The world-wide market for high power AC drives is expected to grow at a Compounded Annual Growth Rate (CAGR) of 5.7% over the next five years. The market was a little over $2.5 billion in 2002 and is forecasted to be around $3.3 billion in 2007, according to a new ARC Advisory Group Study.
Engineering, installation, and maintenance services have emerged as contributing significantly to revenues of high power AC drive vendors. But the need to reduce mounting energy costs is acting as the single most important driver in the world-wide high power AC drives market.
‘Increasing energy prices are compelling users to seek equipment, operating methodologies, and technologies that help them minimise energy consumption and save on energy costs,’ according to ARC Senior Analyst Himanshu Shah. He added that ‘High power AC drives pay back their costs relatively quickly.’
Europe, largely driven by the Eastern European economies, continues to be the largest market for high power AC drives. The energy conservation legislation of many European countries has also helped the growth of the business. Asia, on the other hand, is emerging as a promising growth market that is set to benefit from investments in the oil & gas pipelines, power, and water and wastewater industries.
‘The long-term outlook for the high power AC drives market looks positive despite the current state of the global economy,’ said Shah. A high power AC drive, states the study, is a mature product by technological standards, offering an attractive return on investment with practically no attendant risk.