Dedham, Massachusetts : Strong growth continued in 2007 for the Low Power AC Drives market due to robust investments in manufacturing and infrastructure industries worldwide. The worldwide market for Low Power AC Drives is expected to grow at a compounded annual growth rate (CAGR) of 8.9% over the next five years. The market was over $7 billion in 2007 and is forecasted to be nearly $11 billion in 2012, according to a new ARC Advisory Group study.
Emerging economies, such as those in the BRIC countries (Brazil, Russia, India, and China) and Eastern Europe, helped propel this growth. The regional expansion was led by China, where real GDP grew robustly as exports and investment accelerated, and by India, where gains in domestic demand and particularly investment underpinned strong growth.
Despite a softening US economy, automation suppliers continued to post strong revenue growth in the fourth quarter of 2007, propelled by robust Greenfield plant construction in developing regions and strong project activity in the oil & gas sector. Suppliers reported big project wins in the oil & gas, refining, petrochemical, and mining sectors. Significant order backlogs ensure that business will continue at a healthy pace. While the North American market may face some economic challenges in the quarters ahead, demand for automation products will remain strong, thanks to much needed modernization of the industrial infrastructure that is well under way.
While every world region will experience growth in the low power AC drives market over the forecast period, there are significantly different factors affecting this market growth across world areas. A brief description regarding the economic scenarios for each major world area is covered in this report.
In addition to the quantitative assessment of the Low Power AC Drive market, the report provides an insightful analysis of the market and strategies of leading suppliers that will impact this business in the future. For more information on this study, go to: www.arcweb.com/res/lpac.
Filed Under: Factory automation, Drives (ac) + VFDs + starters, Motion control • motor controls