Investment in automation solutions fuels global drives market, study shows
According to new research conducted by Frost & Sullivan, heightened investment in automation technologies across end-user industries will propel the global drives market.
MOUNTAIN VIEW, CA, July 21, 2015 -- According to new research conducted by Frost & Sullivan (F&S), heightened investment in automation technologies across end-user industries will propel the global drives market.
Due to the rising need for operational excellence and process automation, the replacement market, in particular, will witness strong growth. While demand in the U.S. will be fuelled by the resurgence of the chemical industry, investment in the water and wastewater industry and increased interest in mining will have a positive effect on the drives market.
The report, titled "2014 Global Drives Factbook," finds that the market earned revenues of approximately $11 billion in 2014 and estimates this to reach almost $17 billion in 2019. The study covers low- and medium-voltage drives.
"Countries such as India, Brazil, Mexico, Russia, and Indonesia are likely to boost the overall adoption levels of drives," said F&S Industrial Automation & Process Control Senior Consultant Michael Rasche. "As the demand for cost-effective machinery manufactured in these countries is anticipated to rise during the forecast period, the need for drives will also intensify."
However, economic uncertainties in regions like Europe will reduce the uptake of drives. Sluggish growth in China will also have a negative impact on the market in the short term. This, along with pricing pressures from low-cost participants, will stifle the speed of market development.
"Nevertheless, the need for energy efficiency will bring opportunities to drive manufacturers," said Rasche. "With end-user industries having to abide by strict energy-efficiency standards, they are increasingly looking for drives that have the desired performance specifications but are reasonably priced."