November 1, 2013 - India is one of the important markets for low power AC drives or variable frequency drives (VFD) in Asia. 2012 was a challenging year for the global low power AC drives market. The market declined in Europe and Latin America, while North America and Asia witnessed an almost flat growth. However, the low power AC drives market in India grew slightly from the previous year, according to a new ARC Advisory Group market research study. The slowdown is mainly due to the crunch in the country’s economy, and also because of a higher inflation rate, which in turn impacted various industries where AC drives applications were used.
The overall low power AC drives market is distributed across many industries. The growth in the market mainly comes from industries such as machinery, food & beverage, water & wastewater, electric power generation, automotive, and buildings.
Energy Efficiency and Infrastructure Will Be Key Drivers
ARC believes the low power AC drives market in India will grow at a much faster rate than other Asian countries during the forecast period of five years (2012-2017). The growth will be slender until 2014; the momentum is likely to pick up from 2015. The market growth for low power AC drives will be driven largely by massive consumption in the infrastructure and manufacturing industries, especially electric power, machinery, and automotive. Huge investments in infrastructure, as projected in India’s 12th five-year Plan (2012-2017) and the newly introduced National Manufacturing Policy will boost investments in several industries.
Also, the need for energy efficiency will make companies invest in automation equipment, including low power AC drives and other categories of VFDs, which are required to help users achieve their energy savings goals. The food & beverage, machinery, water & wastewater, pharmaceutical, and consumer packaged goods industries will continue to make investments in low power AC drives. “India’s emerging middle class and growing economy will ensure continued investments in infrastructure and manufacturing. Simultaneously, other important factors like energy efficiency, productivity, and environmental issues will drive long-term growth of the low power AC drives market in India,” according to G.
Ganapathiraman, Country Manager ARC India, and co-author of ARC’s new “Low Power AC Drives for India Market Research Study.”
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