The top three suppliers of low voltage AC motors made waves in the motor and drives space with a string of acquisition announcements in August. First, WEG announced its acquisition of Gefran’s motion control business. Then, on August 11th, ABB announced its acquisition of Siemens’ NEMA motor business. Both developments are significant within the motor and drives market and serve to highlight portions of each company’s industrial automation strategy. In this insight, we’ll unpack both of these acquisitions and explain their implications on the broader motor and drives markets.

Electric steel is used heavily in the manufacturing of electric motors. The material is key to producing the electromagnetic field used to turn the rotor. Without the electromagnetic properties associated with this iron alloy, the performance of electric motors would be substantially compromised. Historically, motors used in commercial and industrial applications have represented a major customer base for electric steel suppliers, and motor vendors have resultingly had little difficultly ensuring prioritized supply lines. However, the share of business held by commercial and industrial electric motor vendors is being threatened by the automotive sector in the wake of electric vehicles.