Investments in the infrastructure industries in many parts of the world are spurring demand for high power AC drives, according to new analysis by ARC Advisory Group.
Overall, the cement & glass, electric power, oil & gas, and mining industries had good growth in 2012. Most of this growth was in the emerging economies in Asia. In spite of this regional growth, slowdown in Europe, investment cut-backs in Latin America, and a significant slowdown in Japan resulted in a slight decline of the worldwide high power AC drives market, the report states.
The report, titled "High Power AC Drives Global Market Research Study," found that suppliers are in a good position regardless of the current and future economic uncertainties because high power AC drives are a key product for improving energy efficiency in the industrial arena. “Demand for high power AC drives will continue in emerging markets because investments in the manufacturing, infrastructure and building automation sectors must continue for economic development,” said Senior Analyst Himanshu Shah, the report's principal author.
Water & wastewater facilities, airport facilities and power plants will increase their direct use of high power AC drives, as well as supporting industries such as metals & mining, cement & glass and chemical. Developing economies continue to need improvements in their infrastructure. Also, in most developed countries, the infrastructures are crumbling in many industries. Modernization of these infrastructures will create additional demand for high power AC drives, today and throughout the forecast period of the worldwide outlook.
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World energy consumption is expected to rise dramatically in the next few decades. Demand for and costs of energy will only increase with future population growth and increased industrialization. Environmental and sustainability concerns will demand that national governments and private industries respond effectively and responsibly to the future energy challenges to cooperatively develop competitive energy policies that ensure affordable and reliable energy supplies.
In developing countries, demand is increasing for new power generating plants that utilize high power AC drives in many applications, such as turbines and compressors. Meanwhile, environmental concerns have raised interest in renewable sources of energy. High power AC drives are used for controlling traditional and renewable power generating processes. Additionally, initiatives to save energy at various levels, ranging from local to national governments, industrial operations to consumer awareness, fuel growth for the use of high power AC drives and to reduce the growth rate of worldwide energy consumptio, according to the study.
In addition to the quantitative assessment of the high power AC drives market, this ARC study provides an insightful analysis of the products and strategies of the leading high power AC drives suppliers and explores issues that will impact these businesses well into the future
Click here for more information about the study.