The global motor protection market is projected to grow at a CAGR of 6.86% during the forecast period to reach a value of USD 5.09 Billion by 2020. The growth is attributed to growing focus on safety towards motors and robust growth in the HVAC market.
The motor protection market, on the basis of device type, has been categorized into four segments: overload relays, vacuum contactors, and combination starters & motor protection circuit breaker. The overload relays segment is expected to hold the largest market share during the forecast period, followed by vacuum contactors. Ease of installation, lower price, and wide range of availability are the major growth drivers of this segment. Moreover, overload relays are in-built in various other motor protection & control equipment such as frequency drives and motor soft starters.
On the basis of end-use industry, the motor protection market has been segmented into oil & gas, water & wastewater, infrastructure, metals & mining, food & beverages, and others. The oil & gas industry is expected to dominate the motor protection market during the forecast period. New oil discoveries coupled with growing focus towards deepwater drilling activities is the major driver for growth. However, infrastructure (residential & commercial) is the fastest growing segment in the market. The developing economies are investing in infrastructure, which is the major driver of this segment.
Asia-Pacific was the leading market for motor protection devices in 2014, owing to large scale industrialization and urbanization in the region China, Japan, and India are the fastest growing markets for motor protection in the region. The figure below indicates the market sizes of Asia-Pacific countries in 2015 and 2020, along with their CAGRs for 2015 to 2020.
The mining industry underwent a serious downturn in 2014. There was a steep fall in prices of iron ore, gold, silver, coal, and copper between 2013 and 2014. For instance, the price of iron ore declined nearly 40% from USD 130 a ton in January 2014 to USD 82 a ton in September 2014. Likewise, from 2012 to 2013, the annual average gold price also dropped from USD 1,669 per troy ounce to USD 1,411 per troy ounce. Weakening prices and a sluggish outlook for demand growth have turned investors away from the mining sector. This has forced several companies to cut costs and postpone projects in order to survive. The CAPEX investment by miners was also recorded low. The resulting decline in CAPEX is not good for mining equipment manufacturers. Hence, all these factors are expected to restrict the growth of motor protection devices used in the mining sector.
Some of the leading players in the motor protection market include ABB Ltd. (Switzerland), Siemens AG (Germany), Schneider Electric (France), Eaton Corporation (Ireland), and General Electric Company (U.S.). Expansions and new product launches were the most widely adopted strategies by top players in the market, constituting 30% each of the total development share during 2012-2015. Contracts & agreements accounted for 24%, while mergers & acquisitions held 16% share during the same period.