Globalization and Infrastructure Expansion Fuels Growth
This study covers hardware, software, and services for the AC medium voltage variable frequency drive (VFD) market with the following power ranges: up to 0.5 MW; >0.5 - 3 MW; >3 - 7.5 MW; >7.5 - 10 MW; >10 MW-20MW; and >20 MW.
Demand remained strong for medium voltage AC drives, as well as for other automation equipment. The medium voltage AC drives solutions business remained very robust, with strong demand for energy efficiency solutions in industries such as mining, oil & gas, and cement. The medium voltage AC drives market did not experience such a high degree of volatility because the medium voltage AC drives business consists primarily of large projects. The medium voltage VFD market benefited from capital investments for infrastructures, energy savings, oil & gas, and power generation.
Growth in the market is expected to continue beyond 2012. However, strong counter currents are flowing due to the continuing uncertainty caused by the sovereign debt crisis in a number of industrialized countries, as well as specific concerns about some of the economies in southern Europe and a recent slowdown in China.
This study identifies growth segments and market trends, as well as challenges VFD suppliers face to achieve growth. While every world region will experience growth over the forecast period, there are different factors affecting each specific market. In addition to the quantitative assessment, this market research study provides an insightful analysis that will impact this business in the future.
Strategic Issues
The challenge in the medium voltage variable frequency drive market landscape is how VFD suppliers can differentiate themselves and offer increasing value propositions to users and OEMs. This is especially important because the market is competitive and demand is expected to grow as users in many industries have recognized the benefits of medium voltage 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?
- Which special programs can help suppliers expand their market penetration?
- What type of solutions offerings are in the strongest demand by end users?
