Report Description

Forecast Period

2025-2029

Market Size (2023)

USD 1.96 Billion

Market Size (2029)

USD 2.94 Billion

CAGR (2024-2029)

6.81%

Fastest Growing Segment

Single phase

Largest Market

Riyadh


Market Overview

Saudi Arabia Energy Efficient Low Horsepower AC Motors Market has valued at USD 1.96 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 6.81% through 2029. The Saudi Arabia Energy Efficient Low Horsepower AC Motors Market is poised for significant growth driven by the country's commitment to sustainability and energy efficiency. As one of the world's leading oil-producing nations, Saudi Arabia is increasingly focusing on reducing energy consumption and enhancing efficiency across various industrial sectors, including manufacturing, agriculture, and infrastructure. Low horsepower AC motors play a crucial role in achieving these goals by offering enhanced energy efficiency, reliability, and reduced operational costs compared to traditional motors. With stringent regulations promoting energy conservation and a growing emphasis on sustainable practices, the market for energy-efficient low horsepower AC motors in Saudi Arabia is expected to experience steady expansion in the coming years.

Key Market Drivers

Government Initiatives and Regulations

Government initiatives and regulations play a pivotal role in shaping the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market. The Kingdom of Saudi Arabia, recognizing the importance of energy efficiency, has taken several measures to promote the adoption of low horsepower AC motors that are energy-efficient. These initiatives serve as a significant driver for the market's growth.

One of the most influential government initiatives is the Saudi Energy Efficiency Program (SEEP), which aims to enhance energy efficiency across various sectors, including industry and manufacturing. SEEP provides incentives and subsidies for businesses that invest in energy-efficient technologies, including low horsepower AC motors. These incentives, such as reduced electricity tariffs for energy-efficient industrial processes, act as a strong motivator for industries to adopt energy-efficient motors.

The Saudi Standards, Metrology and Quality Organization (SASO) has implemented regulations and standards that mandate the use of energy-efficient motors in various applications. These standards ensure that only motors meeting specific energy efficiency criteria can be imported and sold in the Saudi market. Manufacturers must adhere to these regulations, which, in turn, stimulate the development and production of energy-efficient AC motors.

In addition to these measures, the Saudi government has launched awareness campaigns to educate businesses and consumers about the benefits of energy-efficient motors. These campaigns highlight the potential energy and cost savings that can be achieved by upgrading to energy-efficient solutions, creating further incentives for the adoption of low horsepower AC motors.

Growing Industrialization & Infrastructure Development

Saudi Arabia's rapid industrialization and infrastructure development represent another significant driver of the Energy Efficient Low Horsepower AC Motors Market. The country's ambitious Vision 2030 plan aims to diversify the economy and reduce its reliance on oil by promoting industrial growth and diversification.

This industrial expansion is driving a surge in demand for low horsepower AC motors, which are essential components in a wide range of industrial applications, including conveyor systems, pumps, compressors, and HVAC systems. As industries such as petrochemicals, manufacturing, and construction continue to expand, the demand for energy-efficient motors is growing exponentially.

Saudi Arabia's focus on infrastructure development, including the construction of smart cities, transportation networks, and commercial buildings, is boosting the demand for low horsepower AC motors. These motors play a critical role in HVAC systems, escalators, and elevators, all of which are essential in modern urban development. Energy efficiency is a key consideration in these projects, aligning with the government's sustainability goals.

The cumulative effect of these industrial and infrastructure developments is a strong driver for the energy-efficient motor market. It fosters innovation and encourages manufacturers to produce more efficient, reliable, and cost-effective AC motors to meet the growing demand from various sectors.

Environmental and Cost Benefits

The awareness of environmental concerns and the pursuit of cost savings are significant drivers of the Energy Efficient Low Horsepower AC Motors Market in Saudi Arabia. These drivers are closely intertwined as energy-efficient motors offer both environmental benefits and long-term cost savings, making them an attractive choice for businesses and consumers alike.

Firstly, the environmental benefits of energy-efficient AC motors are crucial in a world where sustainability is a top priority. These motors consume less electricity, which means lower carbon emissions and reduced environmental impact. Saudi Arabia, like many other nations, is committed to reducing its carbon footprint and mitigating climate change. This commitment drives the adoption of energy-efficient technologies, including low horsepower AC motors, which are instrumental in achieving these environmental goals.

Secondly, energy-efficient AC motors are also known for their cost-saving advantages. They reduce electricity consumption, resulting in lower energy bills for businesses and households. In a region where energy costs can be significant, the potential for cost savings is a powerful motivator for investing in energy-efficient solutions. Over the long term, the return on investment for these motors is compelling, making them a financially prudent choice.

The drivers of the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market are shaped by a combination of government initiatives and regulations, industrialization and infrastructure development, and the environmental and cost benefits associated with these motors. These factors collectively contribute to the growth and widespread adoption of energy-efficient AC motors in the Kingdom, aligning with global trends towards sustainability and energy conservation.


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Key Market Challenges

Initial Investment Costs and Payback Period

One of the primary challenges facing the Energy Efficient Low Horsepower AC Motors Market in Saudi Arabia is the initial investment cost and the associated payback period. While energy-efficient AC motors offer significant long-term cost savings, the upfront investment required for these motors can be considerably higher than that of standard motors. This cost disparity can be a barrier for businesses, especially small and medium-sized enterprises (SMEs), looking to adopt energy-efficient technologies.

Energy-efficient motors are designed to operate more efficiently, often featuring advanced technologies and materials that contribute to their enhanced performance. While these improvements lead to reduced energy consumption and lower operating costs, they also result in higher manufacturing costs, which are transferred to the end-users.

The longer payback period for energy-efficient motors can deter potential buyers, particularly in sectors where budget constraints are a significant concern. To address this challenge, it is essential for the Saudi government and relevant organizations to provide financial incentives, subsidies, or low-interest financing options to encourage the adoption of these motors. Promoting awareness of the long-term cost benefits and energy savings that come with energy-efficient motors is also crucial in convincing businesses and consumers of the value of these investments.

Lack of Technical Expertise and Maintenance Knowledge

Another challenge in the Energy Efficient Low Horsepower AC Motors Market in Saudi Arabia is the lack of technical expertise and maintenance knowledge required to install, operate, and maintain these motors properly. Energy-efficient motors often have more complex designs and require specific maintenance procedures to ensure their continued high performance and efficiency. Without the necessary skills and knowledge, end-users may face operational issues, which can result in decreased efficiency and reliability.

This challenge is particularly prevalent in smaller businesses and industries where technical expertise may be limited. To address this issue, it is essential to invest in workforce training programs and technical education initiatives. These programs can help equip professionals and technicians with the skills needed to handle energy-efficient AC motors effectively. Additionally, creating user-friendly guides and offering technical support services can empower end-users to make the most of these motors.

Manufacturers can play a role in addressing this challenge by designing energy-efficient motors with simplified maintenance requirements and clear instructions, making it easier for users to ensure the motors operate at peak efficiency throughout their lifespan.

Resistance to Change and Lack of Awareness

The resistance to change and a general lack of awareness regarding the benefits of energy-efficient AC motors represent a significant challenge in the Saudi Arabia market. Many businesses and consumers may be accustomed to using traditional, less efficient motors and may be hesitant to switch to energy-efficient options due to a lack of awareness about the advantages these motors offer.

There might be a misconception that energy-efficient motors are significantly more expensive or that the effort required to transition to them is overly complicated. Overcoming this challenge requires a multifaceted approach. Government bodies, industry associations, and manufacturers should collaborate on awareness campaigns to educate the public about the benefits of energy-efficient motors. These campaigns can highlight the long-term cost savings, environmental advantages, and government incentives available.

The government can implement stricter regulations and standards that encourage the use of energy-efficient motors, gradually phasing out less efficient alternatives. This would create a stronger market push towards adopting these motors. It is essential to emphasize that the transition to energy-efficient motors is not only a cost-effective choice but also a step towards reducing the carbon footprint and contributing to a more sustainable future.

Addressing the challenges of initial investment costs, technical expertise, and resistance to change is crucial for the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market to thrive and realize its potential. With concerted efforts from the government, industry players, and education initiatives, these challenges can be overcome, facilitating the wider adoption of energy-efficient AC motors across the country.

Key Market Trends

Increased Integration of Smart and IoT Technologies

One prominent trend in the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market is the growing integration of smart and Internet of Things (IoT) technologies into motor systems. The Kingdom's focus on modernization and digitalization, as outlined in its Vision 2030 plan, is driving the adoption of intelligent motor systems that can provide real-time data, diagnostics, and remote control capabilities.

Smart AC motors are equipped with sensors and communication interfaces that enable them to connect to a network or a central control system. These motors can monitor their own performance and health, providing insights into energy consumption, temperature, vibrations, and other critical parameters. This real-time data allows for predictive maintenance, reducing downtime and preventing unexpected motor failures.

The integration of IoT technologies further extends the capabilities of these motors. With IoT, motor systems can communicate with other connected devices and systems, optimizing energy usage and overall operations. For instance, motors can adjust their speed and power consumption based on data from occupancy sensors or environmental conditions, increasing energy efficiency.

This trend is driven by the need for more sustainable and efficient industrial processes, in line with Saudi Arabia's energy efficiency goals. It offers opportunities for businesses to not only reduce their operational costs but also enhance their environmental footprint by minimizing energy wastage. As a result, the integration of smart and IoT technologies in low horsepower AC motors is expected to gain momentum, creating a more intelligent and energy-efficient market.

Emphasis on Environmentally Friendly Refrigerants in HVAC Motors

The second notable trend in the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market pertains to the HVAC (Heating, Ventilation, and Air Conditioning) sector. As the Kingdom experiences rapid urbanization and infrastructure development, the demand for HVAC systems in commercial and residential buildings is on the rise. This trend is accompanied by a growing emphasis on environmentally friendly refrigerants in HVAC motors.

Refrigerants play a crucial role in the cooling and heating processes of HVAC systems. Traditionally, HVAC systems have utilized refrigerants with a high global warming potential (GWP), contributing to environmental issues like climate change. However, there is a global shift towards adopting low-GWP and environmentally friendly refrigerants in HVAC systems to mitigate these environmental concerns.

In Saudi Arabia, where the climate necessitates extensive use of air conditioning for a significant portion of the year, there is a heightened awareness of the environmental impact of HVAC systems. The Saudi government and regulatory bodies are implementing policies and standards that encourage the use of low-GWP refrigerants and energy-efficient motors in HVAC applications.

Manufacturers are responding to this trend by developing low horsepower AC motors specifically designed for HVAC systems that can accommodate these environmentally friendly refrigerants. These motors are engineered for optimal efficiency and reliability, contributing to both energy savings and reduced environmental impact.

This trend aligns with Saudi Arabia's commitment to sustainability and reducing its carbon footprint. It creates opportunities for manufacturers to innovate and offer solutions that meet the environmental requirements of the HVAC sector while catering to the growing demand for energy-efficient motors in the context of infrastructure development. As a result, the adoption of environmentally friendly refrigerants in HVAC motors is expected to continue to shape the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market.

Segmental Insights

Application Insights

The Industrial segment dominated the market in 2023. The industrial segment of the Saudi Arabia market focuses on low horsepower AC motors used in various industrial applications, such as manufacturing, petrochemicals, and heavy machinery. These motors are typically in the range of 1 to 100 horsepower and are crucial for driving machinery and equipment in the industrial sector.

Saudi Arabia's industrial sector has been experiencing substantial growth, particularly in industries like manufacturing, mining, and petrochemicals. This expansion drives the demand for low horsepower AC motors. Government regulations and initiatives promoting energy efficiency in industrial processes are encouraging businesses to invest in energy-efficient motors. The use of VFDs with AC motors is becoming increasingly common in industrial applications to improve energy efficiency and control. Industrial Internet of Things (IIoT) technologies are being incorporated to monitor and optimize motor performance and facilitate predictive maintenance.

Compliance with local and international energy efficiency regulations and standards is a significant driver for the adoption of energy-efficient motors in industrial applications. The market size is directly influenced by the pace of industrial growth, infrastructure development, and government energy efficiency initiatives. It is expected to grow as more industries prioritize energy efficiency.


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Regional Insights

Riyadh dominated the market in 2023. Saudi Arabia, including Riyadh, has implemented strict energy efficiency regulations and standards to reduce energy consumption and lower carbon emissions. These regulations mandate the use of energy-efficient motors in various applications, creating a legal framework for adoption. Riyadh is experiencing rapid urbanization and infrastructure development, including commercial and residential buildings. These projects require energy-efficient motors for applications like HVAC systems, elevators, and water pumps.

Riyadh is a hub for various industries and businesses. The expansion of industries like manufacturing, construction, and petrochemicals within the city drives the demand for low horsepower AC motors, particularly those that are energy-efficient. Businesses and organizations in Riyadh are increasingly aware of the cost savings associated with energy-efficient motors. Energy-efficient motors are designed to consume less electricity while maintaining performance, making them an attractive choice for cost-conscious entities. Riyadh is focusing on sustainability and reducing environmental impacts. Businesses and government organizations are adopting eco-friendly technologies to meet sustainability goals and reduce carbon footprints.

Recent Developments

  • In March 2022, Kirloskar Oil Engines Limited (KOEL), renowned for its expertise in engines, power generating sets, and agricultural equipment, continues to impact global communities after decades of innovation. With a commitment to enhancing customer experiences through innovative products and services, KOEL has unveiled a new line of high-efficiency low voltage electric motors designed to drive machinery across diverse industrial sectors. This launch underscores KOEL's dedication to advancing technology and meeting the evolving needs of industries worldwide.
  • In March 2024, JSW Group, a prominent conglomerate, and MG Motor, owned by SAIC, forged a joint venture to produce electric vehicles in India. Their collaborative effort aims to introduce new products, including NEVs, at intervals of three to six months starting September, with two launches planned within the current calendar year. Operating under the name JSW MG Motor India Pvt Ltd, the joint venture seeks to establish itself as a leading player in the NEV segment by offering a diverse range of products.
  • In January 2024, Tata Passenger Electric Mobility Ltd. (TPEM), a subsidiary of Tata Motors, India’s foremost automobile manufacturer, inaugurated production of passenger vehicles at its newly established facility in Sanand, Gujarat. 
  • Attron Automotive has unveiled its latest electric motors and controllers during the Bharat Mobility Expo 2024. The company introduced three alpha series motors along with an advanced controller aimed at enhancing the speed, efficiency, and overall performance of electric vehicles (EVs). Among the new offerings are the RM14530, RM16070, and RM16045 electric motor series, complemented by the CTR072500 electric motor controller.

Key Market Players

  • ABB Limited
  • Siemens AG
  • WEG S.A.
  • Toshiba Corporation
  • Nidec Corporation
  • Schneider Electric SE
  • Emerson Electric Co.
  • Ashoor Electric Motors Co.   

  • By Product
  • By Current
  • By Application
  • By Region
  • Synchronous
  • Asynchronous
  • Single phase
  • Three phase
  • Consumer
  • Industrial
  • Refrigeration
  • Medical
  • Riyadh
  • Makkah
  • Madinah
  • Jeddah
  • Tabuk
  • Eastern Province
  • Rest of Saudi Arabia


Report Scope:

In this report, the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Saudi Arabia Energy Efficient Low Horsepower AC Motors Market, By Product:

o   Synchronous

o   Asynchronous      

  • Saudi Arabia Energy Efficient Low Horsepower AC Motors Market, By Current:

o   Single phase

o   Three phase      

  • Saudi Arabia Energy Efficient Low Horsepower AC Motors Market, By Application:

o   Consumer

o   Industrial

o   Refrigeration

o   Medical           

  • Saudi Arabia Energy Efficient Low Horsepower AC Motors Market, By Region:

o   Riyadh

o   Makkah

o   Madinah

o   Jeddah

o   Tabuk

o   Eastern Province

o   Rest of Saudi Arabia      

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market.

Available Customizations:

Saudi Arabia Energy Efficient Low Horsepower AC Motors Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Saudi Arabia Energy Efficient Low Horsepower AC Motors Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.         Product Overview

1.1.    Market Definition

1.2.    Scope of the Market

1.2.1.Markets Covered

1.2.2.Years Considered for Study

1.2.3.Key Market Segmentations

2.         Research Methodology

2.1.    Objective of the Study

2.2.    Baseline Methodology

2.3.    Formulation of the Scope

2.4.    Assumptions and Limitations

2.5.    Sources of Research

2.5.1.Secondary Research

2.5.2.Primary Research

2.6.    Approach for the Market Study

2.6.1.The Bottom-Up Approach

2.6.2.The Top-Down Approach

2.7.    Methodology Followed for Calculation of Market Size & Market Shares

2.8.    Forecasting Methodology

2.8.1.Data Triangulation & Validation

3.         Executive Summary

4.         Impact of COVID-19 on Saudi Arabia Energy Efficient Low Horsepower AC Motors Market

5.         Voice of Customer

6.         Saudi Arabia Energy Efficient Low Horsepower AC Motors Market Overview

7.         Saudi Arabia Energy Efficient Low Horsepower AC Motors Market Outlook

7.1.    Market Size & Forecast

7.1.1.By Value

7.2.    Market Share & Forecast

7.2.1.By Product (Synchronous, Asynchronous)

7.2.2.By Current (Single phase, Three phase)

7.2.3.By Application (Consumer, Industrial, Refrigeration, Medical)

7.2.4.By Region 

7.3.    By Company (2023)

7.4.     Market Map

8.         Riyadh Energy Efficient Low Horsepower AC Motors Market Outlook

8.1.    Market Size & Forecast

8.1.1.By Value

8.2.    Market Share & Forecast

8.2.1.By Product

8.2.2.By Current

8.2.3.By Application

9.         Makkah Energy Efficient Low Horsepower AC Motors Market Outlook

9.1.    Market Size & Forecast

9.1.1.By Value

9.2.    Market Share & Forecast

9.2.1.By Product

9.2.2.By Current

9.2.3.By Application

10.      Madinah Energy Efficient Low Horsepower AC Motors Market Outlook

10.1. Market Size & Forecast

10.1.1.     By Value

10.2. Market Share & Forecast

10.2.1.     By Product

10.2.2.     By Current

10.2.3.     By Application

11.      Jeddah Energy Efficient Low Horsepower AC Motors Market Outlook

11.1. Market Size & Forecast

11.1.1.     By Value

11.2. Market Share & Forecast

11.2.1.     By Product

11.2.2.     By Current

11.2.3.     By Application

12.      Tabuk Energy Efficient Low Horsepower AC Motors Market Outlook

12.1. Market Size & Forecast

12.1.1.     By Value

12.2. Market Share & Forecast

12.2.1.     By Product

12.2.2.     By Current

12.2.3.     By Application

13.      Eastern Province Energy Efficient Low Horsepower AC Motors Market Outlook

13.1. Market Size & Forecast

13.1.1.     By Value

13.2. Market Share & Forecast

13.2.1.     By Product

13.2.2.     By Current

13.2.3.     By Application

14.      Market Dynamics

14.1. Drivers

14.2. Challenges

15.      Market Trends and Developments

16.      Company Profiles

16.1.  ABB Limited

16.1.1.     Business Overview

16.1.2.     Key Revenue and Financials  

16.1.3.     Recent Developments

16.1.4.     Key Personnel/Key Contact Person

16.1.5.     Key Product/Services Offered

16.2.  Siemens AG

16.2.1.     Business Overview

16.2.2.     Key Revenue and Financials  

16.2.3.     Recent Developments

16.2.4.     Key Personnel/Key Contact Person

16.2.5.     Key Product/Services Offered

16.3.  WEG S.A.

16.3.1.     Business Overview

16.3.2.     Key Revenue and Financials  

16.3.3.     Recent Developments

16.3.4.     Key Personnel/Key Contact Person

16.3.5.     Key Product/Services Offered

16.4.  Toshiba Corporation

16.4.1.     Business Overview

16.4.2.     Key Revenue and Financials  

16.4.3.     Recent Developments

16.4.4.     Key Personnel/Key Contact Person

16.4.5.     Key Product/Services Offered

16.5.  Nidec Corporation

16.5.1.     Business Overview

16.5.2.     Key Revenue and Financials  

16.5.3.     Recent Developments

16.5.4.     Key Personnel/Key Contact Person

16.5.5.     Key Product/Services Offered

16.6.  Schneider Electric SE

16.6.1.     Business Overview

16.6.2.     Key Revenue and Financials  

16.6.3.     Recent Developments

16.6.4.     Key Personnel/Key Contact Person

16.6.5.     Key Product/Services Offered

16.7.  Emerson Electric Co.

16.7.1.     Business Overview

16.7.2.     Key Revenue and Financials  

16.7.3.     Recent Developments

16.7.4.     Key Personnel/Key Contact Person

16.7.5.     Key Product/Services Offered

16.8.   Ashoor Electric Motors Co.   

16.8.1.     Business Overview

16.8.2.     Key Revenue and Financials  

16.8.3.     Recent Developments

16.8.4.     Key Personnel/Key Contact Person

16.8.5.     Key Product/Services Offered

17.      Strategic Recommendations

18.     About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market was USD 1.96 billion in 2023.

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In 2023, the Industrial segment significantly dominated the Saudi Arabia Energy Efficient Low Horsepower AC Motors Market, reflecting robust demand and widespread adoption of energy-efficient technologies in industrial applications.

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Riyadh dominated the Saudi Arabia energy-efficient low horsepower AC motors market in 2023 due to rapid industrial growth, increased urbanization, and strong government support for energy-efficient technologies.

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The major drivers for the Saudi Arabia energy-efficient low horsepower AC motors market include rising energy costs, government energy efficiency initiatives, growing industrialization, and increasing demand for sustainable and eco-friendly technologies.

profile

Parvati Sharma

Account Manager BD
Press Release

Saudi Arabia Energy Efficient Low Horsepower AC Motors Market is expected to grow at a 6.81% CAGR through 2029

Jul, 2024

Saudi Arabia Energy Efficient Low Horsepower AC Motors Market is expected to grow owing to increasing demand from industrial & manufacturing sectors, and Growing Industrialization & Infrastructure De