The AC drives market is driven by many factors, such as urbanization, industrialization, and the ever-increasing demand for energy. Other factors that influence the market include – rising electricity prices and energy efficiency regulations. AC drives have the potential to reduce energy consumption, and offer greater return on investment and efficiency. These factors provide many opportunities for the up-gradation & retrofitting market. Moreover, saving a considerable amount of energy is expected to reduce carbon dioxide emissions.
Growing Requirement for Energy Savings and Efficiency - Driving the Market
The demand for power has been on the rise, due to the burgeoning population and industrialization. Growing energy consumption exerts a huge strain on natural resources and increases the cost of producing electricity. Utilities and governments across the world encourage industries and households to reduce energy consumption, by adopting energy-saving techniques. AC drives offer the ideal solution to energy savings, by increasing the efficiency of the machines using AC power.
AC drives ensure 25%-70% energy savings for motor operation. Motors consume the most energy in any industry, and the AC drive lets the motor to run at the optimal speed and controls the motor speed.
An AC drive eliminates the need for expensive and bulky mechanical drive-control components, such as gearboxes, along with offering energy savings. AC drives enable the reduction of the starting current that is required by a motor. Motors connected via an AC drive, facilitate an increase in speed at a controlled rate and reduce damage to the motor (that can happen if it began across the line). An AC drive can also stop motors at a controlled rate. The reduction of starting current also leads to lower disturbances in the power supply, as it eliminates the voltage sag that occurs as a result of motor-start. This, in turn, protects other connected devices from voltage fluctuations.
Incorporating AC drives for motors, offers energy savings and reduces wear and tear on the mechanical components of the motors, in turn, reducing the frequency required for repairs and maintenance. This leads to higher benefits for operators, as plant downtime can be reduced drastically, along with savings on power bills. These factors encourage the industries to adopt AC drives, thus, boosting the AC drive market.
Asia-Pacific will Continue to Lead the AC Drives Market during the Forecast Period
The growth in the Asia-Pacific region can be mostly attributed to the capital investments being made in the infrastructure, oil & gas, and power generation sectors, and also investments made in energy efficiency solutions. Huge investments in energy intensive sectors and manufacturing, while simultaneously focusing on energy conservation and renewable sources of energy to curtail costs, are likely to drive the long-term growth of the market.
The leading countries contributing to the growth of AC drives in this region are China, Japan, India, and South Korea. With numerous suppliers targeting the marketplace, competition is intense among them. Suppliers, under pressure to differentiate their offerings and outperforming their competitors, are adopting various strategies, including establishing local manufacturing facilities, acquiring domestic companies, expanding the distributor network, and leveraging relationships with OEMs. Companies, like ABB Ltd, now have their local R&D centers focused on AC drive and two large-scale modern factories manufacturing and serving the demand, from Asia-Pacific, for AC drives.
China among the Fastest-growing Markets for AC Drives
China's rapid industrialization and strong GDP growth go hand-in-hand with increased capital expenditure by global and domestic manufacturers, resulting in the expansion of the country's manufacturing industry. This rapid development is accelerating the robust growth of the low-power AC drive market in China. The escalating industrial growth in China has increased the demand for electric power well beyond its production capacity, resulting in an acute shortage of power. This situation has forced the Chinese government to launch an energy conservation program, which recommends various energy saving measures. While the energy conservation requirement and cost savings are paramount factors contributing to the growth of the AC drive business, other key growth drivers include the concern for reliability, the growing machinery industry, and product-related issues, such as compactness, lower prices, user-friendly features, and new technologies.
Key Developments in this Market
• May 2017: Yaskawa Electric Corporation developed the world’s first servo motor, with built-in amplifier that is equipped with GaN* power semiconductors, as the latest addition to its AC servo drives Σ (Sigma)-7 product series.
• December 2017: ABB and SNC-Lavalin formed a joint venture to deliver electrical substation projects globally.
Major Players: ABB Ltd, Siemens AG, Yaskawa Electric Co., Danfoss Group , Mitsubishi Electrical Co. Ltd, Schneider Electric Co., amongst others.
REASONS TO PURCHASE THIS REPORT
• Current and future global AC drives market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• Segment that is expected to dominate the market
• Regions that are expected to witness the fastest growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players
• 3 months analyst support, along with the Market Estimate sheet (in excel)
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast Until 2023
3.3 Investment Opportunities
3.4 Recent Trends and Developments
3.5 Government Policies and Regulation
4. Market Dynamics
5. Value Chain Analysis
6. Porter’s Five Force Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Products and Services
6.5 Intensity of Competitive Rivalry
7. Global AC Drive Market Analysis, by Voltage
7.1 Low Voltage
7.2 Medium Voltage
8. Global AC Drive Market Analysis, by Application
8.6 Other Applications
9. Global AC Drive Market Analysis, by Application
9.1 Oil & Gas
9.2 Water & Wastewater
9.3 Power Generation
9.4 Building Automation
9.5 Food & Beverage
9.6 Metals & Mining
9.7 Chemicals & Petrochemicals
10. Global DC Distribution Network Market Analysis, by Geography
10.1.5 South Korea
10.1.6 Rest of Asia Pacific
10.2 North America
10.2.1 United States
10.2.3 Rest of North America
10.3.2 United Kingdom
10.3.5 Rest of Europe
10.4 Middle East & Africa
10.4.2 Saudi Arabia
10.4.3 South Africa
10.4.4 Rest of Middle East & Africa
10.5 South America
10.5.4 Rest of South America
11. Key Company Analysis* (Overview, Business Segmentation, Financial Analysis**, Recent Development and Analyst View)
11.1 ABB Ltd
11.2 Siemens AG
11.3 Yaskawa Electric Co.
11.4 Danfoss Group
11.5 Mitsubishi Electrical Co. Ltd
11.6 Schneider Electric Co.
11.7 Fuji Electric Co. Ltd
11.8 Hitachi Ltd
11.9 Rockwell Automation Inc.
12. Competitive Landscape
12.1 Mergers and Acquisitions
12.2 Joint Ventures, Collaborations, and Agreements
12.3 Strategies Adopted by Leading Players
13.1 Contact Us
*List of companies is not exhaustive. Please let us know if you are interested in any company profile
**Subject to availability on public domain