Promise of profits, productivity to expand adoption by European packaging industry

Market earned revenues of $266.4 million in 2010 and is set to reach $393.8 million in 2017 – Energy efficiency and awareness raising strategies will be critical to maximizing uptake.

08/20/2011


Electric drives are reportedly expected to experience widespread acceptance in the European packaging industry due to the attractive profit margins associated with their implementation. Economic recovery and increasing investments in packaging infrastructure, coupled with government regulations, will boost the adoption of electric drives by the packaging industry, according to reports.

New analysis from Frost and Sullivan, Electric Drives Market in the European Packaging Industry, finds that the market earned revenues of $266.4 million in 2010 and estimates this to reach $393.8 million in 2017.

Surging energy costs have negatively impacted the profit margins of packaging manufacturers, according to the company.

New developments in drives technology will reportedly expand their role in packaging. At the same time the demand for packaged goods and growth in packaging applications will attract newer investments in packaging industry and thereby fuel the sales of drives in the industry. The rise in automation activities across Eastern Europe in countries such as Bulgaria, Hungary, and Poland will heighten demand for drives in packaging applications.

Creating awareness about the benefits of electric drives in the packaging industry has been a challenge. Against a climate of continued austerity, convincing end-users to implement drives in their production line has been a challenge for drives manufacturers.

In addition to benefits related to energy conservation, end users need to be made aware of other advantages, such as reduced downtime and enhanced productivity.

Frost and Sullivan

www.frost.com

- Edited by Amanda McLeman, Plant Engineering, www.plantengineering.com



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