Product Details Supplier Info More products

The worldwide industrial drives market was estimated to be worth approximately USD16.5bn (GBP9.9bn) in 2008, with more than 20 million drive units shipped during the year.

According to the latest statistics published by IMS Research, revenue growth was substantial in 2008, with market revenues increasing by 12.6 per cent over 2007 levels.

In contrast, the market is expected to decline by 10.4 per cent in 2009 as a result of the global economic downturn.

The total industrial drives market comprises seven product types – compact AC, standard AC, premium AC, DC, medium voltage, servo and stepper drives.

Of these products, premium drives and medium-voltage drives had the greatest growth in 2008, increasing by more than 20 per cent over 2007 levels.

This performance is linked to rapid growth of the major industry sectors that utilise these drives, namely renewable energy, oil and gas, mining and metals.

This impressive growth is also attributed to the shift in focus from low-end to high-performance products, specifically by automation giants ABB and Siemens.

These premium product categories are also expected to outperform the total industrial drives market during the recession.

On the other hand, the markets for motion-control products, such as servo and stepper drives, are expected to perform poorly during the downturn.

These products rely heavily on the semiconductor, robotics, machine tool and printing industries, sectors that have been severely depressed by the recession.

As a result, the servo-drive market’s revenues are predicted to contract by nearly 20 per cent in 2009, while the stepper-drive market is forecast to decline by more than eight per cent.

The EMEA region continues to be the leading consumer of industrial drives.

Total drive revenues for EMEA were approximately USD7.2bn in 2008, accounting for more than 43 per cent of the worldwide market.

The region represents the largest geographic market for all seven industrial drive types, but has a significantly greater proportion of sales into the higher-end product categories, accounting for more than 58 per cent of 2008 global premium drive revenues.

After witnessing growth of 14.8 per cent in 2008, the industrial drives market in the EMEA is projected to decline by 13.6 per cent in 2009.

The 2009 market contraction is expected to be more significant in the EMEA than in the Americas, but less severe than in Japan.

The Asia Pacific drives market is the only regional market forecast to have positive growth in 2009.

The positive outlook is attributed to continued economic expansion in China, where GDP is forecast to increase by nearly nine per cent this year, and the focus on energy conservation by the Chinese government, witnessed in both the recent stimulus package and the existing top-1000 programme, which targets a 20 per cent reduction in Chinese industrial energy-consumption over a five-year period.

Production data collected by IMS Research indicates that while EMEA has been the largest manufacturing location for industrial drives through 2007, Asia Pacific became the largest producer of drives in 2008 after continued increases in low-end product manufacturing in the region.

The largest design centre for drives has been Japan, although it is predicted that beginning in 2011 the EMEA region will overtake Japan as the largest design centre for industrial drives.

View full profile