Soft Starter Market Size, Share, and Industry Report [2031]

Report Description

Soft Starter Market Outlook 2031

The Global Soft Starter Market was valued at USD 1,859.8 Million in 2022 and is projected to reach USD 3,615.3 Million by 2031, expanding at a CAGR of 7.8% during the forecast period. Soft starters are advanced electronic devices designed to mitigate the challenges associated with the abrupt and harsh starting of electric motors in various industrial applications.

Soft starters offer a more refined and controlled approach to initiating motor operations as compared to conventional direct-on-line starters that subject motors to sudden voltage and current surges. Soft starters are adaptable to various motor types and sizes. Soft starters offer a versatile solution to the diverse starting requirements encountered in industrial settings such as induction motors or synchronous motors and small motors or large ones. This adaptability extends their utility across a wide spectrum of applications, from conveyor systems and pumps to fans and compressors.

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Macro-Economic Factors

Government Regulations

Government regulations, stemming from macroeconomic considerations, exert a significant influence on the dynamics of the market. The emphasis on energy efficiency is a key concern in the current global economy. Governments worldwide are increasingly implementing stringent standards to promote energy-efficient technologies, directly impacting the soft starter market.

For instance, the European Union has been at the forefront of enforcing regulations to enhance energy efficiency. The EcoDesign Directive sets minimum performance requirements for energy-using products, encouraging the adoption of soft starters to optimize energy consumption in industrial applications.

Energy Prices and Sustainability Initiatives

Fluctuations in energy prices directly influence the decisions of industries regarding energy-efficient technologies, and soft starters stand out as a key solution in this context. For instance, companies seek ways to optimize their operations to reduce expenses during periods of high energy costs. Soft starters enable a gradual and controlled acceleration of motors, preventing sudden energy spikes that occur during direct-on-line starting.

This enhances motor efficiency as well as contributes to cost savings by minimizing peak energy demand. Furthermore, the global emphasis on sustainability has led to a surge in initiatives promoting energy-efficient practices.

Industrialization and Infrastructure Development

The nexus between industrialization and infrastructure development emerges as a potent macroeconomic factor significantly shaping the dynamics of the soft starter market. Regions undergo industrial expansion, which leads to a surge in the demand for motor control solutions, with soft starters playing a pivotal role.

Industries such as manufacturing, mining, and construction, which are at the forefront of industrialization, seek efficient and reliable motor-starting solutions to enhance operational processes. Soft starters offer a nuanced approach by ensuring a controlled and gradual acceleration of motors, mitigating mechanical stress, and extending equipment lifespan in the midst of increased industrial activities.

Soft Starter Market Dynamics

Market Driver- Growing Demand of Soft Starters in Industrial Automation

The adoption of industrial automation has driven the demand of soft starters, owing to numerous benefits such as the delivery of high-quality products, low direct human labor costs, increased productivity, and improved consistency of processes or products. Manufacturers prefer soft starters for the safety of electric systems, as they play an important role in protecting electric systems from high inrush currents and mechanical systems from high instantaneous torque.

Leading manufacturers offer soft starters with Internet of Things (IoT) integration that can be easily integrated into industrial communication networks, including Profinet, Modbus, Ethernet IP, and HMI panels. This can improve control diagnostics and real-time motor condition control. Thus, soft starters' ability to protect systems, increase operational efficiency, their low-cost availability, and low maintenance, make them a popular choice for use in industrial automation applications.

For Instance, L&T Electrical and Automation provides SUPERNOVA soft starters series for industrial automation, which offers several benefits to the motor drive applications such as a pump, compressor, blower/fan, and centrifuge that minimize mechanical and electrical stress on assets and improve overall operational reliability.

Market Driver- Rising Usage of Soft Starters in Wastewater Treatment

Soft starters are commonly used in wastewater treatment plants to smoothly start and stop pumps. These pumps are frequently damaged as a result of the high pressure that builds up in the pipes during starting and stopping. By allowing a controlled increase in pressure, soft starters can significantly reduce the risk of damage.

They aid in the control of pumps, the reduction of water hammer effects, and the maintenance of a steady flow of liquids. Soft starters protect electric and mechanical systems from high inrush currents and instantaneous torque, making them a popular choice for the use in industrial automation applications. The development of water and wastewater treatment facilities is a major factor driving the market.

For instance, The US Environmental Protection Agency (EPA) announced a USD 57.3 Million investment from the 2023 Consolidated Appropriations Act for states, tribes, and territories in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, in the US through this year's Clean Water State Revolving Funds (CWSRF). The investment was made to assist communities in upgrading critical wastewater and stormwater systems to protect public health and valuable water bodies across the country

Market Restraint - High Price of Soft Starter Products

High prices of soft starter products impede the motor soft starters market. Technological advancements aimed at reducing mechanical stress on the motor, electrodynamic stresses on the attached power cables devices, and electrical distribution network are being developed to extend the lifespan of the overall device.

Developing smart motors with advanced technology to achieve maximum efficiency raises the price of the product due to its production cost. While producing products, the machinery and equipment used are tagged with higher expenses, and these machineries require high maintenance, which in turn, adversely impacts the market.

Market Restraint - Availability of Alternative Solutions

Availability of alternative solutions, such as variable frequency drives (VFD) act as a significant restraint for the market. Soft starters are used to reduce the amount of power supplied at startup, while variable frequency drives can be used as an alternative to soft starters to improve performance, save energy, reduce downtime, and simplify systems.

As a result, the availability of such potential substitutes is expected to restrain the market during the forecast period. Moreover, the high cost of developing smart soft starters with advanced technology to achieve maximum efficiency, create challenges in the market.

Market Opportunity - Technological Advancements

Technological advancements and continuous research resulted in the development of smart soft starters. Growing innovation in the market is focused on increasing the utility factor of products, improving the performance of existing products, and developing capabilities that increase their applications in niche markets.

The soft starters are intended to reduce human error for maintaining efficient operating conditions for the equipment, which typically necessitate the presence of an operator. For instance, in February 2020, Aucom Electronics Ltd, launched a new addition to soft starter range, the EMX4 advanced soft tarter, which is small in size and packed with smart motor control and protection features.

It includes the smart card capability, which transform it from super smart motor controller to complete system controller. It includes starter, motor and system protection functions, complete with alarms to alert the user to any potential issue

Market Opportunity - Growing Opportunities in Oil & Gas Industry

In the oil & gas upstream sector, the onshore segment is primarily driven the EPC market, owing to lower investment requirements, less complexity, easier access to sites, and lower risk when compared to the offshore segment. According to the International Energy Agency, global demand for natural gas is expected to increase significantly by 2023, with additional consumption of 370 billion cubic meters, up from 3,630 billion cubic metres in 2016.

Significant investments in the oil & gas industry are expected to provide the required demand for soft starters, thereby creating opportunities in the market.

Scope of The Soft Starter Market Report

The report on the Global Soft Starter Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Soft Starter Market Segment Insight

The Global Soft Starter Market is segmented on the basis of voltage level, power rating, application, and end-use industry.

On the basis of voltage level, the Soft Starter Market is segmented into low voltage soft starter and medium to high voltage soft starter. The low voltage soft starter segment holds a significant market share of the market and is projected to expand at a significant CAGR during the forecast period. These soft starters cater to the growing demand for precision motor control in various applications while ensuring energy efficiency and equipment longevity.

Low voltage soft starters are an efficient solution in some applications where energy consumption optimization and operating cost reduction are priorities.

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Based on power rating, the soft starter market is segmented into below 100 KW, 100 KW - 250 KW, and above 250 KW. The 100 KW segment holds a significant share of the market during the forecast period, owing to factors such as low starting power factor for Direct-On-Line (DOL) motors, cost-effective, compact size, and ability to adjust start torque to accommodate motor and load characteristics, providing a smooth and controlled start.

On the basis of application, the soft starter market is segmented into pumps, fans & blowers, compressors, and others. The pumps segment is expected to hold a significant market share and is projected to expand at a significant CAGR during the forecast period, owing to their ability to enhance operational efficiency, reduce wear and tear, and contribute to energy conservation.

Furthermore, by allowing the motor to function more efficiently, soft starters aid in energy efficiency, a crucial concern in today’s sustainability-focused scenario. Hence, they are becoming an integral part of pump design and operation.

Based on End Use Industry , the soft starter market is segmented into Oil & Gas, Power Generation, Mining, Food & Beverage, Chemical and Others. The Oil & Gas segment is expected to hold a significant market share and is projected to expand at a significant CAGR of during the forecast period due to large investments in the industry which have led to increasing exploration, extraction, and refining activities, thus needing soft starters in pumps and compressors, along with global expansion of refineries fuels the demand for centrifugal pumps.

Also, Soft Starters are essential for smooth and efficient operation of high pressure pipelines transporting oil and gas over long distance.

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Regional Outlook

On the basis of region, the global soft starter market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The market in Asia Pacific holds a significant market share and is expected to grow at a significant CAGR during the forecast period. Countries such as Japan, Malaysia, Australia, and South Korea are significantly contributing to the market growth in this region. The market growth is driven by major offshore oil and gas developments, new oil discoveries, increasing focus on deepwater drilling activities, and the evolving needs of the automotive industry.

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Key Companies Developments

• On December 2022, Schneider Electric, a pioneer in the digital transformation of energy management and automation, unveiled the Altivar Soft Starter ATS480 in India. The ATS480 is engineered for normal and heavy-duty applications, aiming to streamline project execution and enhance application availability in challenging environments. The ATS480 is an upgrade to the robust and successful ATS48. It is suitable for a variety of applications, including compressors, conveyors, pumps, fans, and centrifugal machines.

• In September 2021, Danfoss launched, the VLT Soft Starter MCD 600 solution. This product offers top-notch soft start motor control and protection, ensuring superior performance in fixed-speed applications. Furthermore, Danfoss has two series of soft starters, the MCD 201 and MCD 202, which provide a comprehensive motor starting solution for motors up to 110 kW. The MCD 201 series offers efficient motor-starting features, while the MCD 202 series, an extended version, provides enhanced soft-start functionality and additional motor-protection features.

• On February 2020, Eaton acquired Power Distribution, Inc. (PDI), a key supplier of mission-critical power distribution, static switching, and power monitoring equipment and services for data centers and industrial and commercial customers. PDI is headquartered in Richmond, Virginia, and is reported within the Electrical Americas business segment.

• In January 2020, Motortronics launched the world’s most innovative and largest range of soft starters. This range includes low-voltage IEC soft starters that stand out for their unique features such as energy saving and full event logging. These soft starters are designed to provide efficient control over motor starts and stops, thereby enhancing the overall performance and lifespan of motors.

• In November 2019, Siemens broadened its soft starters portfolio with the introduction of Sirius 3RW55 Failsafe and Sirius 3RW50. These products ensure the protection of industrial and infrastructural electrical motors during startup and ramp-down. Notably, the Sirius 3RW55 Failsafe soft starters are the first to incorporate the Safe Torque Off (STO) function.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Soft Starter Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Soft Starter Market