“2021 was a volatile year for the motor market. One thing was clear, the fallout of COVID-19 is still the driving force in the economy. Raw material prices and shipping rates reached record highs resulting in motor prices climbing ~25% over the course of the year. As we enter 2022, it looks unlikely that supply chain issues will resolve in a timely manner. Additionally, with magnetic steel demand rising amidst diminished supply, the key raw material’s price is likely to stay at elevated levels. Revenues in 2021 are up substantially, but margins have remained largely unchanged as pricing increases are the major driver of revenue growth. In Unit terms, the market grew 6.6% globally in 2021, signalling a healthy return to growth following 2020’s COVID-19 shutdown, in line with manufacturing recovery. With fundamentally strong demand for motors, the outlook for motors during our forecast is an optimistic one despite cost and shipping availability woes.”
To produce this report, Interact Analysis conducted interviews with suppliers and users of LV motors to reach a comprehensive understanding of forces driving the market. Interact Analysis collected data directly from suppliers to form a bottom-up analysis market size and supplier shares. Additionally, Interact Analysis has modelled demand for LV motors at the country and industry level. This resolution of data is formed thorough a proven methodology which Interact Analysis has iterated upon since the founding of the company..