High power AC drive market expects strong growth
ARC Advisory Group predicts strong market growth through 2015 thanks to demand from emerging and growing economies like the BRIC (Brazil, Russia, India, China) countries.
The high power acdrives market rebounded in 2010, recovering from the economic downswing in 2009. ARC Advisory Group expects the high power ac drives market to experience strong growth during the forecast period through 2015. Emerging economies, including the BRIC (Brazil, Russia, India, and China) countries, drove growth for the high power ac drives market in 2010, and these countries also remain important markets during the forecast period. “Growth in the high power acdrives market will be driven by increasing concerns regarding energy efficiency as well as the environment. Major economies have accepted the fact that efficient use of energy is necessary for global growth and prosperity,” according to Himanshu Shah, senior analyst and principal author of ARC Advisory Group’s “High Power AC Drive Worldwide Outlook."
Increased investments in infrastructure create growth
In advanced and emerging economies, infrastructure development continued, as a significant portion of government stimulus funding was directed to that sector. Consequently, investments for high power ac drives in industries such as electric power generation and water and wastewater increased at a strong rate. Additionally, end users and OEMs across a wide range of industries have recognized that high power ac drives are a major contributor to energy savings as well as achieving sustainability. Globalization also created a large demand for modern infrastructure, especially in emerging economies. Airport facilities and new road construction are driving demand for products from the metals and mining, cement and glass, and oil & gas industries. Emerging economies know that their current infrastructure is a huge bottleneck for their continuing high economic growth. High power ac drives will benefit in this environment as they are key components for any infrastructure development and operation.
Energy efficiency for manufacturing and buildings
High power ac drives suppliers are in a good overall position to participate in future growth because these products are a key tool for improving energy efficiency in both the manufacturing and building automation sectors. Both of these sectors are aware that significant investments must be made in their existing infrastructures to get aging systems and plants up-to-date, while simultaneously helping their operations make a stronger commitment to achieving sustainability. This installed base will open up new business opportunities for these ac drives suppliers.
The global economy continues to expand unevenly, with emerging economies growing faster than advanced economies, and consequently, facing different challenges and risks. Economic output remains well below potential in the United States and some other advanced economies. In many emerging market economies, including in Latin America, the recovery has been much faster. Geographically, the strongest growth for the high power ac drives market is expected in the BRIC countries (Brazil, Russia, India, and China), and of these, China and India in particular. While every world region is projected to experience growth over the forecast period, there are significantly different factors affecting the high power ac drives market that will impact the rate of growth. A brief description regarding the economic scenarios for each major world area is covered in this report. In addition to the quantitative assessment, this study provides an insightful analysis of issues that will impact this business in the future.
ARC Advisory Group
- Edited by Chris Vavra, Control Engineering, www.controleng.com