Dedham, Mass., January 16 -- India’s economic expansion, propelled by the country’s growing manufacturing sector, is fuelling the low-power AC drive market in India. The market, which exceeded $150 million in 2006, is expected to grow at a compounded annual growth rate (CAGR) of 15.4% over the next five years, according to a new ARC Advisory Group study “Low Power AC Drive Outlook for India.”
Global manufacturers are increasingly seeking footage in the growing domestic Indian market and homegrown manufacturers are also expanding rapidly. The competition that is already fierce is bound to intensify in the coming years. Enhancing operational excellence of manufacturing plants is crucial for survival and funding expansion plans. As a natural progression, plant and factory automation is increasing. “Manufacturers exhibiting strong growth over the last five years in this thriving and intensely competitive market are increasingly relying on automation to help gain an edge and improve profitability. With increasing automation spending, the outlook for the low power AC drive market is extremely bright,” according to Senior Analyst Himanshu Shah and Senior Analyst S. R. Venkatapathy, the authors of the study.
Suppliers are benefiting from the increasing level of automation in manufacturing, leading to a greater use of low-power AC drives in industries such as automotive, mining & metals, printing and publishing, and textiles, for applications such as conveying and material handling, fans, pumps, and compressors. Outside of manufacturing, the application spread now includes HVAC equipment in building automation. Use of AC drives as a favored energy saving electrical device in the electric power industry is increasing chiefly for ID/FD fans and boiler feed-water pump applications. With its applications growing, and new segments such as marines, trans-portation and wind energy tapping AC drive potential to a greater depth, the market for low-power AC drives in India is on an upswing.
Automation will be increasingly more vital as manufacturers continue to face challenges to satisfy market demands, compete in the growing economy and keep their businesses remaining profitable. This scenario creates immense opportunities for all automation equipment suppliers. However, the automation market dynamics for suppliers also remains extremely competitive. The challenge for suppliers is how they can differentiate themselves and continue to offer increasing value propositions to users and OEMs. This is especially important, with the market expected to grow during the forecast period and beyond, as users in many industries have correlated the benefits of AC drives with increasing productivity and energy savings.