ARC predicts growth in High Power AC Drives Market

  • September 26, 2010
  • ARC Advisory Group
  • News
September 26, 2010 - During the turbulent economy of 2009, the global high power AC drives market experienced only a slight downturn, and ARC expects the high power AC drives market to experience healthy growth during the forecast period through 2014. According to a new ARC Advisory Group study, in advanced and emerging economies, infrastructure development continued as a significant portion of government stimulus funding directed to those industries. As the economy continues to recover, globalization will spur more capital investments in various industries, such as oil & gas, water & wastewater, electric power, building automation, and mining, driven by the demand for added energy savings.“Among all automation products, high power AC drives have a unique position in that they satisfy needs for both automation and direct energy savings, two critical factors for industrial operations to survive and succeed in this global economy,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “High Power AC Drive Worldwide Outlook.” Increased Investments in Infrastructure Will Drive Market GrowthGlobalization has created a large demand for modern infrastructure, especially in emerging economies. Airport facilities, railway and public transportation expansions, and new road construction are driving demand for products from the metals & mining, cement & glass, and oil & gas industries. Emerging economies know that their current infrastructure is a major bottleneck for their continuing high economic growth. Automation is key for any infrastructure developments and operations, and high power AC drives are one of the critical components in these investments. Government initiatives in most countries support incentives for companies to take energy-saving measures. While emerging markets are adopting various policies to increase energy resources, they are also offering attractive incentives for energy savings, such as tax benefits and carbon credits. As a result, industry is deploying additional energy-conserving devices, such as high power AC drives, which save significant amounts of energy. The electric power industry in general also becomes more efficient with the use of high power AC drives. Additionally, energy volatility and scarcity, as well as sustainability initiatives by industry, will continue to positively affect the market for high power AC drives in a wide range of new applications. Regional ScenariosGrowth in emerging and developing economies is expected to accelerate further throughout the forecast period. Stronger economic frameworks and swift policy responses have helped many emerging economies to cushion the impact of the unprecedented external shock and quickly re-attract capital flows. Within these markets, growth performance is expected to vary considerably across countries and regions, reflecting different initial conditions, external shocks, and policy responses.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. 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 is the leading research and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. Learn More

Did you enjoy this great article?

Check out our free e-newsletters to read more great articles..