Southeast Asia Emerges as an Investment Hotspot for Both Manufacturers and End Users of Low-voltage IHP Motors, Finds Frost & Sullivan

Tue Jan 1, 2013 10:13pm EST

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Southeast Asia Emerges as an Investment Hotspot for Both Manufacturers and End Users of
Low-voltage IHP Motors, Finds Frost & Sullivan

Motor quality and price are the most important purchase criteria in the region 

SINGAPORE, Jan. 2, 2013 /PRNewswire/ -- Southeast Asia is a developing region; all
industries are demonstrating high growth rates. Its large population, low costs of
production, and investment-friendly government policies attract not only manufacturers,
but also end users of various industries. This creates a fertile market for low-voltage
integral horsepower (LV IHP) motors.

New analysis from Frost & Sullivan (http://www.motors.frost.com
[http://www.frost.com/prod/servlet/svcg.pag/AEPT]), Analysis of the Southeast Asian
Low-voltage Integral Horsepower Motors Market, finds that the market earned revenues of
$432.3 million in 2012 and estimates this to reach $576.3 million in 2017 through
investments from end-user industries such as oil and gas, heating, ventilation, and air
conditioning (HVAC), as well as chemicals and petrochemicals.

Due to the higher production costs in China, foreign investors are tilting toward
Vietnam and Indonesia. Singapore's strategic location and business-friendly environment
also attract investors to start-up manufacturing units. End-user segments with the
highest demand for LV IHP motors are automotive, oil & gas, power and petrochemicals.

Customers primarily look for competitive prices and motor quality when purchasing an LV
IHP motor. Ultimately, they tend to pick quality over price at the time of purchase.

"End users are also attracted to energy-efficient motors; therefore, new products and
technology in energy-saving systems are expected to drive the market," saidFrost &
Sullivan Senior Research Analyst Vandhana Venkatesan. "Due to sustainable development,
long-term savings on maintenance costs is one of the main reasons for the boom in energy
efficiency motors."

While the benefits of LV IHP motors are many, market saturation has intensified
competition, which, in turn, has led to price wars and shrunken profit margins for
manufacturers. They are also facing pricing pressures from low-cost regional and Chinese
manufacturers. Due to their domestic economic instability, countries such as the
Philippines and Vietnam tend to favor these products, despite their poor quality.

"Notwithstanding this competition from low-cost manufacturers, domestic participants can
stay afloat by providing high-quality, reliable, energy-efficient products," noted
Venkatesan. "Reduced lead time and effective aftersales support will give manufacturers
an added edge over their competitors."

If you are interested in more information on this research, please send an email to
Jessie Loh, Corporate Communications, at
jessie.loh@frost.com,[mailto:jessie.loh@frost.com], with your full name, company name,
job title, telephone number, company email address, company website, city, state and
country.

Analysis of the Southeast Asian Low-voltage Integral Horsepower Motors Market is part of
the Power Transmission Growth Partnership Services program. Frost & Sullivan's related
research services include: North American Hydraulic Motors, Pumps, and Hydrostatic
Transmissions in Industrial Applications, North American Servo and Stepper Motors and
Drives Market, North American Pneumatic Actuators Market, and ANZ Low-voltage Integral
Horsepower Motors Market. All research services included in subscriptions provide
detailed market opportunities and industry trends evaluated following extensive
interviews with market participants.

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Contact:

Donna Jeremiah

Corporate Communications - Asia Pacific

P: +61 (02) 8247 8927

F: +61 (02) 9252 8066

E: djeremiah@frost.com[mailto:djeremiah@frost.com]

Jessie Loh

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F: +65 6890 0988

E: jessie.loh@frost.com[mailto:jessie.loh@frost.com]

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