Growing Industrial Activity in Brazil Boosts the Electric Motors Market, Finds Frost & Sullivan

Growing Industrial Activity in Brazil Boosts the Electric Motors Market, Finds Frost & Sullivan PR Newswire SAO PAULO, Oct. 31, 2012 - Rapid growth of the economy encourages industries to expand capacity, driving demand for electric motors SAO PAULO, Oct. 31, 2012 /PRNewswire/ -- The brisk pace of economic growth in Brazil, fueled by rising internal consumption, will prompt industries to automate their production lines and add capacity. This significant industrial activity will give a major boost to the sales of electric motors, as they are an integral part of the automated production process. New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Analysis of the Brazilian Electric Motors Market, finds that the market earned revenues of $1.37 billion in 2011 and estimates this to reach $2.15 billion in 2016. "The extensive use of electric motors across various manufacturing processes will open up the market for AC motors," said Frost & Sullivan Research Analyst Alejandro Diaz Lopez. "In some segments, old electric motors are approaching the end of their life, compelling manufacturers to switch to AC motors, which are more efficient than DC ones." While the increasing automation and expanding application scope signify opportunities, it also translates into an intensified competition. Domestic participants still dominate the market but the entry of low-cost foreign companies from Asia could commoditize the products and squeeze margins.