Automotive Applications Provide Growth Opportunities for North American DC Fractional Horsepower Motor Market

SAN JOSE, Calif., Oct. 16, 2002- Demand for direct current (DC) fractional horsepower motors is increasing as application areas within the automotive industry widen.

Increasing usage in luxury cars, power electric rearview mirrors, and oscillating air conditioning vents, among others, is expected to positively impact market growth.

New analysis from Frost & Sullivan (http://www.fluidpower.frost.com ), North American DC Fractional Horsepower Motor Market, reveals that revenues in this market totaled $3.73 billion in 2001 and are projected to reach $4.18 billion by 2008.

Energy efficient permanent magnet DC (PMDC) or brushed DC motors are expected to dominate the market because they enable significant savings. However, brushless DC (BLDC) motors are gradually gaining market share as they possess attractive qualities such as longer life, higher efficiency, and lower maintenance. The absence of brushes brings down operating costs and justifies the higher initial outlay, making them an appealing option for the price- conscious automotive industry.

"Falling prices prompt more customers to replace their alternating current (AC) and DC fractional horsepower motors with BLDC motors," says Frost & Sullivan Research Analyst Liliya Santalova.

A large installed base of customers provides opportunities for motor replacement. User demand for customized motors and interest in a wide variety of designs are expected to provide a boost to the market.

"Continuing user focus on more specialized motors, combined with the increased ability of motor manufacturers to offer customized designs quickly and effectively should support total revenue growth because of the higher price value for such motors," says Santalova.

Original equipment manufacturers (OEMs) are this market's biggest customers and are therefore in a position to demand lower prices. Improving the production process through streamlining and automation will help participants incur lower costs.

"The savings realized in this manner can be passed on to OEMs," adds Santalova. "The growing tendency of OEMs to shift their manufacturing facilities to other countries offering less expensive labor and materials has led to a corresponding shift in their purchasing habits."

Participants must then endeavor to increase market penetration by strengthening brand name and building a global presence. By keeping production costs under control as well as focusing on product differentiation, they can retain customer base.

"Price is expected to remain a crucial source of competitive advantage, as are quality and innovation," says Santalova.