Monday, July 31, 2006
North American Linear Motors Market Plagued by Pricing Pressures; Demand to Flow from Economic Revival
New analysis from Frost & Sullivan (www.industrialautomation.frost.com), North American Linear Motors Markets, reveals that revenue in this industry totaled $71.4 million in 2004 and is projected to reach $86.4 million in 2010.
"The high price of motors is partially due to the low volumes sold compared to many industrial products such as conventional rotary motors," state Frost & Sullivan Industry Analysts.
Since shipments of linear motors remain relatively low, every single sale matters. This leads manufacturers to compete fiercely for building demand and winning orders. Until linear motors have proved their advantages in a wider variety of applications, the high cost is likely to remain a key restraint.
However, several domestic and foreign competitors in the market are striving to find ways to not only reduce prices, but also diversify and provide integrated solutions.
Despite the economic challenges plaguing the market from 2000 through the first half of 2003, linear motor customers are keen to use technologically evolved products that are anticipated to help them achieve better efficiency and productivity. Therefore, there is great demand for next-generation motors that are introduced approximately every four years, generating faster replacement rates.
A new customer base is emerging in the form of end users of machine tools, quality control machines, and other machines. As linear motors offer the advantages of speed and precision, they are swiftly replacing ball screws, belts, and other traditional systems.
The challenge for motor manufacturers is to engineer less expensive, more efficient drives that increase product value. They also need to offer quality service to meet the long-term needs of customers. Designing products with smaller physical dimensions is also expected to increase the demand for new applications.
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