Keywords: AC Drives, Energy Efficiency, Sustainability, Infrastructure, Automation Solutions, VFD, Variable Frequency Drives (VFD), Variable Speed Drives, Adjustable Speed Drives, Motor Speed Controls
2014 was a challenging year for the low power AC drives market with many cross currents due to regional economic dynamics, falling oil prices, strong US dollar, and weaker Euro and Japanese Yen. Additionally, there were inconsistent industrial demands across world regions. Despite such a challenging environment, market growth stayed in a positive territory, according to a new ARC Advisory Group study.
Global trends such as urbanization, increasing concern for the lack of sufficient energy, desire to lower the cost of energy component from an industrial operation, the state of the global environment, and emerging economies provide a solid foundation for future growth of the low power AC drives market. “Low power AC drives have a bright future ahead despite complex dynamics of currency exchange rates, regional economies, and industry investments, because these AC drives are used in diverse industries, which seek to lower energy consumption and improve productivity and efficiency throughout their operations,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Low Power AC Drives Global Market Research Study”.
Major Trends Support Growth of the Low Power AC Drives Market
The long-term outlook for the low power AC drives market growth remains bright with a megatrend of globalization that created a backdrop of macro-economic environment of demand for lower energy consumption, growing need of infrastructure, government initiatives for saving energy, as well as better control of machines compared to previously used mechanical methods.
Industrial Internet of Things (IIoT) or Industry 4.0
AC drives products are being updated with new features to fulfill many market demands and increase their value proposition, such as the growing demand for smart connected products based on, for example, the Industrial Internet of Things (IIoT) or Industry 4.0. The study addresses how new trends, such as the concept of “Industry 4.0” or “the Industrial Internet of Things (IIoT)”, provides opportunities for low power AC drives products.
Market Growth under Diverse Regional Dynamics
With diverse economic and regional dynamics in 2014, global AC drives suppliers’ revenue growth was not in sync. Research provides impacts on various suppliers due to different regional and industry dynamics. However, in the long run, the growing middle class of consumers will demand more automobiles, packaged goods, pharmaceuticals and health care products, and white goods, lifting this market.
In addition to the quantitative assessment of the low power AC drives market, this ARC study provides an insightful analysis of the products and strategies of the leading and emerging low power AC drives suppliers and explores issues that will impact these businesses well into the future.
For more information on this study, please visit our Market Research section.