Infrastructure Expansion and Energy Savings Drive Growth
This worldwide market study covers hardware, software, and services for high power AC drives, which comprises the midrange (41-200 kW), high-end (201-600 kW), and mega (>600kW) power segments.
The high power AC drives market rebounded in 2010, recovering from the economic downswing in 2009. In advanced and emerging economies, infrastructure development continued as a significant portion of government stimulus funding was directed to that sector. Consequently, investments for high power AC drives in industries, such as electric power generation and water & wastewater, increased at a strong rate. Additionally, end users and OEMs across a wide range of industries have recognized that high power AC drives are a major contributor to energy savings as well as achieving sustainability.
High power AC drives suppliers are in a good overall position to participate in future growth because these products are a key tool for improving energy efficiency in both the manufacturing and building automation sectors. Significant investments must be made in the existing infrastructure to get systems and plants up-to-date. While every world region will experience growth over the forecast period, there are significantly different factors affecting the market that will impact the rate of growth.
This study identifies growth segments and market trends, as well as challenges suppliers face to achieve growth. 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 high power AC drives market landscape 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 high power AC drives. This study provides recommendations, such as:
- What should be included in a supplier’s high power AC drives product portfolio to expand into new growing markets
- Which high growth industries are the most attractive for suppliers to target
- What developing and emerging markets provide the highest growth potential
- How do suppliers offer solutions to deal with harmonics created by AC drives
- Which vertical industry features should suppliers incorporate in their AC drives
