Infrastructure investments to drive growth in high-power AC drives market
September 28, 2009 by Manufacturing AUTOMATION
The weakness in the global economy is currently impacting the high power AC drives market, however, to a lesser degree compared to other automation equipment. Stronger growth in the high power AC drives market is expected to resume during the latter part of the five-year forecast period, once economic stability is restored globally, according to a new ARC Advisory Group study.
“While the world economy is in a severely distressed state, new stimulus packages from various governments are adding more investments in the infrastructure industries, including new road construction, water & wastewater, and electric power generating plants. Globalization has also created a large demand for modern infrastructure, especially in emerging economies. This situation bodes well for high power AC drives market growth,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “High Power AC Drive Worldwide Outlook."
Sustainability initiatives are driving the use of advanced automation and energy-saving equipment worldwide. This will directly result in an increased use of high power AC drives, which are widely employed across process, discrete, and infrastructure industries such as utilities, water & wastewater, public transportation, and airports.
Energy supply volatility, trends for higher costs of energy, and the effect on the environment have resulted in generous incentives for businesses and consumers to use energy more efficiently. This will accelerate the use of additional high power AC drives, as the resulting energy savings for fan and pump applications are now recognized around the globe. The future energy supply will not be able to keep up with demand; further increasing the use of high power AC drives. Energy volatility and scarcity, as well as sustainable manufacturing, will continue to affect the use of high power AC drives in a wide range of industries.
Once global economic stability is restored, the use of high power AC drives will increase at a faster rate across all industrial segments, including oil & gas, building automation, chemicals, food & beverage, and metals & mining.