Robust Investments Boosts Low Power AC Drives Market
This study covers hardware, software, and services for Low Power AC Drives which comprises of micro (under 5 kW), low-end (5-40 kW), and midrange (41-200 kW) segments.
Strong growth continued in 2007 for the low power AC Drives market due to robust investments in the manufacturing and infrastructure industries worldwide. Emerging economies such as those in the BRIC countries and Eastern Europe helped propel this growth. Regional expansion was led by China, where real GDP grew robustly as exports and investment accelerated, as well as by India, where gains in domestic demand and particularly investment underpinned strong growth.
Globalization has created a huge demand for modern infrastructure, especially in the emerging economies. Globalization is also driving the use of advanced automation worldwide. Consequently, low power AC drives are being increasingly used across all industrial segments.
The 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 to users and OEMs. This is especially important because the market is expected to grow rapidly, as users in many industries have recognized the benefits of low power AC drives. This study provides a number of recommendations, such as:
- Which strategies create differentiation?
- Where to penetrate specific industry sectors in this fiercely competitive market?
- Why energy audit programs can boost market penetration?
- How to address the business issues of users of low power AC drives?