High power AC drives market expected to experience “healthy growth,” ARC says
During the turbulent economy of 2009, the global high power AC drives market experienced only a slight downturn, and ARC Advisory Group expects the market to experience healthy growth through 2014. According to a new ARC Advisory Group study, in advanced and emerging economies, infrastructure development continued, and as the economy continues to recover, globalization will spur more capital investments in various industries, such as oil and gas, water and wastewater, electric power, building automation and mining, driven by the demand for added energy savings.
"Among all automation products, high power AC drives have a unique position in that they satisfy needs for both automation and direct energy savings – two critical factors for industrial operations to survive and succeed in this global economy," according to senior analyst Himanshu Shah, the principal author of ARC’s High Power AC Drive Worldwide Outlook.
Globalization has created a large demand for modern infrastructure, especially in emerging economies. Airport facilities, railway and public transportation expansions, 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 major bottleneck for their continuing high economic growth. Automation is key for any infrastructure developments and operations, and high power AC drives are one of the critical components in these investments.
Government initiatives in most countries support incentives for companies to take energy-saving measures. While emerging markets are adopting various policies to increase energy resources, they are also offering attractive incentives for energy savings, such as tax benefits and carbon credits. As a result, industry is deploying additional energy-conserving devices, such as high power AC drives, which save significant amounts of energy. The electric power industry in general also becomes more efficient with the use of high power AC drives. Additionally, energy volatility and scarcity, as well as sustainability initiatives by industry, will continue to positively affect the market for high power AC drives in a wide range of new applications, according to ARC.
Growth in emerging and developing economies is expected to accelerate further throughout 2014. Stronger economic frameworks and swift policy responses have helped many emerging economies to cushion the impact of the unprecedented external shock and quickly re-attract capital flows. Within these markets, growth performance is expected to vary considerably across countries and regions, reflecting different initial conditions, external shocks and policy responses.
While every world region will experience growth in the high power AC drives market over the forecast period, there are significantly different factors affecting this market growth. A brief description regarding the economic scenarios for each major world area is covered in this report. In addition to the quantitative assessment of the high power AC drives market, the report provides an analysis of the market and strategies of leading suppliers that will impact this business in the future. For more information on this study, go to www.arcweb.com/res/achi.