[190 Pages Report] The AC Electric Motor in Oil & Gas Market size was estimated at USD 14.64 billion in 2023 and expected to reach USD 15.60 billion in 2024, at a CAGR 6.96% to reach USD 23.45 billion by 2030.
An AC electric motor is an electric motor that utilizes alternating current (AC) as its source of power instead of direct current (DC). AC electric motors used across oil & gas industries use electromagnetic induction to create rotational motion, which can be used to power pumps and compressors. The alternating current type of electric motor has several advantages over DC motors, such as greater efficiency, higher starting torque, and variable speed control capabilities. The demand for AC electric motors in the oil & gas industries is driven by the increased need for energy efficiency and reliability due to the harsh operating conditions. Additionally, AC electric motors offer superior speed control and monitoring capabilities. The use of AC electric motors across onshore oil & gas industrial procedures has increased significantly due to the ability of motors to work in varying environmental conditions and longer life cycles compared to other types of motors. However, the high costs associated with AC electric motors and complex operating procedures limit their adoption across oil & gas industries. The ongoing advancements, including the deployment of predictive maintenance capabilities in AC electric motors, are expected to create opportunities for the market in the coming years.
The oil & gas sector in Europe, the Middle East, and Africa is rapidly expanding due to significant investments and growing advancements toward Industry 4.0, further accelerating the demand for AC electric motors to improve production and distribution capabilities. As per the World Population Review, Russia produces 10,503,000 barrels of oil per day, while Saudi Arabia, Iraq, UAE, Kuwait, and Iran produce 10,225,000 barrels per day, 4,260,000 barrels per day, 2,954,000 barrels per day, 2,610,000 barrels per day, and 2,546,000 barrels per day respectively. Furthermore, due to the rising demand for gas and the declining domestic supply, countries in Southeast Asia are actively transitioning to become net gas importers. According to the 2021 report by the International Affairs Institute (IAI), gas plays a crucial role in the regional energy mix and is Southeast Asia's second most consumed energy. Thus, the Asian economies are heavily investing in oil & gas production and distribution, supporting the use of AC electric motors in the Asia-Pacific region. Moreover, the ongoing development and advancement in AC electric motors and supportive investments for onshore oil infrastructures in the Americas have expanded the scope of AC electric motors. Market players in the Americas are investing in research to develop smart/intelligent motor systems with enhanced safety features and are leveraging advanced materials to create more efficient and reliable AC electric motors for the oil & gas industry.
Induction motors use electromagnetic current to convert electrical energy into mechanical motion. Induction motors are normally used for driving pumps, compressors, fans, and other equipment in oil & gas facilities. Synchronous motors operate at a constant speed and maintain synchronization with the frequency of the power supply. A synchronous motor runs at a constant speed, independent of the load, and it is driven by a self-starting, alternating current (AC) power source. They are reliable and have relatively low maintenance requirements due to their robust nature. Synchronous motors offer increased efficiency over traditional AC motors, operating at a frequency optimized for the specific application. They are commonly used in high-power compressors, generators, and critical processes requiring precise speed control.
AC electric motors with a voltage rating of less than 1 kilovolt (kV) are often employed in smaller equipment such as pumps, fans, blowers, and smaller compressors in oil & gas facilities. AC electric motors with a voltage rating ranging from 1 kV to 6.6 kV and higher than 6.6 kV are widely used in medium to high power applications in the oil & gas industry. These motors are commonly employed in larger compressors, generators, pumps, and other heavy-duty equipment. AC electric motors with a more than 6.6 kV voltage possess several key characteristics, including higher power output, greater efficiency, and improved overload capacity. These motors are typically designed for continuous duty operations and have higher torque ratings than lower voltage models.
AC electric motors with an output power rating of less than 1 horsepower (HP) are commonly used for low-power applications in the oil & gas industry. These motors are typically used in small equipment and devices such as pumps, fans, blowers, and instrumentation. AC electric motors with an output power rating higher than 1 horsepower (HP) are widely used in the oil & gas industry for medium to high-power applications. They offer higher power output and are designed to handle more demanding operational requirements.
In offshore operations, AC electric motors are employed in the oil & gas industry to withstand harsh marine environments, including high humidity, saltwater exposure, and potentially corrosive conditions. They are used in various offshore applications, including drilling rigs, production platforms, floating production storage and offloading (FPSO) vessels, subsea systems, and other offshore equipment. AC electric motors are extensively used in onshore oil & gas operations involving land activities. Onshore motors are installed in various equipment and facilities, such as drilling rigs, pumping stations, refineries, pipelines, compressor stations, and storage terminals. AC electric motors used in the onshore oil & gas industry must have the ability to withstand various factors, including temperature variations, dust, and potential exposure to flammable or hazardous materials.
The market dynamics represent an ever-changing landscape of the AC Electric Motor in Oil & Gas Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the AC Electric Motor in Oil & Gas Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the AC Electric Motor in Oil & Gas Market.
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the AC Electric Motor in Oil & Gas Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
The value chain of the AC Electric Motor in Oil & Gas Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the AC Electric Motor in Oil & Gas Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the AC Electric Motor in Oil & Gas Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the AC Electric Motor in Oil & Gas Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the AC Electric Motor in Oil & Gas Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the AC Electric Motor in Oil & Gas Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the AC Electric Motor in Oil & Gas Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the AC Electric Motor in Oil & Gas Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the AC Electric Motor in Oil & Gas Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
IPS Expands Market Reach and Enhances Service Capabilities with Acquisition of Electric Motor Service Limited
Integrated Power Services (IPS) strategically expanded its market presence by acquiring Electric Motor Service Limited. This acquisition is part of IPS's broader strategy to improve its service offerings and geographic reach in the North American market. Electric Motor Service Limited, known for its robust oil & gas industry servicing capabilities, complements IPS's existing services by providing additional expertise and resources. This expansion strengthens IPS's position in the market and improves service solutions for clients in critical industries, emphasizing reliability and efficiency in electric motor and generator applications. [Published On: 2024-03-05]
WEG Enhances Global Reach with Acquisition of Regal Rexnord's Electric Motor and Generator Division
WEG, a Brazilian electrical equipment company, acquired the industrial electric motors and generators business from Regal Rexnord. This acquisition, directed toward enhancing WEG's manufacturing capabilities and market penetration, involves the transfer of production facilities located in Mexico, including approximately 500 experienced employees joining WEG. [Published On: 2023-09-25]
ABB Introduces Advanced IE5 Electric Motor Designed for Hazardous Oil and Gas Environments
ABB unveiled a highly efficient IE5 synchronous reluctance motor specifically engineered for use in explosive environments encountered in the oil & gas sector. This motor is notable for achieving the highest level of energy efficiency, categorized as IE5, representing a significant advancement in reducing energy consumption and operational costs in hazardous settings. This development is crucial given the stringent safety and efficiency standards in explosive atmospheres. [Published On: 2023-09-08]
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the AC Electric Motor in Oil & Gas Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
The report delves into recent significant developments in the AC Electric Motor in Oil & Gas Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd, ARC Systems, Inc., CG Power & Industrial Solutions Ltd., Danfoss A/S, Emerson Electric Co., Flanders Inc., Fuji Electric Co., Ltd., General Electric Company, Hayward Tyler Ltd., HD Hyundai Electric Co., Ltd., Hitachi, Ltd., Hordu Electric Motor, Hoyer Motors, Kirloskar Electric Company Ltd., Langley Holdings PLC, Menzel Elektromotoren GmbH, Nidec Corporation, O.M.E. Motori Elettrici s.r.l., Schlumberger Limited, Siemens AG, Southwest Electric Co., TECO Electric and Machinery Co., Ltd., Toshiba Corporation, VYBO Electric a.s., WEG S.A., Windings Inc., and Wolong Electric Group.
This research report categorizes the AC Electric Motor in Oil & Gas Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Product Type
- Induction Motor
- Synchronous Motor
- Voltage
- 1–6.6 kV Motor
- <1 kV Motor
- >6.6 kV Motor
- Output Power (HP)
- 1 HP Motor and Above
- Less than 1 HP Motor
- Mode of Operation
- Offshore
- Onshore
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- AC Electric Motor in Oil & Gas Market, by Product Type
- AC Electric Motor in Oil & Gas Market, by Voltage
- AC Electric Motor in Oil & Gas Market, by Output Power (HP)
- AC Electric Motor in Oil & Gas Market, by Mode of Operation
- Americas AC Electric Motor in Oil & Gas Market
- Asia-Pacific AC Electric Motor in Oil & Gas Market
- Europe, Middle East & Africa AC Electric Motor in Oil & Gas Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 24]
- List of Tables [Total: 370]
- List of Companies Mentioned [Total: 27]
In the context of the oil and gas industry, AC electric motors are a cornerstone of operational success. These motors are tasked with driving heavy-duty machinery that extracts, transports, and refines hydrocarbons. Their significance is apparent in their ability to deliver consistent, reliable power for these operations, thereby maximizing productivity and safety.
Recent innovations in AC electric motors have focused on improving efficiency, reliability, and environmental impact. Variable frequency drives (VFDs) are increasingly integrated to enhance motor control and energy efficiency. Additionally, there's a growing emphasis on designing motors with materials and coatings that withstand the harsh conditions present in the oil and gas industry, such as extreme temperatures and corrosive environments. In May 2022, ABB Ltd. launched its flameproof low-voltage motors for use in explosive atmospheres. These motors are designed to provide a safe and reliable operation, even under the most challenging conditions.
Moreover, as the industry shifts towards sustainability and environmental responsibility, AC electric motors are at the forefront of energy-efficient solutions. With ongoing innovations and a growing focus on sustainability, these motors continue to evolve and adapt to the changing landscape of the oil and gas industry, making them more efficient and environmentally responsible.
The AC electric motor has transformed the oil and gas industry thanks to its ability to handle high horsepower in harsh environments. This motor's versatility allows it to adapt to a variety of applications, including pumping, compressing, and drilling. This has led to a surge in demand, particularly in onshore applications, where drilling chips away at supplies underground. The high efficiency of AC electric motors ensures a higher oil and gas yield, which ultimately translates into greater profits for companies.
Another significant advantage of AC electric motors is their ability to be remotely operated from a centralized location. This enables maximum utilization of resources and minimizes the number of workers required on-site, which reduces the effects of severe weather conditions such as freezing temperatures, scorching heat, or hazardous chemical leaks. Additionally, the motors' versatility allows them to be optimized to carry out tasks such as pulling downtime logs and performing any predictive maintenance procedures necessary to increase safety measures.
AC electric motors are an environmentally friendly option when used in the oil and gas industry. The electric motors are quieter than their diesel counterparts, producing less of an environmental impact in the process. Additionally, given that diesel requires considerably more maintenance than its electric counterpart, utilizing AC electric motors helps reduce pollutants like carbon dioxide and nitrogen oxides.
Apart from the previously mentioned features, AC electric motors have proven to be more cost-effective in the long run. Typically, oil and gas companies that use AC electric motors note a decline in costs due to their energy efficiency, low maintenance costs, and ability to reduce downtime. Furthermore, these motors are designed to operate on high-efficiency ranges with reduced energy consumption while providing longer run times on frequent starts.
The increasing deployment of AC electric motors in onshore oil and gas procedures is hugely beneficial. These motors offer versatility, efficiency, safety, low maintenance, and cost-saving opportunities that result in a quick return on investment. We see significant growth for AC electric motors as companies shift production toward more sustainable methods. Lastly, with technologies continuing to develop, such as more efficient cooling technologies, the deployment of AC electric motors in onshore oil and gas procedures will continue to grow exponentially.
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