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Southeast Asia Emerges as an Investment Hotspot for Both Manufacturers and End Users of Low-voltage IHP Motors, Finds Frost & Sullivan
Motor quality and price are the most important purchase criteria in the region

SINGAPORE, Jan. 1, 2013 /PRNewswire/ -- Southeast Asia is a developing region; all industries are demonstrating high growth rates. Its large population, low costs of production, and investment-friendly government policies attract not only manufacturers, but also end users of various industries. This creates a fertile market for low-voltage integral horsepower (LV IHP) motors.

New analysis from Frost & Sullivan (http://www.motors.frost.com), Analysis of the Southeast Asian Low-voltage Integral Horsepower Motors Market, finds that the market earned revenues of $432.3 million in 2012 and estimates this to reach $576.3 million in 2017 through investments from end-user industries such as oil and gas, heating, ventilation, and air conditioning (HVAC), as well as chemicals and petrochemicals.

Due to the higher production costs in China, foreign investors are tilting toward Vietnam and Indonesia. Singapore's strategic location and business-friendly environment also attract investors to start-up manufacturing units. End-user segments with the highest demand for LV IHP motors are automotive, oil & gas, power and petrochemicals.

Customers primarily look for competitive prices and motor quality when purchasing an LV IHP motor. Ultimately, they tend to pick quality over price at the time of purchase.

"End users are also attracted to energy-efficient motors; therefore, new products and technology in energy-saving systems are expected to drive the market," said Frost & Sullivan Senior Research Analyst Vandhana Venkatesan. "Due to sustainable development, long-term savings on maintenance costs is one of the main reasons for the boom in energy efficiency motors."

While the benefits of LV IHP motors are many, market saturation has intensified competition, which, in turn, has led to price wars and shrunken profit margins for manufacturers. They are also facing pricing pressures from low-cost regional and Chinese manufacturers. Due to their domestic economic instability, countries such as the Philippines and Vietnam tend to favor these products, despite their poor quality.

"Notwithstanding this competition from low-cost manufacturers, domestic participants can stay afloat by providing high-quality, reliable, energy-efficient products," noted Venkatesan. "Reduced lead time and effective aftersales support will give manufacturers an added edge over their competitors."

If you are interested in more information on this research, please send an email to Jessie Loh, Corporate Communications, at jessie.loh@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Analysis of the Southeast Asian Low-voltage Integral Horsepower Motors Market is part of the Power Transmission Growth Partnership Services program. Frost & Sullivan's related research services include: North American Hydraulic Motors, Pumps, and Hydrostatic Transmissions in Industrial Applications, North American Servo and Stepper Motors and Drives Market, North American Pneumatic Actuators Market, and ANZ Low-voltage Integral Horsepower Motors Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: djeremiah@frost.com

Jessie Loh
Corporate Communications – Asia Pacific
P: +65 6890 0942
F: +65 6890 0988
E: jessie.loh@frost.com

http://www.frost.com 

SOURCE Frost & Sullivan

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