Integrated solutions drive European variable speeds drives market

Citation

(1999), "Integrated solutions drive European variable speeds drives market", Industrial Robot, Vol. 26 No. 4. https://doi.org/10.1108/ir.1999.04926dab.009

Integrated solutions drive European variable speeds drives market

Integrated solutions drive European variable speeds drives market

Keywords Motors, Drives

The European variable speeds drives market is continuing to see a marked advance in demand driven by significant developments in the AC drives sector, which is continuing to experience strong growth in terms of units and revenues.

A new study by Frost & Sullivan, the international marketing consulting company, reports that technological innovation, more competitive price levels and increased penetration into a wider range of applications -- and at higher power ratings -- are the primary drivers in the variable speeds drives market.

The European variable speed drives market was valued at US$1.93 billion in 1998, having recorded an estimated total of just over 1.0 million unit shipments that year. Revenues are expected to witness a strong increase in future years. In 2005, revenues are forecast to reach a total of US$2.39 billion, with an estimated 1.4 million unit shipments in the same year.

Mik Sabiers, Industry Manager at Frost & Sullivan, says: "More advanced drive technology is offering improved control, reliability and efficiency at an increasingly competitive price. Drive designs can be expected to continue to penetrate an ever-widening scope of applications, with a significant advance seen for low power rated AC drives. These are taking share from a range of alternative drive designs, as well as alternative technologies. Even more competitive price levels should serve to further enhance the widening use of AC drive technology across a broader range of power ratings and applications".

The concerted rise in AC drive designs is acting as the strongest driver of total market growth. A significant advance in demand has been recorded for AC drives at low power ratings, with much wider utilisation across industry. Greater customer awareness and acceptance of more advanced drive solutions has also fostered market growth. Additionally, strong competition has resulted in very competitive price levels.

This is further supporting an increased demand from a wider range of customers on a continuing basis, the study continues.

The mechanical and DC drive markets are both seeing a major fall in demand as customers switch to alternative drive designs. The mechanical market is increasingly being restricted to areas where customers demand simple and low-cost drive designs. This should result in a reduction in the mechanical drives sector on a continued basis.

By the end of the forecast period, demand for mechanical drives is expected to represent a minor percentage of total demand. Suppliers of DC drives are also reporting a fall in demand. Although the fall has accelerated in recent years as users switch to AC technology, revenues are being supported to a degree by sustained interest at higher power ratings where DC technology continues to retain a cost advantage, Mik Sabiers adds.

The hydraulic drives market continues to be a niche market, driven by demand in more specialised areas. One of the strongest factors in this market is the very competitive price at higher power ratings, although demand at these power rating levels is presently subdued on a European basis. Greater awareness and acceptance of hydraulic drives can be expected to advance overall revenues in future years, although this market will continue to be led by a focus on specialised applications.

The AC drives market is the most important sector in terms of total demand and overall revenues. Moreover, the AC market is also the fastest-growing product sector. This has been a consequence of competitive price levels, technological developments, and greater customer acceptance and understanding of the technology. Drive design is continuing to advance as many users commercialise new and improved product ranges. AC technology is also building a greater presence at higher power ratings, even though it remains a more expensive drive solution at these levels.

Frost & Sullivan's report shows that the market is largely technology-driven. Customers are looking for enhanced performance and more reliable drive designs. They will direct business to those suppliers which have developed a reputation for offering new and improved drive solutions, and with reputable companies which are able to build up a strong customer base.

In conclusion, variable speed drive technology can be expected to expand in importance in a wider range of industrial applications, which should be reflected in the continued annual advance in total unit shipments and revenues.

For further information contact: Frost & Sullivan, 24 rue de Londres, 75009 Paris, France. Tel: 33 (1) 42 81 54 50; Fax: 33 (1) 42 81 54 52.