AC Electric Motor Sales in Oil and Gas Market to Grow by USD 3.58 Billion (2024-2028), Rising Oil Demand and AI Driving Market Transformation - Technavio Report

NEW YORK, Oct. 7, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global ac electric motor sales in oil and gas market size is estimated to grow by USD 3.58 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 5.72% during the forecast period. Increase in oil and gas demand is driving market growth, with a trend towards increasing adoption of electric motors in ROVs and subsea production systems. However, fluctuations in global crude oil prices poses a challenge. Key market players include ABB Ltd., Arc Systems Inc., Elektrim Motors, FLANDERS Inc., Franklin Electric Co. Inc., General Electric Co., Hitachi Ltd., Hoyer Motors, Nidec Corp., NOV Inc., Parker Hannifin Corp., Regal Rexnord Corp., Rockwell Automation Inc., Schlumberger Ltd., Siemens AG, TECO-Westinghouse, Toshiba Corp., WEG S.A, Wolong Electric Group Co. Ltd., and Yaskawa Electric Corp..

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Forecast period

2024-2028

Base Year

2023

Historic Data

2017 - 2021

Segment Covered

Power Rating (Less than 1kV, Between 1 kV and 6.6 kV, and Greater than 6.6 kV), Type (Induction motor and Synchronous motor), and Geography (APAC, Middle East and Africa, North America, Europe, and South America)

Region Covered

APAC, Middle East and Africa, North America, Europe, and South America

Key companies profiled

ABB Ltd., Arc Systems Inc., Elektrim Motors, FLANDERS Inc., Franklin Electric Co. Inc., General Electric Co., Hitachi Ltd., Hoyer Motors, Nidec Corp., NOV Inc., Parker Hannifin Corp., Regal Rexnord Corp., Rockwell Automation Inc., Schlumberger Ltd., Siemens AG, TECO-Westinghouse, Toshiba Corp., WEG S.A, Wolong Electric Group Co. Ltd., and Yaskawa Electric Corp.

Key Market Trends Fueling Growth

In the oil and gas industry, the shift from hydraulic motors to AC electric motors is gaining momentum, particularly in applications such as remotely operated vehicles (ROVs) and subsea production systems. Hydraulic motors, while traditionally used due to their relatively low cost and higher power density, come with drawbacks such as venting, leaking, and a larger size compared to electric motors of the same capacity. In ROVs, the elimination of hydraulic power units, couplings, fluid lines, and valve packages in electric motor designs leads to increased reliability and reduced downtime. Furthermore, electric motors offer more efficient operations in subsea production systems, eliminating the need for hydraulic power units and reducing operating costs and risks. The increasing adoption of electric motors in these applications is expected to fuel the growth of the global AC electric motor sales in the oil and gas market.

In the Oil and Gas market, energy efficiency and sustainability are top priorities. Ac Electric Motors play a crucial role in drilling, pumping, compressing, and processing fluids in drilling rigs, refineries, petrochemical plants, midstream facilities, and pumping stations. Smart technologies like AC electric motors offer energy-efficient solutions for harsh operating conditions, such as extreme temperatures, corrosive atmospheres, and potentially explosive environments. Induction motors and DC motors are popular choices due to their reliability and compatibility with power systems. Energy efficiency improvements are essential in an industry facing economic uncertainties and volatile oil prices. AC electric motors convert electrical energy into mechanical energy for bulk usage in various applications, including ventilation, pressurization, blending, agitation, and compressor systems. Compatibility with alternative energy storage solutions, like batteries, is also a trend in the industry. AC electric motors consist of an outside stator with coils and an inside rotor with an output shaft. The electromagnetic induction process powers these motors, making them a vital component in the global energy market. Voltage and power consumption are critical factors when selecting the right motor technology for Oil and Gas applications.

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Market Challenges

The volatility of global crude oil prices significantly impacts the profitability and performance of oil and gas Exploration and Production (E&P) companies. Fluctuations in prices can result in the cancellation or rescheduling of projects due to reduced profitability. According to the International Energy Agency (IEA), the volume-weighted average crude oil import cost for major oil-importing countries was USD103.0 billion in 2022, a 12.2% increase from 2021. This trend has been a concern for the industry over the past decade, with several projects being canceled or delayed due to low prices. The global pandemic further exacerbated this issue, causing delays in Arctic oil field development projects. Additionally, geopolitical tensions, such as the US-Iran conflict, contribute to the volatility in prices. Upstream companies are particularly affected by these price fluctuations as their production costs are largely fixed, making investment decisions and profits vulnerable. This capital-intensive nature of E&P operations can result in slow growth or even a decline in activities, including drilling project delays and cancellations. Consequently, fluctuations in global crude oil prices pose a significant challenge to the growth of the entire oil and gas industry, impacting all value chain members, including the global AC electric motor sales in oil and gas market.

In the Oil and Gas industry, midstream facilities and pumping stations rely heavily on AC electric motors for converting electrical energy into mechanical energy for bulk usage. However, challenges exist in this market. Economic uncertainties and oil price fluctuations impact the demand for AC motors. Alternative energy storage solutions like batteries and DC motors pose competition. Motor technology must withstand harsh operating conditions, including extreme temperatures, corrosive atmospheres, and potentially explosive environments. Reliability is crucial. AC electric motors, such as induction and synchronous, offer varying speeds and torque current pumps for different applications. Energy efficiency improvements are essential in today's global energy landscape. AC electric motors, with their outside stators and inside rotors, are compatible with power systems and offer high starting torque and output power. Machine tools, power tools, automation, cranes, and auxiliary generators all benefit from energy-efficient AC electric motors. Urbanization and hydrocarbon reserve exploitation further increase demand. Despite challenges, AC electric motors remain vital in the Oil and Gas sector due to their efficiency, versatility, and ability to handle heavy loads. Compatibility with voltage and power systems is crucial. As the industry evolves, AC electric motors will continue to play a significant role in the conversion of electrical energy to mechanical energy for various applications.

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Segment Overview

This ac electric motor sales in oil and gas market report extensively covers market segmentation by

Power Rating

1.1 Less than 1kV

1.2 Between 1 kV and 6.6 kV

1.3 Greater than 6.6 kV

Type

2.1 Induction motor

2.2 Synchronous motor

Geography

3.1 APAC

3.2 Middle East and Africa

3.3 North America

3.4 Europe

3.5 South America

1.1 Less than 1kV- In the Oil and Gas industry, AC Electric Motors play a significant role in powering various operations. Our company specializes in providing top-quality AC Electric Motors for this market. We offer reliable, efficient, and cost-effective solutions to meet the unique demands of Oil and Gas businesses. Our team of experts is dedicated to ensuring customer satisfaction by delivering motors that meet industry standards and regulations. Trust US for your AC Electric Motor needs in the Oil and Gas sector.

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Research Analysis

The oil and gas industry is continually seeking energy-efficient solutions to reduce operational costs and minimize carbon emissions. Ac electric motors play a crucial role in powering various applications within the industry, including drilling rigs, pumping systems, compressors, and refineries. These motors convert electrical energy into mechanical energy through the process of electromagnetic induction. Ac electric motors come in different types such as induction electric motors and synchronous electric motors. Induction motors are widely used due to their simplicity, reliability, and cost-effectiveness. They consist of an outside stator with coils and an inside rotor. Variable frequency drives (VFDs) are often used with ac electric motors to optimize energy consumption and improve overall system efficiency. Ac electric motors are used in various applications within the oil and gas industry, such as drilling, fluid flow, pressurization, ventilation, petrochemical plants, blending, agitation, and midstream facilities. Energy efficiency is a key consideration in the design and operation of these motors, as they can significantly impact power consumption and overall energy usage. Smart technologies, such as VFDs and advanced motor control systems, are increasingly being adopted to optimize motor performance and reduce energy waste.

Market Research Overview

The oil and gas industry relies heavily on AC electric motors for various applications, including drilling rigs, compressors, pumps, refineries, petrochemical plants, midstream facilities, and pumping stations. These motors convert electrical energy into mechanical energy for bulk usage in the industry. AC electric motors come in different types, such as induction and synchronous, each with unique features. Induction motors, for instance, offer high starting torque and are suitable for harsh operating conditions with extreme temperatures, corrosive atmospheres, and potentially explosive environments. Sustainability and energy efficiency are crucial in today's oil and gas market, with smart technologies and energy-efficient solutions becoming increasingly important. AC electric motors play a significant role in improving energy efficiency through voltage and compatibility adjustments, power systems optimization, and motor technology advancements. Economic uncertainties, oil prices, and alternative energy storage solutions, such as batteries and DC motors, also impact the market for AC electric motors in the oil and gas industry.

Table of Contents:

1 Executive Summary2 Market Landscape3 Market Sizing4 Historic Market Size5 Five Forces Analysis6 Market Segmentation

Power Rating

Type

Geography

7 Customer Landscape8 Geographic Landscape9 Drivers, Challenges, and Trends10 Company Landscape11 Company Analysis12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

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