Product category:
Motors and Variable speed drives
News Release from: ARC Advisory Group | Subject: AC drives market
Edited by the Processingtalk Editorial
Team on 18 June 2007
Strong growth forecast for AC drives
market
Both the low and high power AC drive markets will experience strong future growth, 7.9 to 9.1% over the next five years, according to ARC
Recent strong growth has been driven by the massive consumption occurring in the chemical, cement, metal, pharmaceutical, power generation, oil and gas, water and wastewater, and metals and mining industries The worldwide market for high power AC drives is expected to grow at a compounded annual growth rate (CAGR) of 9.1% over the next five years
This article was originally published on Processingtalk on 21 Nov 2003 at 8.00am (UK)
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The market was over USD4.7 billion in 2006 and is forecasted to be nearly USD7.4 billion in 2011.
The worldwide market for low power AC drives is expected to grow at a compounded annual growth rate (CAGR) of 7.9% over the next five years, from nearly USD6 billion in 2006 and is forecasted to be over USD8.7 billion in 2011.
Demand for energy and basic materials is growing at an astounding rate, driving demand for AC drives worldwide.
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In addition to speed, control, and energy costs, AC drives also offer greater reliability, soft-start, a higher power factor, and improved efficiency.
"Of all these factors, energy savings is an easily measurable component for the return on investment (ROI).
The payback period for an AC drive investment, based on energy savings alone, is very attractive", according to Senior Analyst Himanshu Shah, the principal author of the ARC studies "High Power AC Drive Worldwide Outlook, Market Analysis and Forecast Through 2011" and "Low Power AC Drive Worldwide Out-look, Market Analysis and Forecast Through 2011".
Increasing pressure to improve financial performance is driving a significant change in the way that end users approach everything they use to control production, engineering, operations, and maintenance across the manufacturing enterprise.
Apart from helping users reduce energy costs and thereby gain competitiveness, the application of AC drives also results in process controllability improvements.
AC drives are also more reliable and easier to maintain, and these factors help in reducing the total cost of ownership (TCO).
With all these benefits, the use of AC drives clearly increases the return on investment and reduces the pay back period.
Investments were made in many industrial segments to cater to growing consumer demand and infrastructure development needs.
This environment clearly shows a boon for AC drive suppliers, because AC drives are widely used in industrial and building automation industries and are favoured energy saving devices in this era where global energy demand outpaces the supply.
While the energy savings aspect significantly boosts demand for AC drives, increasing infrastructure requirements in the 'flat world' have created huge demand in developing countries for new infrastructure that almost parallels developed countries.
Airport facilities and new road construction are driving demand for products from the metals, mining, cement, and oil industries.
An expanding economy in emerging countries is also creating a greater need for more modern buildings with a broad use of building automation.
The need for more electricity is driving huge investments in the electric power industry.
All of these sectors broadly use AC drives.
ARC has found that Eastern Europe, the former Soviet Union, and the Middle East continue to represent strong growth opportunities for AC drives.
China is still one of the biggest growth markets and will remain so for the next several years.
India's economy is likely to continue growing at a robust rate.
With energy demand outstripping the supply, demand for AC drives will continue to increase.
In addition to the quantitative assessment of the high power and low power AC drive markets, these reports provide an insightful analysis of the market and strategies of leading suppliers that will impact this business in the future.
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