Keywords: Emerging Economies, Medium Voltage, AC Drives, Market Research Study, Energy Efficiency, Infrastructure, Sustainability, Middle Class
While the economic growth in many emerging economies has slowed in the short-term, the long-term forecast still indicates that the rapidly growing middle class in these economies will increase the demand for additional consumer products and infrastructure, which will directly and indirectly require continuing investments for medium voltage AC drives. Consequently, the market is expected to experience growth during the five year forecast period, according to a new ARC Advisory Group market research study.
“A rising middle class with increasing demands ranging from automobiles to electricity, a lack of modern infrastructure in emerging economies, aging infrastructure in developed economies, and the need to increase energy efficiency make for a compelling combination that will continue to benefit the medium voltage AC drives market,” commented Senior Analyst Himanshu Shah, the principal author of ARC’s “Medium Voltage AC Drives Global Market Research Study”.
Emerging Economies Need Infrastructure Investments
In spite of a short-term slowdown, emerging economies will continue to invest long-term in infrastructure and basic industries, such as cement and steel plants, airports and metro systems, electric power generation, and water & wastewater facilities. Oil & gas and mining investments also will continue and grow long-term, despite some recent slowdowns due to cyclical market demand and pricing, because these investments are critical to the economic development of many emerging markets. These economies as such will remain significant contributors to the medium voltage AC drives market growth as they build up their electrical power generation capacity and expand their infrastructure and industrial production.
The growing global middle class in emerging economies will create additional demand for automobiles, white goods, and energy in these markets, such as China, India and Latin America. This will increase growth in other connected industries, such as plastics & rubber, metals, and chemicals.
Sustainability, Productivity, and Efficiency Requirements
To offset energy and raw material consumption and meet stricter environmental requirements, most industries want to improve their productivity and efficiency, which benefits the medium voltage AC drives market. As a result, these drives also help companies address initiatives for fulfilling sustainability requirements. Much of the growth in this market comes from the energy and infrastructure industries, such as oil & gas, electric power generation, mining, water & wastewater, and marine.
Energy efficiency and energy production have been some of the principal reasons for deploying medium voltage AC drives, which insures their use will continue to grow in power plants as well as at the consumption points. When it comes to managing and saving energy consumption in industrial plants, commercial buildings, or the infrastructure industries, energy saving medium voltage AC drives will be employed as a key part of energy management solutions long into the future.
In addition to the quantitative assessment of the medium voltage AC drives market over a five-year forecast period, the report provides an insightful analysis of the market and strategies of the leading suppliers that will impact this business in the future.
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