Latin American low-voltage motor drive market takes uphill path to $600 million in sales in 2017

The low-voltage ac and dc motor drive market is expand to grow to $600 million by 2017 thanks to lower commodity prices and concerns about potential mining and hydroelectric projects.

09/16/2013


The Latin American market for low-voltage ac and dc motor drives is forecast to expand to $595 million in 2017, rising at a compound annual growth rate (CAGR) of 7.1% from $420 million in 2012. 

Latin American low-voltage ac and dc motor drive sales grew at double-digit rates in 2010 and 2011, according to a recently released report entitled “The Latin American Market for Low Voltage AC and DC Motor Drives” by IMS Research, now part of IHS Inc. However, drive sales in 2012 declined by 1%, and growth ahead won’t be as expansive. 

“The years of double-digit growth rates for Latin America are most likely a thing of the past,” said Rolando Campos, motor drive and motion control research analyst for IHS. “As demand for commodities from China moderates and mining projects are delayed, drive sales will grow by about 7% annually through 2017. The path to higher growth rates, however, will not be a straight line and growth rates will vary widely by country.”

Because of lower commodity prices, many material extraction projects and expansions have been delayed. According to IHS Global Insight, commodity prices for rubber, pulp, chemicals, oil, non-ferrous metals declined by 15% to 40% from March 2011 to March 2013. Precious metal prices, particularly gold, also have fallen. 

Environmental concerns have also led to delays in mining projects. The Minas Conga mining project in Peru has been delayed because local communities feared their water source could be affected by mining operations. Even so, some mining operators are finding ways to work with local communities by addressing their concerns before mining operations begin. Mining operators like Mienra Yanacocha, for instance, are guaranteeing water supplies before commencing mining operations. 

In southern Chile, the HidroAysen hydroelectric project raised fears that coasts could be destroyed, that the environment could be adversely affected by flooding, and that transmission lines through a national park would cause issues. But with governments, companies, and communities looking to find a middle ground, many delayed projects represent possible sources of demand for drives from 2014 to 2017. 

This means that as commodity prices stabilize and environmental concerns are addressed, Latin American low-voltage motor drive sales may accelerate from 2014 to 2017. 

Growth in drive sales is predicted to vary by country, with sales of drives in Argentina, Ecuador, and Venezuela forecast to remain at a less than 6% CAGR from 2012 to 2017. In comparison, sales in Peru, Chile and Brazil are forecast to grow from 7% to 13% CAGR, with demand coming from water and wastewater, oil and gas, food and beverage, and mining toward the end of the forecast.

- See other industrial research posted by Control Engineering.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
Detecting security breaches: Forensic invenstigations depend on knowing your networks inside and out; Wireless workers; Opening robotic control; Product exclusive: Robust encoders
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.