Energy Savings and Infrastructure Investments Spur Growth
This worldwide market study covers hardware, software, and services for low power AC drives, which comprises the micro (under 5 kW), low-end (5-40 kW), and midrange (41-200 kW) power segments.
Recovering from a deep global downturn in 2009, the low power AC drives market rebounded in 2010. Emerging economies drove growth in 2010, and they also remain important markets during the forecast period. Emerging economies will again see increasing consumer demand from the growing middle class, more investments pouring into new infrastructures, and the need to produce and save energy to cope with future rising energy demands and costs. Growth will also be driven by concerns regarding both energy efficiency as well as the environment.
Manufacturers face challenges to raise productivity, lower product costs, reduce plant operating expenses, and increase return on investment in order to compete in the global market. Lowering energy usage and sustainability are key components. Consequently, capital investments for low power AC drives will grow as they save energy and raise productivity of machinery by offering more precise speed control.
This study identifies growth segments and market trends, as well as challenges suppliers face to achieve expansion in a very fragmented market landscape. In addition to the quantitative assessment, this study provides an insightful analysis of issues that will impact this business in the future.
Strategic Issues
The challenge in the low power AC drives marketplace is how suppliers can differentiate themselves and continue to offer increasing value propositions. This is especially important because the market is extremely competitive and demand is expected to grow as users have recognized the benefits of low power AC drives. This study provides recommendations, such as:
- What product strategies to employ to achieve increased market penetration
- Which high growth industries are the most attractive for suppliers to target
- How product scalability of low power AC drive modules can serve OEMs, panel builders, and system integrators
- The most effective strategies and programs to implement to achieve success in the growing retrofit market.
