Demand for infrastructure propels high power AC drives market growth
By Manufacturing AUTOMATION
By Manufacturing AUTOMATION
The high power AC drives market rebounded in 2010, recovering from the economic downturn in 2009. ARC Advisory Group expects the high power AC drives market to experience strong growth during the forecast period through 2015. Emerging economies, including the BRIC (Brazil, Russia, India and China) countries, drove growth for the high power AC drives market in 2010, and these countries also remain important markets during the forecast period.
“Growth in the high power AC drives market will be driven by increasing concerns regarding energy efficiency, as well as the environment. Major economies have accepted the fact that efficient use of energy is necessary for global growth and prosperity,” according to senior analyst Himanshu Shah, the principal author of ARC’s High Power AC Drive Worldwide Outlook study.
In advanced and emerging economies, infrastructure development continued, as a significant portion of government stimulus funding was directed to that sector. Consequently, investments for high power AC drives in such industries as electric power generation and water and wastewater increased at a strong rate. Additionally, end users and OEMs across a wide range of industries have recognized that high power AC drives are a major contributor to energy savings, as well as to achieving sustainability. Globalization also created a large demand for modern infrastructure, especially in emerging economies. Airport facilities and new road construction are driving demand for products from the metals and mining, cement and glass, and oil and gas industries. Emerging economies know that their current infrastructure is a huge bottleneck for their continuing high economic growth. High power AC drives will benefit in this environment, as they are key components for any infrastructure development and operation.
High power AC drives suppliers are in a good overall position to participate in future growth because these products are a key tool for improving energy efficiency in both the manufacturing and building automation sectors. Both of these sectors are aware that significant investments must be made in their existing infrastructures to get aging systems and plants up-to-date, while simultaneously helping their operations make a stronger commitment to achieving sustainability. This installed base will open up tremendous new business opportunities for these AC drives suppliers.
The global economy continues to expand unevenly, with emerging economies growing faster than advanced economies and, consequently, facing different challenges and risks. Economic output remains well below potential in the United States and some other advanced economies. In many emerging market economies, including in Latin America, the recovery has been much faster. Geographically, the strongest growth for the high power AC drives market is expected in the BRIC countries, and of these, China and India, in particular. While every world region is projected to experience growth over the forecast period, there are significantly different factors affecting the high power AC drives market that will impact the rate of growth. A brief description regarding the economic scenarios for each major world area is covered in this report. In addition to the quantitative assessment, this study provides an insightful analysis of issues that will impact this business in the future.
For more information on this study, visit www.arcweb.com/res/achi.