Strong growth for AC drives

As the demand for energy and basic materials to continues to grow at an stellar rate, low and high power AC drive markets are being boosted by high consumption in the Chemical, Cement, Metal, Pharmaceutical, Power Generation, Oil & Gas, Water & Wastewater, and Metals & Mining industries.

According to new research just out from ARC Advisory Group, the worldwide market for high power AC drives is expected to grow at a CAGR of 9.1 percent over the next five years to reach US$7.4 billion in 2011, while that for low power drives is set to expand 7.9 percent to exceed $8.7 billion in 2011.

AC drives are widely used in industrial and building automation industries and are favored energy saving devices in this era where global energy demand outpaces the supply.

“The payback period for an AC drive investment, based on energy savings alone, is very attractive,” says ARC Senior Analyst Himanshu Shah, the principal author of two ARC reports, which in addition to quantitative assessment also provide an analysis of the market and strategies of leading suppliers.

Increasing infrastructure

While the energy savings aspect significantly boosts demand for AC drives, increasing infrastructure requirements in developing countries is another key factor.

Airport facilities and new road construction are driving demand for products from the Metals, Mining, Cement, and Oil industries. An expanding economy in emerging countries is also creating a greater need for more modern buildings with a broad use of building automation. The need for more electricity is driving huge investments in the Electric Power industry. All of these sectors use AC drives.

Eastern Europe, the former Soviet Union, and the Middle East represent strong growth opportunities for AC drives, along with rapidly rising China and India. With energy demand outstripping supply, demand for AC drives will continue to increase, says ARC.