Low power AC drives outlook for Europe

An ARC Advisory Group product story
Edited by the Engineeringtalk editorial team Aug 12, 2002

The low power AC drive market in Europe, which exceeded $1.6 billion in 2001, will top $1.9 billion by the end of 2006, growing at a CAGR of 3% over the next five years, according to a new survey.

The low power AC drive market in Europe, which exceeded $1.6 billion in 2001, will top $1.9 billion by the end of 2006, growing at a CAGR of 3% over the next five years, according to a new ARC Advisory Group study.

"AC drives now span a wide range", according to Senior Analyst Himanshu Shah, the principal author of ARC's "Low power AC drives outlook for Europe".

"Simple, energy-saving drives with speed control in the constant volts/hertz mode comprise the high volume segment and are becoming as ubiquitous as motor starters.

Sophisticated flux vector controlled drives with near-servo performance, built-in application algorithms, auto-tuning, network communications, built-in programmable logic controllers (PLCs), graphic LCD displays, and touch screen-based operator interfaces are the premium high-value drives that dominate the coordinated automation systems of most manufacturing plants".

This burgeoning market has attracted over 50 suppliers.

Traditionally, AC drives were the stronghold of large electrical companies who had ventured into automation.

They were followed by mechanical power transmission suppliers who saw the AC drive as a complementary product and leveraged their presence in the OEM market to advantage.

The latest players, though smaller, have the highest growth rates and focus on the development and production of only AC drives.

This trend is typical for maturing markets that have customer acceptance, proven product benefits, and opportunities for companies who develop core competencies.

Although Micro drives (rated up to 4kW) make up two-thirds of the total number of low power drive units sold, their low price makes them a close second, at one-third of the low power market, in dollar volume.

Low-end (from 5 to 40kW) drives lead the low power market, with 40% by dollars and 30% by units.

Low-end and Micro drives dominate in the building automation and OEM market segments.

Mid-range (41 to 200kW) drives make up the remaining 25% of the market by dollars and 7% by the number of units sold.

Most midrange drives are sold direct to end users in manufacturing industries, along with automation components.

The market in Europe is asymmetrical in regional terms.

While four countries (Germany, Italy, UK and France, in that order) make up 62% of the market, Spain, Sweden, Benelux, Denmark, Finland, Austria, Switzerland and Norway account for 26%.

All the other countries put together make up the remaining 12%.

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