Drones & EVs

Are the most robust markets for electric motor applications, says report

Due to miniaturization in engine technologies, passing regulations for drone usage from the FAA (Federal Aviation Association) and the emergence of battery-powered plug-ins for automobiles, the global market for electric motors is advancing, according to a new report from BCC Research released Wednesday.

Drones and EVs are quite possibly the two best examples of high-tech applications seeing exponential growth in recent years, representing robust new market sectors for electric motors, including repair. Though these areas seem foreign, they could be more easily accessible than you think. While major car companies are using newer types of motors to make their electrics, don’t forget about scooters, buses, segways, and electric bikes, all of which are also on a rapid rise.

“Alongside the advances within passenger vehicles, electric motors can also be found in scooters and buses, as well as various niche products. Industrial electric vehicles (EVs) remain a significant market. State-of-the art batteries have enabled a growing niche market for trucks, buses, small electric scooters and Segway-type vehicles,” the report stated.

For motor shops, tapping into these markets can be as simple as mentioning it to your regular customers. Most small repair shops, especially those in rural or small town locations, are long accustomed to the “we’ll take it” mentality. This is the beauty of small business in the repair and maintenance world. A close connection with regular customers invites a trust and reliability that invites both parties to want to work with one another. Mechanics and technicians in such environments will readily repair an industrial motor for a regular customer’s fan motor, weedwacker, drive for plant machinery, or even a pump for a pool. Thinking of drones or an electric car no differently is bound to produce more revenue.

In 2017, the global market for electronic motors for drones and vehicles was worth $2.1 billion. BCC Research estimates that it will be valued at $9.4 billion by 2023, indicating a compound annual growth rate (CAGR) of 15.9%, according to the report Electric Motors for Drones and Electric Vehicles: Global Markets and Technologies Through 2023.

Research Highlights

  • North America is the largest market for electric motors in terms of projected monetary value ($3.6 billion by 2023). Europe followed in second, being valued at $3.0 billion.
  • The electric vehicle market is being driven by regulatory and economic initiatives to reduce usage of carbon-dioxide-producing internal combustion engines.
  • At $522.0 million in 2017, the Asia-Pacific region is the fastest-growing adopter of electric motors for drones and electric vehicles. It will have a CAGR of 15.8% by 2023.

“Though electric vehicles have been commercially available for more than 100 years, the advent of hybrid electric vehicles in recent years ushered in an era of battery-powered plug-ins that could be recharged by the vehicle’s internal combustion engine as well as a battery charger plugged into utility electric power,” said Michael Sullivan, BCC Research senior editor and author of this report. “These trends demonstrated the practicality of electric motors and are paving the way for electric-only automobiles and self-driving or autonomous vehicles. Although these vehicles will not be predominant within the five-year scope of this report, they will eventually become a large (or possibly the largest) user of electric motors.”

So if you know how to fix batteries, mend small rotors, work on engines, or simply work with tools in a shop, you’re probably a better candidate than you think. Adapting to a changing market is just how another generation ushered in the rise of the industrial electric motor repair industry in the mid-20th century.

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