Energy costs fuel record drives market growth

Austin, Texas –  Spiralling energy costs and higher awareness of the energy-saving benefits of motor drives is pushing growth in the global low voltage AC & DC motor drives market to record levels, according to IMS Research. The market, it said, grew to more than $7.6 billion in 2006 - 15% ahead of prior-year levels - with sales now set to grow by an average of 9%/year to exceed $11.2 billion by 2011.

Much of the market strength stems from economic growth in China and India. IMS tips the Asia Pacific region overall to surpass the size of the Americas market in 2007, and continue growing by more than 10% per year over the next five years. The EMEA market also experienced robust growth in 2006 due to high demand for motor drives by the booming heavy industry of the region. The Americas and Japanese markets for motor drives also performed well, but grew at a slower pace than Asia Pacific and EMEA.

IMS cites the commercial HVAC, food & beverage, metal processing, textiles and utilities sectors as continuing to lead the market in motor drive utilisation, together representing more than one third of the total low voltage drives market. In addition, new segments such as the renewable energy sector provide opportunity for further growth.

“The renewable energy sector is a great prospect for motor drive manufacturers. Electricity generation from wind power is growing by 25% per year, requiring some $23 billion of new generating equipment, most of which is currently using motor drives," said IMS analyst Alex Chausovsky. "Furthermore, there are new technologies on the horizon that attempt to harness the energy in ocean waves and sub-glacial ice flows, that present tremendous opportunities for motor drives manufacturers."