High-power drives faring better than other equipment
The weakness in the global economy is affecting the high-power AC drives market, but to a lesser extent than other automation equipment, says a new report from the ARC Advisory Group. It expects growth in the high-power drives market to resume within a couple of years, once economic stability is restored globally.
“While the world economy is in a severely distressed state, new stimulus packages from various governments are adding more investments in the infrastructure industries,” says the report’s principal author, ARC senior analyst, Himanshu Shah. “This situation bodes well for high-power AC drives market growth.”
Energy supplies will not be able to keep up with demand in future, further increasing the use of high-power AC drives, ARC predicts. Once global economic stability is restored, the use of high-power drives will increase at a faster rate across all industrial segments, it adds.
The recent peak in crude oil prices, which reached nearly $150 per barrel in mid-2008, increased awareness of the importance of energy efficiency and finding new sources of energy, boosting the demand for high-power AC drives, ARC argues. Sustainability is also driving energy-saving initiatives and renewable energy projects, which also depend on high-power drives.