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Product category: Engineering Industry Reports and Surveys
News Release from: Frost and Sullivan
Edited by the Engineeringtalk Editorial Team on 23 June 2003

Machinery market expands use of
intelligent drives

Intelligent drives are set to account for an ever increasing share of the overall motion control field as the technology's penetration into major regional and application markets deepens.

Intelligent drives are set to account for an ever increasing share of the overall motion control field as the technology's penetration into major regional and application markets deepens An intelligent drive is defined as a servo or universal drive that combines the functions of a drive and motion controller in a single unit

Intelligent drives are usually designed to control a single axis, but they have the potential to work as part of a complex motion control system combining multiple axes.

A new study by Frost and Sullivan, the international market consultancy, shows that the intelligent drives market is continuing to stage a strong advance even with the general economy facing problems as a consequence of economic downturn.

Persuading customers to invest in decentralised intelligence is one of the key challenges characterising this industry.

The lack of end-user familiarity with intelligent drive products is an obstacle to growth, but intelligent drive technology is projected to start to more effectively realise its potential.

The technology's value proposition is enhanced through its cost-effectiveness.

Savings come from the elimination of the need for a complex separate motion controller or PLC, and from the reduction of the number of connections and setup times.

The increasing complexity of machinery potentially used with intelligent drives, featuring a rising number of axes (each attached to a drive) should further encourage interest and investment in the technology.

Simultaneously, the incorporation of decentralised intelligence in drives enables customers to reduce expenditure on complex master controllers.

Revenues generated in the European intelligent drives products market totalled approximately $335.4 million in 2002, equating to shipments worth an estimated 118,100 units.

Frost and Sullivan forecasts this level to rise to $552.2 million, while shipments are projected to rise to over 200,000 units in 2009.

The manufacturers most likely to succeed in gaining from this advance should be the early developers and advocates of the advantages associated with intelligent drive solutions.

The use of intelligent drives is particularly widespread in the dominant German market, where sales account for an estimated 42.0% of the overall European total in 2002.

Many existing market competitors have focused on building demand in the key applications areas of packaging, handling and printing.

With the exception of the handling sector, which is likely to suffer as a result of price competition in the low end intelligent drives market, these key application areas should account for a rising share of future revenues.

Nevertheless, there is still strong growth potential in many other areas, provided the customer base is convinced of the benefits of the technology.

Although the market is a new development in contrast to the generally more mature motion control sectors, competitive pressures are already high.

"Price competition is expected to intensify during the forecast period, and this may impact revenue growth rates, particularly in the low end sector of the market.

However, more competitive price levels should enable OEMs and end-users to adopt intelligent drives in place of separate drive and controller units", states Mr Sabiers, Research Manager at Frost and Sullivan.

In 2002, revenues in the high end sector of the intelligent drives market were estimated at $143.2 million.

Future growth should be fuelled by new product launches, improved technology, and customers' increasing awareness and understanding of high end intelligent drive products.

Meanwhile in the low end intelligent drives market, revenues totalled a slightly higher $183.0 million.

Prospects in the low end drives market are not as positive, and while the sector should continue to stage a good overall advance, revenue growth may be impacted by the aforementioned pressures related to price competition.

In terms of the competitive environment, Siemens was the most significant participant in the intelligent drives market during 2002, representing almost a quarter of the market.

Siemens' leading position can be attributed to several factors, including its focus on building acceptance of the technology in the crucial German market, its presence in both the high end and low end market sectors and a leading position in the European servo products market as a whole.

"While Siemens' share of future revenues may come under pressure from new market entrants and products launched by aggressive second tier competitors, the company may nevertheless increase its share of European revenues in the short term following the launch of its new Simotion range", Sabiers points out.

Other notable competitors include Bosch Rexroth and Control Techniques, followed by Baumuller and Lenze.

The remainder of revenues in the intelligent drives market are dispersed between competitors with a less sizeable share.

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