Controls Market: Rare double-digit: growth tallied for large motors and generators
Worldwide market for large motors and generators grew 11% in 2005 to become a $1.6 billion market, according to a new study from IMS Research . This is seen as exceptional growth for such a mature industrial market that typically grows 2-3% a year.
The large motors and generators market has been well-positioned to benefit from recent economic trends, exemplified by the fast growing economies of India, Brazil, and especially China. Application areas for these large electrical machines are concentrated in areas that supply growing populations. Applications like mining that help extract the raw materials needed for growing manufacturing bases; oil and gas production that provides the energy required to fuel the growth; power generation and water treatment plants needed to supply growing, increasingly rich populations.
According to analyst Steve Odom, “The only downside of the market the last two years has been the run up in raw material costs tightening margins. Motors require a lot of copper. While average selling prices of these machines stayed relatively stable in 2005, prices for copper increased 75% in the first seven months of 2006 and 45% in 2005.”
—Edited by C.G. Masi , Control Engineering senior editor