Frost Radar in the

Industrial Electric
Motors Market

A Measurement System to Spark

Companies 2 Action (C2A)—
Innovation That Fuels New Deal
Flow and Growth Pipelines
Global Industrial Automation & Process Control Research Team at Frost & Sullivan
K34B-17
April 2019
Contents
Section Slide Number

Industry Overview 3
The Frost Radar—Industrial Electric Motors Market 6
C2A—Market Participant Profiles 9
The Last Word 32
About the Frost Radar 35

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Industry Overview

3
Industry Overview
• The industrial electric motors market is expected to generate a revenue of $18.2 billion in
2018, representing an 8.8% growth in revenue compared to 2017.
• Electric motors account for nearly 70% of industrial power consumption, which renders
lowering energy consumption a key end-user requirement.
• Among the various motor technologies, DC Brushless and AC Synchronous motors are the
fastest growing segments in line with the shift of end users toward more efficient motors.
• In terms of application segments, motors used to drive pumps, fans, and compressors
continue to account for 60% of the market revenue.
• Geographically, Europe accounted for 27.5% of the market revenue while North America
and China respectively account for 22.8% and 20.3% of the market revenue.
• With a greater focus on reducing operating costs, electric motor manufacturers have been
adding more smart features to motors to enhance condition monitoring and enable
predictive maintenance.

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Industry Overview—Market Trends
Move Toward Higher Earlier Motor Attractiveness of
Industry Consolidation
Efficiency Motors Replacement Industry 4.0 Solutions
• While governments are • The competitive • With proper • Industry 4.0 solutions
pushing Minimum landscape of the electric maintenance, most end are poised to become
Energy Performance motors market has users expect the more commonplace in
Standards (MEPS) changed over the last 10 average life of a motor greenfield projects as
across the major years with a number of to be around 12 to 15 the total cost of
industrial nations, end mergers and years. ownership is factored in
users are far more likely acquisitions. • The average kW power from the beginning.
to adopt higher • Acquisitions enable rating at which • However, the majority of
efficiency motors now companies to enter new replacement is more modern motor
and in the future. This is markets, new segments, attractive than repair is replacements present
because there is a focus and new regions that on the rise. themselves in brownfield
on reducing the total they had limited access Consequently, end opportunities.
cost of ownership. or no access to prior to users who opted to • End users demand
• A focus on climate the acquisition. repair or rebuild motors lower energy
change is likely to • The intense competition in the past are now consumption, simplified
continue to drive energy in this market, rising choosing to replace their maintenance, reduced
efficiency policies, and prices of raw materials, motors instead. maintenance and
with electric motors and focus on utilizing • While the focus on operating costs, and
accounting for nearly synergies to drive costs energy efficiency is one increased machine
70% of industrial power down are expected to reason for early motor uptime. This contributes
consumption, they are continue the trend of replacement, the option to drive of an increasing
expected to continue to consolidation in this to retrofit legacy number of successful
be analyzed and industry. equipment with modern, business cases for
improved in order to sophisticated, and Industry 4.0 solutions.
drive gains in energy intelligent solutions is
efficiency. another.

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The Frost Radar—
Industrial Electric Motors
Market

6
The Frost Radar
Industrial Electric Motors Market

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Frost Radar—Description of Companies Plotted
• With the application scope varying from driving pumps, fans, and compressors to the control of conveyors,
crushers, lifts, doors, machine tools, and propulsion, the end-user verticals covered by these motors span a
vast array of industries such as power generation, oil and gas, water and wastewater, metals and mining,
food and beverage, data centers, buildings, logistics, medical, and transportation. In this regard, some
companies have a leading presence across nearly all end-user verticals while the vast majority are stronger
across certain regions or end-user verticals.
• Customers are interested in reducing energy consumption and manufacturers are responding through the
supply of high-efficiency motors. Companies that offer integrated solutions involving motor controllers and
variable frequency drives (VFD) are increasingly being preferred by customers.
• The companies that have shown strong growth in recent years have taken advantage of these customer
needs and responded appropriately. The companies in this market can broadly be divided into three groups:
o All companies scoring very high on both growth and innovation are well-known industry leaders that
have a history of being at the forefront of innovation.
o Companies scoring high on innovation but delivering lower growth appear in the bottom right of the
radar and are the brink of witnessing higher growth due to a significant focus on innovation; these
include known leaders as well as relatively new comers.
o The third group of companies include those implementing some level of innovation, which results in
growth as well but not to the level seen in the other groups.
• Being a mature industry, a company’s growth performance highly depends on its ability to provide a strong
business case that involves innovation and a quick return on investment.

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C2A—
Market Participant Profiles

9
ABB
• Headquartered in Zurich, Switzerland, ABB is the market
leader for industrial electric motors, with revenue
expected to reach nearly $3.5 billion in 2018.
• ABB has one of the most diversified product lines in this
market, and is able to offer motors in any configuration
required by original equipment manufacturers (OEMs)
and end users.
• The company is an active promoter of smart solutions in
the market, with its ABB AbilityTM-based solutions gaining
strong traction among end users.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• With its large installed base and strong brand value
consistently generating over $3.0 billion over the last 3
years, even during a market downturn, ABB is the leader
in this market.
• ABB‘s focus on high-quality products and its value
proposition of lower life cycle costs for end users through
smart solutions marks it as an innovation leader.
• With a long-term outlook, ABB is pioneering the use of
Industry 4.0 solutions, particularly in the energy and the
food and beverage markets where it can significantly
scale up to meet customer demands.
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• The company’s R&D centers and production facilities are
spread throughout the globe, and its technical capabilities
enable it to reduce the time to market for its new products
and gain first mover advantage.
• The company’s diverse product portfolio across the
motion control and robotics domain enables it to combine
expertise from multiple divisions in order to provide
enhanced solutions and differentiate its products from
those offered by competitors.
• ABB’s motors, on average, have some of the highest
energy efficiency ratings in the market.
STRENGTHS
OPPORTUNITIES
• ABB’s smart solutions are likely to generate further
growth opportunities in renewable energy markets such
as wind power and solar power, as countries increase
their renewable energy generation capacity every year.
• While ABB already has a strong presence in emerging
markets, increased scope for automation, and rise in
greenfield projects are expected to generate further
opportunities.
• Strong cash flow, and financial reserves empower ABB to
acquire other companies in the market.
Source: Frost & Sullivan 10
Siemens
• Headquartered in Munich, Germany, Siemens is a global
leader in automation and digitization, which is expected
to help the company generate a revenue of over $3.0
billion in 2018.
• Siemens is a well-established brand name and a
technological pioneer that focuses on providing
advanced solutions to challenging applications.
• The company’s wide product lineup in this market,
combined with its strength in adjacent equipment
markets, enables it to act as a one-stop shop for its
customers’ motion control needs.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• With a large customer base, and a strong brand
reputation helping the company generate a revenue in
excess of $3.0 billion over the last 2 years, Siemens is a
leader in this market.
• Siemens is a growth and innovation leader, and it is one
of the pioneers of Industry 4.0 and digital
transformation—particularly in the renewable energy and
process industries.
• Siemens’s focus on futuristic technologies manifested
into a dedicated unit called Next 47. It develops new age
solutions in automation and digitalization.
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• Siemens is not only present in every region, but also
every major industry. This diversity enables the company
to leverage its industry expertise and local presence to
consistently acquire new customers.
• Siemens is among the top companies worldwide in terms
of R&D spending, and one of the company’s greatest
strengths is to translate revolutionary ideas into practical
real-world applications.
• Siemens’s expertise across the motion control domain
enables it to provide solutions at the system level as
opposed to the component level.
STRENGTHS
OPPORTUNITIES
• As a pioneer of digital solutions, Siemens’s focus on high
growth, high innovation markets is expected to create
new revenue streams for the company.
• The anticipated movement towards the digital factory
represents an opportunity for Siemens to combine its
products, platforms, software and services into one
solution.
• Siemens’s focus on specific markets, combined with its
strong financial position, is expected to lead to
opportunities for strategic acquisitions that help
accelerate the company’s innovation profile.
Source: Frost & Sullivan 11
Nidec Corporation
• Headquartered in Kyoto, Japan, Nidec Corporation
(Nidec) is one of the largest motor manufacturers in the
world, with a revenue expected of $2.0 billion in 2018.
• Apart from pursuing organic growth through the
development of innovative products, Nidec actively
utilizes M&A to drive growth.
• Through its acquisition of the motors businesses from
Emerson Electric Company, Nidec has significantly
increased its revenue potential and customer base.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Nidec is the third largest participant in this market, with a
very large installed base, and strategic acquisitions
enabled the company to generate a revenue of $2.0
billion in 2018.
• Nidec has a vast product portfolio sold through various
brands, and uses the synergies among its brands to
serve a variety of applications and customers across the
world.
• Nidec is a strong competitor in all major product
segments, with leading market positions in some end-
user application segments.
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• Nidec’s global presence, further strengthened through
strategic acquisitions, emphasizes the company’s lack of
reliance on the domestic market as a significant portion
of its revenue is generated overseas.
• Even though this is a mature market, Nidec leverages the
synergies among its various brands to post above-
average growth and profitability.
• Nidec’s technological expertise and environmentally-
responsible maintenance are key strengths that enable
superior customer acquisition and retention.
STRENGTHS
OPPORTUNITIES
• Growth of digital services is expected to present
significant growth opportunities for the company.
• Nidec’s technological progress is expected to be
accelerated through strategic acquisitions.
• Expansion in emerging markets would continue to
position the company as a leader in this market.
Source: Frost & Sullivan 12
Regal-Beloit
• Established in 1955 and headquartered in Wisconsin,
US, Regal Beloit (Regal) is a global manufacturer of
electric motors. It generated a revenue of $1.3 billion in
2018.
• Regal’s growth in this industry is fueled by an aggressive
acquisition strategy, with the company increasing its
revenue several fold over the years.
• With several different brands under one roof, Regal
supplies industrial motors to serve a wide variety of
applications and end users.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Regal is one of the prominent established companies in
this market, with a large installed base and its focus on
high efficiency motors empowering the company to offer
higher returns to investors year-over-year.
• Although Regal focuses on high efficiency motors, and
differentiation of its products through technology;
individual brands with strong core values continue to be
associated with the Regal name, enhancing its
reputation.
• Regal’s focus on efficiency is also reflected in its position
as a leader in supplying motors for HVAC applications.
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• Regal is a strong generator of cash flow, enabling the
company to strategically acquire companies in order to
enter new market segments or regions.
• Ownership of a number of brands allows Regal to
leverage its synergies to improve operating margins.
• Regal is a leader in providing high efficiency modular
solutions, which renders the company attractive for
retrofit solutions.
STRENGTHS
OPPORTUNITIES
• Continued end-user focus on greener technologies and
improving energy efficiency is expected to generate a
consistent revenue stream for Regal.
• The anticipated rise in digital factories is expected to
generate new revenue streams for Regal, as it aims to
push its high energy efficiency and high operating
efficiency solutions in the market.
• Regal’s acquisition strategies may present opportunities
for the company to grow its revenue several fold in the
future.
Source: Frost & Sullivan 13
WEG
• Headquartered in Jaragua do Sul, Brazil, WEG is one of
the largest global manufacturers of electric motors and
has a sales footprint that extends to over 135 countries.
• WEG focuses on sustainable growth through global and
product line expansion, with over 50% of sales in the last
few years being derived from new products sold
overseas.
• WEG is a leader in Latin America, and is aiming to
strengthen its position in overseas markets through
production flexibility, and technological innovation.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• WEG is one of the leading participants in this market,
with a very strong presence in Latin America, and strong
growth in overseas markets.
• WEG’s production flexibility and sustainable growth
approach, which is driven by return on investment (ROI),
empowers the company to target markets that offer the
best growth perspectives.
• WEG is currently expanding its presence in overseas
markets through entry in new segments and acquisitions
while continuing to strengthen its position domestically.
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• While WEG operates a number of large manufacturing
plants around the world, vertical integration provides
production flexibility that ensures the company is capable
of customized production while retaining the ability to
ramp up production capacity based on demand.
• WEG’s focus on energy efficiency, combined with its
technical capabilities, results in motors that are among
the most efficient in the market.
• WEG has one of the most diversified product lines across
the motion control domain that enable the company to be
a true one-stop shop provider.
STRENGTHS
OPPORTUNITIES
• WEG’s long term outlook is aligned with shifting patterns
brought about by Mega Trends, and is expected to result
in growth opportunities for the company, particularly in
the HVAC and renewable energy segments.
• WEG’s investment in global modular solutions are
expected to open up new revenue streams for the
company, irrespective of geography.
• WEG’s financial strength enables the company to make
strategic acquisitions when the opportunities arise.
Source: Frost & Sullivan 14
Kollmorgen
• Headquartered in Virginia, US, Kollmorgen (previously
owned by Fortive A&S) was acquired by Altra Industrial
Motion in 2018.
• Kollmorgen is a motion control solutions provider as
opposed to solely a motors supplier.
• Kollmorgen offers a diverse range of motors, both
standard and custom, to a wide variety of end-user
industries and applications.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Kollmorgen is regarded as an innovator in this market,
with its technical expertise and varied product line up
enabling it to cater to both standard and specialty
applications.
• Kollmorgen has acquired a reputation for being a
dependable, innovative supplier to OEMs due to its high-
quality and reliable solutions.
• Kollmorgen‘s presence in high growth industries ensures
it is well positioned to enjoy sustainable growth over the
next few years.
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• Kollmorgen’s expertise in motion control solutions
simplifies OEM integration, reducing overall product lead
times for end users.
• Kollmorgen’s R&D centers and production facilities are
spread throughout the world, enabling fast customization
and lower manufacturing costs.
• Kollmorgen’s varied industry expertise and wide product
line-up ensures that it can act as a single source supplier
for most OEMs.
STRENGTHS
OPPORTUNITIES
• Kollmorgen’s focus on being a motion control solutions
provider is expected to present new opportunities in
emerging markets.
• Kollmorgen’s integrated motion control packages are
expected to be increasingly attractive in the future as
customers seek to reduce their machine footprint.
• Kollmorgen’s parent company is likely to use synergies in
order to lower operating costs, improve margins,
improving the financial position of the company.
Source: Frost & Sullivan 15
Rockwell Automation
• Headquartered in Wisconsin, US, Rockwell Automation
supplies industrial motors through its Allen-Bradley
brand, which is over 115 years old.
• Rockwell Automation is a well-established name in the
motion control domain and is globally renowned for
innovation and excellence, with the company being listed
on the Fortune 500 list.
• Rockwell Automation provides services in over 80
countries worldwide, and envisions the use of smart
technology to bring The Connected Enterprise to life.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Rockwell Automation is a well-established participant in
this market, with its connected enterprise solutions
gaining good traction in recent years.
• Rockwell Automation actively uses customer feedback
about its products to assess key pain points and
operational issues, in order to solve complex issues and
enhance future offerings.
• Rockwell Automation’s flexible designs allows the
company to address a wide customer base, irrespective
of size.
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• Rockwell Automation is not only a motor supplier, but a
supplier of smart motor solutions through the integration
of advanced networking and diagnostic capabilities.
• Rockwell Automation’s connected enterprise solutions
not only envision intelligent motor operation, but also
plant-wide optimization to improve productivity and
efficiency, which significantly increases customer value.
• Rockwell Automation’s motor solutions are highly flexible
and scalable to not only lower design costs, but also
optimize life cycle costs.
STRENGTHS
OPPORTUNITIES
• Continued progress in developing smart solutions is
expected to empower the company’s vision of making
the connected enterprise a reality.
• Greenfield automation projects focused on innovation
and efficiency in emerging markets is expected to
present significant opportunities for Rockwell Automation
to enhance its overseas revenue growth.
• Government focus on boosting the domestic
manufacturing sector is expected to further empower the
company in this market.
Source: Frost & Sullivan 16
Maxon Motor
• Headquartered in Sachseln, Switzerland, Maxon Motor
(Maxon) is a specialized motor manufacturer focusing
primarily on DC motors.
• Maxon’s modular solutions prioritize reliability over other
parameters, highlighting the company’s focus on quality.
• Maxon’s focus on quality and reliability also extends to its
aftersales service, where the company uses remote
support to resolve a problem immediately.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Maxon’s energy efficient and high quality solutions are
gaining good traction in the market, enhancing its
reputation as an innovative supplier.
• In the Industrial domain, Maxon’s motors business is
showing strong growth across all the major regions that
the company operates in, particularly, Europe and Asia-
Pacific.
• With a strong R&D department, Maxon continues to
launch several new products every year, increasing its
attractiveness to customers and widening its customer
base.
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• Maxon applies the same quality control procedure for its
industrial motors irrespective of end-user application so
that all motors are rated for the high reliability, similar to
motors found in aerospace, satellites, or medical
equipment.
• Maxon’s R&D spend is higher than the industry average,
enabling the company to keep innovating and supplying
high quality products.
• Maxon offers innovative solutions in a compact footprint,
in line with the evolving trend toward more compact
equipment.
STRENGTHS
OPPORTUNITIES
• Movement from a component supplier to a system
supplier is likely to lead to further growth opportunities.
• New revenue streams could be created through the
development of AC motors, which continues to hold a
larger share of the market.
• The growth of robotics in emerging markets is expected
to amplify growth opportunities for the company.
Source: Frost & Sullivan 17
Wolong Electric
• Headquartered in Shangyu, China, Wolong Electric has
grown significantly over the last 2 decades, both through
organic growth and a series of acquisitions.
• These acquisitions, the most recent of which was the
acquisition of GE’s small industrial motors business,
enabled Wolong Electric to expand its sales footprint in
Europe, North America, and other regions of Asia-Pacific.
• These acquisitions also enabled Wolong Electric to
become the largest Chinese manufacturer of industrial
electric motors.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Wolong Electric’s strategic acquisitions have significantly
increased its revenue growth, and enabled the company
to acquire a stronger position from which, it can
challenge the well-established market participants.
• The company uses its acquisitions to strengthen its
position in overseas markets, both from a sales
perspective and a product development perspective.
• With innovation centers being established across multiple
continents, Wolong Electric is well positioned to target
new market segments.
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• Wolong Electric has established R&D centers and
production facilities in Europe, North America, and
Japan, providing the company with a geographic
advantage.
• Wolong Electric, through its acquisitions, can not only
expand its sales footprint and technological collaboration
among its various brands, but also utilize synergies to
lower operational costs and improve operating margins.
• Wolong Electric has significantly large economies of
scale that allows the company to be more cost-
competitive in this market.
STRENGTHS
OPPORTUNITIES
• The Chinese government’s focus on the high-tech
transformation of the manufacturing sector is expected to
offer significant opportunities to Wolong Electric.
• Industry 4.0 and factories of the future present significant
opportunities to Wolong Electric as it seeks to transform
into a company that is purely driven by innovation.
• Strong financial position and cash flow enables the
company to target strategic acquisitions to further
expand its geographic footprint and enter new markets or
product segments.
Source: Frost & Sullivan 18
Allied Motion Technologies
• Headquartered in New York, US, Allied Motion
Technologies (Allied) is a manufacturer of precision and
specialty motors known for its expertise in motion
technology.
• Allied pursues a strategy of achieving growth through
offering integrated solutions that utilize the company’s
technical expertise in various product segments.
• Allied also targets niche markets that hold potential for
the company to occupy leading positions, utilizing its
technical expertise to differentiate its products and add
value to customers.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Allied’s integrated solutions gained significant traction
and contributed to strong revenue growth in 2018, further
strengthening its market position.
• Allied’s revenue growth is strongest in North America, in
the material handling, robotics, and packaging segments
while recent acquisitions also enable the company to
incrementally grow its revenues in other regions.
• Having shown strong double digit growth over the last 8
years, Allied’s commitment to R&D and strength in new
orders places the company in a strong position to
continue its growth trajectory.
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• Allied incorporates lean enterprise tools into its
production system to lower costs, quicken production and
delivery, and enforce a culture of continuous
improvement to eliminate product defects.
• Allied’s motion solution centers located in North America,
Europe, and Asia-Pacific serve a wide customer base
and provide system-level solutions that enhance and
optimize the customers’ production systems.
• Allied’s expertise in electromagnetic, mechanical, and
motion technology renders it a key technical partner for
OEMs.
STRENGTHS
OPPORTUNITIES
• Rising cash flow empowers Allied to target acquisitions
that would help the company expand its footprint in new
markets.
• The increasing demand for compact, integrated solutions
present opportunities for continued revenue growth.
• Rise of digital factories are expected to lead to
opportunities to unlock new revenue streams for Allied.
Source: Frost & Sullivan 19
Dunkermotoren
• Headquartered in Bonndorf, Germany, Dunkermotoren is
a subsidiary of Ametek Advanced Motion Solutions
(Ametek).
• Dunkermotoren offers both AC and DC motors (brush
and brushless), and is actively promoting the use of
energy-efficient motors in line with the industry shift
toward greener technologies.
• Dunkermotoren’s engineers are well-experienced and
understand the requirements of industrial applications in
order to offer sophisticated solutions.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Dunkermotoren’s reputation as an innovator in this
market has been acquired due to its focus on quality,
reliability, and smart solutions.
• Dunkermotoren, being a Germany company, is actively
promoting the adoption of Industry 4.0 solutions,
particularly in the logistics and renewable energy
industries.
• Dunkermotoren’s ownership under Ametek empowers
the company to continuously invest in R&D in order to
expand its product lineup and target new market
segments.
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• Dunkermotoren uses a modular production system,
which enables the company to produce customized
motor solutions with very short lead times.
• Dunkermotoren offers high quality motors and maintains
this consistency by utilizing highly automated production
lines and fully automatic quality controls, irrespective of
size of the batch.
• Dunkermotoren offers Industry 4.0 compliant solutions
that enable motor operation to be constantly monitored,
and allow motors to adapt flexibly and autonomously to
changing requirements.
STRENGTHS
OPPORTUNITIES
• The growth of digital factories is likely to present further
opportunities for Dunkermotoren to strengthen its
revenue growth.
• Growth of renewable energy industry in emerging
markets is expected to unlock new revenue streams for
the company.
• Dunkermotoren’s technical and system-level expertise,
combined with the movement towards compact, efficient
systems, increases the chances of interaction with a
broader range of OEMs.
Source: Frost & Sullivan 20
Ebm-Papst
• Headquartered in Mulfingen, Germany, Ebm-Papst is a
manufacturer of electric motors with energy-efficiency
and sustainability being core aspects of its ethos.
• The company’s GreenTech philosophy specifies that new
products should not only be better than predecessors in
terms of economy, but also sustainable, which covers
everything from production to recyclability.
• Ebm-Papst’s portfolio of electronically commutated
motors are built to be Industry 4.0-ready , and focus on
optimization of the entire machine , enhancing value
proposition for customers.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Ebm-Papst is one of the sustainability leaders in this
market, with a strong focus on Industry 4.0, energy
efficiency and attention to detail.
• The company’s energy efficient solutions, which originally
gained significant traction in Europe owing to its minimum
energy efficiency requirements, are also helping the
company acquire new customers in other regions.
• The company’s primary target segments include HVAC,
robotics, and packaging where efficiency, downtime and
productivity are of paramount importance.
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• Ebm-Papst’s motor solutions are modular, enabling the
company to scale up or down depending on customer
demand.
• Ebm-Papst incorporates Industry 4.0 values into its own
production process, balancing the productivity of its
machines in order to reduce product lead-times.
• Ebm-Papst’s energy efficient solutions not only helps
reduce energy consumption but also optimize productivity
to reduce overall waste.
STRENGTHS
OPPORTUNITIES
• Continued global focus on reducing energy consumption
is expected to provide opportunities in not only Europe,
but also other major regions such as North America,
Asia-Pacific, and Latin America.
• The trend toward smaller, more compact machines is
expected to offer more opportunities for Ebm-Papst.
• An increasing number of applications are expected to
move toward flexible production systems, which would
encourage the adoption of modular solutions.
Source: Frost & Sullivan 21
Oriental Motors
• Headquartered in Tokyo, Japan, Oriental Motors is a
diversified motion control manufacturer with a focus on
lean manufacturing and quick delivery.
• Oriental Motors’ products are sold into various end-user
industries around the world such as food and beverage,
packaging, semiconductor, electronics, and renewable
energy.
• Oriental Motors simplifies the production selection
through a set of selection tools that helps customers find
the right product for the required application.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Oriental Motors is a well-established company with a
steady growth pipeline, enabling the company to post
above-average growth.
• Oriental Motors focuses on widening its customer base
as opposed to purely increasing sales volume.
• Oriental Motors firmly follows the Japanese principle of
Kaizen, continuously improving the products, and work
processes.
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• Oriental Motors utilizes a just-in-time production system,
which enables the company to quickly ramp up
production on short notice.
• Oriental Motors is also nimble and flexible, which enables
it to manufacture both small and large quantities with
relative ease.
• Oriental Motors’ specialist engineering team offer custom
products with short lead times.
STRENGTHS
OPPORTUNITIES
• Geographic expansion offers further opportunities for
revenue growth through increased share of overseas
sales.
• Leveraging Mega Trends to drive product line strategy
and establish target markets is expected to supplement
other growth initiatives.
• The manufacturing industry’s movement toward Industry
4.0 solutions could offer opportunities for greater product
integration and system level solutions.
Source: Frost & Sullivan 22
TMEIC
• Headquartered in Tokyo, Japan, TMEIC is a joint venture
between the industrial systems divisions of Toshiba and
the Mitsubishi Electric Corporation.
• While many of its competitors are purely component
suppliers, TMEIC helps customers optimize and
modernize both their motor systems and their entire
plant operations.
• TMEIC’s solutions are offered across a wide range of
end-user industries and are engineered to withstand very
harsh operating conditions because these motors are
often used in hazardous applications.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• TMEIC is known for its technically advanced
collaborative solutions that help end users lower total
cost of ownership.
• TMEIC’s technical expertise from concept to installation
enables it to acquire and retain a wide customer base
across end-user verticals and geographic regions.
• TMEIC’s solutions are applied across some of the
harshest applications in the world, and are testament to
the engineering capabilities of the company.
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• TMEIC has a wide market presence not only with respect
to production facilities and sales offices around the world,
but also with respect to the range of end-user industries
covered, with dedicated technical experts.
• TMEIC provides consulting services involving the
identification of plant and component inefficiencies, and
helps customers reduce overall energy consumption
while optimizing production processes to improve
operational efficiency.
• TMEIC’s technical expertise and energy-efficient
solutions help OEMs and end users lower life cycle costs.
STRENGTHS
OPPORTUNITIES
• TMEIC’s consulting services and industry know-how are
likely to present opportunities to engage with end users
looking to reduce the number of concept iterations due to
interaction with multiple suppliers.
• TMEIC’s focus on collaborative solutions is expected to
benefit revenue growth as more end users look for one-
stop shop providers.
• TMEIC’s expertise in maintenance and servicing,
combined with its consulting services, may help acquire
more customers looking to reduce plant level
inefficiencies.
Source: Frost & Sullivan 23
TECO Electric and Machinery
• Headquartered in Taipei, Taiwan, TECO Electric and
Machinery (TECO) is a diversified manufacturer of
industrial electric motors,
• TECO has a very wide product lineup that covers nearly
all major product segments, with these products being
offered in a variety of sizes, power ratings, and
configurations.
• While TECO has a large offering of standard motors, the
company also designs and builds custom motors
depending on the customer’s application requirement.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• TECO ‘s large product lineup and reputed after-market
service enabled the company to post strong revenue
growth in 2018, particularly in North America.
• TECO has acquired a reputation for not only designing
and building motors for use in hazardous and potentially
explosive applications, but also rebuilding previous
motors in order to extend their lifespan.
• TECO has a scalable product lineup with the ability to
offer a very wide range of power ratings on its motors.
K34B-17
• The company has a relatively wide geographical
footprint, with 6 production plants, and sales offices in
over 37 countries across all continents.
• TECO’s very large product lineup is designed to meet the
majority of customer applications without requiring
customization, and enables the company to offer very
short lead times on products.
• TECO is well-known for its aftermarket service on not
only its own motors but motors built by other
manufacturers.
STRENGTHS
OPPORTUNITIES
• Improving global economy is expected to supplement
TECO’s ability to rebuild motors and increase revenues
from heavy energy-intensive industries.
• TECO’s large product line may unlock new revenue
potential in the renewable energy industry in emerging
markets.
• TECO’s technical expertise could also enable it to open
up new avenues of revenue growth through consulting
services.
Source: Frost & Sullivan 24
Faulhaber Drive Systems
• Headquartered in Schoenaich, Germany, Faulhaber
Drive Systems (Faulhaber) focuses on the development
of high precision miniature and micro motors for factory
automation and robotics applications.
• Faulhaber’s miniature solutions, which are mainly driven
by DC motors, are built to be highly precise and reliable
while offering a very small footprint.
• With a growing demand for compact systems,
Faulhaber’s miniature motors find many industrial
applications.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Faulhaber is regarded as a company with strong growth
potential as its focus on compact, integrated motion
solutions is aligned with current market trends.
• Faulhaber’s expertise in offering high-quality, miniature
motors goes beyond standard products, with the
company able to customize products to suit various
application demands.
• Faulhaber’s continued investment in R&D enables the
company to push beyond current technical limits in order
to produce compact, innovative solutions.
K34B-17
• While headquartered in Germany, Faulhaber maintains
production facilities in 4 countries and sales offices in
over 30 countries, representing a reasonably wide sales
footprint.
• Faulhaber offers motors with integrated drive electronics
to create compact, integrated motion control solutions.
• Faulhaber’s technical expertise and R&D help to create
an innovative product lineup that can be configured in
thousands of configurations to meet a variety of
application requirements.
STRENGTHS
OPPORTUNITIES
• An evolving trend toward machines with a more compact
footprint is expected to boost revenue growth for
Faulhaber in the near future.
• Continuous improvement in power to weight ratios of
miniature motors is expected to expand the application
scope of Faulhaber’s products in the future.
• The rise of digital factories and focus on Industry 4.0 is
expected to benefit Faulhaber.
Source: Frost & Sullivan 25
Haydon Kerk-Pittman
• The merger of Haydon Kerk Motion Solutions and
Pittman motors into one operational entity resulted in the
creation of Haydon-Kerk Pittmann.
• The company, which is owned by Ametek Advanced
Motion Solutions (Ametek), combines 3 well-known
brands under one roof to offer a broad range of motion
control solutions to various end-user industries.
• Haydon Kerk-Pittman supplies motors to a wide variety of
end-user industries to satisfy the application needs of a
number of demanding applications. It boasts a wide
regional footprint with sales offices across the world.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Haydon Kerk-Pittman’s strong reputation for quality and
its diverse industry expertise enabled the company to
post strong revenue growth in 2018.
• Haydon Kerk-Pittman combines 3 reputed brands under
one roof, with the ability to offer industry-specific
solutions owing to each brand’s unique experience and
industry expertise.
• Ametek’s ownership enables Haydon Kerk-Pittman to
continually invest in R&D and create new practical
solutions for challenging applications.
K34B-17
• While Haydon Kerk-Pittman has a large offering of
standard motors, the company has the ability to design
and combine various products to offer integrated
customized solutions to meet various application needs.
• Haydon Kerk-Pittman’s expertise across a wide variety of
end-user industries enables the company to understand
industry-specific challenges and offer design inputs,
reducing the end-user dependence on OEMs.
• Haydon Kerk-Pittman’s reputation for quality stems from
its ability to manufacture at the component level and
perform function tests at the system level.
STRENGTHS
OPPORTUNITIES
• Haydon Kerk-Pittman’s compact, integrated solutions
are expected to supplement the anticipated rise in
demand for space saving systems.
• Continued growth across the manufacturing industry is
expected to boost revenue growth for the company.
• Growing interest in Industry 4.0 solutions should offer
further opportunities for revenue growth.
Source: Frost & Sullivan 26
Toshiba International Corporation
• Headquartered in Texas, US, Toshiba International
Corporation (TIC) operates as a subsidiary of Toshiba
America, Inc. (which itself is a wholly owned subsidiary of
Toshiba Corporation).
• TIC has a large product lineup that offers both general
purpose and application-specific motors in a wide variety
of configurations and power ratings.
• TIC has a global manufacturing footprint with production
facilities in the United States, Canada, Japan, Vietnam,
China, Brazil, and China.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• TIC, being a well-established company in this market,
leverages its industry expertise and wide product lineup
to retain strong brand value.
• TIC has the ability to not only offer energy-efficient
products, but also work with customers to optimize their
applications in order to obtain greater savings in energy
and operational costs.
• TIC’s application-specific motor offerings enables the
company to acquire and retain a loyal customer base,
which helps the company maintain a steady revenue
stream.
K34B-17
• TIC’s extensive industry experience imparts the company
with a number of in-house capabilities that extend
beyond design and manufacturing.
• These include application support, field service, field
service training, and application optimization.
• TIC has the ability to not only test components such as
motors but also utilizes its deep knowledge of
application-specific challenge to test entire products
together as a complete system in order to ensure high
levels of quality, performance, and reliability.
STRENGTHS
OPPORTUNITIES
• Growth in the renewable energy sector, both in
developed and emerging markets, represents an
opportunity to augment revenue growth for the company.
• Anticipated demand for digital services and remote
diagnostics presents opportunities to acquire a position of
leadership.
• The alignment of its R&D with Mega Trends should
empower the company to pursue new markets that are
high value and high growth.
Source: Frost & Sullivan 27
Portescap
• Acquired by Altra Industrial Motion (Altra) in 2018,
Portescap manufacturers high-precision miniature
motors.
• Portescap has manufacturing facilities in the US, St. Kitts
and Nevis, and India, with R&D centers located in the
US, India, and Switzerland. The company also has
application support teams in 7 countries and sales offices
in 10 countries for global customer support.
• While Portescap’s product lineup is offered to a number
of end-user industries, Portescap’s specialty solutions
are attractive to growing niche segments in the market.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Portescap is a niche participant in this market, with its
leadership in niche application segments enhancing its
brand value among customers.
• Portescap’s experience with non-industrial applications
that require the highest levels of reliability and zero
tolerance for failure positions the company to apply the
same level of quality control for its industrial applications.
• Portescap is expected to enjoy strong revenue growth
over the next few years as the number of industries it
caters to continues to expand.
K34B-17
• Portescap’s in-house capabilities, combined with its
knowledge of the motion control domain, enables the
company to design customized solutions with unique
design features.
• Portescap rigorously validates its product offerings
through the use of Failure Mode and Effects Analysis
(FMEA) and incorporates customer feedback to quickly
mass produce a custom product in a lean manufacturing
environment.
• Altra’s ownership enables Portescap’s R&D department
to continually convert concepts into practical products.
STRENGTHS
OPPORTUNITIES
• Rising portfolio of high power density motors is expected
to lead to greater adoption across a number of
applications, such as robotics, material handling, pick
and place, conveyors, and oil and gas.
• Increasing preference for compact systems should
augment the company’s revenue growth.
• Portescap’s parent company is likely to improve
synergies across various brands in order to lower
operating costs, increase margins, and improve the
financial strength of the company.
Source: Frost & Sullivan 28
Hitachi
• Headquartered in Tokyo, Japan, Hitachi is one of the
oldest manufacturers of electric motors in this market.
• Hitachi has a wide regional footprint with sales offices in
over 37 countries around the world, ensuring local
support to customers.
• Hitachi’s product lineup primarily consists of AC motors,
which continue to hold a larger revenue share in the
market.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• As a well-established participant in this market, Hitachi
has a steady revenue stream owing to its brand
reputation and a large installed base.
• Hitachi’s aftermarket service and technical knowledge
are key factors for customer loyalty, particularly in the
Asia-Pacific region.
• Hitachi prioritizes quality and energy efficiency above
other parameters, which increases its appeal to
customers in largely energy-intensive industries such as
water and wastewater and chemicals.
K34B-17
• Hitachi focuses on improving energy efficiency through
optimal motor design and reduction of energy losses.
• Hitachi’s motors are also known for emitting low noise
while offering strong heat insulation.
• Hitachi’s strong technical knowledge also helps OEMs
and customers handle complex and demanding
applications.
STRENGTHS
OPPORTUNITIES
• Expertise in Industry 4.0-based solutions offered by other
group companies in the Hitachi family could enable the
company to reshape its product development strategy.
• Growth in the manufacturing sector is expected to
augment revenue growth through aftermarket service,
repair, and motor replacements.
• Evolving customer base and attractiveness of smart
solutions could provide opportunities for revenue growth
through retrofits.
Source: Frost & Sullivan 29
Dumore Motors
• Founded in 1913, and headquartered in Wisconsin, US,
Dumore Motors (Dumore) is a custom electric motor
manufacturer that focuses on permanent magent DC
motors, AC motors, and series wound universal motors.
• Dumore’s motors while limited to the fractional
horsepower segment are built to serve a wide variety of
applications such as HVAC, fluid power, metalworking,
food and beverage, and so on.
• Dumore’s motor lineup is engineered to be cost
effectively customized to meet application requirements.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• With its ability to customize motors and offer quality
products, Dumore does not directly challenge other
established manufacturers, enabling the company to
occupy a niche position.
• Dumore primarily focuses on the fractional horsepower
segment, limiting its application scope and restricting its
ability to show stronger growth in this market.
• Dumore’s small size and focus on the North American
market limits its geographic scope.
K34B-17
• While Dumore’s motors are engineered to offer quick
customization, the company also has the ability to offer a
100% customized solution that is specifically designed
and built from concept to production to meet specific
application requirements.
• Dumore has in-house capabilities such as tooling,
machining, and prototyping to build a motor completely
new motor, while the automated test stations offer the
ability to test performance, reliability, and efficiency.
• Dumore also uses just-in-time (JIT) and kanban to
optimize production, to drive customer value.
STRENGTHS
OPPORTUNITIES
• Dumore’s ability to offer wholly customized solutions
presents opportunities to engage with a number of OEMs
looking to tackle complex application requirements.
• Dumore’s technical knowledge and customization
program also enables the company to act as an
extension of an OEM’s design department, which is in
order to meet various end-user requirements.
• Dumore’s niche offerings provide larger companies with
the opportunity to acquire it as a partner and expand its
custom product offerings.
Source: Frost & Sullivan 30
Oemer Motori Elettrici SpA
• Founded in 1949, and headquartered in Rescaldina, Italy,
Oemer Motor Elettrici SpA (Oemer) is a small family-
owned AC and DC electric motor manufacturer.
• Oemer focuses on high reliability products, which is
achieved through advanced technologies and continuous
investment in systems and devices.
• Oemer’s flexible production system, aided by in-house
production of components and subassemblies, enables
the company to offer high-quality motors in a number of
configurations and scalable power outputs.
COMPANY DIAGNOSTIC
FROST RADAR POSITIONING
• Oemer’s scalable motor offerings and focus on product
quality enables the company to occupy a niche position,
particularly in Europe.
• Oemer’s motors are attractive to customers in a number
of industries, particularly the ones that demand high
power motors.
• Through flexible production and a quality-focused
approach, Oemer continues to preserve its position in
this market despite strong competition from larger
companies.
K34B-17
• Oemer has sales and service partners in 25 countries
across Europe, North America, Latin America, Israel, and
Asia-Pacific.
• Oemer’s in-house machining centers, CNC machines,
automatic winders, and robots ensure that every product
manufactured by the company is built to meet the
strictest application requirements.
• Every product built by the company is tested and
validated using 3-D measurement devices and various
kinds of test equipment to ensure strict quality control.
STRENGTHS
OPPORTUNITIES
• Demand for compact yet powerful systems offers
opportunities for Oemer to expand into other market
segments, such as small DC brushless motors.
• Partnerships with OEMs could enable product
customization and augment revenue growth.
• Investments in cost effective smart solutions are likely to
yield strong revenue potential in the future.
Source: Frost & Sullivan 31
The Last Word

32
The Last Word—Key Takeaways

Retrofits and smart upgrades to existing systems are expected to be the biggest opportunities
1 for electric motor manufacturers to support their customers with Industry 4.0 solutions that
lower energy consumption, improve operational efficiency, and reduce total cost of ownership.

Industry consolidation is expected to continue because heavy market competition and strategic
2 acquisitions enable companies to enter new markets, segments, and regions in order to widen
their product or geographical footprint and augment their revenue.

While the top companies are already leveraging Industry 4.0 to augment revenue growth;
product differentiation through the use of innovative solutions that integrate the mechanical,
3 electrical, electronic, and software aspects of motion control are expected to help their
challengers unlock new revenue streams and move up in the Radar.

K34B-17 Source: Frost & Sullivan 33

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K34B-17 Source: Frost & Sullivan 34

About the Frost Radar

35
Frost Radar—2 Major Indices, 10 Analytical
Ingredients, 1 Platform
Vertical Axis

Growth index (GI) is a measure of a company’s growth performance and track record, along with
its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline
system; and effective market, competitor, and end-user focused sales and marketing strategies.

• GI1: Market Share (previous 3 years): Market share relative to its competitors in a given
market space for the previous three years.
GROWTH

• GI2: Revenue Growth (previous 3 years): Revenue growth rate for the previous three years
in the market/ industry/ category that forms context for the given Frost Radar.
• GI3: Growth Pipeline: This is an evaluation of the strength and leverage of the company’s
growth pipeline system, to continuously capture, analyze and prioritize its universe of growth
opportunities.

• GI4: Vision and Strategy: This is an assessment of how well a company’s growth strategy is
aligned with its vision . Are the investments the company is making in new products and
markets consistent with the stated vision?
• GI5: Sales and Marketing: This is a measure of effectiveness of a company’s sales and
marketing efforts in helping the company drive demand and achieve its growth objectives.

K34B-17 Source: Frost & Sullivan 36

Frost Radar—2 Major Indices, 10 Analytical
Ingredients, 1 Platform (continued)
Horizontal Axis
Innovation index (II) is a measure of a company’s ability to innovate products/services/solutions that
are developed with a clear understanding of disruptive Mega Trends, are globally applicable, are able to
evolve and expand to serve multiple markets, and are aligned to customers’ changing needs. Key
elements of this index include:
• II1: Innovation Scalability: This determines whether the organization’s innovations are globally
scalable and applicable in both developing and mature markets, and also in adjacent and non-
adjacent industry verticals.
• II2: Research and Development: This is a measure of the efficacy of a company’s R&D strategy,
as determined by the size of its R&D investment and how it feeds the innovation pipeline.
• II3: Product Portfolio: This is a measure of the company’s product portfolio, focusing on the
relative contribution of new products to its annual revenues.
• II4: Mega Trends Leverage: This is an assessment of a company’s proactive leverage of evolving
long-term opportunities and new business models as the foundation of its innovation pipeline.
• II5: Customer Alignment: This evaluates the applicability of a company’s
products/services/solutions to current and potential customers (7-year horizon) as well as how its
innovation strategy is influenced by evolving customer needs.
INNOVATION
K34B-17 Source: Frost & Sullivan 37
Frost Radar—C2A
All companies on the Frost Radar could be C2A. Best Practice recipients are the companies that
Frost & Sullivan considers the companies to act on now.

GROWTH EXCELLENCE AWARD INNOVATION EXCELLENCE AWARD

The Growth Excellence best practice is bestowed upon
companies that are achieving high growth in an intensely
competitive industry. This includes emerging companies
making great strides in market penetration or seasoned
incumbents holding on to their perch at the pinnacle of the
industry.
The Innovation Excellence best practice is bestowed upon
companies that are industry leaders reinventing
themselves through R&D investments and innovation.
These may be companies that are entering a new market
and contend for leadership through heavy investment in
R&D and innovation.

GROWTH INNOVATION LEADERSHIP AWARD

The Growth Innovation Leadership (GIL) best practice is bestowed upon companies that are market leaders at the forefront of
innovation. These companies consolidate or grow their leadership position by continuously innovating and creating new
products and solutions that serve the evolving needs of the customer base. These companies are also best positioned to
expand the market by strategically broadening their product portfolio.

K34B-17 Source: Frost & Sullivan 38