The motor monitoring market was valued at USD 1.8 billion in 2020 and is expected to reach USD 3.2 billion by 2027, at a CAGR of 8.6% during the forecast period. Motors are used in several industries to power various equipment. Motors are the key components in any machinery and are highly susceptible to wear and tear when used extensively in unfavourable environmental and mechanical conditions.
A minor fault in motors can impact the productivity of the entire plant. The growing competitiveness of several capital-intensive manufacturing industries, such as oil & gas, aerospace & defence, mining, and automotive, is expected to encourage the companies to generate maximum revenue with a minimum investment. This may lead them to plan operational excellence and quality management processes at the ground level. Such management processes demand the monitoring of faults in the most critical components of plant machinery, such as motors, to avoid the impact of their failure on final productivity. Motor monitoring senses the faults in motors at their nascent stage. The installation of monitoring solutions incurs some cost to the plant; however, companies prefer bearing this cost to suppress the possibility of much bigger losses.The growing adoption of predictive maintenance and other monitoring solutions is compelling enterprises to appoint a dedicated data analysis team. This team should know motors well, along with their operation in a particular machine, to get the correct information on the health of motors. This will, in turn, increase the indirect cost to companies. The lack of skilled professionals at reasonable costs is expected to be the major factor restraining market growth during the forecast period.
The industrial internet of things (IIoT) creates a huge demand for advanced connected devices. These connected devices enable machine-to-machine communication and interoperate with other devices according to the requirement of the connected environment. This increases the use of monitoring solutions, which actively take preventive steps for motor maintenance, thereby reducing human intervention.
The oil & gas industry is one of the leading industries where motor monitoring solutions are widely used. The recent decline in crude oil prices has resulted in a steep fall in capital budgets, which has eventually led to a fall in demand for industrial equipment from the industry; this, in turn, is expected to reduce the demand for monitoring solutions in the oil & gas industry. Oil & gas companies are increasingly focusing on improving operational efficiency in this period of economic downturn. Their operations are expected to be streamlined in terms of improving efficiencies and working with fewer resources after they overcome the current oil price situation. The reduced investments in the oil & gas industry have resulted in the lesser implementation of motor monitoring solutions.
The major players in the market include Banner Engineering Corporation, ABB Ltd., National Instruments Corporation, SKF AB, Honeywell International Inc, General Electric Company, Emerson Electric Company, Rockwell Automation Inc, Schneider Electric SE, and Mitsubishi Electric Corporation among others.
Europe is anticipated to witness moderate growth by 2025. However, Asia Pacific is expected to emerge as the fastest-growing region over the forecast years. Significant investments by several companies to expand within the region are anticipated to drive the market growth in APAC. Furthermore, presence of huge industrial sector, rapid urbanization, and expansion of manufacturing activities will add to the market growth.
The growth of the market in APAC region is attributed to the presence of several manufacturing industries and increasing awareness regarding the benefits of the implementation of monitoring solutions. China, Japan, South Korea, and India own a substantial number of manufacturing industries; therefore, there is a continuous demand for motor monitoring systems in APAC.