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Focus on Energy Efficiency Spurs Demand for Integral Horse Power Motors in Middle East

Manufacturers must place emphasis on MV and higher power rating LV motor segments to stay ahead in the competitive market

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Dubai, U.A.E - March 24, 2014 ( renewable energy stocks newswire) The Middle East integral horse power (IHP) motors market is all set for a steady growth as increasing private sector participation and government-backed funding provide a healthy investment climate for infrastructure expansion. The rising number of non-oil and gas projects as well as the huge installed base of IHP motors creates further opportunities for both new installations and replacement demand in the region.

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Recent analysis from Frost & Sullivan, Analysis of the Middle East Integral Horse Power Motors Market, finds that the market earned revenues of USD 298.9 Million in 2013 and estimates this to reach USD 449.0 Million in 2017. The Kingdom of Saudi Arabia will continue to be the mainstay for the IHP motors market owing to the large number of ongoing/upcoming oil and gas as well as non-oil and gas projects in the country.

"Need for energy efficiency to reduce operational costs will compel end users in the Middle East to replace old, inefficient motors with new IHP motors," said Frost & Sullivan Industrial Automation and Process Control Research Analyst. "Alternating current (AC) motors will be especially favoured across end-user applications as AC motors along with AC drives are relatively less expensive and incur lower maintenance costs than direct current motors."

However, the penetration of South Korean and Chinese IHP motor suppliers that offer products at significantly lesser prices than American or European manufacturers has intensified competition and eaten into the profits of established participants in the Middle East. High price sensitivity coupled with escalating raw material costs has resulted in severe downward pressures on margins, chiefly on the sale of new equipment.

As a result, major motor manufacturers are likely to turn their attention to the aftermarket, including the provision of extended service support and warranty, to boost revenues. Advances in technology will also unlock new potential for the retrofit of existing motors. Focusing primarily on Medium Voltage (MV) and higher power rating Low Voltage (LV) motors will help suppliers expand their market share in the Middle East.

"Besides this, global suppliers must design initiatives that promote localisation and domestic procurement to build a stronger presence in the region," suggested Frost & Sullivan analyst. "Developing a one-stop solution to help end users mitigate issues arising from the handling of multiple suppliers will also prove crucial for success in the fast-changing IHP motors space."

If you are interested in more information on this study, please send an e-mail to Tanu Chopra / Paroma Bhattacharya, Corporate Communications, at /, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Analysis of the Middle East Integral Horse Power Motors Market is part of the Power Transmission ( Growth Partnership Service program. Frost & Sullivan’s related studies include: European Electric Drives Market, Western European Electric Motors Market, Indian Electric Motors Market, and Southeast Asian Medium and High Voltage Motors Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants

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Analysis of the Middle East Integral Horse Power Motors Market



Paroma Bhattacharya
Corporate Communications - Middle East and North Africa
P: +91.22.6607 2047
F: +91.22.2832 4713

Tanu Chopra
Corporate Communications – Middle East and North Africa
P: +91.22.6607 2046
F: +91.22.2832 4713

Nimisha Iyer
Corporate Communications – Middle East, North Africa and South Asia
P: +91.22.6607 2007
F: +91.22.2832 4713

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