Energy Savings and Sustainability to Drive Market Growth
This study covers hardware, software, and services for low power AC drives, which comprises the micro (under 5 kW), low-end (5-40 kW), and midrange (41-200 kW) segments.
Recovering from the deepest global downturn in recent history, ARC expects the low power AC drives market to grow due to investments in the infrastructure and manufacturing industries worldwide. Emerging economies will again see increasing consumer demand from the growing middle class, more investments pouring into new infrastructures, and the need to produce and save energy to cope with future rising energy demands and costs. This situation bodes well for low power AC drives market growth.
Manufacturers face challenges to raise productivity, lower product costs, reduce plant operating expenses, and increase return on investment. Saving energy and sustainability will be key components. Consequently, capital investments for low power AC drives will grow as they save energy and raise productivity of machinery with more precise speed control.
This study identifies growth segments and market trends, as well as challenges suppliers face to achieve growth in a very fragmented market landscape. 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 low 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 low power AC drives. This study provides recommendations, such as:
- Which high growth industries are the most attractive for suppliers to target
- What developing and emerging markets offer the highest growth potential
- How product scalability of low power AC drive modules can serve OEMs, panel builders, and system integrators
- How supplier can create new opportunities by learning from long-term trends