ARC says High Power AC Drives Market to reach $9.7 billion in 2012 | Automation.com

ARC says High Power AC Drives Market to reach $9.7 billion in 2012

ARC says  High Power AC Drives Market to reach $9.7 billion in 2012
August 14, 2008: Strong growth continued in 2007 for the High Power AC Drives market due to robust investments in manufacturing and infrastructure industries worldwide. The worldwide market for High Power AC Drives is expected to grow at a compounded annual growth rate (CAGR) of 10.8% over the next five years. The market was over $5.8 billion in 2007 and is forecasted to be nearly $9.7 billion in 2012, according to a new ARC Advisory Group study.

Emerging economies, such as those in the BRIC countries (Brazil, Russia, India, and China) and Eastern Europe, helped propel this growth. The regional expansion was led by China, where real GDP grew robustly as exports and investment accelerated, and by India, where gains in domestic demand and particularly investment underpinned strong growth. “High Power AC drives are widely used in infrastructure industries where significant investments are being made globally, especially in emerging economies. This assures strong market growth across all regions of the world for high power AC drives,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “High Power AC Drive Worldwide Outlook, Market Analysis & Forecast Through 2012.”

High Energy Costs Help Propel Growth
Globalization has created a tremendous demand for modern infrastructure, especially in emerging economies. Globalization is also driving the use of advanced automation worldwide. Consequently, high power AC drives are increasingly used across all industrial segments, including building automation, chemicals, metals, and various infrastructure industries. High energy costs and the effect of energy consumption on the environment have resulted in generous incentives for businesses and consumers to use energy more efficiently. Environmental concerns and rising oil prices are spurring the growth of alternative energy sources such as wind power. These issues are accelerating the demand for high power AC drives.

Strong Market Growth across All Regions of the World
Among all automation products, high power AC drives are in a unique position in that they satisfy the need for automation and energy savings, two factors which are critical for manufacturers to survive and succeed in this global economy. Without automation, it is almost impossible to manufacture products for the global market, and the high costs and volatile supply of energy dictate efficiency to achieve sustainability. Emerging markets are driving manufacturing growth due to increasing consumer demand from their growing middle class, their need to add new infrastructures, a willing financial environment for capital investments that project solid returns, and the requirement for producing and saving energy to cope with globally rapidly rising energy demands and costs.
Regional Scenarios
Demand side conditions in the high power AC drives marketplace remained strong, with continued heavy investment in China, India, Latin America, Eastern Europe, and the Middle East. The Marine, Metal & Mining, Power, and Oil & Gas industries are some of the leading growth industries for high power AC drives. 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 across world areas. 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 insightful analysis of the market and strategies of leading suppliers that will impact this business in the future.

About ARC: Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value.

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