Faster Payback Period Propels High Power AC Drives Market
This study covers hardware, software, and services for high power AC drives which is comprised of midrange (41-200 kW), high-end (201-600 kW), and mega (>600) segments.
The worldwide demand for energy and metals is creating huge demand for high power AC drives. The massive consumption occurring in the power generation, oil & gas, and metals & mining industries is driving the market growth. Continued heavy investment in infrastructure industries in China, India, Latin America, and Eastern Europe is also boon for AC drives.
Asia’s strong demand for energy and basic materials, coupled with its low labor costs, mean that the region will increase production of metals, chemicals, and paper. AC drives are widely used in the production of those materials.
This study identifies growth segments, market trends, as well as challenges suppliers face to achieve growth in a very fragmented market landscape. In addition to the quantitative assessment, this report provides an insightful analysis of issues that will impact this business in the future.
Strategic Issues
The high power AC drive market is less fragmented, but all of the suppliers primarily target high power AC drive applications in industries such as oil & gas, metals & mining, power generation, cement, paper, wind energy, water & wastewater, and marine. Suppliers must establish sound strategies to maximize the benefit from this rapidly growing market:
- Add medium voltage drives to product portfolio
- Offer energy audit programs for the retrofit market
- Incorporate application specific features for differentiation
- Address business issues of manufacturers with AC drives