Market research firm IMS Research says agovernment-led movement toward higher efficiency motors will affect theworldwide ac induction motor market over the next few years.

According to the firm, governments haveintroduced legislation, or encouraged voluntary industry agreements, that willshift the market away from EPAct and EFF2motors to higher efficiency motors. The U.S. government has been a leaderwith the passage of the Energy Independence and Security Act of 2007, according to the firm.

The law, which takes effect Dec. 19, 2010, says allgeneral-purpose motors of at least 1 hp and not more than 200 hp will have tomeet or exceed NEMA premium motor-efficiency levels. Governments and tradebodies in the EU, China, Korea and Australia have enacted similarlegislation or agreements, according to IMS.

IMS Analyst Steve Odom says three-quarters of the world'sindustrial ac induction motors being sold each year do not meet the efficiencystandards that will be required under the new law.

"EISA impacts only new motors sold. The installed base ofmotors is quite large. The average lifetime of an industrial motor is probably18 to 20 years, so new motors sold represent just a fraction of the installbase," he says. "Replacing an older motor with a NEMA premium motor will savesomething like 3 to 8 percent in electricity per year. That works out to apayback period of around two years, so it's a good investment. However,induction motors are already very efficient; it's a very mature technology.There's a much greater opportunity for savings by looking at the whole system –leaks, correct sizing, using variable speed drives."

Odom says NEMA premium motors currently have about a 20-percent price premium. "I expect that differential to come down closer toparity with standard efficiency motors as we approach 2011," he says. "This iswhat happened when EPAct motors were required in the 1990s – their pricepremium eroded to parity with standard efficiency motors."

IMS Research collected year-end ac induction motor market datathrough 2007 from manufacturers and found revenues were up 6.8 percent in the U.S., accordingto Odom, who says estimates suggest revenue numbers grew only 2 percent in2008. He says the 2009 forecast shows revenue to be down 7 percent in the U.S.