Bowen has recently joined Interact Analysis as a Market Analyst. An Environmental Scientist with experience in residential PV systems and an avid interest in sustainability and economics. Bowen will be assisting Interact Analysis’ research directors in efforts surrounding industrial automation.
Interact Analysis recently published the third edition of our annual study covering the low voltage AC drives market. The below infographic demonstrates some of the key findings from our report.
Forecasting the trajectory of recovery for the market post COVID-19, we predict 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.
- Market was valued at $13bn in 2019, up 3.4% from 2018.
- Market expected to contract by nearly 11% in 2020 as a result of the COVID-19 pandemic.
- The market is projected to grow at a 5.5% CAGR for the period 2020-2024, which is well above the average CAGR for the previous 12 years of 3.8%.
- Revenues in Czech Republic, Mexico, and Japan decreased the most in 2020 amongst COVID-19.
- Oil & Gas, Automotive, and Marine were among the hardest hit industries for drive sales amidst COVID-19. Revenues from these sectors is expected to decrease by as much as 38% in 2020.
- Food & Beverage, Power, and Water are forecast to be the least affected industries from COVID-19.
- We witnessed an increase in average selling prices (ASPs) of 2.6% for drives in 2019 as a result of increased demand for IGBTs combined with the impact of tariffs on the price of components.
- The adoption rate of predictive maintenance technology is increasing rapidly as associated products are projected to grow at CAGR of ~40% and we estimate that ~70% of motor problems could potentially be diagnosed by a drive.