As global financial stability is being restored, the medium-voltage AC drives market is expected to have steady growth during the forecast period through 2015 due to robust investments in the energy sectors and infrastructure industries worldwide. According to a new ARC Advisory Group study, in advanced and emerging economies, infrastructure development will continue as a significant portion of government stimulus funding directed toward those industries. As the economy continues to recover, globalization will spur more capital investments in various industries, such as oil & gas, water & wastewater, electric power, building automation, and metals & mining, driven by the growing demand for improved infrastructures as well as energy savings.
“The market for medium-voltage AC drives will be driven largely by the significant global consumption occurring in the power generation, oil & gas, and metals & mining industries,” according to senior analyst Himanshu Shah, the principal author of ARC’s “Medium-Voltage AC Drives Worldwide Outlook”.
Increased Investments in Infrastructure Will Drive Market Growth
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.
With the beginning of the current economic recovery, the globalization environment is expected to resume. The beginnings of a modest recovery in the global economy presents an excellent backdrop for medium voltage AC drives’ market growth.
Emerging economies, such as China, India, Brazil and many of the eastern European countries, are facing a scarcity of energy and have inadequate infrastructures, such as water & wastewater facilities, due to their rising middle class and population growth. Most developed countries are facing deteriorating infrastructures, many of which are in critical need of modernization. Under such circumstances, medium voltage AC drives are expected to experience continuing growth in 2011 and beyond.
China’s market has been the fastest growing region due to heavy domestic demand for medium-voltage AC drives from many growing industries as well as the state’s energy-saving initiatives. The markets in central & eastern Europe, Russia and India are also expected to grow rapidly as a result of ongoing industry expansion in these regions.
While every world region will experience growth in the medium-voltage AC drives market over the forecast period, there are significantly different factors affecting each specific market. A brief description regarding the economic scenarios for each major world area is covered in this report.
In addition to the quantitative assessment of the medium-voltage AC drives market, the report provides an insightful analysis of the market and strategies of the leading suppliers that will impact this business in the future.
For more information on this study, visit ARC's Market Research section.