other regional players have entered the competitive market for providing these controlling centers in the global market. This is projected to positively impact the global market as these companies are anticipated to gain market share during the forecast period.
An Infographic Representation of Motor Control Centers Market
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The motor control centers market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, and upcoming developments of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
Fortune Business Insights says that the global market size was USD 5.62 billion in 2019.
The global market is projected to reach USD 8.16 billion in 2027.
Growing at a CAGR of 5.2%, the market will exhibit steady growth in the forecast period (2020-2027).
Smart motor segment is expected to be the leading segment in this market during the forecast period.
Increasing adoption of automation in the developing economies and industries focusing at higher reliability and reducing plant downtime are the major factors attributed to the growth of the market. However, stagnant investment from the oil & gas industry may restrain growth.
The market in Asia-Pacific was valued at USD 1.78 billion in 2019.
ABB, Mitsubishi Electric, Siemens, Schneider Electric, WEG, Powell, Rockwell Automation, and Eaton are the top companies in the market.
It is the center of controlling the operation of an electric motor in a central location. It is used to protect the motor and fuses or a circuit breaker to provide short-circuit protection, and a disconnecting switch to isolate the motor circuit. It reduces maintenance cost, energy costs, and helps to enhance the efficiency and productivity of the process. It is widely used in industrial application and power plants to monitor the operation and improve the efficiency of the system.
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