A strong U.S. housing market, a fast-growing population, and urbanization should drive increased sales of low-voltage motors into several sectors, including construction, infrastructure, HVAC, food and beverage, and water and wastewater. That’s according to a report from IHS Markit, which finds that since the third quarter of 2014 overall sales of low-voltage motors (below 690 V) have struggled. The report predicts that the global market for such motors will decline nearly 13% in 2017 compared to 2015.

Click to enlarge. Source: IHS MarkitIHS Markit Senior Analyst Preston Reine says that motor suppliers can adapt to market needs to try to boost sales. “End-users are increasingly interested in energy-efficient motors,” he says. And, motor manufacturers are finding ways to leverage the trend toward adoption of the industrial internet of things to help drive sales.

While global revenue from low-voltage motor sales is projected to slip at a compound annual growth rate of 0.2% from 2015 to 2020, 2018 should mark a turning point and begin a “strong recovery,” says Reine.

Reine also say that a decline in sales of standard-efficiency motors, from 25% of overall sales of low-voltage motors in 2016 to 16% by 2020, and a corresponding pick up in sales of IE2, IE3 and IE4 high-efficiency models.