U.S. a bright spot in sluggish global drives market

IMS study finds China, Eurozone economies will slow growth in sector

10/25/2012


IHS has acquired IMS ResearchModest growth in the U.S. is the only bright spot in an otherwise sluggish global drives market, according to a new report released by IMS Research. Still, according to IMS Research’s quarterly tracker and current indicators, global motor drive revenues in 2011 were at a multi-year high and 2012 is likely to set a new peak, albeit only modestly higher.

IMS Research estimates that global motor drive sales in the first half of 2012 were down more than 9% as compared to the first half of 2011. IMS Research predicts EMEA and Asia will see grow in the second half of 2012. IMS Research forecasts that global motor drives sales will grow by 2.6% in 2012 as compared to a 15.3% increase in 2011; this is in line with lower predicted real GDP growth and machinery production revenues in 2012.

According to IHS Global Insight, worldwide real GDP growth is forecast to decrease from 3% in 2011 to 2.5% in 2012 and then rebound to 2.6% in 2013, while machinery production is forecast to decline from 12.4% in 2011, to 7% in 2012, and 5.7% in 2013.

“Over the last few years, the majority of the increase in motor drive sales came from Asia while the Americas grew at a slower rate. EMEA motor drive sales by contrast, have not returned to pre-recession levels. The predicted 6% to 8% year over year motor drive sales growth in the Americas, may offset slower sales in EMEA and Asia,” said IMS Research Analyst and report author Rolando Campos. 

The volatile U.S. election and still-uncertain economic picture has not put a damper on the the drives market, Campos found. “The Americas are seeing stronger motor drive sales, in large part, because the U.S. is on a stronger financial footing while the Eurozone is still in the midst of its financial crisis,” he said. “In addition, an increase in commercial HVAC, oil, gas, and mining projects in the U.S., Canada, and South America has resulted in an increase in demand for motor drives. Finally, as motor drive prices have decreased and energy costs have increased, many companies have decided to replace motor starters and soft starters with motor drives.”

While global motor drive sales have slowed in 2012 as compared to 2011, the global economy and the motor drives market appears to be set for a stronger year in 2013 as many political uncertainties are resolved in the U.S., Eurozone, and China, the research firm said.



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.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
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.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

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

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.