Low Voltage AC Motor Drives Market To Return To Growth in 2021 – Interact Analysis

Contact:  Joseph Walker, Interact Analysis, UK

+44 (0)7903 556059 | jos.walker@interactanalysis.com


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Low Voltage AC Motor Drives Market To Return To Growth in 2021 – Interact Analysis

  • Collapse in AC motor drives market of 10% predicted for 2020
  • Followed by rapid rebound with strong growth predicted in 2021
  • Research predicts high CAGR for the sector during the period 2020-2024

London, UK, 25th August 2020 – Market intelligence firm Interact Analysis has released a new research report looking at the LV AC motor drives market, forecasting the trajectory of recovery for the market post COVID-19.

The company predicts a serious collapse in the region of -10% for the drives market in 2020 as the Covid effect bites. Revenues and unit volume will reduce substantially, largely due to reduced manufacturing output and demand caused by lockdowns and plant closures. However, with regions recovering at different rates – some swiftly, some not so quickly, there are reasons to be optimistic; and the down period for the drives sector will not be as severe as in 2009.

In revenue terms, the market is projected to grow at a 5.5% CAGR for the period 2020-2024. This is well above the average of 3.8% for the previous 12 years. The main reason for this is because CAGR is being calculated from a down year (i.e. 2020), and the projected strong recovery in 2021 will drive this number higher as a result. Over a longer forecast period, the CAGR is expected to level off closer to the historic one.

Revenues are not expected to surpass 2019 figures until 2022. Interact Analysis’s research points to a disconnect between revenues and unit production, caused by price erosion in the market. This is expected to be slightly higher in APAC vs. EMEA/Americas, especially China which is the most price sensitive region. This erosion will be exacerbated during this slow-down period as companies drive down prices to compete more aggressively for business. However, the continuing replacement cycle of drives, in tandem with the expected growth of the machinery sector, will lead to growing demand for drives beyond the forecast period.

Deeper market statistics are a significant feature of the report, which examines the drives market from all possible angles, such as form factor, geography, sales channel, and individual industrial sectors. For example, the sales channel research clearly delineates between sales to end-users, such as the metals, food and beverage, and marine sectors; and sales to machine builders, particularly in the HVAC/R sector. It concludes that machine builders purchase drives at roughly twice the rate of end-users.

Adrian Lloyd, CEO of Interact Analysis, says: “As well as providing unparalleled in-depth market analysis, this report uncovers some really interesting future technology and market trends, including the move to Electronically Commutated Motors (ECMs), which require a significantly reduced level of power to operate, and are attracting interest from the HVAC/R sector. We also see a rapidly growing trend for low cost drives – reduced functionality drives that achieve the lowest possible price-point.” Production of these drives is currently concentrated in APAC, where companies such as INVT, Delta, Mitsubishi Electric, Hitachi, Yaskawa, and Inovance lead the way, but production is expected to spread to EMEA and the Americas in short order.”


About the low voltage drives report

Interact Analysis’s low voltage AC motor drive report is the most in depth data set on the market for motor drives ever produced. Over 40 hours of interviews with market stakeholders were conducted for this research. This, used in tandem with our unique tertiary modelling capability, allowed us to measure and predict demand for low voltage AC motor drives across 7 product types, 32 regions, 36 machinery & end user sectors, and 11 power ratings. Data is presented in terms of both revenues and units and contains nearly 700,000 unique data points. Our forecast is informed using a 13- year historical data set on the performance of industry and machinery production. Using this data, we provide a 5-year forecast for every segmentation in our report. To learn more, visit https://www.interactanalysis.com/the-low-voltage-motor-drives-market-2020-report/

About Interact Analysis

Interact Analysis is an international provider of market research for the Intelligent Automation sector. Our team of experienced industry analysts delivers research into three core sectors: industrial automation, robotics and warehouse automation, and commercial vehicles. Intelligent Automation – which is the integration of artificial intelligence and automation – will change virtually every industry imaginable. This combination enables greater efficiencies, productivity, convenience, and scale. It has the potential to drastically alter the outlook for many traditional industries such as manufacturing, healthcare and automotive as well as to lead to the emergence of entirely new industries. To learn more, visit www.InteractAnalysis.com