India Electric Motor Market - 2017

Indian Electric Motor Market, Forecast to 2022
Revival of Key Indian Industries and the Infrastructure Sector to Boost

Demand for Electric Motors
Global Industrial Automation and Process Control Research Team at Frost & Sullivan
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October 2017
Contents
Section Slide Number

Executive Summary 12
• Market Engineering Measurements 15
• CEO’s Perspective 18
Market Overview 19
• Definitions 20
• Key Questions This Study Will Answer 24
• Market Segmentation 25
Forecast and Trends—Total Electric Motor Market 26
• Forecast Assumptions 28
• Revenue Forecast 29
• Revenue Forecast Discussion 30
• Percent Revenue Forecast by OEM and End-user Segment 31
• Revenue Forecast by OEM and End-user Segment 32
• Revenue Forecast Discussion by OEM and End-user Segment 33
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Contents (continued)

Market Share and Competitive Analysis—Total Electric Motor Market 34
• Market Share 35
• Market Share Analysis 36
• Competitive Environment 37
• Competitive Factors and Assessment 38
Growth Opportunities and Companies to Action 39
• Growth Opportunity—Electric Motors 40
• IoT for Motors—Roadmap 41
• Strategic Imperatives for Success and Growth 42
FHP Electric Motor Market Overview 43
• Product Segmentation 45
• End-user Segment Breakdown 46
External Challenges: Drivers and Restraints—FHP Electric Motor Market 47
• Market Drivers 48
• Drivers Explained 49
• Market Restraints 52
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• Restraints Explained 53
Forecast and Trends—FHP Electric Motor Market 55
• Key Findings 56
• FHP AC and DC Electric Motor Market—Revenue Forecast 61
• FHP AC and DC Electric Motor Market—Revenue Forecast Discussion 62
• Percent Revenue Forecast by End-user Segment 63
• Revenue Forecast by End-user Segment 64
• Revenue Forecast Discussion by End-user Segment 65
Market Share and Competitive Analysis—FHP Electric Motor Market 66
• Market Share 67
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• Top Competitors 70
IHP Electric Motor Market Overview 72
• Percent Revenue Split by Voltage Rating 75
• Percent Revenue Split by Power Rating 76
• Percent Revenue Share by OEM 77
• Percent Revenue Share by End User 78
External Challenges: Drivers and Restraints—IHP Electric Motor Market 79
• Market Drivers 80
• Drivers Explained 81
• Market Restraints 84
• Restraints Explained 85
Forecast and Trends—IHP Electric Motor Market 88
• Key Findings 89
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• Percent Revenue Forecast by Voltage Rating 94
• Revenue Forecast by Voltage Rating 95
• Revenue Forecast Discussion by Voltage Rating 96
• Percent Revenue Forecast by Power Rating 97
• Revenue Forecast by Power Rating 98
• Revenue Forecast Discussion by Power Rating 99
• Percent Revenue Forecast by OEM and End-user Segment 100
• Revenue Forecast by OEM and End-user Segment 101
• Revenue Forecast Discussion by OEM and End-user Segment 102
Market Share and Competitive Analysis—IHP Electric Motor Market 103
• Market Share 104
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• Top Competitors 107
IHP AC Electric Motors Segment Breakdown 109
• IHP AC LV Electric Motors Subsegment—Efficiency Rating 115
• Percent Revenue Split by OEM 117
• Percent Revenue Split by End User 118
• Percent Revenue Forecast by Product Type 121
• Revenue Forecast by Product Type 122
• Revenue Forecast Discussion by Product Type 123
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• Segment Share 124
• Segment Share Analysis 125
IHP DC Electric Motors Segment Breakdown 127
• Percent Revenue Share by OEM 132
• Percent Revenue Share by End User 133
• Segment Share 136
• Segment Share Analysis 137
IHP Electric Motor Market—OEM Analysis: Rotating Equipment Segment Breakdown 138
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Material Handling Segment Breakdown 141
HVAC Segment Breakdown 144
General Machinery Segment Breakdown 147
IHP Electric Motors—End-user Analysis: IHP Electric Motors in the Power Sector Breakdown 150
IHP Electric Motors in the Oil and Gas Sector Breakdown 153
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IHP Electric Motors in the Cement Sector Breakdown 156
IHP Electric Motors in the Metals and Mining Sector Breakdown 159
IHP Electric Motors in the Food and Beverage Sector Breakdown 162
IHP Electric Motors in the Textiles Sector Breakdown 165
IHP Electric Motors in the Others Sector Breakdown 168
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The Last Word 171
• The Last Word—Three Big Predictions for the FHP Motor Market 172
• The Last Word—Three Big Predictions for the IHP Market 173
• Legal Disclaimer 174
Appendix 175
• Market Engineering Methodology 176
• Table of Acronyms Used 177
• Partial List of Companies Interviewed 178
• Learn More—Next Steps 179
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Executive Summary
Return to contents
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Executive Summary
Total Electric Motor Market: Segmentation, India, 2017
India Electric Motor Market

₹68,950.0 Million
FHP Motors IHP Motors

CAGR 5.4% CAGR 6.0%
₹11,150.0 Million ₹57,800.0 Million
AC Asynchronous AC Synchronous AC Squirrel Cage AC Slip Ring

85.3% 9.2% 82.4% 8.1%
₹9,511.0 Million ₹1025.8 Million ₹47,644.0 Million ₹4,709.0 Million
DC Motors AC Asynchronous DC Motors

5.5% 5.3% 4.2%
₹613.2 Million ₹3,047.0 Million ₹2,400.0 Million
• On the basis of power output, the electric motor market is segmented into fractional horsepower (FHP)
motors (less than 0.75 kW) and integral horsepower (IHP) motors (more than 0.75 kW).
• In India, most of the electric motors demand is from new projects, while the retrofit market sales
contribution is comparatively less.
Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
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Executive Summary (continued)
• FHP motors are generally used in low-power applications, such as home appliances, medical
equipment and business equipment.
• Used by OEMs and end users, IHP motors find application in industrial and commercial
purposes, such as industrial blowers, conveying equipment, material handling and
compressors.
• AC motors are witnessing an increase in demand, as they are more efficient and require less
maintenance than DC motors.
• LV motors are mostly standardised products and are sold through channel partners and OEMs.
On the other hand, most of the MV motor sales are directly made to end users.
• With revenue of ₹57,800.0 million in FY 2017, IHP motors command a market share of 83.8
percent of the total electric motor market in India. IHP AC motors and IHP DC motor markets
constitute 95.8 percent and 4.2 percent, respectively, of the IHP motor market in India.
• FHP motors hold 16.2 percent of the total electric motor market in India. It generated a revenue
of ₹11,150.0 million in FY 2017.
• Expected growth in infrastructure, power, oil and gas, consumer durables and automotive
industry is likely to boost the manufacturing industry, thereby creating demand for electric
motors in India. Source: Frost & Sullivan
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Market Engineering Measurements
Total Electric Motor Market: Market Engineering Measurements, India, 2017

Market Overview
Market Size at Base Year Compound
Market stage Market Revenue End of Forecast Market Growth Annual Growth
Period Rate Rate
Growth ₹68,950.0 M ₹92,017.0 M 5.3% 5.9%
(2017) (2022) (CAGR, 2017–2022)
Competitor Overview
Degree of
Customer Price Market Number of
Technical
Sensitivity Concentration Competitors
Change
8 5 34.1% >13
(% of market share held by top (active market competitors in

(scale:1 [low] to 10 [High]) (scale:1 [low] to 10 [High]) base year)
3 companies)
For a tabular version click here.

Decreasing Stable Increasing
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Market Engineering Measurements (continued)
FHP Electric Motor Market: Market Engineering Measurements, India, 2017

Market Overview
Period Rate Rate
Growth ₹11,150.0 M ₹14,501.6 M 4.9% 5.4%
(2017) (2022) (CAGR, 2017–2022)
Competitor Overview
Degree of
Technical
Change
8 5 48.4% >4

3 companies)

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Market Engineering Measurements (continued)
IHP Electric Motor Market: Market Engineering Measurements, India, 2017

Market Overview
Period Rate Rate
Growth ₹57,800.0 M ₹77,515.4 M 5.4% 6.0%
(2017) (2022) (CAGR, 2017–2022)
Competitor Overview
Degree of
Technical
Change
8 6 37.2% >10

3 companies)

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CEO’s Perspective
Energy-intensive industries—oil and gas, power and

metals and mining—prefer energy-efficient motors
1 especially in high-rating motors, such as those
above 75 kW.
Value-added services, such as IoT and remote

monitoring of equipment, are expected to be one of
2 the most glaring trend shifts in the industrial motor
market.
Imports and unorganised players constitute nearly

3 40 percent of the total motor market in India, as their
motors are competitively priced.
Growing segments like HVAC, water and waste

water, electric vehicle and irrigation are set to
4 contribute to the increasing demand for electric
motors in India.
Motor manufacturers need to prepare themselves

5 with the required expertise to offer cost-effective
solution (e.g., integrated motors).
Source: Frost & Sullivan
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Market Overview
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Definitions
Terminology Definition
• Market sizing for the base year is based on the supply-side analysis of the market, i.e., by the aggregation of the annual
Market sales revenue of major participants in the electric motor market in India.
• Exports are not included in the study.
• The electric motor market consists of the following segments:
o Fractional Horsepower Motors (FHP)
o Integral Horsepower Motors (IHP)
Product
• Voltage ratings for IHP motors: 415V, 690V, 3.3kV, 6.6kV, 11 kV. 415V and 690V are part of the LV category while the rest
is in the MV category.
• Power ratings for IHP motors: 0.75 kW, 0.76 to 7.5 kW, 7.6 kW to 75 kW, 76 kW to 750 kW and >750 kW.
Base Year & • The Indian Financial Year (FY) represents April to March of the Financial Year.
Market Projection • Base year for the market is FY2017.
Years • Projection period is from FY2018 to FY2022.
Fractional Horsepower (FHP) Motors Integral Horsepower (IHP) Motors

• Household Appliances (HA) Original Equipment End Users
• Material Handling (MH) Manufacturer (OEM) • Oil & gas
• General Machinery (GM) • Rotating Equipment • Textiles
• OEM (Rotating Equipment & HVAC) • HVAC • Food and beverages
End-user Industry • Material Handling • Power
• General Machinery • Cement
• Metals and mining
• Others include pulp and paper, automotive,
pharmaceuticals, chemicals, plastic, printing and
packaging machinery
Major Suppliers/ Crompton Greaves, ABB, Siemens, BHEL, Bharat Bijlee, Kirloskar Electric, Marathon Electric, Others include LHP,
Manufacturers Hindustan Motors, WEG, Integrated Electric and other SME and unorganised participants.
Market/Revenue
All market/revenue numbers are in ₹ million, unless mentioned otherwise.
Numbers
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Definitions (continued)
Fractional Horsepower Motors (FHP)

Fractional Horsepower Motors are motors whose power rating is less than one horsepower (750 watts) They can operate
either on direct current (DC) or alternating current (AC). FHP motors are used in low-voltage power applications. Some of
its applications are household electrical appliances, medical equipment, business equipment, automobile and motorcycle
industries.
FHP Motor Classification by Product Type
• The products are classified at an overall level into the following:
• AC asynchronous FHP electric motors
• AC synchronous FHP electric motors
• DC FHP electric motors
FHP Motor Classification by OEM/Other Applications
• The research service provides revenue, forecast market drivers and restraints for each product type within major end-
user groups, which cover the following:
o OEM Applications: These include rotating machines used in pumps, fans, blowers and compressors; and HVAC.
The OEMs are serviced directly by motor manufacturers or by the dealer-distributor network.
o Household Appliances: These include all domestic appliances, in which a motor is used, such as washing
machines, fans, mixers and wet grinders.
o Other Applications: These include motors for material handling and general machinery across industrial equipment,
business equipment and agricultural equipment. They are mostly served by the dealer-distributor network.
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Integral Horsepower Motor (IHP)

Integral Horsepower Motors are electric motors with rated output power equal to 1 HP (0.75 kW) and above.
These power ratings include 0.75 kW, 0.76 to 7.5 kW, 7.6 kW to 75 kW, 76 kW to 750 kW and >750 kW.
IHP Motor Classification by Product Type IHP Motor Classification by Voltage Rating
• The products are classified at an overall level into the On the basis of the voltage ratings, the market is
following: segmented into the following three broad categories:
o Alternating current (AC) electric motors • LV Motors (LV): Motors with a voltage rating below
o Direct current (DC) electric motors or equal to 690V are termed Low Voltage (LV)
motors. In India, the standard voltage ratings
• AC motors are further classified into the following three
available for LV motors are 415V and 690V.
different sub-categories:
• MV Motors (MV): Motors with a voltage rating above
o AC induction squirrel cage (asynchronous)
3.3 kV are termed Medium Voltage (MV) motors. In
o AC slip ring (asynchronous) India, the standard voltage ratings available for MV
o AC synchronous motors are 3.3 kV, 6.6 kV and 11 kV.
• For low-voltage applications, DC motors are gradually • Others: These include certain custom voltage ratings
losing ground to AC induction squirrel cage motors fitted and may fall either in the LV or the MV category. A
with variable frequency drives (VFDs). few examples of voltage ratings under this segment
• AC induction squirrel cage motors are competitively priced, are 450 V, 660 V and 1.1 kV.
provide better efficiency and have lower maintenance costs
than DC motors.
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IHP Motor Classification by Efficiency Rating IHP Motor Classification by End-user Segment
The efficiency of motors refers to energy efficiency, which is • The following end-user industries are considered for the purpose
the reduction in energy used for a given service or level of of this research study:
activity. IEC 60034-30-1 defines the following classes of motor o Oil and gas
efficiency for single-speed, three-phase motors with output o Textiles
range from 0.12 kW to 1,000 kW: o Food and beverage
• IE 1 (Standard Efficiency) are standard motors that offer o Power
the lowest efficiency levels.
o Cement
• IE 2 (High Efficiency) form a significant part of the market
o Metals and mining
and offer higher-than-standard efficiency levels.
o Others (include pulp and paper, automotive pharmaceuticals,
• IE 3 (Premium Efficiency) are the premium motors
chemicals, plastic, printing and packaging machinery)
gradually being adopted by the end users.
• The end-user market includes retrofits and new installations in
• IE 4 (Super-Premium Efficiency) offer the highest level of
stand-alone equipment that are used by specific industries.
energy efficiency.
IHP Motor Classification by OEM Segment

• Rotary Equipment: This segment encompasses all the OEMs of rotating equipment, such as pumps, compressors, industrial fans
and blowers.
• HVAC: This segment includes motors used in HVAC equipment (heating, ventilation and cooling equipment).
• Material Handling: This refers to the motor-related requirements of OEMs of equipment such as conveyers, hoists, cranes and
feeders.
• General Machinery: This refers to the motors used as part of packaging equipment and machines. General machinery includes
machine tools such as cutters, lathes and presses. This segment includes the motors used by OEMs of machines such as rolling
mills used in steel plants and ball mills in cement plants and paper and textile mills.
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Key Questions This Study Will Answer
Is the market growing? How long will it continue to grow and at what rate?
What are the significant technological developments expected from the market?
What are the major challenges affecting vendors in this market?
Which are the major growth sectors expected over the forecast period?
Which are the major companies and what is their market share?
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Market Segmentation
Key Takeaway: IHP motors hold the majority of the electric motor market share. They are used in
industrial blowers, conveying equipment, material handling equipment and compressors.
Total Electric Motor Market: Market Segmentation, India, 2017
FHP Motors
16.2%
₹68,950.0 Million
IHP Motors
83.8%
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Forecast and Trends—Total Electric Motor Market
Return to contents
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Total Electric Motor Market: Market Engineering Measurements, India, 2017
Market Overview
Measurement Name Measurement Trend
Market stage Growth —
Market revenue (2017) ₹68,950.0 M ▲
Market size at end of forecast period (2022) ₹92,017.0 M ▲
Base year market growth rate 5.3% ●
Compound annual market growth rate (CAGR, 2017–2022) 5.9% —
Customer price sensitivity (scale of 1 to 10, low to high) 8 ●
Degree of technical change (scale of 1 to 10, low to high) 5 ▲
Market concentration (percentage of base year market controlled by top three competitors) 34.1% ●
Number of Competitors (active market competitors in base year) >13 ●

▼ ● ▲
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Forecast Assumptions
The following key macroeconomic indicators and industry-specific trends have been taken into
consideration while forecasting the growth of electric motor market in India, over the forecast
period 2017 to 2022.
• The following quantitative growth indicators were employed in Frost & Sullivan’s proprietary
forecasting model to complement the weighted impact of macroeconomic and industry trends on the
electric motor market growth:
o Historical and forecast growth rate of India’s GDP, the Index for Industrial Production (IIP) and
Purchasing Managers’ Index (PMI), among others.
o Forecast growth rates of individual electric motor end users (OEMs and end-user industries), on the
basis of government targets to achieve certain levels of manufacturing (as a percentage of GDP)
and planned industry targets for capacity addition.
• The following macroeconomic and industry trends were assessed on a weighted impact basis to
ascertain the impact on the market growth:
o Trends such as the slowdown of developed economies, establishment of regional facilities to cater
to domestic demand and rising regulatory requirements, among others.
o Impact of market drivers and restraints on the market growth rate.

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Revenue Forecast
Key Takeaway: Increasing demand for IHP motors, largely due to the revival of key industries
and the infrastructure sector, will be the key growth contributor.
Total Electric Motor Market: Revenue Forecast, India, 2015–2022

100,000.0 CAGR = 5.9% 12.0
90,000.0
10.0
80,000.0
Revenue (₹ Million)
70,000.0
Growth Rate (%)

8.0
60,000.0
50,000.0 6.0
40,000.0
4.0
30,000.0
20,000.0
2.0
10,000.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 62,154.7 65,466.4 68,950.0 72,698.2 76,825.7 81,405.6 86,440.7 92,017.0
Growth Rate - 5.3 5.3 5.4 5.7 6.0 6.2 6.5
Year
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Revenue Forecast Discussion
• The total electric motor market, currently at ₹68,950.0 million, is expected to grow at a
decent CAGR of 5.9 percent to generate a revenue of ₹92,017.0 million by 2022.
• IHP electric motors hold a share of 83.8 percent in the total electric motor market and are
expected to contribute most to the overall growth.
• The IHP electric motor market is expected to grow at a CAGR of 6.0 percent over the
forecast period to achieve a revenue of ₹77,515.4 million by 2022.
• The current share of FHP electric motor market is 16.2 percent; it is predicted to grow at
a comparatively slower rate. With a CAGR of 5.4 percent, it will reach ₹14,501.6 million
by 2022.
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Percent Revenue Forecast by OEM and End-user Segment
Key Takeaway: Rotating equipment will continue to hold principal share in the Indian electric
motor market over the forecast period.
Total Electric Motor Market: Percent Revenue Forecast by OEM and End-user Segment, India, 2015–2022
100.0
80.0
Revenue (%)
60.0
40.0
20.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
Others* 4.7 4.8 4.8 4.8 4.8 4.8 4.9 4.9
Textiles 3.9 3.8 3.8 3.8 3.8 3.7 3.7 3.7
Food and Beverages 4.4 4.4 4.4 4.4 4.4 4.5 4.5 4.5
Metals and Mining 5.4 5.4 5.3 5.2 5.2 5.1 5.1 5.0
Cement 6.1 6.1 6.0 6.0 5.9 5.9 5.8 5.8
Oil & Gas 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Power 7.4 7.3 7.3 7.2 7.2 7.2 7.2 7.1
OEM 4.9 4.9 4.8 4.8 4.8 4.8 4.7 4.6
HVAC 3.7 3.7 3.8 3.8 3.8 3.8 3.8 3.9
Household Appliances 5.3 5.3 5.4 5.4 5.5 5.5 5.5 5.6
Material Handling 9.9 9.9 9.9 9.9 9.8 9.8 9.8 9.7
General Machinery 14.3 14.3 14.3 14.3 14.3 14.2 14.2 14.2
Rotating Equipment 23.5 23.6 23.7 23.9 24.0 24.2 24.3 24.5
Year
*Others includes pulp and paper, automotive, pharmaceuticals,
chemicals, plastic, printing and packaging machinery and so on. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
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Revenue Forecast by OEM and End-user Segment
Key Takeaway: Growing segments like HVAC, household appliances and electric vehicle are set
to drive the demand for electric motors in India.
Total Electric Motor Market: Revenue Forecast by OEM and End-user Segment, India, 2015–2022
100,000.0 8.0
Growth Rate (%)

80,000.0
6.0
Revenue (%)
60,000.0
4.0
40,000.0
2.0
20,000.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Others* 2,945.2 3,116.5 3,290.6 3,484.7 3,700.7 3,937.6 4,197.5 4,487.1
Textiles 2,390.6 2,499.2 2,614.9 2,737.8 2,871.9 3,021.3 3,184.4 3,366.0
Food and Beverages 2,710.1 2,870.7 3,029.9 3,211.7 3,410.8 3,625.7 3,861.3 4,112.3
Metals and Mining 3,378.5 3,512.8 3,653.5 3,806.9 3,978.2 4,169.2 4,377.6 4,609.6
Cement 3,806.2 3,975.8 4,160.4 4,347.6 4,552.0 4,779.6 5,028.1 5,304.7
Oil & Gas 4,039.2 4,255.4 4,498.3 4,750.2 5,025.7 5,322.2 5,646.9 5,997.0
Power 4,605.9 4,808.7 5,024.5 5,265.7 5,534.3 5,838.6 6,183.1 6,566.5
OEM 3,046.7 3,196.2 3,345.0 3,505.6 3,680.8 3,868.6 4,065.9 4,277.3
HVAC 2,312.5 2,448.5 2,601.7 2,757.8 2,928.8 3,119.2 3,334.4 3,574.5
Household Appliances 3,280.6 3,490.7 3,701.8 3,931.3 4,182.9 4,463.2 4,771.1 5,109.9
Material Handling 6,160.8 6,475.2 6,812.5 7,171.0 7,562.9 7,990.4 8,451.9 8,958.8
General Machinery 8,857.7 9,341.4 9,843.5 10,372.1 10,947.3 11,584.8 12,294.8 13,073.5
Rotating Equipment 14,620.7 15,475.3 16,373.5 17,355.9 18,449.3 19,685.4 21,043.7 22,579.9
Growth Rate - 5.3 5.3 5.4 5.7 6.0 6.2 6.5
Year
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Revenue Forecast Discussion by OEM and End-user
Segment
• The Indian Government’s various initiatives to boost infrastructure which includes

bridges, roads, power, dams and urban infrastructure development will create demand for
steel and cement which will drive the demand for electric motors in India.
• Expansion projects and modernization in oil and gas segments and potential investments
in power sector and other key industries are also expected to create opportunities for the
electric motor market in India over the forecast period.
• The Government of India aims to increase the contribution of manufacturing output to be

25 percent of GDP by 2025, from 16 percent currently. The government is taking all the
possible initiatives (e.g., ‘Make in India’) to achieve this target. Such a growth in the
manufacturing sector will boost the demand for electric motors in India.
P99E-10 33
Market Share and Competitive Analysis—Total
Electric Motor Market
Return to contents
P99E-10 34
Market Share
Key Takeaway: Low-cost electric motors from SME/unorganized players and imports are popular
among Indian end users.
Total Electric Motor Market: Percent of Sales, India, 2017

Others*
3.6%
Crompton Greaves
Imports 18.0%
18.1%
ABB
8.8%
SME/Unorganized
18.3% ₹68,950.0 Million Marathon Electric
7.3%
Godrej Lawkim
0.4% BHEL
6.5%
WEG
0.4% Siemens
6.4%
Hindustan Motor
0.9% Bharat Bijlee
3.8%
Integrated Electric LHP PICL Kirloskar Electric
0.9% 1.5% 2.2% 2.9%
*Others include manufacturers in the unorganized sector and Indian FHP motor importers. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
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Market Share Analysis
Total Electric Motor Market: Company Market Share

• Marathon Electric and Crompton Greaves offer Analysis of Top 13 Participants, India, 2017
both IHP and FHP electric motors. While PICL Company Revenue (₹ Million)
and Godrej Lawkim are into FHP manufacturing Crompton Greaves 12,400.0
ABB 6,100.0
alone, the rest offer IHP electric motors to Indian
Marathon Electric 5,000.0
market.
BHEL 4,500.0
• PICL’s aggressive marketing has helped it to Siemens 4,400.0
gain considerable market to emerge as one of Bharat Bijlee 2,600.0
the largest players in the FHP motor market in Kirloskar Electric 2,000.0
India. PICL 1,500.0

LHP 1,000.0
• Siemens and Bharat Bijlee are preferred by end
Integrated Electric 650.0
users, as they provide electric motors across
Hindustan Motor 600.0
various efficiency classes. WEG 300.0
• Unorganized manufacturers mostly cater to the Godrej Lawkim 300.0
demand for LV motors but have less share in the SME/Unorganized 12,650.0
MV range. Imports 12,500.0

Others* 2,450
Total 68,950.0
*Others include manufacturers in the unorganized sector and Indian FHP motor importers. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
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Competitive Environment
Total Electric Motor Market: Competitive Structure, India, 2017
Number of Companies in the Market More than 13 companies
Total cost of ownership, reliability, energy-efficient technology, service

Competitive Factors
support, performance, safety standards
Key End-user Groups Power, oil and gas, cement, metals and mining, food & beverages
Major Market Participants Crompton Greaves, ABB, Marathon Electric, BHEL, Siemens
Market Share of Top 3 Competitors 34.1%
Bharat Bijlee, Kirloskar Electric, PICL, LHP, Integrated Electric,

Other Notable Market Participants
Hindustan Motor, WEG, Godrej Lawkim
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Competitive Factors and Assessment
• Bulk of the market needs are catered by the unorganized sector and imports. Price
competitive products by these two categories of vendors make their products popular
among end users.
• High and premium energy-efficient motors have started gaining popularity among the end
users. Lack of awareness of benefits of these motors and their high initial costs were
holding back the end users to adopt these motors. However, rising electricity prices will
drive the demand for energy-efficient electric motors in energy-intensive industries.
• LV motors are standardised with no or minimal technology difference. Thus, the price is a
critical decision making criteria for the purchase of LV motors.
• FHP motor market is expected to increase as these motors are expected to find new
application with development of new appliances and general machinery.
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Growth Opportunities and Companies to Action
Return to contents
P99E-10 39
Growth Opportunity—Electric Motors
Applicable
Power Oil & Gas Cement
Industries
Applicable Rotating Equipment General Machinery Material Handling
OEMs
Vision Transformation
Context and Opportunity Call to Action
Mega Trends' Impact
• End users have begun to invest • Motor manufacturers will be
Disruptive Applications and develop technologies that required to increase the reliability
prevent downtimes along with of their products among the end
Business Models
increasing energy efficiency. users.
Current Offerings • The Indian motor market is highly • They will need to focus on
New Capabilities price competitive. However, end providing value-added services like
users are willing to spend more on IoT in collaboration with
Value-add Services value-added services due to the automation vendors to retain
advantages provided by preventive competitiveness.
Vertical Integration
and predictive maintenance • Service bundling will generate
Geographic Expansion techniques. Remote monitoring of recurring revenue through long-
equipment is expected to be one of term customer relationships.
Partnerships
the most glaring trend shifts in the
Investment/M&A industrial motor market.
P99E-10 40
IoT for Motors—Roadmap
Key Takeaway: The need for system performance optimization is expected to result in the
adoption of condition monitoring systems.
Total Electric Motor Market: IoT for Motors, India, 2017
Future—Data Analytics as-

Past—Product Driven Present—Efficient Motors
a-service
• Heavy reliance on repeat • Set IE3/IE4 Premium Efficiency • Motors entering the IoT space
business for growth level as the global standard via smartphones and sensors
• Emphasize ownership of product • Expand MEPS to cover VFD and • Adopting IE5 levels in major
motor plus VFD industries
• Focus on price or quality
• Lack of relationship with
customers
Motors Find Opportunities for Growth

Remote monitoring of equipment is expected to be one of the most glaring trend shifts in the industrial motor market.
End users now focus on advanced services, particularly in the power, oil and gas and petrochemical and chemical
industries due to the advantages provided by preventive and predictive maintenance techniques.
P99E-10 41
Strategic Imperatives for Success and Growth
LV motors are mostly standardised products and are sold through channel partners and
OEMs. Motor vendors will be required to expand their network to reach out to the
maximum number of end users.
With increasing electricity cost and increased awareness of energy-efficient motors there
exists a huge opportunity for high and premium energy-efficient motors.
Critical
Motors manufactures can consider providing integrated motors and drive solutions, as
Success end users are looking for faster return on investments (ROI).
Factors
Motors vendors should measure the potential of new sectors, like irrigation, water and
waste water industry to increase their overall motor revenue.
Indian motor market is highly price competitive. However, customers are willing to pay for
value-added services that help them optimise operational cost in the long run.
P99E-10 42
FHP Electric Motor Market Overview
Return to contents
P99E-10 43
Market Segmentation
FHP Electric Motor Market: Segmentation, India, 2017
Fractional Horsepower (FHP) Electric Motor Market
Product Analysis End-user Sectors
• AC asynchronous FHP Applications

• AC synchronous • OEM–Rotating equipment & HVAC
• DC electric FHP • Household appliances
• Other Application (Materials handling,
General machinery across industrial
equipment, business equipment and
agricultural) equipment
Note: In the study for FHP electric motor market, the products and the
end users are not discussed in detail as separate sections.
P99E-10 44
Product Segmentation
Key Takeaway: DC motors contribute a very small percentage to the FHP electric motor market
and its share is expected to stay the same over the forecast period.
FHP Electric Motor Market: Percent of Revenue by Product Type, India, 2017
AC Asynchronous AC Synchronous
Motors Motors
85.3% 9.2%
₹11,150.0 Million
DC Motors
5.5%
P99E-10 45
End-user Segment Breakdown
Key Takeaway: Continuous rise in production of electric-motor-driven systems, such as household

appliances, rotating equipment, and HVAC equipment, contribute to the growth of FHP motors in India.
FHP Electric Motor Market: Percent of Revenue by End-user, India, 2017

Material
Handling
11.5%
Household
Appliances
33.2%
General
Machinery
₹11,150.0 Million
25.3%
OEM*
30.0%
*OEM includes rotating machines such as pumps, fans, blowers, compressors and HVAC.
P99E-10 46
External Challenges: Drivers and Restraints—FHP
Return to contents
P99E-10 47
Market Drivers
FHP Electric Motor Market: Key Market Drivers, India, 2018–2022
Drivers 1–2 Years 3–4 Years 5th Year
Increasing demand for household appliances and other

electric motor-driven systems will boost growth of the electric M H H
motor market
Rising urbanization is set to drive the demand for FHP motors

M M H
in India
Growth in OEM segment is expected to drive the demand M M M
Impact Ratings: H = High, M = Medium, L = Low
P99E-10 48
Drivers Explained
Increasing Demand for Household Appliances and Other Electric Motor-driven Systems will Boost
Growth of the Electric Motor Market
• Rising disposable incomes in both urban and rural India has led to an increase in the demand for
motor-driven appliances like refrigerators, air conditioners and washing machines.
• In addition, most of rural India is expected to get electricity during the forecast period. In addition,
decreasing prices due to increasing competition and upcoming new and additional manufacturing
facilities to boost the demand for household appliances. This will increase the demand for FHP motors
in India over the forecast period.
• End users will prefer energy-efficient HVAC systems to reduce their energy consumption across
residential, commercial and industrial segments. Rotating machines, such as pumps and compressors,
are also finding application across industrial, agricultural and construction segments.
• The impact is expected to be medium in the short term. However, the impact is likely to be high in the
medium and long terms due to increasing consumerism and industrialization.
P99E-10 49
Drivers Explained (continued)
Rising Urbanization is Set to Drive the Demand for FHP Motors In India
• The Government of India is focused on infrastructure and urban development, and these will be major
contributors to the moderate growth of FHP motors in India.
• India has the investment potential of about ₹31 trillion to be spent on infrastructure development over
the next five years, and 70 percent of this amount will be needed for roads, power, and urban
infrastructure segment.
• The growth in urban infrastructure and construction will boost the demand for material handling
equipment and general machineries, thereby increasing the demand for FHP motors over the forecast
period.
• The impact is expected to be medium in the short and medium terms, but with increasing execution of
government infrastructure projects, the impact is expected to increase to high in the long term.
P99E-10 50
Growth in OEM Segment is Expected to Drive the Demand
• OEM sector includes rotating machines, such as pumps, fans, blowers, compressors and HVAC. This
segment is expected to grow over the forecast period. This will result in increased demand for FHP
motors from this segment.
• Pumps and compressors find application across industrial, agricultural and construction segments.
Further, expected growth in infrastructure and agriculture segment is likely to boost the demand for
FHP motors in OEM sector in India.
• Rotating equipment is likely to continue holding the major share in the OEM market, and the share of
HVAC is expected to improve over the forecast period.
• The impact is expected to be medium throughout the forecast period.
P99E-10 51
Market Restraints
FHP Electric Motor Market: Key Market Restraints, India, 2018–2022
Restraints 1–2 Years 3–4 Years 5th Year
Increased dominance of low-cost domestic motors and

H H M
imports will dampen revenue growth
Adoption of three phase motors fitted with variable

M M H
frequency drives may affect growth
P99E-10 52
Restraints Explained
Increased Dominance of Low-cost Domestic Motors and Imports will Dampen Revenue Growth
• End users of FHP motors are highly price sensitive. They prefer low-cost options available from local
manufacturers and imports. Low cost domestic manufacturers and cheap imports are bringing down
the overall revenue of the FHP motors in India. Generally, these local players cater to requirements of
nearby OEMs and appliance manufacturers.
• Combined share of SME (local/unorganized) players and imports is 48.9 percent of the total revenue of
FHP motors in India.
• The impact of this restraint is expected to be high in the short and medium terms and reduce to
medium in the long term as organized participants gain share in the FHP motor market.
P99E-10 53
Restraints Explained (continued)
Adoption of Three Phase Motors Fitted with Variable Frequency Drives May Affect Growth
• End users are now more aware of the cost savings resulting from use of energy-efficient appliances
and equipment.
• The Bureau of Energy Efficiency (BEE) has initiated the standards and labelling programme to provide
the consumers information about energy- and cost-saving potential of the appliances and equipment
they buy.
• There are no regulations governing the use of FHP motors in various appliances and equipment. With
government encouraging production of energy-efficient home appliances, single-phase electric motors
are expected to lose their market to three phase motors with VFDs.
• Equipment manufacturers prefer three-phase motors with variable frequency drives rather than FHP
motors.
• The impact of this restraint is expected to be medium during the short and medium terms and high
during the long term.
P99E-10 54
Forecast and Trends—FHP Electric Motor Market
Return to contents
P99E-10 55
Key Findings
Key Takeaway: FHP motor market is highly price sensitive. Availability and performance are key
factors to beat competition.
Important Segment Characteristics FHP Electric Motor Market: Percent of

Revenue by Product Type, India, 2017
Factors Assessment Trend
AC
Asynchronous
Opportunity size (₹ M) 11,150.0 ▲ IHP Motors Motors
83.8% 13.8%
Primary needs Reliability, Price, Performance —
FHP Motors AC
16.2% Synchronous
Price sensitivity High ● Motors
1.5%
DC Motors
Purchase influencers Price and Availability — 0.9%
Demand for innovation Medium ▲

▼ ● ▲
P99E-10 56
FHP Electric Motor Market: Market Engineering Measurements, India, 2017
Market Overview
Base Year Market Growth Rate 4.9% ▼
Compound Annual Market Growth Rate (CAGR, 2017–2022) 5.4% —
Customer Price Sensitivity (scale of 1 to 10, Low to High) 8 ●
Degree of Technical Change (scale of 1 to 10, Low to High) 5 ▲
Market Concentration (percentage of base year market controlled by top three competitors) 48.4% ●
Number of Competitors (active market competitors in base year) >4 ●

▼ ● ▲
P99E-10 57
consideration while forecasting the growth of FHP motor market in India, over the forecast period
2017 to 2022.
growth of the FHP motor market.
o Forecast growth rates of individual FHP motor users (OEMs and end-user industries) based on
government targets to achieve certain levels of manufacturing (as a percentage of GDP) and
planned industry targets for capacity addition.
ascertain the impact on the market growth.
o Trends such as the slowdown of developed economies, establishing regional facilities to cater to
domestic demand and rising regulatory requirements, among others.
P99E-10 58
Revenue Forecast
Key Takeaway: Driven by growth in demand for home appliances, FHP motor market is expected
to observe a decent growth over the forecast period.
FHP Electric Motor Market: Revenue Forecast, India, 2015–2022

CAGR = 5.4%
16,000.0 12.0
14,000.0
10.0
12,000.0
Growth Rate (%)

8.0
10,000.0
8,000.0 6.0
6,000.0
4.0
4,000.0
2.0
2,000.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 10,107.6 10,627.8 11,150.0 11,710.1 12,319.7 12,985.7 13,710.4 14,501.6
Growth Rate - 5.1 4.9 5.0 5.2 5.4 5.6 5.8
Year
P99E-10 59
• Home appliances segment witnessed a growing demand in India and wide application of
FHP motors in home appliances has led to decent growth of FHP motors in 2017.
• The market grew at a rate of 4.9 percent over the previous year and generated a revenue
of ₹11,150.0 million in 2017.
• The market for FHP electric motors is expected to grow at a decent CAGR of 5.4 percent
to generate a revenue of ₹14,501.6 million by 2022.
• New applications for compact FHP motors in small home appliances and small machines
will drive the demand for these motors in India.
P99E-10 60
FHP AC and DC Electric Motor Market—Revenue Forecast
Key Takeaway: Losing the market to FHP AC motors, FHP DC motors are only expected to be
used in specific applications over the forecast period.
FHP AC and DC Electric Motor Market: Revenue Forecast, India, 2015–2022

AC Electric Motors CAGR = 5.6%
15,000.0 FHP DC Electric Motors CAGR = 1.9% 7.0
12,500.0 6.0
Growth Rate (%)

5.0
10,000.0
4.0
7,500.0
3.0
5,000.0
2.0
2,500.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
IHP DC Revenue 591.2 602.4 613.2 624.3 635.5 647.6 660.6 673.8
IHP AC Revenue 9,516.4 10,025.4 10,536.8 11,085.8 11,684.2 12,338.1 13,049.8 13,827.8
IHP AC Growth Rate - 5.3 5.1 5.2 5.4 5.6 5.8 6.0
IHP DC Growth Rate - 1.9 1.8 1.8 1.8 1.9 2 2
Year
P99E-10 61
FHP AC and DC Electric Motor Market—Revenue Forecast
Discussion
• With a market of ₹10,536.8 million, FHP AC motor revenue dominates the FHP motor
market and holds a share of 94.5 percent.
• FHP AC motor market is expected to drive the demand for FHP motor market and witness
a CAGR of 5.6 percent over the forecast period to reach revenue of ₹13,827.8 million by
2022.
• The earnings from FHP DC motors stood at ₹613.2 million with a share of 5.5 percent in
2017. This product-split is expected to remain unchanged over the forecast period.
• Owing to wide application in home appliances and other OEM segments, AC

asynchronous motors had 90.3 percent share in FHP AC motor revenue. AC synchronous
motors held a share of 9.7 percent. AC asynchronous motors are expected to dominate
the market over the forecast period as well.
P99E-10 62
Percent Revenue Forecast by End-user Segment
Key Takeaway: The demand for FHP electric motors will increase marginally over the next five
years; increase in the demand for household appliances is expected to be a major driver.
FHP Electric Motor Market: Percent Revenue Forecast by End-user Segment, India, 2015–2022
100.0
80.0
Revenue(%)
60.0
40.0
20.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
OEM 30.1 30.1 30.0 29.9 29.9 29.8 29.6 29.5
MH 11.8 11.6 11.5 11.4 11.2 11.1 11.0 10.8
GM 25.6 25.5 25.3 25.1 24.9 24.7 24.6 24.5
HA 32.5 32.8 33.2 33.6 34.0 34.4 34.8 35.2
Year
Key: OEM—OEM (Rotating Equipment and HVAC); HA—Household Appliances; MH—Material Handling; GM—General Machinery
P99E-10 63
Revenue Forecast by End-user Segment
Key Takeaway: Reliability and insulation aspects with competitive price are the keys to success
in FHP motor market in India.
FHP Electric Motor Market: Revenue Forecast by End-user Segment, India, 2015–2022
15,000.0 6.0
12,500.0 5.0
Growth Rate (%)

10,000.0 4.0
7,500.0 3.0
5,000.0 2.0
2,500.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
OEM 3,046.7 3,196.2 3,345.0 3,505.6 3,680.8 3,868.6 4,065.9 4,277.3
MH 1,188.1 1,235.3 1,282.3 1,331.0 1,384.2 1,441.0 1,502.9 1,572.1
GM 2,592.2 2,705.6 2,821.0 2,942.3 3,071.7 3,213.0 3,370.4 3,542.3
HA 3,280.6 3,490.7 3,701.8 3,931.3 4,182.9 4,463.2 4,771.1 5,109.9
Growth Rate - 5.1 4.9 5.0 5.2 5.4 5.6 5.8
Year
Key: OEM—OEM (Rotating Equipment and HVAC); HA—Household Appliances; MH—Material Handling; GM—General Machinery
P99E-10 64
Revenue Forecast Discussion by End-User Segment
• Household appliance continued to hold a major share in FHP motor market in 2017. It
contributed to 33.2 percent of the FHP motor revenue.
• Other than household appliance, the OEM segment is expected to register highest growth
rate among all the end-users segments over the forecast period. It is expected to grow at
a CAGR of 5.0 percent from 2017 to 2022. OEMs include rotating machines used in
pumps, fans, blowers and compressors, and HVAC.
• Due to price-competitiveness, imported FHP motors are widely demanded by many end
users. The unorganized sector also provides FHP motors at lower price. This has
considerable impact on growth of overall revenue generated by FHP motors.
• SME manufacturers/unorganized sector hardly pay any attention to efficiency and quality
of the motors, as most of the customers look for low-cost options available in the market.
• Many factors are considered while selecting appropriate FHP motors. These factors
include power ratings, types of enclosures, of load, speed load, characteristics, and the
cost of the motor. The insulation class of the motors directly affects the efficiency of the
motor, so efficiency of the FHP motors is now receiving increasing attention.
P99E-10 65
Market Share and Competitive Analysis—FHP
Return to contents
P99E-10 66
Market Share
Key Takeaway: Low-cost imports and the unorganized sector constitute the majority of the FHP
motor market, as the customers are highly price sensitive.
FHP Electric Motor Market: Percent of Sales, India, 2017

Others*
Marathon Electric
21.9% 21.5%
₹11,150.0 Million
Crompton
Greaves
13.5%
SME
Manufacturers
26.9%
PICL
13.5%
Godrej Lawkim
2.7%
*Others include manufacturers in the unorganized sector and Indian FHP motor importers.
P99E-10 67
• With 21.5 percent of market share, Marathon

FHP Electric Motor Market: Company
Electric is the market leader in FHP motors in India.
Market Share Analysis of Top 5
• Crompton Greaves, owing to its wide presence in Participants, India, 2017
the end-user segment, was able to gain significant
Company Revenue (₹ Million)
revenue in the Indian FHP motor market.
• In the last 4 years, PICL has been aggressively
marketing its FHP motors and has gained Crompton Greaves 1,500.0
considerable market to emerge as one of the
PICL 1,500.0
largest player in FHP motor market in India..
Godrej Lawkim 300.0
• The unorganized sector (SME manufacturers) has
a considerable share of 26.9 percent. They cater to SME Manufacturers 3,000.0
the requirements of the industries in their vicinity.
Others* 2,450.0
They make products and services easily available
and at competitive cost. Rotomag and Micro Motors Total 11,150.0
are some of the players in this category.

• Imported FHP electric motors are popular among
customers.
*Others include manufacturers in the unorganized sector and Indian FHP motor importers.
P99E-10 68
FHP Electric Motor Market: Competitive Structure, India, 2017
Competitive Factors Price, reliability, insulation aspects, performance, service support
Household Appliances, General Machinery, Material Handling, OEMs

Key End-user Groups
(include rotating equipment and HVAC)
Major Market Participants Marathon Electric, Crompton Greaves, PICL, Godrej Lawkim
Other Notable Market Participants Rotomag, Micro Motors
Distribution Structure OEMs, distributors and direct-to-end user
P99E-10 69
Top Competitors
FHP Electric Motor Market: SWOT Analysis, India, 2017
Company Strengths Weaknesses Opportunities Threats
Imports from China and

Good brand value Reliance on fans and
Marathon Export market for FHP other countries which may
and after sales IHP motors for sales
Electric motors lead to loss in market
service growth
share
Large projects in key

Highly priced products Competition which offers
Crompton Strong name in the industries leading to
when compared with the slow-cost products and
Greaves automation industry higher demand of FHP
competition services
motors
Stiff competition from well-

Growing demand for
Aggressive marketing Not a strong brand name established brand names
PICL home appliance which
team in the market and the price-competitive
will drive the growth
unorganized market
P99E-10 70
• The unorganized sector and imports cater to the bulk of the market. Price-competitive
products from these two categories of vendors make their products popular among end
users.
• However, effective motor efficiency regulations and product innovations are expected to
reduce the share of the unorganised sector in the Indian FHP electric motor market.
• Manufactures of compact FHP motors are expected to gain market, as these motors are
expected to find new application with development of new appliances and general
machinery.
• With government encouraging production energy-efficient home appliances, single-phase

electric motors are expected to lose their market to permanent magnet DC motors
(PMDC), brushless DC motors (BLDC) and three-phase motors with VFDs over the
forecast period. Currently, PMDC and BLDC motors are imported from China and
Taiwan.
P99E-10 71
IHP Electric Motor Market Overview
Return to contents
P99E-10 72
Market Segmentation
IHP Electric Motor Market: Market Segmentation, India, 2017
Integral Horsepower (IHP) Electric Motor Market
Product Analysis Voltage Power Efficiency2 OEM/End Users
• AC Motors • LV Motors • 0.75 kW • IE 1 Industrial OEM Applications:

o Asynchronous Motors o 415 V • 0.76 kW to 7.5 • IE 2 • Rotary equipment (pumps, fans,
kW blowers, compressors)
• Induction Squirrel o 690 V • IE 3
Cage • 7.6 kW to 75 kW • HVAC
• MV Motors • IE 4
• Slip Ring • 76 kW to 750 kW • Materials handling
o 3.3 kV
o AC Synchronous • >750 kW • General machinery
o 6.6 kV
• DC Motors o 11 kV
Industrial Applications:
• Oil and gas
• Others1
• Textiles
• Food and beverage
• Power
1Others • Cement
include custom voltage ratings that may fall in the LV or MV category.
2IE efficiency is only applicable for the IHP AC LV range of motors. • Metals and mining
3Others includes pulp and paper, automotive, pharmaceuticals, chemicals, • Others3
plastic, printing and packaging machinery and so on.
Note: Forecast for voltage, power, efficiency rating and OEM/end users for IHP
AC and DC motors segment is not discussed in the study. Source: Frost & Sullivan
P99E-10 73
Key Takeaway: Squirrel cage induction motors are most popular, as they offer high reliability
and efficiency.
IHP Electric Motor Market: Percent Sales Breakdown, India, 2017

DC Motors
4.2%
Synchronous
5.5%
₹57,800.0 Million
₹55,400.0 Million
AC Motors Slip Ring
95.8% 9.0%
IHP Motors
Asynchronous
94.5%
IHP AC Motors
₹52,353.0 Million
Squirrel Cage
91.0%
AC Asynchronous Motors
P99E-10 74
Percent Revenue Split by Voltage Rating
IHP Electric Motor Market: Percent of

Revenue by Voltage Rating, India, 2017
• Motors up to 690 V (LV motors) dominate
the IHP motor market with a share of 68.5
Others*
11 KV 4.2% percent.
6.7%
• 415 V, the most common 3-phase voltage
6.6 KV
13.1%
supplied for industrial purposes, is the most
preferred voltage rating in India for OEM and
415 V industrial equipment. It held 51.2 percent
51.2%
₹57,800.0 Million
share of the IHP motor market.
3.3 KV • Factors like supply voltage, voltage drop

7.5% during normal operating condition and motor
start up and power losses are among the
various factors considered while deciding
690 V the voltage rating.
17.3%
*Others include custom voltage ratings that may fall in the LV or MV category.
P99E-10 75
Percent Revenue Split by Power Rating
• The IHP motor market is led by motors ranging

IHP Electric Motor Market: Percent of
Revenue by Power Rating, India, 2017 from 76 kW to 750 kW with 31.5 percent of the
IHP motor market.
> 750 kW 0.75 kW • Motors with power rating higher than 750kW are
21.3% 19.6%
mostly custom designed for very specific industrial
applications. This category of motors held a
considerable share of 21.3 percent in 2017.
• LV combinations (upto 690 V) are mostly used in

0.76 to OEM applications. Whereas, MV combinations
₹57,800.0 Million
7.5 kW (more than 690V) are preferred in end-user
15.3%
sectors, such as oil and gas, power, and metals
and mining.
76 kW to • Motors less than 75kW are used in both the OEM
750 kW 7.6 to 75 kW
31.5% 12.3%
category and also in the end-user industry
sectors. Squirrel cage induction motors are
preferred for such power ratings.
P99E-10 76
Percent Revenue Share by OEM
IHP Electric Motor Market: Percent of • With a share of 54.5 percent of the IHP motor
Revenue by OEMs, India, 2017 market, revenue by OEMs accounted for
₹31,528.0 million in 2017.
HVAC
8.3% • Revenue by OEMs in IHP AC motors category
had a share of 54.8 percent in 2017. Whereas, in
Material case of IHP DC motors this share was 48.7
Handling
percent.
17.5%
Rotating
Equipment • Rotating equipment such as compressors,
₹31,528.0 Million 51.9% pumps, fans and blowers have applications
across end-user segments. In 2017, it generated
a revenue of ₹16,373.5 million and continues to
General be the highest contributor in the OEM segment.
Machinery
22.3% • General machinery, with 22.3 percent of the
share was the second largest segment for IHP
motors. This segment includes machine tools and
packaging machines, among others.
P99E-10 77
Percent Revenue Share by End User
• With a share of 19.1 percent, Power continued to

IHP Electric Motor Market: Percent of be the largest sector for IHP electric motors in
Revenue by End User, India, 2017 2017. It held a share of 19.1 percent of the
revenue.
Others*
12.6% Power • With 17.1 percent share, oil and gas sector
19.1% emerged as the second largest sector for IHP
electric motor market in India.
Textiles
10.0% • In 2017, cement, and metals and mining had
15.8 and 13.9 percent share, respectively, in the
IHP electric motor market. Further, the Indian
₹26,272.0 Million infrastructure sector is expected to witness
Food and Oil & Gas
Beverages 17.1% significant interest from international investors
11.5% which will create demand for steel and cement,
there by increasing the demand for motors in
these segments.
Metals and
Mining Cement • Water and waste water (WWW) is one of the
13.9% 15.8% emerging segments for IHP MV motors.
• Sugar industry is the largest subsegment,
followed by food processing industries, within the
food and beverages sector.
*Others include pulp and paper, automotive, pharmaceuticals,
chemicals, plastic, printing and packaging machinery.among others. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
P99E-10 78
External Challenges: Drivers and Restraints—IHP
Return to contents
P99E-10 79
Market Drivers
IHP Electric Motor Market: Key Market Drivers, India, 2018–2022
Drivers 1–2 Years 3–4 Years 5th Year
Growth in manufacturing sector will drive the demand for

M H H
IHP motors in India
Higher penetration of energy-efficient motors will boost

L M H
market growth
Growing segments like HVAC, electric vehicle and so on

L M M
will drive the demand for IHP motors in India
P99E-10 80
Drivers Explained
Growth in Manufacturing Sector Will Drive the Demand for IHP Motors in India
• Due to fewer activities in manufacturing sector, the demand for electric motors has been
under pressure over the last 4 years. However, the manufacturing industry is set to grow
over the forecast period.
• With India expecting to become the fifth largest manufacturing country globally, India’s
manufacturing sector has the potential to reach $1 trillion by 2025.
• The government’s initiative, like development of industrial corridors and Make in India
drive, will help India emerge as hub for hi-tech manufacturing. Such industrial
development will boost the demand for IHP motors over the forecast period.
• The driver is expected to have a medium impact in the short term and high impact in the
medium and long terms.
P99E-10 81
Higher Penetration of Energy-efficient Motors will Boost Market Growth
• Penetration of high and premium efficiency motors have been low due to their high initial
cost and lack of awareness of overall benefit from these motors. However, the end users,
specially power-intensive industries like oil and gas, metals and mining, and cement,
have recognised the benefits of high and premium efficiency motors and are opting for it.
• Higher penetration of energy-efficient motors (IE2 and above), and tougher regulations on
usage of energy efficiency equipment will add to the total revenue of IHP motors in India.
• The impact is expected to be low in the short term. The impact is expected to improve to
medium and high in the medium and long terms, respectively.
P99E-10 82
Growing Segments like HVAC, Electric Vehicle and Others will Drive the Demand for
IHP Motors in India
• The Indian government is focusing intensely on infrastructural development of the country

and is initiating policies for the same. This has resulted in an increase in the construction
of residential and commercial spaces which is driving the demand for HVAC in India.
Further, AC electric motors are smaller, light weighted and price competitive. Thus, are
widely used in HVAC equipment.
• The demand for electric and hybrid vehicles in India will increase over the forecast period.
This will further boost the demand for IHP motors in India.
• Water and waste water (WWW) and irrigation are other two emerging sectors that will
generate demand for IHP MV motors over the forecast period.
• The driver is expected to have a low impact in the short term and medium impact in the
medium and long terms.
P99E-10 83
Market Restraints
IHP Electric Motor Market: Key Market Restraints, India, 2018–2022
Restraints 1–2 Years 3–4 Years 5th Year
Stiff competition from imported motors and machineries

H H M
will affect domestic motor manufacturers
Lower capacity additions in core sectors such as oil & gas,

H M L
metals, cement leading will lower greenfield requirement
Fluctuating price of raw materials is leading to higher

M M M
manufacturing costs
P99E-10 84
Restraints Explained
Stiff Competition from Imported Motors and Machineries will Affect Domestic Motor
Manufacturers
• Although India has manufacturing capacity, it has witnessed an increase in imports of

motors and motor-fitted machineries/equipment, such as boilers, turbines and generators
for power plants. This is significantly affecting the domestic motor manufacturers. Lower
price is the prime reason for the fast growth of imports. The trend is expected to increase
over the forecast period, as price is one of the most important decision making criteria for
the Indian end users.
• Imports of electrical and construction equipment has grown significantly in recent years,
as end users seek low-cost alternatives.
• The impact of this restraint is expected to be high in the short and medium terms. With
‘Vision 2022 for Indian Electrical Equipment Industry,’ the government is focused on
making India the country of choice for production of electrical equipment; it hopes to
reach an output of $100 billion by balancing exports and imports. The impact of this
constraint is expected to ease to medium in the long term.
P99E-10 85
Lower Capacity Additions in Core Sectors Such as Oil & Gas, Metals, Cement will
Lower Greenfield Requirement
• Indian industries are facing the challenge of finding investments.
• The reduction in greenfield projects across industry sectors is expected to hit the Indian
IHP electric motor market. Delays in commissioning of some of the proposed projects and
slow execution of other major projects in key industries will hurt the demand for IHP
electric motors.
• Budgetary constraints and significant initial costs are the two main challenges for the
energy-efficient IHP electric motors in India.
• The impact of this restraint is expected to be high in the short term and medium in the
medium term. The government is taking every possible initiative to boost the country’s
infrastructure sector. Due to this, the impact of this restraint is expected to be low in the
long term.
P99E-10 86
Fluctuating Price of Raw Materials is Leading to Higher Manufacturing Costs
• Fluctuating prices of raw materials such as copper, steel and aluminum have led to
increased manufacturing costs. However, the market, specially the LV motors segment, is
highly price sensitive and the manufacturers cannot pass on the entire production-cost
increase to the customers. This has resulted in shrinking profit margins. LV motor
manufacturers are expected to face the challenge of fluctuating raw material cost over
the forecast period.
• The impact of this restraint is expected to be medium throughout the forecast period.
P99E-10 87
Forecast and Trends—IHP Electric Motor Market
Return to contents
P99E-10 88
Key Findings
Key Takeaway: IHP motor market is highly price sensitive. Suppliers need to offer customised
value proposition to differentiate themselves from rest of the competition.
Important Segment Characteristics IHP Electric Motor Market: Percent of

Revenue by Product Type, India, 2017
Factors Assessment Trend AC Motors
80.3%
Opportunity size (₹ M) 57,800.0 ▲
IHP Motors
Energy efficiency, Reliability, 83.8%
Primary needs —
Performance
Price sensitivity High ●

DC Motors
FHP Motors 3.5%
Purchase influencers Price and Service Support — 16.2%
Demand for innovation Medium ▲

▼ ● ▲
P99E-10 89
IHP Electric Motor Market: Market Engineering Measurements, India, 2017

Market Overview
Base year market growth rate 5.4% ▼
Compound annual growth rate (CAGR, 2017–2022) 6.0% —
Market concentration (percentage of base year market controlled by top three competitors) 37.2% ●
Number of competitors (active market competitors in base year) >10 ●

▼ ● ▲
P99E-10 90
consideration while forecasting the growth of IHP motor market in India, over the forecast period
2017 to 2022.
growth of the IHP motor market:
o Forecast growth rates of individual IHP motor users (OEMs and end-user industries) on the basis of
government targets to achieve certain levels of manufacturing (as a percentage of GDP) and
planned industry targets for capacity addition.
ascertain the impact on the market growth:
o Trends such as the slowdown of developed economies, establishing regional facilities to cater to
domestic demand and rising regulatory requirements, among others.
P99E-10 91
Revenue Forecast
Key Takeaway: Expected industrialization over the forecast period will act as an opportunity for
the IHP electric motor market in India.
IHP Electric Motor Market: Revenue Forecast, India, 2015–2022

90,000.0 CAGR = 6.0% 9.0
80,000.0 8.0
70,000.0 7.0
Growth Rate (%)

60,000.0 6.0
50,000.0 5.0
40,000.0 4.0
30,000.0 3.0
20,000.0 2.0
10,000.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 52,047.1 54,838.6 57,800.0 60,988.1 64,506.0 68,419.9 72,730.3 77,515.4
Growth Rate - 5.4 5.4 5.5 5.8 6.1 6.3 6.6
Year
P99E-10 92
• The Indian IHP motor market generated a revenue of ₹57,800.0 million in 2017. IHP AC motors and
IHP DC motors had a share of 95.8 percent and 4.2 percent, respectively, in this revenue.
• The IHP market is expected to grow at a CAGR of 6.0 percent over the forecast period. The expected
growth in industries like oil and gas, metals and mining, power and infrastructure will boost the Indian
manufacturing industry, leading to a rise in demand for motors across segments.
• Over the forecast period, the growth of IHP motor market will be mostly driven by LV motors. LV
motors, with wide application across different industries, have been standardised and are a low-cost
option for OEMs and end users.
• MV motors find application in industries such as power, cement, and metals and mining. These end
users are early adaptors of high/premium energy-efficient motors, as it provides significant cost
savings.
• Rising electricity prices and introduction of stringent electricity consumption norms are likely to drive
the demand for high and premium energy-efficient electric motors over the forecast period.
• To get faster return on investments (ROI), end users are looking for integrated motors and drive
solutions; however, most of the small manufacturers lack the required expertise.
P99E-10 93
Percent Revenue Forecast by Voltage Rating
Key Takeaway: Driven by wide usage in a variety of application, LV motors are anticipated to hold
a principal share over the forecast period.
IHP Electric Motor Market: Percent Revenue Forecast by Voltage Rating, India, 2015–2022
100.0
80.0
Revenue (%)
60.0
40.0
20.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
415 V 51.2 50.9 51.2 51.1 50.9 50.6 50.6 50.5
690 V 17.7 17.2 17.3 17.3 17.0 17.0 16.8 16.6
3.3 kV 6.8 7.3 7.5 7.3 7.5 7.6 7.6 7.7
6.6 kV 12.5 13.0 13.1 13.3 13.4 13.4 13.5 13.6
11 kV 7.2 6.9 6.7 6.8 6.9 7.0 7.1 7.1
Others* 4.6 4.7 4.2 4.2 4.3 4.4 4.4 4.5
Year
P99E-10 94
Revenue Forecast by Voltage Rating
Key Takeaway: Expected investments in core industries will marginally improve the demand for
MV motors over the forecast period.
IHP Electric Motor Market: Revenue Forecast by Voltage Rating, India, 2015–2022
80,000.0
70,000.0
Revenue (₹Million)
60,000.0
50,000.0
40,000.0
30,000.0
20,000.0
10,000.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
415 V 26,648.1 27,912.8 29,593.6 31,164.9 32,833.6 34,620.5 36,801.5 39,145.3
690 V 9,212.3 9,432.2 9,999.4 10,550.9 10,966.0 11,631.4 12,218.7 12,867.6
3.3 kV 3,539.2 4,003.2 4,335.0 4,452.1 4,838.0 5,199.9 5,527.5 5,968.7
6.6 kV 6,505.9 7,129.0 7,571.8 8,111.4 8,643.8 9,168.3 9,818.6 10,542.1
11 kV 3,747.4 3,783.9 3,872.6 4,147.2 4,450.9 4,789.4 5,163.9 5,503.6
Others* 2,394.2 2,577.4 2,427.6 2,561.5 2,773.8 3,010.5 3,200.1 3,488.2
Year
P99E-10 95
Revenue Forecast Discussion by Voltage Rating
• LV motors had a share of 68.5 percent of the IHP motor market in 2017. LV motors are
used in a wide variety of applications, including OEMs and the end-user industries.
• In 2017, MV motors saw a marginal growth in revenue due to a slowdown in investments

across industry sectors. The market is expected to observe slow growth due to reduction
in greenfield investment.
• Delays in commissioning of some of the proposed projects is expected to negatively

impact the demand for MV motors in oil and gas industry. Further, execution delays of
infrastructure projects are hurting the demand for cement and steel industries, hampering
new investments and idle capacities.
P99E-10 96
Percent Revenue Forecast by Power Rating
Key Takeaway: As most of the industry equipment use motors in the power range of 76 kW to 750 kW,
this category is expected to remain the most demanded category of motors over the forecast period.
IHP Electric Motor Market: Percent Revenue Forecast by Power Rating, India, 2015–2022
100.0
80.0
Revenue (%)
60.0
40.0
20.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
0.75 kW 19.2 19.5 19.6 19.5 19.7 19.5 19.3 19.1
0.76 to 7.5 kW 15.5 15.4 15.3 15.3 15.5 15.3 15.2 15.2
7.6 to 75 kW 12.1 12.2 12.3 12.2 12.3 12.4 12.5 12.6
76 to 750 kW 30.9 31.4 31.5 31.6 31.4 31.6 31.8 32.1
>750 kW 22.3 21.5 21.3 21.4 21.1 21.2 21.2 21.0
Year
P99E-10 97
Revenue Forecast by Power Rating
Key Takeaway: OEM-oriented applications (including rotating equipment and machine tools),
material handling, and various end-user industries extensively use 0.75 kW to 75 kW.
IHP Electric Motor Market: Revenue Forecast by Power Rating, India, 2015–2022
80,000.0
70,000.0
60,000.0
50,000.0
40,000.0
30,000.0
20,000.0
10,000.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
0.75 kW 10,000.4 10,701.4 11,337.2 11,901.5 12,717.1 13,351.8 14,047.4 14,816.4
0.76 to 7.5 kW 8,043.6 8,420.3 8,817.4 9,303.8 9,969.0 10,437.4 11,022.5 11,747.7
7.6 to 75 kW 6,291.3 6,683.5 7,102.2 7,433.0 7,926.2 8,475.5 9,082.1 9,757.0
76 to 750 kW 16,119.0 17,258.3 18,248.2 19,315.8 20,300.7 21,669.6 23,180.5 24,938.8
>750 kW 11,591.0 11,774.6 12,295.0 13,034.1 13,592.7 14,485.7 15,398.3 16,256.5
Year
P99E-10 98
Revenue Forecast Discussion by Power Rating
• Motors with power ratings in the range of 76 kW to 750 kW held 31.5 percent of the IHP
market revenue. It generated a revenue of ₹18,248.2 million.
• In IHP AC motors, motors with power rating 76 kW to 750 kW generated a revenue of

₹16,897.0 million and within the same power rating, a revenue of ₹1,351.2 million was
earned by IHP DC motors.
• To reduce operational costs, end users prefer using energy-efficient motors, especially in
high-rating motors, such as those above 75 kW.
• With the revival of key industries and the infrastructure sector, the demand for IHP MV
motors, across all the power ratings is expected to improve over the forecast period.
P99E-10 99
Percent Revenue Forecast by OEM and End-user Segment
Key Takeaway: The revival of key industries will drive the growth; rotating equipment will continue
to hold a major share in the market.
IHP Electric Motor Market: Percent Revenue Forecast by OEM and End-user Segment, India, 2015–2022
100.0
80.0
Revenue (%)
60.0
40.0
20.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
Other End Users* 5.7 5.7 5.7 5.7 5.7 5.7 5.8 5.8
Oil and Gas 7.8 7.8 7.9 7.8 7.8 7.9 7.8 7.8
Textiles 4.6 4.5 4.5 4.5 4.4 4.4 4.4 4.3
Food and Beverages 5.2 5.2 5.2 5.3 5.3 5.3 5.3 5.3
Power 8.9 8.8 8.7 8.6 8.6 8.5 8.5 8.5
Cement 7.3 7.2 7.2 7.1 7.1 7 6.9 6.8
Metals & Mining 6.5 6.4 6.3 6.2 6.2 6.1 6 6
General Machinery 12 12.1 12.1 12.2 12.2 12.2 12.3 12.3
Material Handling 9.5 9.6 9.6 9.6 9.6 9.6 9.5 9.5
HVAC 4.4 4.5 4.5 4.5 4.5 4.5 4.6 4.6
Rotating Equipment 28.1 28.2 28.3 28.5 28.6 28.8 28.9 29.1
Year

P99E-10 100
Revenue Forecast by OEM and End-user Segment
Key Takeaway: Demand in IHP electric motors will be driven by increased demand for steel and
cement as a result of infrastructural development during the forecast period.
IHP Electric Motor Market: Revenue Forecast by OEM and End-user Segment, India, 2015–2022
80,000.0 8.0
Growth Rate (%)

60,000.0 6.0
40,000.0 4.0
20,000.0 2.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Other End Users* 2,945.2 3,116.5 3,290.6 3,484.7 3,700.7 3,937.6 4,197.5 4,487.1
Oil and Gas 4,039.2 4,255.4 4,498.3 4,750.2 5,025.7 5,322.2 5,646.9 5,997.0
Textiles 2,390.6 2,499.2 2,614.9 2,737.8 2,871.9 3,021.3 3,184.4 3,366.0
Food and Beverages 2,710.1 2,870.7 3,029.9 3,211.7 3,410.8 3,625.7 3,861.3 4,112.3
Power 4,605.9 4,808.7 5,024.5 5,265.7 5,534.3 5,838.6 6,183.1 6,566.5
Cement 3,806.2 3,975.8 4,160.4 4,347.6 4,552.0 4,779.6 5,028.1 5,304.7
Metals & Mining 3,378.5 3,512.8 3,653.5 3,806.9 3,978.2 4,169.2 4,377.6 4,609.6
General Machinery 6,265.5 6,635.8 7,022.5 7,429.8 7,875.6 8,371.8 8,924.3 9,531.2
Material Handling 4,972.7 5,239.9 5,530.3 5,840.0 6,178.7 6,549.4 6,948.9 7,386.7
HVAC 2,312.5 2,448.5 2,601.7 2,757.8 2,928.8 3,119.2 3,334.4 3,574.5
Rotating Equipment 14,620.7 15,475.3 16,373.5 17,355.9 18,449.3 19,685.4 21,043.7 22,579.9
Growth rate - 5.4 5.4 5.5 5.8 6.1 6.3 6.6
Year
P99E-10 101
Revenue Forecast Discussion by OEM and End-user
Segment
• According to Ministry of Power, the Indian power sector has an investment potential of
$250 billion in the next 5 years. In addition, Indian installed power generation capacity is
likely to grow at a CAGR of 7.8 percent between FY16 and FY22, providing immense
opportunity for IHP electric motors in India.
• Government is taking all possible initiatives to boost the infrastructure sector (bridges,
roads, power, dams and urban infrastructure development). International investors are
showing significant interest in the Indian infrastructure space. Development in
infrastructure will boost demand for steel and cement, which will drive the demand for IHP
electric motors.
• In oil and gas down-stream sector, more than 100MTPA expansion projects are expected
in the next 5 to 10 years. Further, modernisation of refineries to Euro-VI norms by April
2020 is likely to generate market for equipment fitted with motors.
• The government of India aims to increase the contribution of manufacturing output to be
25 percent of GDP by 2025, from 16 percent currently. Government is taking all the
possible initiatives such as ‘Make in India’ to achieve this target. Such a growth in
manufacturing sector will boost the demand for motors in India.
P99E-10 102
Market Share and Competitive Analysis—IHP Electric
Motor Market
Return to contents
P99E-10 103
Market Share
Key Takeaway: The IHP electric motor market is expected to experience decent growth. The
demand for energy-efficient motors is set to increase.
IHP Electric Motor Market: Percent of Sales, India, 2017

SME/Unorganized Imports
16.7% 21.6%
WEG
0.5%
Hindustan Motor
1.0%
Integrated Electric
1.1%
₹57,800.0 Million
LHP
1.7%
Kirloskar Electric Crompton Greaves
3.5% 18.9%
Marathon Electric
4.5%
Bharat Bijlee
4.5% Siemens ABB
7.6% 10.6%
BHEL
7.8%
P99E-10 104
IHP Electric Motor Market: Company

• Crompton Greaves, with 18.9 percent of the Market Share Analysis of Top 11
total market share, was the overall market Participants, India, 2017
leader for IHP electric motors in India.
Company Revenue (₹ Million)
• Crompton Greaves, BHEL and ABB, the top Crompton Greaves 10,900.0
three players, contributed 37.2 percent of the ABB 6,100.0
IHP electric motor market revenue in 2017. BHEL 4,500.0

Siemens 4,400.0
• End users prefer Siemens and Bharat Bijlee, as Bharat Bijlee 2,600.0
they provide electric motors across various Marathon Electric 2,600.0
efficiency classes. Kirloskar Electric 2,000.0
LHP 1,000.0
• Unorganized manufacturers mostly cater to the
Integrated Electric 650.0
demand for LV motors, but they have less share
Hindustan Motor 600.0
in the MV range.
WEG 300.0
SME/Unorganized 9,650.0
Imports 12,500.0
Total 57,800.0
P99E-10 105
IHP Electric Motor Market: Competitive Structure, India, 2017
Total cost of ownership, energy-efficient technology, performance,

Competitive Factors
service support, reliability, safety standards
Key End-user Groups Power, oil & gas, cement, metals and mining, food & beverages
Major Market Participants Crompton Greaves, ABB, BHEL
Other Notable Market Participants Siemens, Bharat Bijlee, Kirloskar Electric, Marathon Electric
Distribution Structure OEMs, direct sales and distributors
P99E-10 106
Top Competitors
IHP Electric Motor Market: SWOT Analysis, India, 2017
Company Strengths Weaknesses Opportunities Threats
Diversified product
range and ability to Huge potential for energy-
Crompton Inadequate focus on Lower price offered
provide bundled efficient motors due to more
Greaves emerging segments by the competition
solution across stringent emissions norms
industries
Government’s ‘Make in India’

Greater focus on core Delay in project
initiative which is poised to
Broad network of segments which has clearance, coupled
ABB drive the manufacturing
dealers/service centres led to higher with weakening
sector, thereby creating
dependability rupee
opportunity for electric motors
LV electric motors form New market, like offshore and

Strong presence in majority of the IHP water drilling rig equipment, Unstable global
BHEL public sector motor market; BHEL and the growing requirement economy may hit
companies has no presence in this for motors for lift irrigation export market
domain schemes
P99E-10 107
• High initial cost and lack of awareness of benefits of high and premium energy-efficient
motors are restraining the growth of energy-efficient electric motors in India. However,
rising electricity prices will drive the demand for energy-efficient electric motors in energy-
intensive industries. Some industries have already started to shift from standard energy-
efficient motors to high and premium energy-efficient motors. This is expected to
encourage adoption of manufacturing standards in designing and manufacturing to
improve efficiency of electric motors.
• Generally, the IHP LV motors provided by different players are standardised with no or
minimal technology difference. Thus, the price is a critical decision-making criteria for the
purchase of IHP LV motors.
• Customers have started showing their preference for integrated motors and drive
solution. Manufacturers need to prepare themselves with the required expertise to offer
such cost-effective solution to the customers.
P99E-10 108
IHP AC Electric Motors Segment Breakdown
Return to contents
P99E-10 109
Key Takeaway: Squirrel cage induction motors are the most frequently used motor type for the LV
category, while the slip ring or synchronous motors are mostly used in the MV motor category.
IHP AC Electric Motors Segment: Percent of Sales, India, 2017
AC Asynchronous Squirrel
Cage Motors
91.0%
AC Asynchronous
Motors
94.5%
₹52,353.0 Million
₹55,400.0 Million
AC Asynchronous
Slip Ring Motors
AC Synchronous 9.0%
Motors
5.5%
P99E-10 110
Product Segmentation (continued)
Key Takeaway: Motors up to 690 V (LV motors) dominate the IHP motor market. 415 V is the
most preferred voltage rating in India for OEM and industrial equipment.
IHP AC Electric Motors Segment: Percent of Sales by LV-MV Split, India, 2017
Others*
4.2%
MV Motors
27.2%
₹55,400.0 Million
LV Motors
68.6%
*Others include custom voltages as required by end users in both LV and MV segments.
P99E-10 111
IHP AC Electric Motors Segment: Market Engineering Measurements, India, 2017

Segment Overview

Segment stage Growth —
Segment revenue (2017) ₹55,400.0 M ▲
Segment size at end of forecast period (2022) ₹74,836.9 M ▲
Base year segment growth rate 5.6% ▲
Segment concentration for IHP AC LV Electric Motors (percentage of base year segment
40.5% ●
controlled by top three competitors)
Segment concentration for IHP AC MV Electric Motors (percentage of base year segment
54.1% ●
controlled by top three competitors)
Number of competitors (active segment competitors in base year) >10 ●

▼ ● ▲
P99E-10 112
IHP AC Electric Motors Segment: Percent

of Revenue by Voltage Rating, India, 2017 • LV motors (415 V and 690 V) had a share of
68.6 percent in the IHP AC electric motor
Others*
11 KV 4.2% market, while MV motors (3.3 kV, 6.6 kV and 11
6.8% kV) contributed 27.2 percent to the segment.
6.6 KV • Most frequently used motor type for the LV

13.1%
category, the squirrel cage induction motor offers
excellent availability, reliability and efficiency.
₹55,400.0 Million 415 V
3.3 KV 51.2% • Slip ring or synchronous motors are mostly
7.3% preferred in the MV motor category.
• The others category includes custom voltage

IHP AC motors like 450 V, 660 V and 1.1 kV. The
690 V
17.4% category accounted for about 4.2 percent of
revenue.
*Others include custom voltages as required by the end users in both LV and MV segments.
P99E-10 113
IHP AC Electric Motors Segment: Percent

• 0.75 kW to 75 kW contributed to 48.0 percent of
of Revenue by Power Rating, India, 2017
the segment. They are used in OEM applications
such as rotating equipment, machine tools,
>750 kW 0.75 kW
20.2% material handling and various end-user
21.5%
industries.
• Available in multiple power-voltage combinations

in the LV or MV categories, 76 kW to 750 kW
₹55,400.0 Million
remained the most demanded power-rating range
0.76 to
7.5 kW in the Indian IHP AC motor market in 2017. It
15.5%
generated a revenue of about ₹16,897.0 million.
• With a revenue of ₹11,911.0 million, motors with

76 KW to
750 kW
power rating above 750 kW was the second-most
30.5% 7.6 kW to demanded category in the segment. Generally
75 kW
12.3% used with MV voltages, these motors find
application in oil and gas, power, and metals and
mining industries.
P99E-10 114
IHP AC LV Electric Motors Subsegment—Efficiency Rating
IHP AC LV Electric Motors Subsegment: Efficiency Rating, India, 2017
• The new international efficiency standard

Higher IE4 Super- IEC 60034-30-1 was published in March
Efficiency Premium 2014, and with the inclusion of 8-pole motors
Efficiency
and the introduction of IE4, it significantly
expands the range of products covered.
IE3 IE3
Premium Premium • The previous edition (IEC 60034-30:2008)
Efficiency Efficiency
covered only three-phase products.
Whereas, the new standard includes single-
Eff 1 IE2 IE2 phase motors and line-start permanent
Premium High High
Efficiency Efficiency Efficiency magnet motors as well.
• Incorporation of an IE5 efficiency class is
Eff 2 IE1 IE1 being envisaged for the next edition of this
Lower Improved Standard Standard
Efficiency Efficiency Efficiency Efficiency standard. The goal is to further reduce the
loss, by nearly 20 percent relative to IE4.
CEMEP IEC
IEC
Efficiency 60034-30-1,
Levels
60034-30:2008
2014
• The new standard expands the power range
to cover motors from 0.12 kW to 1,000 kW.
P99E-10 115
IHP AC LV Electric Motors Subsegment—Efficiency Rating
(continued)
IHP AC LV Electric Motors Subsegment: • In 2017, most of the motors in India conformed
Percent of Revenue by Efficiency, India, 2017 to the IE1 efficiency class. It constituted a share
of about 80.4 percent. IE1 is equivalent to
IE3 IE4
4.0% 1.1% CEMEP efficiency levels’ Eff2 (Improved
IE2 Efficiency) class.
14.5%
• To save operational costs in the long run, high
efficiency motors (IE2) are used. These motors
are generally used for heavy-duty applications.
• The penetration of premium and super-premium
₹38,004.4 Million
efficiency motors is very low, primarily due to
their high initial cost and the lack of awareness
of cost savings in the long run.
• IE3 and IE4 efficiency class motors are used in
specific applications; together, they held a share
IE1
80.4% of 5.1 percent in IHP AC LV electric motors in
2017.
P99E-10 116
• With a share of about 54.8 percent, OEMs

IHP AC Electric Motors Segment: generated a revenue of ₹30,359.2 million in the
Percent of Revenue by OEM, India, 2017 IHP AC motor market in 2017.
HVAC • Rotating equipment, used in most of the end-

8.0%
user industries, led the segment with a
business of ₹15,847.5. The growth of the
Material rotating equipment in India will be driven by the
Handling
17.4% revival in industrial growth. The segment is
expected to grow at a CAGR of 6.8 percent
Rotating
Equipment over the forecast period.
₹30,359.2 Million 52.2%
• General machinery and material handling
subsegments had a share of 22.4 percent and
General 17.4 percent in the OEM revenue. Closely
Machinery
22.4%
linked to overall industrial growth, both these
subsegments are expected to see consistent
growth over the forecast period.
P99E-10 117
IHP AC Electric Motors Segment: Percent • Power and Oil & Gas were the largest end users of
of Revenue by End User, India, 2017 IHP AC motors in 2017. They commanded a revenue
of ₹4,807.8 million and ₹4,332.1 million, respectively,
Others* in the overall IHP AC motor market in India in 2017.
12.3% Power
19.2% • During FY 2016–2022, India’s installed power
Textiles generation capacity is expected to register a CAGR
10.0%
of 7.8 percent; this is a good opportunity for IHP AC
motors in India.
₹25,040.8 Million
Food and Oil & Gas • Despite lower capacity utilisation (70 percent),
Beverages 17.3%
11.2%
cement companies are expected to add 56 MT
capacity over the next 3 years to meet the projected
future demand for cement. This will further improve
Metals and Cement the demand for motors in India.
Mining 16.0%
14.0% • Food and beverage, metals and mining, and textiles
were other prominent sectors for IHP AC electric
motors in 2017.
*Others include pulp and paper, automotive, pharmaceuticals, chemicals,
plastic, printing and packaging machinery, among others. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
P99E-10 118
Revenue Forecast
Key Takeaway: Revival in key industries like oil and gas, and power will drive the demand for
IHP motor market in India.
IHP AC Electric Motors Segment: Revenue Forecast, India, 2015–2022

80,000.0 CAGR = 6.2% 12.0
70,000.0
10.0
60,000.0
Growth Rate (%)

8.0
50,000.0
40,000.0 6.0
30,000.0
4.0
20,000.0
2.0
10,000.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 49,732.4 52,482.7 55,400.0 58,541.0 62,009.1 65,868.2 70,117.7 74,836.9
Growth Rate - 5.5 5.6 5.7 5.9 6.2 6.5 6.7
Year
P99E-10 119
• In 2017, the Indian IHP AC electric motor market generated a revenue of ₹55,400.0
million.
• With growing awareness of overall and long-term benefits of energy-efficient motors, end
users are continuously looking for such motors in both LV and MV applications. Energy-
efficient motors and motors fitted with VFDs are expected to gain popularity over the
forecast period, which will drive the demand for IHP AC electric motors in India.
• IHP AC electric motors fitted with variable frequency drives (VFDs) are expected to gain
popularity over the forecast period.
• Driven by expected greenfield investments in core industries, the total India IHP AC
motors segment is expected to grow at a CAGR of 6.2 percent from 2017 to 2022 to
reach a revenue of ₹74,836.9 million by 2022.
P99E-10 120
Percent Revenue Forecast by Product Type
Key Takeaway: Owing to its competitive price, ease of maintenance and wide availability, AC
squirrel cage motors are expected to grow at higher rate over the forecast period.
IHP AC Electric Motors Segment: Percent Revenue Forecast by Product Type, India, 2015–2022
100.0
90.0
80.0
70.0
Revenue(%)
60.0
50.0
40.0
30.0
20.0
10.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
Asynchronous Squirrel Cage
85.6 85.8 86.0 86.0 86.1 86.3 86.4 86.6
Induction Motors
Asynchronous Slip Ring Motors 8.8 8.6 8.5 8.5 8.5 8.3 8.3 8.2
Synchronous Motors 5.6 5.6 5.5 5.5 5.4 5.4 5.3 5.2
Year
P99E-10 121
Revenue Forecast by Product Type
Key Takeaway: Squirrel cage induction motors with power rating below 75 kW are widely
used in the Indian market.
IHP AC Electric Motors Segment: Revenue Forecast by Product Type, India, 2015–2022
80,000.0
70,000.0
60,000.0
50,000.0
40,000.0
30,000.0
20,000.0
10,000.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022
Asynchronous Squirrel Cage
42,570.9 45,030.2 47,644.0 50,345.2 53,389.8 56,844.2 60,581.7 64,808.7
Induction Motors
Asynchronous Slip Ring Motors 4,376.5 4,513.5 4,709.0 4,976.0 5,270.8 5,467.1 5,819.8 6,136.6
Synchronous Motors 2,785.0 2,939.0 3,047.0 3,219.8 3,348.5 3,556.9 3,716.2 3,891.5
Year
P99E-10 122
Revenue Forecast Discussion by Product Type
• In 2017, the Indian IHP AC electric motor market generated a revenue of ₹55,400.0
million. In this revenue, asynchronous squirrel cage motors hold a share of 86.0 percent.
AC squirrel cage motors are competitively priced, easy to maintain and are widely
available.
• The squirrel cage induction motors are the most frequently used motor type for the LV
category, while the slip ring or synchronous motors are mostly used in the MV motors
category. In addition, motors with power rating below 75 kW are widely used in the Indian
market and squirrel cage induction motors are preferred for such power ratings.
• Asynchronous slip ring motors and synchronous motors hold 8.5 percent and 5.5 percent,
respectively, of the overall IHP AC motor revenue.
• Asynchronous squirrel cage motors are expected to grow at a CAGR of 6.3 percent.
Asynchronous slip ring motors and synchronous motors are forecast to grow at a CAGR
of 5.4 percent and 5.0 percent, respectively, over the forecast period 2017 to 2022.
P99E-10 123
Segment Share
Key Takeaway: SMEs and unorganised players mostly cater to the requirements of IHP AC LV electric
motors, while share of imports is comparatively high in IHP AC MV electric motors subsegment.
IHP AC LV Electric Motors Subsegment: IHP AC MV Electric Motors Subsegment:

Percent of Sales, India, 2017 Percent of Sales, India, 2017
Crompton
Imports Greaves BHEL
21.0% Imports
21.7% 26.2% 27.2%
SME/
ABB Unorganized
9.6% 3.1% ₹16,545.0 Million
₹38,855.0 Million
SME/
Unorganized WEG
21.5% Siemens 1.8%
9.2% ABB
Siemens
Hindustan 14.4%
5.1%
Motor Bharat Bijlee
1.5% 6.7% Marathon
Crompton
Marathon Electric
LHP Kirloskar Greaves
Electric 9.7%
2.6% Electric 12.5%
2.5%
3.7%
P99E-10 124
Segment Share Analysis
• With 21.7 percent market share, Crompton Greaves retains its leadership in LV motor
category and registered a revenue of ₹8,425.0 million in 2017.
• In the MV motor category, BHEL is the market leader; it accounted for more than
₹4,500.0 million in 2017. BHEL had limited opportunities due to continued slowdown in its
traditional markets: power, refineries and cement. However, BHEL is preparing for growth
and plans to focus on enhancing its presence in the irrigation sector which has growing
requirement for motors for lift irrigation schemes.
• LV motors find high demand from OEMs. Most of the MV motors are used directly in end-
user industries for individual applications and are custom designed.
• Sluggish demand and the threat from low-cost imports of motors—mostly power rating
under 75 kW— from China, Korea, Germany and Mexico, affects the motor market in
India. In 2017, imports constituted 21.0 percent in LV motor and 26.2 percent in MV
motor categories.
• The SME manufacturers and unorganized market mostly cater to the LV motor demand,
and they generally deal in standard off-the-shelf products. However, with strict energy
efficiency norms and awareness among end users, the share of these players will reduce
over the time. Currently, their share in LV motor segment is 21.5 percent.
P99E-10 125
Segment Share Analysis (continued)
IHP AC LV Electric Motors Subsegment: IHP AC MV Electric Motors Subsegment:

Company Market Share Analysis of Top 8 Company Market Share Analysis of Top 6
Participants, India, 2017 Participants, India, 2017
Company Revenue (₹ Million) Company Revenue (₹ Million)
Crompton Greaves 8,425.0 BHEL 4,500.0
ABB 3,720.0 ABB 2,380.0

Siemens 3,555.0
Crompton Greaves 2,075.0
Bharat Bijlee 2,600.0
Kirloskar Electric 1,450.0
Siemens 845.0
LHP 1,000.0
WEG 300.0
Marathon Electric 990.0
Hindustan Motor 600.0 SME/Unorganized 500.0
SME/Unorganized 8,350.0 Imports 4,335.0
Imports 8,165.0 Total 16,545.0

Total 38,855.0
P99E-10 126
IHP DC Electric Motors Segment Breakdown
Return to contents
P99E-10 127
IHP DC Electric Motors Segment:

Percent of Sales, India, 2017 • DC motors held a share of 4.2 percent in the
Indian IHP motor market in 2017.
DC Motors
4.2% • DC motors, largely preferred by small-scale
industries, are used in specific applications
such as in cold rolling mills and roller tables.
• DC motors are being replaced by AC motors

₹57,800.0 Million with variable-frequency drives (VFD) in
many applications. This is causing a decline
in the growth of DC motors in India.
• Organised players in this segment are

AC Motors Crompton Greaves, Kirloskar Electric and
95.8% Integrated Electric Company.
P99E-10 128
IHP DC Electric Motors Segment: Market Engineering Measurements, India, 2017
Segment Overview
Segment stage Growth —
Segment revenue (2017) ₹2,400.0 M ▲
Segment size at end of the forecast period (2022) ₹2,678.6 M ▲
Base year segment growth rate 1.9% ▲
Customer price sensitivity (scale of 1 to 10, low to high) 8 ▲
Segment concentration (percentage of base year segment controlled by top three competitors) 66.7% ●
Number of competitors (active segment competitors in base year) >3 ●

▼ ● ▲
P99E-10 129
IHP DC Electric Motors Segment: Percent

of Revenue by Voltage Rating, India, 2017 • LV (415 V and 690 V) motors contributed
to 67.5 percent of the overall IHP DC
11 kV Others* motor revenue.
5.5% 3.9%
• In the MV motor category, motors with
6.6 kV
11.9% voltage rating of 6.6 kV held the highest
share.
415 V • Higher-rating motors are generally used in

51.7%
₹2,400.0 Million the oil and gas, and petrochemical
3.3 kV industries.
11.2%
• Motors of custom voltages are included in
others category. They contributed 3.9
690 V percent in the IHP DC motor revenue.
15.8%
*Others include custom voltages as required by the end users in both LV and MV segments.
P99E-10 130

• DC motors are still used in many industrial
of Revenue by Power Rating, India, 2017
applications, particularly those requiring
0.75 kW
> 750 kW 6.1%
0.76 to constant torque under a wide speed range.
16.0% 7.5 kW
9.6% • DC motors are suitable for many applications,
such as turntables, conveyors and others.
7.6 to
75 kW
12.0%
• DC motors of power ratings 76 kW to 750 kW
are the most popular among industries. This
₹2,400.0 Million
category amounted to ₹1,351.2 million and
represented 56.3 percent of the overall Indian
IHP DC motor market in 2017.
• Motors below 75 kW are used by OEMs and

end-user industries.
76 kW to
750 kW
56.3%
P99E-10 131
IHP DC Electric Motors Segment:

Percent of Revenue by OEM, India, 2017
• DC motors are good option for driving
HVAC constant torque loads. Such application
14.8%
include elevators, conveyor belts, mixers,
cranes, extruders and others.
Rotating • With the largest share, rotating equipment

General Equipment held 45.0 percent of the OEM segment.
Machinery 45.0%
19.0% ₹1,168.8 Million • Material handling and general machinery
contributed 21.2 percent and 19.0 percent,
respectively, to the IHP DC motor revenue.
• HVAC applications accounted for 14.8 percent

Material of the overall segment.
Handling
21.2%
P99E-10 132

of Revenue by End User, India, 2017 • Food and beverages, power, oil and gas,
cement, and metals and mining are the key
Others*
Food and end-user industries that use DC motors.
17.1% Beverages
18.3%
• Food and beverage held 18.3 percent of the
IHP DC motor market in 2017. In this industry
Textiles
DC motors find application in crushers, mill
9.0% drives and food processing equipment.
₹1,231.2 Million
Power
17.6%
• In the cement industry, DC motors are generally
Metals and
used in fan drives, kilns, coolers, feeders and
Mining raw mills. Shears, table rollers, rolling drives
12.0%
and pinch rollers are some of the application
Oil & Gas areas of DC motors in metals and mining
Cement
13.5%
12.5% industry.
*Others include pulp and paper, automotive, pharmaceuticals, chemicals,

plastic, printing and packaging machinery among others. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
P99E-10 133
Revenue Forecast
Key Takeaway: Although gradually losing market to AC motors, DC motors have a small
replacement market in legacy equipment.
IHP DC Electric Motors Segment: Revenue Forecast, India, 2015–2022

CAGR = 2.2%
2,800.0 3.0
2,400.0 2.5
2,000.0
Growth Rate (%)

2.0
1,600.0
1.5
1,200.0
1.0
800.0
400.0 0.5
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 2,314.7 2,355.9 2,400.0 2,447.1 2,497.0 2,551.8 2,612.6 2,678.6
Growth Rate - 1.8 1.9 2.0 2.0 2.2 2.4 2.5
Year
P99E-10 134
• DC motors are expected to grow at CAGR of 2.2 percent over the forecast period.
• Most of the demand for these motors is expected to come from industries like power,
food and beverage and oil and gas.
• DC motors are being replaced by AC motors fitted with variable frequency drives (VFDs),
which offer higher efficiency at competitive cost and have lower maintenance cost. In
some applications, however, there exists a replacement market for IHP DC motors. In
such cases, end users find it easy and quick to replace IHP DC motors with a new one
instead of replacing it with an AC motor with drives.
• However, technological advancement in AC motors and variable frequency drives is

expected to continue to hamper the demand for DC motors in India.
P99E-10 135
Segment Share
Key Takeaway: Mostly used by small-scale industries in specific applications, there are very
few organised players in IHP DC electric motor market.
IHP DC Electric Motors Segment: Percent of Sales, India, 2017
Integrated Electric
Co. Pvt Ltd
Others* 27.1%
33.3%
₹2,400.0 Million
Kirloskar Electric
Company Limited
Crompton Greaves 22.9%
Limited
16.7%
*Others include small-scale manufacturers and importers.

P99E-10 136
Segment Share Analysis
• Integrated Electric, the segment leader, held a IHP DC Electric Motors Segment:
Company Segment Share Analysis
share of 27.1 percent in 2017.
of Top 3 Participants, India, 2017
• The top 3 participants, Integrated Electric, Revenue
Kirloskar Electric and Crompton Greaves Company (₹ Million)
contributed to 66.7 percent of the market Integrated Electric Co.

650.0
Pvt. Ltd.
revenue.
Kirloskar Electric
• Small-scale manufacturers and importers 550.0
Company Limited
have a considerable market share, and they
Crompton Greaves
mostly cater to the local demand for DC 400.0
Limited
motors. Brushless DC motors, which offer
Others* 800.0
higher efficiency, are generally imported from
Total 2,400.0
China and Taiwan.
*Others include small-scale manufacturers and importers.

P99E-10 137
IHP Electric Motor Market—OEM Analysis: Rotating
Equipment Segment Breakdown
Return to contents
P99E-10 138
Revenue Forecast
Key Takeaway: Demand for rotating equipment will be driven by growth in key end-user industries
and retrofit application.
Rotating Equipment Segment: Revenue Forecast, India, 2015–2022

CAGR = 6.6%
25,000.0 12.0
10.0
20,000.0
Growth Rate (%)

8.0
15,000.0
6.0
10,000.0
4.0
5,000.0
2.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 14,620.7 15,475.3 16,373.5 17,355.9 18,449.3 19,685.4 21,043.7 22,579.9
Growth Rate - 5.8 5.8 6.0 6.3 6.7 6.9 7.3
Year
P99E-10 139
• Rotating equipment segment includes pumps, compressors, fans and blowers.
• With 51.9 percent share of the revenue from OEMs, rotating equipment is the largest
contributor to the segment. It generated a revenue of ₹16,373.5 million in 2017. The
revenue from this subsegment is expected to grow at a CAGR of 6.6 percent from 2017
to reach ₹22,579.9 million by 2022.
• The growth of the rotating equipment segment is closely linked to the revival in industrial
growth. Oil and gas and power will receive good investment. As a result, the demand for
rotating equipment will increase over the forecast period, thereby benefiting the IHP
motor market in India.
• The most frequently used motors in the rotating equipment segment are squirrel cage
induction motors, followed by slip-ring motors, synchronous motors and DC motors, in
that order. DC motors are gradually losing ground to AC motors fitted with variable
frequency drives (VFDs), as AC motors are competitively priced, provide better efficiency
and have lower maintenance costs when compared to DC motors.
P99E-10 140
Material Handling Segment Breakdown
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P99E-10 141
Revenue Forecast
Key Takeaway: Material handling equipment industry in India is largely driven by overall industrial
production; other drivers being demand for increased automation and safe working practices.
Material Handling Segment: Revenue Forecast, India, 2015–2022

8,000.0 CAGR = 6.0% 12.0
7,000.0
10.0
6,000.0
Growth Rate (%)

8.0
5,000.0
4,000.0 6.0
3,000.0
4.0
2,000.0
2.0
1,000.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 4,972.7 5,239.9 5,530.3 5,840.0 6,178.7 6,549.4 6,948.9 7,386.7
Growth Rate - 5.4 5.5 5.6 5.8 6.0 6.1 6.3
Year
P99E-10 142
• At ₹5,530.3 million, the demand for electric motors in material handling equipment
industry is expected to grow at a CAGR of 6.0 percent by 2022.
• The material handling industry comprises various tools, appliances, vehicles, storage
units and, accessories involved in sorting, transporting, controlling and protecting
products—from manufacturing to distribution and from consumption to disposal.
• Among all the categories, the prospects for bulk material handling equipment in India is
expected to be highest. Electric motors are used to power most of the equipment such as
pulleys and conveyors.
• With the expected improvements in the economy, infrastructure development projects

and good growth in manufacturing and consequently in logistics and distribution activities,
the demand for material handling equipment is expected to see significant growth. This
will, in turn, create opportunities for electric motors in India.
P99E-10 143
HVAC Segment Breakdown
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P99E-10 144
Revenue Forecast
Key Takeaway: The focus on reducing energy consumption in buildings has increased and is set
to present better opportunities for the HVAC market, which will boost the demand for motors.
HVAC Segment: Revenue Forecast, India, 2015–2022

4,000.0 CAGR, 2017–2022= 6.6% 12.0
3,500.0
10.0
3,000.0
Growth Rate (%)

8.0
2,500.0
2,000.0 6.0
1,500.0
4.0
1,000.0
2.0
500.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 2,312.5 2,448.5 2,601.7 2,757.8 2,928.8 3,119.2 3,334.4 3,574.5
Growth Rate - 5.9 6.3 6.0 6.2 6.5 6.9 7.2
Year
P99E-10 145
• Indian construction industry is on an uptrend. New construction in the commercial,

industrial and residential sectors has boosted the demand for HVAC systems in India.
Further, increasing awareness of building efficiencies will generate higher revenue for the
Indian HVAC market.
• The growing HVAC segment will create demand for products that require electric motors.
These products include chillers, air-handling units and packaged units.
• The demand for IHP motors within the HVAC segment was ₹2,601.7 million in 2017. AC
motors contributed the most to this revenue. Revenue is forecast to grow at a CAGR of
6.6 percent and touch ₹3,574.5 million by 2022.
P99E-10 146
General Machinery Segment Breakdown
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P99E-10 147
Revenue Forecast
Key Takeaway: Growth in infrastructure, construction and revival in key industries will drive the
demand for general machinery in India.
General Machinery Segment: Revenue Forecast, India, 2015–2022

CAGR, 2017–2022 = 6.3%
12,000.0 12.0
10,000.0 10.0
Growth Rate (%)

8,000.0 8.0
6,000.0 6.0
4,000.0 4.0
2,000.0 2.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 6,265.5 6,635.8 7,022.5 7,429.8 7,875.6 8,371.8 8,924.3 9,531.2
Growth Rate - 5.9 5.8 5.8 6.0 6.3 6.6 6.8
Year
P99E-10 148
• The general machinery segment includes machine tools, mechanized farm equipment,
packaging machines and equipment, medical equipment, commercial machines and
general machinery used in the industrial and construction sectors.
• The requirement of different end-user industries to automate production and facilitate

efficient operations will create opportunities for advanced, automated and energy-efficient
machines.
• With the Indian Government’s various initiatives to make India a manufacturing hub, the
future of the general machinery segment looks bright.
• The demand for machine tools from capital goods is anticipated to remain high. Further,
considering the demand for high accuracy and superior precision, the demand for
Computer Numerically Controlled (CNC) machine tools will grow significantly.
• Infrastructure will be one of the key demand drivers for general machinery in India.
Revival in industrial growth is expected to bring in investment for capacity additions and
new greenfield projects. This is set to drive the growth of industrial machinery industry
and fuel the demand for electric motors in this segment.
P99E-10 149
IHP Electric Motors—End-user Analysis: IHP Electric
Motors in the Power Sector Breakdown
Return to contents
P99E-10 150
Revenue Forecast
Key Takeaway: Power is expected to remain the key segment for electric motors in India. Capacity
additions and retrofit demand for motors are set to drive the demand for electric motors in this segment.
IHP Electric Motors in the Power Sector: Revenue Forecast, India, 2015–2022
7,000.0 CAGR = 5.5% 12.0
6,000.0 10.0
Growth Rate (%)

5,000.0
8.0
4,000.0
6.0
3,000.0
4.0
2,000.0
1,000.0 2.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 4,605.9 4,808.7 5,024.5 5,265.7 5,534.3 5,838.6 6,183.1 6,566.5
Growth Rate - 4.4 4.5 4.8 5.1 5.5 5.9 6.2
Year
P99E-10 151
• Power remains a key segment for electric motors in India. In this sector, motors are used
in rotating equipment such as pumps, fans, and air and gas compressors.
• The demand for IHP motors in the power sector stood at ₹5,024.5 million in 2017, and the
sector held a share of 19.1 percent in the overall revenue generated from end-user
segment.
• The Indian power sector has immense opportunities in power generation, distribution,
transmission and equipment. It has an investment potential of ₹15 trillion in the next 4 to
5 years.
• The demand for electric motors in power segment is expected to be driven by new
capacity additions and the retrofit market.
• End users are keen to use electric motors that are more energy efficient and cleaner than
other conventional motors.
P99E-10 152
IHP Electric Motors in the Oil and Gas Sector Breakdown
Return to contents
P99E-10 153
Revenue Forecast
Key Takeaway: The demand for advanced equipment and awareness of overall plant efficiency
to drive the demand for energy-efficient motors in the sector.
IHP Electric Motor Market in the Oil and Gas Sector: Revenue Forecast, India, 2015–2022
CAGR = 5.9%
7,000.0 12.0
6,000.0 10.0
5,000.0
Growth Rate (%)

8.0
4,000.0
6.0
3,000.0
4.0
2,000.0
1,000.0 2.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 4,039.2 4,255.4 4,498.3 4,750.2 5,025.7 5,322.2 5,646.9 5,997.0
Growth Rate - 5.4 5.7 5.6 5.8 5.9 6.1 6.2
Year
P99E-10 154
• Revenue for IHP motors from the oil and gas sector in 2017 was ₹4,498.3 million. It is
expected to grow at a CAGR of 5.9 percent over the forecast period and reach ₹5,997.0
million, by 2022.
• The Indian Government intends to reduce oil imports by 10 percent by 2022. This
necessitates capacity expansions and fast-tracking the ongoing projects in the oil and gas
sector.
• Further, all the existing refiners need to be upgraded to supply fuel complying to BS VI
standards, by 2020. This upgrade is expected to bring in the addition of new equipment
resulting in an increase in the demand for electric motors in India.
• Electric motors are used in critical operations in both onshore and offshore facilities,
including drilling equipment, production equipment and refinery equipment. Pump motors,
vertical motors and hazardous location motors are used to ensure facility uptime. For
critical application in the industry, customers also look for smoke spill motors (flame-proof
motors).
• Squirrel cage induction motors are widely used IHP motors in oil and gas sector.
P99E-10 155
IHP Electric Motors in the Cement Sector Breakdown
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P99E-10 156
Revenue Forecast
Key Takeaway: Development in the infrastructure and construction sectors is set to boost
demand for cement in India.
IHP Electric Motor Market in the Cement Sector: Revenue Forecast, India, 2015–2022
CAGR = 5.0%
6,000.0 6.0
5,000.0 5.0
Growth Rate (%)

4,000.0 4.0
3,000.0 3.0
2,000.0 2.0
1,000.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 3,806.2 3,975.8 4,160.4 4,347.6 4,552.0 4,779.6 5,028.1 5,304.7
Growth Rate - 4.5 4.6 4.5 4.7 5.0 5.2 5.5
Year
P99E-10 157
• India is the second largest cement producer and consumer in the world. Currently, it has
about 210 large cement plants and more than 350 small cement units. Its current
production capacity of about 421 million tonnes is expected to swell to 550 million tonnes
by 2025.
• All India cement capacity utilisation declined marginally to 70 percent in 2016 from 71
percent in 2015. Despite lower capacity utilisation, cement companies are expected to
add 56 MT capacity over the next 3 years to meet the projected future demand for
cement.
• In the cement industry, electric motors are used in feeders, stone crushers, grinders,
conveyors, kilns, separators and fans. Thus, capacity addition would lead to an increase
in the demand for electric motors in the cement industry.
• Cement demand in the country will be driven by the growth in infrastructure and
construction industries. Government initiatives like smart cities will boost the demand for
cement in the country.
P99E-10 158
IHP Electric Motors in the Metals and Mining Sector
Breakdown
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P99E-10 159
Revenue Forecast
Key Takeaway: This sector is focusing on minimising cost and optimising technology by using
advanced equipment to increase process efficiency.
IHP Electric Motor Market in the Metals and Mining Sector: Revenue Forecast, India, 2015–2022
CAGR = 4.8%
5,000.0 7.0
4,500.0
6.0
4,000.0
5.0
Growth Rate (%)

3,500.0
3,000.0 4.0
2,500.0
2,000.0 3.0
1,500.0 2.0
1,000.0
1.0
500.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 3,378.5 3,512.8 3,653.5 3,806.9 3,978.2 4,169.2 4,377.6 4,609.6
Growth Rate - 4.0 4.0 4.2 4.5 4.8 5.0 5.3
Year
P99E-10 160
• The IHP motors in metals and mining industry generated a revenue of ₹3,653.5 million in
2017. This market is expected grow at a CAGR of 4.8 percent over the forecast period to
reach ₹4,609.6 million, by 2022.
• After going through a slowdown, mining activity in India is expected to revive as the
government fast tracks the mining auction process. The passing of the Mines and
Minerals Development and regulation (MMDR) Act 2015 and the Coal Mines Special
Provisions Act 2015 are some of the steps which are expected to set metals and mining
sector on a growth trajectory.
• Iron and steel accounts for a major share in the Indian metals and mining industry. Steel’s
main consumer sectors—infrastructure and automobile—are expected to receive a
renewed thrust in the coming year. These industries are expected to receive investments
for expansion and new projects, thereby driving the demand for steel in India.
• Motors find application in mill motors, crane, conveyors, loaders, drilling and pumps,
among other operations. Squirrel cage induction motors are the most used in the metals
and mining industry.
P99E-10 161
IHP Electric Motors in the Food and Beverage Sector
Breakdown
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P99E-10 162
Revenue Forecast
Key Takeaway: The growth in packaged food industry and modern retail is expected to increase
the demand for modern production equipment and advanced supply-chain-and-logistics facilities.
IHP Electric Motor Market in the Food and Beverage Sector: Revenue Forecast, India, 2015–2022
CAGR = 6.3%
4,500.0 8.0
4,000.0 7.0
3,500.0
6.0
Growth Rate (%)

3,000.0
5.0
2,500.0
4.0
2,000.0
3.0
1,500.0
1,000.0 2.0
500.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 2,710.1 2,870.7 3,029.9 3,211.7 3,410.8 3,625.7 3,861.3 4,112.3
Growth Rate - 5.9 5.5 6.0 6.2 6.3 6.5 6.5
Year
P99E-10 163
• The Indian food and beverages industry has immense growth potential and food
processing industry, important user of electric motors and fast growing segment,
accounts for nearly 32 percent of the total food market in India. According to the
Confederation of Indian Industry (CII) the food processing industry has potential to attract
investment of $33 billion over the next 10 years.
• Sugar too is an important subsegment that uses electric motors. Motors are used in
sugar industry equipment such as crushers and centrifugal machines.
• With growth in packaged food industry and modern retail, demand for modern production
technology and efficient supply chain infrastructure is set for huge growth, thereby
increasing demand for electric motors in the industry.
• In 2017, the revenue for electric motors from the food and beverage industry was
₹3,029.9 million. With a CAGR of 6.3 percent, the market is expected to reach ₹4,112.3
million by 2022.
P99E-10 164
IHP Electric Motors in the Textiles Sector Breakdown
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P99E-10 165
Revenue Forecast
Key Takeaway: The textile machinery industry is expected to witness a robust demand, as the
Indian textile industry aims to double exports and turnover in the next five years.
IHP Electric Motor Market in the Textiles Sector: Revenue Forecast, India, 2015–2022
4,000.0
CAGR = 5.2% 7.0
3,500.0 6.0
3,000.0
5.0
Growth Rate (%)

2,500.0
4.0
2,000.0
3.0
1,500.0
2.0
1,000.0
500.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 2,390.6 2,499.2 2,614.9 2,737.8 2,871.9 3,021.3 3,184.4 3,366.0
Growth Rate - 4.5 4.6 4.7 4.9 5.2 5.4 5.7
Year
P99E-10 166
• India has the second largest textile manufacturing capacity in the world, and electric
motors contribute to the majority of the total electric load.
• Electric motors earned a revenue of ₹2,614.9 million in 2017 from this segment. With a
CAGR of 5.2 percent, the market is expected to touch a revenue of ₹3,366.0 million by
2022.
• Owing to their ruggedness and versatility, three-phase induction motors are widely used
in the textile industry. Reduction in motor efficiency (with time and operation) is the main
challenge faced by this industry.
• Application of electric motors in various textile-related machinery are: winding machine,
sewing machines, dyeing machines, twisting machines and looms.
• The Indian textile industry aims to double its export and turnover in the next five years. In
order to achieve this, manufacturers are open to invest in modern technology and
engineering.
• End user are looking to replace ageing equipment with new, low-cost equipment and
rugged motors.
P99E-10 167
IHP Electric Motors in the Others Sector Breakdown
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P99E-10 168
Revenue Forecast
Key Takeaway: End users seek low-cost, reliable and easy-to-operate-and-maintain motor.
IHP Electric Motor Market in the Others* Sector: Revenue Forecast, India, 2015–2022
5,000.0 CAGR = 6.4% 8.0
4,500.0 7.0
4,000.0
6.0
Growth Rate (%)

3,500.0
3,000.0 5.0
2,500.0 4.0
2,000.0 3.0
1,500.0
2.0
1,000.0
500.0 1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue 2,945.2 3,116.5 3,290.6 3,484.7 3,700.7 3,937.6 4,197.5 4,487.1
Growth Rate - 5.8 5.6 5.9 6.2 6.4 6.6 6.9
Year
*Others include Pulp and Paper, Automotive, Pharmaceuticals, Chemicals,
Plastic, Printing and Packaging Machinery among others.
P99E-10 169
• Other segment includes pulp and paper, automotive, pharmaceuticals, chemicals, plastic,
printing and packaging machinery.
• Revenue for electric motors from this segment was ₹3,290.6 million in 2017. The
segment is expected to grow at a CAGR of 6.4 percent to reach a revenue of ₹4,487.1
million by 2022.
• Due to competitive cost, simple construction, usage and maintenance, squirrel cage
induction motors are the most used motors across these industries.
P99E-10 170
The Last Word
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P99E-10 171
The Last Word—Three Big Predictions for the FHP Motor
Market
The growth in FHP motor market will be driven by growth in household

1 appliance and OEM segments.
Permanent magnet DC motors (PMDC), brushless DC motors (BLDC) and

2 three phase motors with VFDs will replace single-phase electric motors.
Low-cost imports and small-scale manufactures will continue to cater to

3 the local demand for FHP motors.
P99E-10 172
The Last Word—Three Big Predictions for the IHP Market
AC motors are expected to replace DC motors due to better efficiency,

1 competitive price and lower maintenance costs.
Rising electricity prices and increased awareness of overall cost savings in

2 the long run will help high and premium energy-efficient electric motors to
gain market share in energy-intensive industries.
Advancement and rapid growth in automation, integration of motion control

3 components in motors, and energy efficiency regulations will be the major
growth drivers for IHP motors in India.
P99E-10 173
Legal Disclaimer
Frost & Sullivan is not responsible for any incorrect information supplied to us by
manufacturers or users. Quantitative market information is based primarily on interviews
and therefore is subject to fluctuation. Frost & Sullivan research services are limited
publications containing valuable market information provided to a select group of customers.
Our customers acknowledge, when ordering or downloading, that Frost & Sullivan research
services are for customers’ internal use and not for general publication or disclosure to third
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noncustomers without written permission. Furthermore, no part may be reproduced, stored
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For information regarding permission, write to:
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© 2017 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
P99E-10 174
Appendix
Return to contents
P99E-10 175
Market Engineering Methodology
One of Frost & Sullivan’s core deliverables

is its Market Engineering studies. They are
based our proprietary Market Engineering
Methodology. This approach, developed
across the 50 years of experience
assessing global markets, applies
engineering rigor to the often nebulous art
of market forecasting and interpretation.
A detailed description of the methodology

can be found here.
P99E-10 176
Table of Acronyms Used
AC Alternating Current
CAGR Compound Annual Growth Rate
DC Direct Current
EE Energy Efficiency
FHP Fractional Horsepower
HVAC Heating, Ventilation and Cooling
IE International Efficiency
IEC International Electrotechnical Commission
IHP Integral Horsepower
LV Low Voltage
MV Medium Voltage
P99E-10 177
Partial List of Companies Interviewed
• Crompton Greaves
• ABB
• Marathon Electric
• BHEL
• PICL
• Godrej Lawkim
P99E-10 178

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Indian Electric Motor Market, Forecast to 2022

Revival of Key Indian Industries and the Infrastructure Sector to Boost

Section Slide Number

• Market Engineering Measurements 15

• Key Questions This Study Will Answer 24

Forecast and Trends—Total Electric Motor Market 26

• Market Engineering Measurements 27

• Revenue Forecast Discussion 30

• Percent Revenue Forecast by OEM and End-user Segment 31

• Revenue Forecast by OEM and End-user Segment 32

• Revenue Forecast Discussion by OEM and End-user Segment 33

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

• Revenue Forecast Discussion 93

• Percent Revenue Forecast by Voltage Rating 94

• Revenue Forecast by Voltage Rating 95

• Revenue Forecast Discussion by Voltage Rating 96

• Percent Revenue Forecast by Power Rating 97

• Revenue Forecast by Power Rating 98

• Revenue Forecast Discussion by Power Rating 99

• Percent Revenue Forecast by OEM and End-user Segment 100

• Revenue Forecast by OEM and End-user Segment 101

• Revenue Forecast Discussion by OEM and End-user Segment 102

Market Share and Competitive Analysis—IHP Electric Motor Market 103

• Market Share 104

• Market Share Analysis 105

Section Slide Number

Section Slide Number

Section Slide Number

• Revenue Forecast 142

• Revenue Forecast Discussion 143

HVAC Segment Breakdown 144

• Revenue Forecast 145

• Revenue Forecast Discussion 146

General Machinery Segment Breakdown 147

• Revenue Forecast 148

• Revenue Forecast Discussion 149

• Revenue Forecast 151

• Revenue Forecast Discussion 152

• Revenue Forecast 154

• Revenue Forecast Discussion 155

Section Slide Number

• Revenue Forecast 157

• Revenue Forecast Discussion 158

• Revenue Forecast 160

• Revenue Forecast Discussion 161

• Revenue Forecast 163

• Revenue Forecast Discussion 164

IHP Electric Motors in the Textiles Sector Breakdown 165

• Revenue Forecast 166

• Revenue Forecast Discussion 167

IHP Electric Motors in the Others Sector Breakdown 168

• Revenue Forecast 169

• Revenue Forecast Discussion 170

Section Slide Number

• Legal Disclaimer 174

• Market Engineering Methodology 176

• Table of Acronyms Used 177

• Partial List of Companies Interviewed 178

• Learn More—Next Steps 179

Total Electric Motor Market: Segmentation, India, 2017