Industrial Motors & Drives Global Market Update

Alex Chausovsky Research Director

Motors & Mechanical Power Transmission

March 2012

Research Methodology Description

Economic Update

Global Market Updates

• Low Voltage Motors

• Medium Voltage Motors

• Low Voltage Motor Drives

• Medium Voltage Motor Drives

Questions?

Presentation Overview

Research Methodology Description

Base Year Data: Primary Research

Collect sales revenues and unit shipments from leading suppliers to each product market via Excel-based questionnaires: high participation rates

Supplement data collection with extensive interviews with strategic marketing and product management personnel

Consult with leading industry trade, distributor and end-user associations

Consider data from multiple quarterly trackers: Drives, PLCs, etc.

Forecasting: Primary & Secondary Research

• Economic forecasts (GDP) sourced from IMF

• Machinery Production (MP) forecasts are sourced from IMS Research’s annual Worldwide Machinery Production Yearbook study

• Interviews provide insight into which market segments will outperform or underperform in the future

Economic Growth in Developed Regions (N. Am, EU, Japan)

Economic Update

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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Developed Regions - GDP Data

Canada

US

Germany

France

Europe

Japan

Economic Growth in Developing Regions (Brazil, China, India, etc.)

Economic Update

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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Developing Regions - GDP Data

Brazil

Rest of South America

China

India

Rest of Asia

Russia & CIS

Middle East & Africa

Commodity Prices

Economic Update M

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Monthly Commodity Price Indices (2005 = 100)

Oil

Metals

Total Commodities

Products Covered:

IE1 (Standard Efficiency) Eff2 and below; Below EPAct

IE2 (High Efficiency) Eff1; EPAct

IE3 (Premium Efficiency) Above Eff1; NEMA Premium

IE4 (Super Premium Efficiency) Much higher than Eff1; Above NEMA Premium

Other Non-classified 8 / 10 / 12 pole motors

>375kW

Submersible motors

Fire pump motors

All motors that fall outside NEMA and/or IEC

DC Motors

The World Market for Low Voltage Motors

Low Voltage Motors – Market Data

≈ 44 million low voltage motors shipped in 2010

$13,541.2

$10,912.8$12,471.9

$14,975.0

$17,444.9

$20,121.9

$22,969.7

$26,068.6

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

2008 2009 2010 2011 2012 2013 2014 2015

Gro

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Rev

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$M

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Low Voltage Motors MarketMarket Size ($M) and Growth

Revenues

Growth

Low Voltage Motors – Legislative Timeline

Source: IMS Research Feb-12

Timeline for Motor Efficiency Class Transitions Around the World

IE2: Canada & US

IE2: Mexico

EuP Directive signed in EU

IE2: Oceania

EISA signed in US

IE1: China (Grade 1,2,3)

IE2: S. Korea, Phase 1

ErP Directive signed in EU

IE2: Brazil

IE2: S. Korea, Phase 2

IE3: US

IE2: EU, Phase 1

IE3: Canada

IE2+: China

IE3: EU, Phase 2

IE3: EU, Phase 3

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Low Voltage Motors – Market Data

IE1$6,833.9 54.8%

IE2$3,805.3 30.5%

IE3$401.1 3.2%

IE4$137.0 1.1%

DC$510.7 4.1%

Others$783.9 6.3%

2010 Low Voltage Motors MarketProduct Type Breakdown ($M)

Low Voltage Motors – Market Data

IE1, 54.8%

IE1, 8.2%

IE2, 30.5%

IE2, 58.8%

IE3, 3.2%

IE3, 19.9%

IE4 (PM), 1.1% IE4 (PM), 4.8%DC, 4.1% DC, 1.5%

Others, 6.3% Others, 6.8%

0%

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30%

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70%

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100%

2010 2015

Low Voltage Motors MarketProduct Type Composition 2010 vs. 2015

Low Voltage Motors – Market Data

EMEA$4,129.6 33.1%

Americas$3,554.9 28.5%

Rest of Asia$2,106.5 16.9%

China$2,680.9 21.5%

2010 Low Voltage Motors MarketRegional Breakdown ($M)

Products Covered:

Voltage 1kV - 2.3kV

3.3kV

4.16kV

5kV - 7.2kV

10kV - 11kV

Above 11kV

Power Rating Below 200kW

200kW - 500kW

501kW - 1.5MW

1.6MW - 7.4MW

7.5MW - 12MW

Above 12MW

The World Market for Medium Voltage Motors

Rotor Structure Asynchronous

Synchronous

DC

Medium Voltage Motors – Market Data

≈ 40,000 medium voltage motors shipped in 2010

$4,811.5$5,060.5

$3,968.4 $4,078.4

$4,500.3

$4,913.6

$5,325.3

$5,754.7

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2008 2009 2010 2011 2012 2013 2014 2015

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Medium Voltage Motors MarketMarket Size ($M) and Growth

Revenues

Growth

Medium Voltage Motors – Market Data

Below 200kW$93.3 2.4%

200 - 500kW$576.7 14.5%

501kW to 1.5MW

$1,011.9 25.5%

1.6 to 7.4 MW$1,277.7

32.2%

7.5 to 12 MW$614.1 15.5%

Above 12MW$394.7 9.9%

2010 Medium Voltage Motors MarketProduct Type Breakdown ($M)

Medium Voltage Motors – Market Data

EMEA$1,349.6 34.0%

Americas$1,181.5 29.8%

Asia Pacific$1,437.3 36.2%

2010 Medium Voltage Motors MarketRegional Breakdown ($M)

Products Covered:

Compact AC Drives <25kW; typically used in fan & pump applications

Standard AC Drives <500kW; typically used in material handling and packaging applications

Premium AC Drives 1kW through largest; most demanding applications

DC Drives SCR based drives that control DC motors

Software

Services

The World Market for Low Voltage Drives

Low Voltage Drives – Market Data

≈ 17 million low voltage motor drives shipped in 2010

$10,794.2

$9,199.3$10,430.2

$12,638.3

$14,274.9

$16,087.6

$18,306.7

$21,030.7

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2008 2009 2010 2011 2012 2013 2014 2015

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Low Voltage Motor Drives MarketMarket Size ($M) and Growth

Revenues

Growth

Low Voltage Drives – Market Data

AC Compact$1,793.3 17.2%

AC Standard$3,953.6 37.9%

AC Premium$3,584.3 34.4%

DC$323.2 3.1%

Software$150.8 1.4%

Services$625.1 6.0%

2010 Low Voltage Drives MarketProduct Type Breakdown ($M)

Low Voltage Drives – Market Data

Americas$2,077.0 21.5%

Asia Pacific$3,568.5 37.0%

EMEA$3,321.9 34.4%

Japan$686.9 7.1%

2010 Low Voltage Drives MarketRegion Breakdown ($M)

Hardware Only

Low Voltage Drives – Market Data

<2.2kW$1,661.3 17.2%

2.2kW to 7.4kW

$1,663.9 17.2%

7.5kW to 22kW$1,854.1 19.2%

23kW to 75kW$1,580.1 16.4%

76kW to 110kW$507.1 5.3%

111kW to 500kW

$1,405.3 14.6%

>500kW$982.5 10.2%

2010 Low Voltage Drives MarketPower Rating Breakdown ($M)

Hardware Only

Products Covered:

Voltage 1kV - 2.3kV

3.3kV

4.16kV

5kV - 7.2kV

10kV - 11kV

Above 11kV

Power Rating < 500kW

500kW to 1MW

1.1MW to 3MW

3.1MW to 5MW

5.1MW to 7MW

7.1MW to 10MW

> 10MW

The World Market for Medium Voltage Drives

Medium Voltage Drives – Market Data

≈ 8,800 medium voltage motor drives shipped in 2010

$2,215.4

$1,934.1$2,092.7

$2,458.5

$2,840.0

$3,232.5

$3,675.2

$4,202.1

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2008 2009 2010 2011 2012 2013 2014 2015

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Medium Voltage Motor Drives MarketMarket Size ($M) and Growth

Revenues

Growth

Medium Voltage Drives – Market Data

Americas$563.4 26.9%

Asia Pacific$935.0 44.7%

EMEA$499.8 23.9%

Japan$94.5 4.5%

2010 Medium Voltage Drives MarketRegion Breakdown ($M)

Medium Voltage Drives – Market Data

< 500kW$135.3 6.5%

500kW to 1MW$305.1 14.6%

1.1MW to 3MW$598.0 28.6%

3.1MW to 5MW$271.5 13.0%

5.1MW to 7MW$241.2 11.5%

7.1MW to 10MW$223.7 10.7%

> 10MW$317.8 15.2%

2010 Medium Voltage Drives MarketPower Rating Breakdown ($M)

Speaker contact information

Alex Chausovsky Research Director - Motors & Mechanical Power Transmission IMS Research Austin, Texas, USA Phone: (512) 582-2012 E-mail: Alex.Chausovsky@imsresearch.com www.imsresearch.com

Questions?