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 medium voltage AC drives market. The market is expected to experience higher growth in 2011 compared to sluggish growth in 2010.
The impact of the extraordinary amount of policy stimulus in 2009 bode well for the high power AC drives market in 2009 and 2010. Monetary policy had been highly expansionary, with interest rates down to record lows in most advanced and in many emerging economies. “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,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s (www.arcweb.com) “Medium Voltage AC Drives Worldwide Outlook”.
While demand in mature markets for automation solutions and AC drives use is expected to improve, emerging markets will remain significant drivers of growth as they build up their electrical power generation capacity and expand industrial production with a major focus on improving energy efficiency and industrial process quality. These dynamics directly impact the medium voltage AC drives market growth. Demand for commodities fueled by economic growth of emerging countries and the need to become more globally competitive in product quality is also expected to drive demand for industrial automation solutions and medium voltage AC drives in the emerging markets.
Globalization has created a growing demand for modern infrastructures, especially in emerging economies. Major investments are underway and more are being planned for airport facilities, railway and public transportation expansions, and new road construction, which are driving demand for products from the metals & mining, cement & glass, and oil & gas industries. Emerging economies know that their current infrastructures are a major bottleneck for their continuing economic growth. Medium voltage AC drives are one of the critical components for these infrastructure investments and are used extensively in these industries.
Learn more about the Medium Voltage AC Drives Worldwide Outlook