Research Overview
Advanced Technology Fuels Demand for Linear Motors
Increasing automation, growth in high-technology industries, and a reviving
economy all serve to spur demand in the North American linear motors market. End
users, keen to improve efficiency and productivity, favor an early replacement
of drives, thereby creating a demand for next-generation products that are
introduced into the market approximately every four years. These clean,
efficient devices, capable of high speeds and forces, are fast replacing belt
drives, ball screws and rack and pinion systems. Linear motor manufacturers are,
however, faced with the challenge of producing less expensive, more efficient
drives that increase product value. They need to offer quality service ?
particularly delivery ? to meet the long-term needs of their customers.
Designing motors with smaller physical dimensions is also expected to increase
the demand for new applications.
This Frost & Sullivan research studies the North American linear motors
market. Dynamics affecting the market such as major drivers, restraints, trends
as well as challenges faced by the industry are discussed in detail in order to
provide a greater understanding of the future market situation. This will help
participants devise strategies and understand market conditions. The geographic
coverage of this research is North America, including the United States, Canada,
and Mexico.
User Ignorance Inhibits Adoption of Linear Motors
The majority of the users are not aware that the latest linear motors provide
higher efficiency, precision, and speed than rotary motors. More often than not,
users limit themselves to the motors that they have been using for several years
and tend to replace them with the similar models, and at times, even purchase
less efficient, lower-cost types. Manufacturers should educate their
distribution representatives as well as end users of the advantages of linear
motors. "Several leading manufacturers are organizing seminars and training
for end users as well as providing descriptive product catalogs with a listing
of possible applications and ratings," states the analyst. "This has
resulted in greater customer satisfaction and has increased the likelihood of
subsequent business."
Expenses associated with linear motors and the design changes that may be
necessary for installation also discourage potential users. Further, considering
only short-term benefits, customers are reluctant to invest in higher priced
equipment. Overcoming these barriers requires intelligent marketing tactics to
raise customersf awareness of the technology and its cost-saving benefits in
the long run.
Increased Manufacturing Expenses and Low Volumes Lead to Price Pressures
The linear motors market is characterized by a strong degree of price
pressures and intense competition. Consolidation in some of the main user
industries has given greater bargaining power to the customer base that demands
a reduction in price levels. Faced with increasing R&D expenditure to meet
end-user demands and high raw material costs, manufacturers are compelled to
absorb production costs to keep prices competitive.
The high price of motors is partially due to the low volumes that are sold
when compared to many industrial products, such as conventional rotary motors.
"Since shipments of linear motors remain relatively low, every single sale
is important and manufacturers focus on competing fiercely to build demand and
win the order," says the analyst. Until linear motors have demonstrated
their advantages in a wider variety of applications, the high cost is expected
to remain a key restraint. Domestic and foreign competitors flooding the market
are expected to find ways to decrease prices, diversify, and provide integrated
solutions.
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