Need for Energy Efficiency Will Continue to Spur Low Power AC Drives Market Growth

by  Himanshu Shah

Keywords:  AC Drives, Energy Efficiency, Sustainability, Infrastructure, Automation Solutions

The economic growth that had started in 2010 continued in 2011, although the pace slowed as the year progressed.  The automation solutions business remained very robust, with strong demand for energy efficiency solutions in industries, such as mining, oil & gas, and cement, according to a new ARC Advisory Group study.  The low power AC drives market experienced strong growth in 2011 as manufacturers and other industrial operations addressed initiatives for energy cost savings and reduced energy consumption. 

Capital investments for low power AC drives are expected to grow as they save energy and raise productivity by offering more precise speed control and providing a quick ROI.  “Low power AC drives are a key product for improving energy efficiency as well as sustainability in the manufacturing, infrastructure, and building automation sectors.  This will create significant growth opportunities for the low power AC drives market and its suppliers over the next five year forecast period.  These factors make the use of low power AC drives easier to justify even during uncertain economic periods,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Low Power AC Drives Worldwide Outlook”.

Global Push for Energy Efficiency 
Energy can be the largest component of industrial cost structures.  Despite recent fluctuations in energy prices, costs are still trending long-term toward higher levels, and the days of consistently inexpensive energy are long gone.  Industries have always strived for energy efficiency, but today it has become an imperative.  Now industries are more aware than ever of their energy use and have begun to align their operations to manage energy consumption and costs.  Automation equipment, including low power AC drives, are critical tools in helping users achieve their energy savings goals.

Regional Trends
Industries in the mature economies are expected to invest further in improving the productivity and energy efficiency of their existing manufacturing operations.  The trend towards intelligent building automation will further increase demand for low power AC drives in all economies.  Compared to the developed economies, the Asian market, especially outside Japan, will continue to expand faster, but at a slower pace than previous growth.  While China experienced strong low power AC drives market growth in the recent past, future growth is expected to be a bit more modest, and key regional development opportunities will also be in Latin America, according to this ARC study.

Emerging economies continue to invest in infrastructure and basic industries.  This, along with the need to produce and save energy to cope with future rising demands and costs, and the growing global middle class with the potential and desire for strong consumer spending, forms a solid foundation for the long term growth of the low power AC drives market.  Knowing that these economies are suffering from a shortage of energy and a lack of clean water, low power AC drives will remain in high demand.

In addition to the quantitative assessment of the low power AC drives market, this ARC study provides an insightful analysis of the products and strategies of the leading and emerging low power AC drives suppliers and explores issues that will impact these businesses well into the future.

For more information on this study, please visit our Market Research section.