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...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Additive manufacturing advancements; Machine vision enhances robotics; Fieldbus evolution; Process safety; Advice from System Integrators of the Year; Road to IANA
Salary and career survey: Benchmarks and advice; Designing controls; Remote data collection, historians; Control valve advances; Hannover Messe; Control Engineering International
System integration: Best practices and technologies to help; Virtualization virtues; Cyber security advice; Motor system efficiency, savings; Product exclusives; Road to Hannover
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
PLCs, robots, and the quest for a single controller; how OEE is key to automation solutions.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
click me