Large motors market to contract significantly in 2010

The sector has actually experienced significant growth so far this year with revenue up 5% over 2008 levels. Full order books, manufacturing lead times that averaged between six months to one year have meant the large motors market has so far not felt the effects of the recession. But, the full extent of the global economic downturn is expected to be felt next year when revenues are forecast to decline by more than 15%, and unit shipments are projected to drop by more than 13%. Market growth is forecast to be relatively flat in 2011, as the economic recovery is expected to be gradual and prolonged. However, after this period of stagnation, the large motors market is set to return to double-digit growth rates by 2012. The global economic downturn has had an adverse effect on most of the industry sectors that utilise large motors with metals, oil and natural gas, and power generation accounting for about 56% of total revenues. Alex Chausovsky, research manager of the motion and drives group at IMS Research, said: "Industry sectors that have links to population growth and increased urbanisation, such as oil and natural gas, power generation, and water and wastewater, have held up relatively well during the recession. In contrast, heavy industry sectors such as marine, metals, mining, and pulp and paper have suffered greatly as a result of the downturn." ABB and Siemens continue to dominate the large motors market in terms of market share, together accounting for nearly half of all market revenues in 2008. Other notable suppliers include Converteam, GE, Teco, and TMEIC.