Product category:
Motors and Variable speed drives
News Release from: IMS Research | Subject: 2004 Motor Drives report
Edited by the Processingtalk Editorial
Team on 07 September 2005
Strong growth seen in 2004 for Motor
Drives
In a sign of an ebullient worldwide market, high performance drives were the fastest revenue growing motor drives category in 2004, outperforming lower-priced compact and standard AC drives
In a sign of an ebullient worldwide market, high performance drives were the fastest revenue growing motor drives category in 2004, outperforming lower-priced compact and standard AC drives According to a new drives study by IMS Research, the total low voltage drives market grew 10.5% in revenues in 2004 to become a $5.17 billion market
This article was originally published on Processingtalk on 12 Nov 2003 at 8.00am (UK)
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The high end of the market was driven by growth in commodity related sectors such as metals and mining, marine, and petrochemicals.
According to analyst Steve Odom of IMS Research, much of the growth in motor drives in 2004 can be traced back to China.
"With the Chinese economy devouring 50% of world cement, one third of its steel, one-fifth of its aluminium, and almost a quarter of its copper, it helped to lift industry sectors and economies around the globe".
Going forward, higher interest rates in China, a potentially revaluing upward of the Yuan, and escalating property values will serve to reduce China's direct and indirect contribution to the worldwide growth in motor drive revenue.
Instead, the key growth drives will be higher energy prices and ever lower prices for drives.
These two factors should foster an increase in motor drive adoption.
Many of these new applications will be smaller, more commercial applications, such as moving billboards, restaurant equipment, and car washes.
As a result, IMS Research forecasts the revenue value of compact AC drives, the smallest, simplest drives category, to grow at a compound annual growth rate of 6.5% over the next five years, compared to 3.6% for high performance AC drives.
The effect of higher energy prices on the drives market is an important one.
The study found the ratio of annual AC drive sales to AC induction motors to be 58% greater in the EMEA than in the Americas, explained for the most part by higher relative energy costs and greater priority on conservation.
If the Americas region had the same penetration rate of drives to induction motor sales as EMEA, the Americas market would be worth $1.9B! Higher energy prices offer a great opportunity for drive manufacturers to raise awareness of the energy saving capabilities of motor drives and ensure continued industry growth.
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