High-power AC drives market to grow 5.7% per year to $3.3 billion by 2007
Dedham, MA—The worldwide market for high-power AC drives is expected to grow at a 5.7% compound annual growth rate (CAGR) from just over $2.5 billion in 2002 to approximately $3.3 billion in 2007, according to a new study, “High-Power AC Drives Worldwide Outlook,” by ARC Advisory Group.
Dedham, MA— The worldwide market for high-power AC drives is expected to grow at a 5.7% compound annual growth rate (CAGR) from just over $2.5 billion in 2002 to approximately $3.3 Billion in 2007, according to a new study, “High-Power AC Drives Worldwide Outlook,” released July 22 by ARC Advisory Group .
The study found that the need to reduce mounting energy costs is acting as the single most important force in the worldwide high-power AC drives market. “Increasing energy prices are compelling users to seek equipment, operating methodologies, and technologies that help them minimize energy consumption and save on energy costs,” says Himanshu Shah, ARC senior analyst and the study’s co-author.
“High power AC drives are favorably placed as they pay back their costs relatively quickly.” High-power AC drive suppliers, whose growth prospects are constrained by weak global economic conditions, found it expedient to expand market shares through acquisitions and mergers. ARC reports that this development indicates the resolve of suppliers to explore ways of addressing market challenges.
Services, including engineering, installation and maintenance, have emerged to contribute to revenues of high-power AC drives. The study reports that this trend will continue to strengthen.
Europe, largely driven by the Eastern European economies, continues to be the largest market for high-power AC drives. The energy conservation legislation of many European countries also aids growth of the high-power AC drive market. Even though North America’s contribution lags, Asia is living up to its reputation as an promising, emerging growth market. The study also found that the high-power AC drive market benefited from investments in industrial segments, such as oil and gas pipelines, power, and water and wastewater applications.
ARC adds that companies find it relatively attractive to incur capital expenditures on high-power AC drives because of potential, tangible energy savings, which indicates that the market is set to grow. “The long-term outlook for the high-power AC drives market looks positive, despite the current state of the global economy,” says Shah. The study adds that, “It’s widely accepted that high-power AC drives are mature products by technological standards, and that they offer an attractive return on investment with practically no attendant risk, which spurs the market’s growth.”
For more information on this study, visit www.arcweb.com/research/auto/acdriveshi-ww.asp .
Control Engineering Daily News Desk
Jim Montague, news editor