Infrastructure and Energy Costs Spur Market Growth
This global 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.
Investments in the infrastructure industries in many areas of the world caused continued demand for high power AC drives. 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 cutbacks in Latin America, and a significant slowdown in Japan resulted in a slight decline of the worldwide high power AC drives market. Economic uncertainty in Europe has affected the market significantly, but a part of the market decline is due to the stronger US dollar vs, currencies, such as the Euro.
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 manufacturing, infrastructure, and building automation sectors.
This study identifies growth segments and market trends, as well as challenges suppliers face to achieve expansion 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.
The challenge in the high power AC drives marketplace is how suppliers can differentiate themselves and continue to offer increasing value propositions to end users and OEMs. 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. Well-planned strategies are invaluable for high power AC drives suppliers to strengthen and expand their market position and foothold. The study provides recommendations such as:
- What business strategies and product features should suppliers deploy to achieve an increase in market share?
- Which high growth industries are the most attractive for suppliers to target?
- Which emerging regional markets provide the highest growth potential?