July 6, 2009: The bleak short term forecast for the global economy will directly impact the low power AC drives market growth during the next couple of years. However, moderate growth is expected to resume during the latter part of the five year forecast period. The moderate growth will be due to investments in infrastructure and manufacturing industries worldwide, once the financial stability is restored globally, according to a new ARC Advisory Group study.
“Emerging economies, such as those in the BRIC (Brazil, Russia, India, and China) countries and Eastern Europe, will again have increasing consumer demand from the growing middle class, more investments pouring into new infrastructures, and the need for producing and saving energy to cope with rising energy demands and costs in the future. This situation will bode well for low power AC drives market growth,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Low Power AC Drive Worldwide Outlook.”
Energy Savings and Globalization Will Drive Market Growth
Manufacturers continually face challenges to raise productivity, lower product costs, reduce plant operating expenses, and increase return on investment (ROI) in order to compete in the global market. Saving energy will be the key component for the most organizations to be successful and profitable as it will lower energy costs which are expected to rise. Consequently, capital investments for low power AC drives are expected to resume across many industries as they lower the costs by saving energy and raise productivity of machinery with better speed control. Globalization is driving the use of advanced automation and energy saving equipment worldwide.
This will directly result in an increased use of low power AC drives which are widely employed across process, discrete, and infrastructure industries such as building automation, chemicals, oil & gas, food & beverage, textiles, utilities, water & wastewater, and metals.
