US demand for electric motors is expected to increase 4.6 percent annually through 2017 to $14.4 billion, accelerating from the pace of the 2007-2012 period, when nearly every major market for these devices struggled. Price increases accounted for the overall dollar gains posted during that span. Electric motors are key components in many durable goods; as manufacturing output rises, sales of electric motors will follow. Motor vehicles will continue to be the largest market for these products, the result of an increasing number of motor-dependent options. Fractional horsepower (FHP) motors, those with a horsepower rating of less than one, are expected to remain the larger product category in 2017 in both value and volume terms. These and other trends, including market share and product segmentation, are presented in Electric Motors, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
The market for AC motors will grow the most in absolute terms and remain the largest product segment in 2017. AC motors are used in a myriad of applications, including heating and cooling equipment and household appliances, production of which is forecast to rise with renewed strength along with the US economy. Demand for DC motors will approach $5.7 billion in 2017. DC motors are used extensively in automotive applications, and suppliers will benefit from a rebound in motor vehicle output. Hermetic motors (which are permanently sealed to prevent the transmission of air, moisture vapor, and other gases) will register the fastest market advances of any motor product segment. Gains will primarily be driven by the favorable outlook for production of heating and cooling equipment and household appliances, with expanding aerospace and industrial machinery output also contributing to sales increases.
Among major markets, heating and cooling equipment applications are projected to register the fastest sales growth through 2017, bolstered by increases in building construction after a prolonged period of weakness. The motor vehicle market will record the second most rapid gains as automotive production rises and the number of electric motor-dependent systems in the average vehicle continues to climb. Growing demand for electric traction motors used in hybrid/electric vehicles will also contribute to automotive sales gains, although this will remain a small market in absolute terms. Sizable advances are forecast as well for aerospace and other transportation equipment motor applications, as air traffic expands along with economic activity and more households purchase recreational products such as boats or campers.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.