Eastern Europe drives the market

The developing Eastern European electric drives market is less than a tenth the size of its Western European counterpart. But a new report concludes that there is plenty of scope for growth.

At an estimated $115.2 million, the developing Eastern European electric drives market is less than a tenth the size of its Western European counterpart. But a new report from Frost and Sullivan concludes that there is plenty of scope for growth.

Accounting for just over 40% of total market revenues at present, Poland is expected to remain a key region in terms of total size and demand. But the strongest growing market in revenue terms is Slovenia; smaller markets such as the Baltic States are also anticipated to advance strongly.

The market is forecast to record a healthy annual unit growth rate of just above 10% during the 2003 to 2010 period. Annual revenue growth rate over the same time frame is pegged at 7.1%, with total market revenues set to reach $185.8 million in 2010.

The AC segment is likely to strengthen its domination over total market revenues – poised to rise to nearly 95.5% over the 2003 to 2010 period.

Demand for DC drives is expected to become increasingly focused and specialised, with revenues for this sector anticipated to fall from $9.2 million to $8.4 million over the same time period.

Not surprisingly, most suppliers in the fragmented Eastern European electric drives market are active in the more lucrative AC drives segment. Leading suppliers include ABB and Siemens, while Danfoss, STI and Vacon also occupy good positions in niche areas.

Customer loyalty remains low causing constant flux in competitor standing.

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