Medium voltage ac drives market expected to grow in 2011
A study by ARC Advisory Group suggests increased global demand in growing markets as well as steady growth in mature, established markets will be the main driving force for the market's growth in 2011.
While large project orders helped maintain the Medium Voltage AC Drives market size in 2009, it also resulted in low growth in 2010 compared to other automation product markets. However, 2010 was still not a disappointing year for the medium voltage ac drives market. The market is expected to experience higher growth in 2011 compared to sluggish growth in 2010, according to a new ARC Advisory Group study.
The impact of the extraordinary amount of policy stimulus in 2009 bode well for the high power ac drives market in 2009 and 2010. Monetary policy had been highly expansionary, with interest rates down to record lows in most advanced and in many emerging economies. “Growth in power and automation solutions for all regions of the world is expected to continue in 2011 and beyond with increasing market demand for building new and upgrading existing power infrastructure and improving industrial efficiency and productivity,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Medium Voltage AC Drives Worldwide Outlook”
Demand from emerging markets
While demand in mature markets for automation solutions and ac drives use is expected to improve, emerging markets will remain significant drivers of growth as they build up their electrical power generation capacity and expand industrial production with a major focus on improving energy efficiency and industrial process quality. These dynamics directly impact the medium voltage ac drives market growth. Demand for commodities fueled by economic growth of emerging countries and the need to become more globally competitive in product quality is also expected to drive demand for industrial automation solutions and medium voltage ac drives in the emerging markets.
Increased investments in infrastructure will drive market growth
Globalization has created a growing demand for modern infrastructures, especially in emerging economies. Major investments are underway and more are being planned for airport facilities, railway and public transportation expansions, and new road construction, which are driving demand for products from the metals and mining, cement and glass, and the oil and gas industries. Emerging economies know that their current infrastructures are a major bottleneck for their continuing economic growth. Medium voltage ac drives are one of the critical components for these infrastructure investments and are used extensively in these industries.
In spite of unpredictable economic conditions of some countries in Europe, the globalization environment is expected to resume over the next forecast period. The beginnings of a modest recovery in the global economy would present an excellent backdrop for medium voltage ac drives’ market growth.
While every world region will experience growth in the medium voltage ac drives market over the forecast period, there are significantly different factors affecting each specific market. A brief description regarding the economic scenarios for each major world area is covered in this report.
In addition to the quantitative assessment of the medium voltage ac drives market, the report provides an insightful analysis of the market and strategies of the leading suppliers that will impact this business in the future.