The global market for low-power AC drives broke through the $5bn mark for the first time last year, according to a new report from the ARC Advisory Group. The study* predicts that the market will continue to expand at a CAGR of 8.6% over the coming five years, to exceed $7bn by 2009.

"With oil prices escalating and drive prices falling, the payback period for AC drives investments is becoming shorter, pushing their use on a broad basis," explains the report`s principal author, senior ARC analyst, Himanshu Shah.

Although the Europe and Middle East region is the largest market for low-power AC drives, emerging regions such as Asia, Latin America and Eastern Europe will contribute significantly to the market growth, ARC says.

* Low-power AC drive worldwide outlook. Details from www.arcweb.com