Leading players look at the motor soft starter market as a goldmine of RoI opportunities, and are found to be following the ‘expend to expand’ strategy. A significant chunk of the revenue earned by these players is being invested toward R&D activities, to introduce intelligent motor soft starters that operate on the back of IoT technology.

Undoubtedly, the Fourth Industrial Revolution is pushing market players toward product diversification to achieve full-scale automation. However, certain negative sentiments are likely to crop up in the motor soft starter market with the limited accuracy level of these products, thereby creating a huge market for substitutes.

Considering the high pace of industrial revolution, capacity-oriented inhibitions of these products, and some significant trends as recorded by seasoned analysts at Transparency Market Research (TMR) in a recent study, the motor soft starter market is projected to expand ~6% in 2019 over 2018.

motor soft starter market infographic

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How Can Players Create Market Opportunities Where Penetration of Substitutes is Higher?

Though motor soft starters are deemed an effective solution to control current in electrical systems, these components have limited control over the speed of the motor. In stark contrast, an AC variable frequency drive (VFD) provides continuous control over the changing speed of the motor. This primary substitute, in turn, matches the speed of secondary machines to ensure optimal machine operations, which directs the shift towards VFDs from motor soft starters.

However, players in the motor soft starter market can alter end users’ sentiments by focusing their marketing toward the cost benefits and minimum space requisites of their products. The scramble towards automation also implies an energy-efficient process, which is better achieved through motor soft starters.

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Given the higher yield of these starters, on the scale of cost, size, and energy, manufacturers can intensify their focus on brand communication to create market opportunities in regions with high popularity of substitutes.

Asia Pacific – The Goldilocks Zone for Investment

As per stats recorded in TMR’s study, the pace at which the Asia Pacific market is growing is, in turn, unfolding investment opportunities for companies to gain cross-border exposure.

Considering the cost-sensitive region that Asia Pacific is, the threat of substitutes is low since VFDs are cost-prohibitive in nature, and significant opportunities are likely to arrive from the growth of the manufacturing and industrial sectors in China, India, and Japan. The demand for motor soft starters is projected to show greater ascendancy in the large mining sector, and given the ergonomics in place, a shift towards intelligent starters will instigate players to upkeep the pace of innovation.

Read TMR Research Methodology at: https://www.transparencymarketresearch.com/methodology.html

Another aspect evincing a promising outlook for the motor soft starter market in the region is the growing number of government initiatives taken in developing countries toward ensuring proper sanitation and water supply to the remotest of households. These initiatives have triggered the rising sales of pumps, and the same has been reflecting on the increasing demand for motor soft starters.

Market players operating in the region, including, Crompton Greaves Ltd. and Toshiba Corporation, make concentrated efforts toward portfolio diversification, with ‘quality and efficiency’ being at the central of development. However, these players fall short of time when it comes to the development of new products on time, which creates investment opportunities for other players to foray into the Asia Pacific region, and win in the motor soft starter market with better turnaround time.

motor soft starter market segmentation

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