Abstract
This Frost & Sullivan research service entitled The World Low Voltage Drives
Market provides an overview of revenue forecasts for the market across various
geographies along with a comprehensive analysis of the various drivers,
challenges, and trends prevailing in the market.
Market Overview
AC Drives Continue to Grow while DC Drives Show Reasonable Recovery
Increasing end-user concerns about energy efficiency are proving to be a
strong driving force for the growth of the low voltage (LV) drives market. The
market also benefits from sustained technological development, which has
resulted in smaller and easy-to-use drives that are commercially viable at
lower power ratings. While alternating current (AC) and servo drives are
showing a positive growth pattern, direct current (DC) drives are experiencing
a very low growth and have been losing market share to AC drives.
The lack of technology development is also impacting DC drives negatively,
with companies preferring to capitalize their R&D budgets on the expanding AC
segment. However, DC drives are likely to sustain their revenues with
customers using these drives as retrofit options to upgrade their existing
systems rather than completely shift to AC drives. "On the other hand, AC
drives are expected to continuously benefit from superior process capabilities
and cost competitiveness," says the analyst of this research service. "In
addition, the manufacturers have been focusing on investing in the AC segment,
resulting in the regular introduction of several new technologies."
Servo Drives Segment Experiences Strong Growth
The focus on energy cost savings, longer life cycles, and low maintenance
costs of equipment with a general economic recovery has positively impacted
end users' willingness to spend on optimizing their processes. With growing AC
drives, servo drives segments are also witnessing a sudden spurt of activity.
These drives are chiefly used in the manufacturing industry due to their vast
and accurate production capabilities but are expected to eventually diversify
into other areas such as aerospace, automobiles, and robotics. Another
important reason for their widespread adoption is that they are becoming more
cost effective as compared to AC drives.
One of the key trends seen in the LV drives market is end users' growing
preference for a total solution package. End users outsource projects to
either drive manufacturers or solution finders, and expect them to supply the
complete system. "This trend is gaining prominence as end users have
confidence in manufacturers and opt for knowledge outsourcing to minimize
risks as well as ensure proper applicability of the equipment installed," says
the analyst of this research service. "This enables end users to benefit from
operational and maintenance training for the entire system as well as from
significant cost savings." Other major trends in the LV drives market include
increased attention on lowering harmonics with reduction in size and cost of
drives.
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