The Soft Starter Market is estimated to be valued at US$ 2582.91 Mn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Soft starters are used for electric motors to temporarily reduce the load and torque placed on the electrical network by the motor during startup. They control the electric current flow during start up, which allows the motor to reach full speed gradually without drawing a large amount of initial current. It provides advantages such as smoother starting of the motor, protection against inrush currents that can overload electrical equipment and reduced mechanical stress on equipment. They find applications across various industries such as oil & gas, mining, power generation, and food & beverage industries.
Market key trends:
Growing adoption of energy-efficient equipment across industries is driving the market growth. Soft starters aid in reducing electricity costs by minimizing current surges during motor starting, thus saving energy. They decrease the load drawn by motors and prevent spikes in supply current during start up. As industries aim to optimize energy consumption, adoption of soft starters is increasing globally. Additionally, supportive government regulations promoting energy efficient equipment and growing infrastructure development across emerging economies is also contributing to the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the soft starter market is low as it requires large capital investments to establish manufacturing facilities and distribution networks. Further, existing players have strong brands and relationships with major end-use industries.
Bargaining power of buyers: The bargaining power of buyers is high in this market as the products are commodity in nature and buyers can negotiate on price and delivery terms. Buyers can easily switch to substitutes if prices are not competitive.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers have a limited role in product differentiation. However, suppliers do exert pressure on pricing and delivery terms.
Threat of new substitutes: The threat of new substitutes is moderate as other process control equipment like variable frequency drives can be used for indirect starting of motors. However, soft starters offer distinctive advantages in integrating motor control and protection.
Competitive rivalry: Intense among global players.
SWOT Analysis
Strengths: Provide smooth start for electric motors, reduce voltage & current spikes, extend motor & equipment life.
Weaknesses: Higher initial costs than direct-on-line starters, require technical expertise for installation & commissioning.
Opportunities: Growing demand from oil & gas, mining, wastewater treatment industries. Rising focus on energy-efficient products present market opportunities.
Threats: Competition from substitutes like variable frequency drives, easy availability of low-cost alternatives impact sales.
Key Takeaways
The global Soft Starter Market Growth size is expected to grow at a CAGR of 8.2% during the forecast period due to increased emphasis on energy efficiency and protection of electric motors across industries. The Asia Pacific region dominates the market and is expected to witness the fastest growth over 2023-2030 on account of rapid industrialization and infrastructure development activities in China, India, and Southeast Asian countries.
Key players operating in the soft starter market are Siemens AG, Aucom Electronics Ltd (Benshaw Inc.), Schneider Electric SE, IGEL Electric GmbH, Eaton Corporation PLC, Crompton Greaves Ltd., ABB Ltd., Toshiba Corporation, Rockwell Automation Inc., Fairford Electronics Inc. (Motortronics UK Ltd), and Danfoss Group. Siemens AG holds the leading market share supported by its comprehensive product portfolio and global presence across major application industries.
Regional analysis
The Asia Pacific region is projected to register the highest CAGR during the forecast period. Rapid industrialization, infrastructure development activities, and establishment of manufacturing hubs in China, India and Southeast Asian countries are fueling the demand for soft starters across industries. China dominates the regional market with the largest manufacturing sector globally. Additionally, government efforts to improve energy efficiency and reduce carbon emissions boost the adoption of soft starters.
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https://www.newsstatix.com/soft-starter-market-trends-size-and-share-analysis/
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