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Lack of enforcement and exemptions sustain IE1 motor sales
A drastic slowdown in the Chinese market in 2012 and the ongoing economic difficulties in the Eurozone have compounded the problem, and slowed the efficiency transitions even further, IHS adds. Officially, China began to transition to IE2 in September of 2012, while the European Union began in June of 2011.
“It may be several years before we see a significant drawdown of IE1 motors in China and a peak of the IE2 market in the European Union, especially with no legitimate enforcement mechanism in place,” Meza believes.
The US and Canadian LV motor markets have the world’s highest minimum energy efficiency regulations, at IE3 (premium efficiency). Unfortunately, the “exemption” markets of IE1 and IE2 motors in these countries still accounted for several hundred million dollars in revenues in 2012, despite legislation implemented in 1997 and 2010 in the US, and in 2012 in Canada, that was intended to phase these motors out of the marketplace rapidly.
“If the history of motor efficiency transitions in the US market is any indication, the LV motor markets in other countries that are implementing similar transitions will have to accept a slow and gradual transformation rate over the course of the next decade,” Meza concludes. “Economic problems aside, this will significantly constrain the LV motors market’s revenue and ASP growth and counteract the energy efficiency regulations already in place.”
