Growth from Infrastructure Expansion and Energy Savings
This study covers hardware, software, and services for medium voltage AC drives with the following power ranges: up to 0.5 MW; >0.5 - 3 MW; >3 - 7.5 MW; >7.5 - 10 MW; >10 MW-20MW; and >20 MW.
While large project orders helped maintain the medium voltage AC drives market size in 2009, it also resulted in low growth in 2010 compared to other automation product markets. However, 2010 was still not a disappointing year for the market. It is expected to experience higher growth in 2011 compared to sluggish growth in 2010. Growth in Asia and South America, as well as an increased focus in the areas of renewable energy and energy efficiency applications will increase demand for medium voltage AC drives.
Growth in power and automation solutions for all regions of the world is expected to continue in 2011 and beyond with increasing market demand for building new and upgrading existing power infrastructure and improving industrial efficiency and productivity.
This study identifies growth segments and market trends, as well as challenges suppliers face to achieve growth. While every world region will experience growth over the forecast period, there are different factors affecting each specific market. In addition to the quantitative assessment, this study provides an insightful analysis that will impact this business in the future.
Strategic Issues
The challenge in the medium voltage AC drives market landscape is how suppliers can differentiate themselves and offer increasing value propositions to users and OEMs. This is especially important because the market is competitive and demand is expected to grow as users in many industries have recognized the benefits of medium voltage AC drives. This study provides recommendations, such as:
- Which high growth industries are the most attractive for suppliers to target
- What developing and emerging markets offer the highest growth potential
- Which special programs and offerings can help expand market penetration
- How can suppliers create new opportunities