The global electric motors market for household appliances is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain a larger market share. High competition, rapid advances in technology, frequent changes in government policies, and stringent environmental regulations are some of the key factors that could restrain market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. It is crucial for vendors to provide cost-effective and efficient products to survive and succeed in a competitive market environment.
The growth of the market vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Johnson Electric Holdings Limited, Ebm-Papst, Nichibo DC Motor, Sunonwealth Electric Machine Industry Co Ltd, Nidec Motor Corporation, Cebi Group, Elica S.p.A., Newmotech Co Ltd, Diehl Stiftung & Co KG, Dumore Motors, CG Power and Industrial Solutions Limited, NMB, Keli Motor Group Co Ltd, and Panasonic Corporation are some of the major players in the market. They compete in terms of availability, quality, price, and technology. They are primarily focused on product development as their key strategy in the global electric motors market for household appliances. Although the international players are dominating the market, regional and foreign players with small market shares have a presence. The international players may strengthen their presence in the global market by heavily investing in product development during the forecast period.
THREAT OF NEW ENTRANTS
The research and development cost in electric motors for household appliances is moderate and the government regulations are stringent which results in moderate threat of new entrants in the market. The technological complexity also acts as an entry barrier in the market moderately, due to the developments in integrating technologically advanced electric motors into various household appliances. The major players offering wide range electric motors hold the largest market share owing to their innovative products. Therefore, the threat of new entrant ranges between low and moderate.
BARGAINING POWER OF SUPPLIERS
There are a substantial number of raw material and component suppliers for the electric motors market for household appliances. Raw materials and components for electric motor, including silicon steel, copper, aluminum, insulating varnishes, insulating resins, nickel, nickel-chromium, rotor, stator and commutator are easily available in the market. Further, raw material differentiation is very less, reducing the bargaining power of suppliers in the market. Hence, the bargaining power of suppliers in the electric motors market for household appliances is low.
BARGAINING POWER OF BUYERS
In the market the two groups of buyers are manufacturers of appliances and the consumers of household appliances.
There are a large number of electric motor manufacturers who buy raw materials and components from original equipment manufactures, making the bargaining power of buyers low due to increasing demand for electric motors. Moreover, brand identity has a moderate impact on the market with a moderate cost of switching providers. Such factors are expected to make the bargaining power of buyers in the electric motors market for household appliances high.
There are large number of consumers in the business-to-consumer (B2C) market, which makes the bargaining power of buyers low. High impact of brand identity, high purchasing power low switching cost make the bargaining power of buyers high.
Such factors make the bargaining power of buyers in the electric motors market for household appliances range between low and moderate.
THREAT OF SUBSTITUTES
There are no close substitutes for the electric motors for household appliances. Electric motors are irreplaceable in household appliances as they ensure high reliability and feasibility in household operations. Hence, the market players do not face much threat from substitutes. Thus, the threat of substitutes is low.
RIVALRY
The electric motors market for household appliances is growing with increasing implementation of advanced motors in smart appliances. Moreover, technological developments in electric motors makes the competition high among the suppliers. However, the product differentiation is moderate with some add-on features of the products. The price differentiation within the electric motors for household appliances offered by major companies depends on competition pricing, which reduces the prices of the electric motors. Thus, the intensity of the competitive rivalry is high.
