Motor buyers around the world are focussing on total cost of ownership
22 October 2024 
Motor buyers around the world regard total cost of ownership (TCO) as the most significant factor when buying new electric motors, according to a new survey of nearly 2,400 businesses in 13 countries, carried out by ABB in collaboration with Sapio Research. A key finding was that 91% of the businesses surveyed said that energy efficiency is now a critical influence on their choice of electric motors.
The survey also found that nearly all of the businesses (94%) are investing, or planning to invest, in sustainability initiatives, and especially in energy efficiency. Most are aware of the role that energy-efficient motors can play in achieving their sustainability goals, with 91% saying that this influences their choice. Nearly all also recognise that high-efficiency motors can add value to their products and businesses.
The main barriers preventing further investments in high-efficiency motors are the high upfront costs (especially for high-turnover businesses), concerns around integrating them with existing systems, and potential disruption to production.
Cost plays a role, both as a barrier and a driver, because of the investments needed for plant and equipment upgrades. But the survey reveals that 99% of businesses are now tracking long-term savings as the main ROI (return on investment) from their energy efficiency initiatives.
Another finding from the survey was that businesses are increasing their investment in innovative technologies to benefit from digitalisation and e-commerce, with a focus on AI-driven technologies.
Almost all of the companies surveyed (99%) believe that digitally connected motors offer added value – specifically for their ability to provide predictive condition monitoring to enhance motor availability and safety. There is a trend for motor suppliers to use data insights and remote monitoring to improve their offerings.
Because many of the companies quizzed are already familiar with e-commerce, most see benefits to procuring motors via e-commerce channels, with the attractions including the ability to see a wide range of options and to compare products easily.
An emerging trend is for end-users to place an increasing emphasis on sustainability, often due to pressure from their customers. This is being reflected in increased investments in energy efficiency. Some 88% of those surveyed consider it important for motor manufacturers to produce environmental product declarations (EPDs).
“This survey provides a valuable insight into how businesses are prioritising energy efficiency, not just to meet sustainability targets, but also to gain measurable financial returns,” says Stefan Floeck, president of ABB Motion’s IEC low-voltage motors division. “ABB is already playing a critical role in this development by demonstrating how investing in state-of-the-art energy-efficient electric motors, such as our IE6 SynRM technology, can enhance operational efficiency and promote sustainable growth. With payback periods often measured in months rather than years, the result is a win-win for both the environment and the bottom line.”
ABB points out that over the lifetime of a high-efficiency motor, such as its SynRM (synchronous reluctance) machines, the cost of the electricity used to power it far outweighs its initial purchase cost. The upfront cost will represent around 2% of its TCO, with maintenance accounting for 1%, and the remaining 97% being spent on electricity.
The survey contacted nearly 2,400 businesses for insights into their attitudes to energy efficiency, sustainability, digitalisation, and the role played by electric motors. Conducted in June 2024, it canvassed opinions from businesses in sectors including machine-building, energy/power, food and beverage, metals and chemicals, located in the UK, US, Germany, Italy, France, Australia, UAE, Japan, Thailand, Saudi Arabia, Brazil, South Korea and India.
