- Rapid growth of the economy encourages industries to expand capacity, driving demand for electric motors
SAO PAULO, Oct. 31, 2012 /PRNewswire/ -- The brisk pace of economic growth in Brazil, fueled by rising internal consumption, will prompt industries to automate their production lines and add capacity. This significant industrial activity will give a major boost to the sales of electric motors, as they are an integral part of the automated production process.
New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Analysis of the Brazilian Electric Motors Market, finds that the market earned revenues of $1.37 billion in 2011 and estimates this to reach $2.15 billion in 2016.
"The extensive use of electric motors across various manufacturing processes will open up the market for AC motors," said Frost & Sullivan Research Analyst Alejandro Diaz Lopez. "In some segments, old electric motors are approaching the end of their life, compelling manufacturers to switch to AC motors, which are more efficient than DC ones."
While the increasing automation and expanding application scope signify opportunities, it also translates into an intensified competition. Domestic participants still dominate the market but the entry of low-cost foreign companies from Asia could commoditize the products and squeeze margins.
To stand out in such a market, manufacturers should offer value-added solutions such as maintenance and assistance in service bundles. They have to prove that better quality and more efficient products coupled with strong after-sales services can bring savings to the end user in the long run.
Currently, clients seek manufacturers that can collaborate with them to develop customized solutions and offer specialized after-sales services.
"Electric motor companies should provide a complete portfolio that includes other devices related to motors such as electric drives, bearings, and assorted gear products," noted Diaz Lopez. "Providing a one-stop solution adds substantial value because end users prefer suppliers that can offer solutions with exclusive maintenance and service packages."
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Analysis of the Brazilian Electric Motors Market is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: Analysis of the Andean Region Market for Electric Drives, Brazilian Market for Electric Drives, Southern Cone Market for Electric Motors, and Southern Cone Region Markets for Electric Drives. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Analysis of the Brazilian Electric Motors Market
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SOURCE Frost & Sullivan