Electric Drive Market Size to Reach Revenues of around USD 29 Billion by 2026 - Arizton
CHICAGO, Feb. 1, 2021 /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this global electric drives market report.
The global electric drives market is expected to grow at a CAGR of over 4.6% during the period 2020−2026.
Key Highlights Offered in the Report:
- The metals and mining and oil & gas industries are major revenue generators for electric drives owing to the heavy use of pumps, conveyors, hoists, cranes, and several other heavy equipment that consume more electricity.
- Approximately 40% of the electricity used in industries is consumed by pump and fan systems, driving the demand for electric drives is expected to be high in those segments that largely rely on pumps and fans.
- Digital factories, automation, and the advent of IIoT will prove as the most important trends. With increasing automation and digitalization, the demand for smart and innovative electric drives is expected to go up in the forecast period.
- Semiconductors such as rectifiers, diodes, capacitors, and others are important raw materials procured by vendors in the electric drives market. Steel is another major raw material. Any disruption in the production or price of these commodities will have a direct impact on the electric drives market.
- AC drives are most widely used across the globe and held a share of over 80% in 2020. Moreover, AC drives are expected to grow at a CAGR of approximately 5% as compared to 3% CAGR for DC drives.
- Emerging markets such as APAC and Latin America are expected to witness the highest CAGR, estimated to be at over 5% and 4%, respectively, during the forecast period. This is attributed to investments by developed countries, favorable government policies and FDIs, and shifting focus toward domestic manufacturing.
- China and India will grow at the highest CAGR owing to their huge population pool, industrial establishments, growing economies, and increasing industrial expenditures during the forecast period.
- By voltage, low voltage electric drives dominate the global electric drives market accounting for a share of over 80% in 2020 and is expected to grow at a CAGR of approximately 5%.
Key Offerings:
- Market Size & Forecast by Revenue | 2020−2026
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by product type, voltage, sales channel, end-user, and geography
- Competitive Landscape – 12 key vendors and 6 other vendors
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Electric Drive Market – Segmentation
- Alternate current (AC) electric drives held over 80% of the electric drives market share in 2020. The market is highly fragmented due to the presence of several global and regional players. Several incentive programs in the US and European countries for the early replacement of low-efficient electric motors is expected to boost the demand for AC drives.
- The demand for low-voltage electric drives is driving by increased applications in several end-user industries and the ability to be cost efficient. However, strict government regulations regarding the application are favorably affecting the market growth. Retrofitting activities with regards to low-voltage electric drives are extremely high across industrial as well as commercial enterprises.
- The expansion and investments in oil & gas, chemical, mining, and other industries in the Middle East, North America, and APAC are expected to increase electric drives demand in the coming years. Thus, the demand for drives in several industrial applications is anticipated to grow.
Electric Drive Market by Product Type
- AC
- DC
Electric Drive Market by Sales Channel
- Direct
- Indirect
Electric Drive Market by Voltage
- Low
- Medium
Electric Drive Market by End-User
- F&B
- Metal & Mining
- Chemicals
- Oil & Gas
- Power Generation
- Packaging
- Cement
- Textile
- Water & Wastewater
- Paper & Pulp
- Rubber & Plastic
- Forestry & Woodwork
- Others
Electric Drive Market – Dynamics
Since the past few years, Variable Frequency Drives (VFDs) are being used with motors to increase efficiency as well as make them cost-effective. Several IE2 and IE3 motors are used along with VFDs, which, in turn, enables them to meet the specifications of higher efficiency of IE4 motors. Moreover, many countries in Europe such as Switzerland and others have passed regulations on the use of VFDs with motors. The installation of IE2 motors is only allowed if they are used with VFDs. Also, several end-user industries across the globe are using VFDs with IE3 motors, which delivers the same results as IE4 motors to beat the high costs associated with IE4 motors. Since a majority of end-user industries use AC motors in their operations, the demand for AC electric drives or VFDs is will supplement the electric drives market in the forecast period.
Key Drivers and Trends fueling Market Growth:
- Future Potential for Integrated Motor Drive (IMD)
- Advent of IIoT in Electric Drives Market
- Increasing Adoption of Automation
- Growing Demand for Renewable Energy
Electric Drive Market – Geography
APAC was the largest revenue contributor to the global electric drives market, accounting for a market share of over 37% in terms of revenue in 2020. Of this, China accounted for a major share in the electric drives market. This can be attributed to the increasing number of investments in fully automated industrial machinery and YOY growth in government spending toward defense aircraft and equipment in major economies across the region. In addition, the huge number of vendors in the electronic appliances industry in the Chinese market is creating favorable manufacturing situations in the country as electric components are major raw materials.
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Electric Drive Market by Geography
- North America
- US
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- APAC
- China
- Japan
- South Korea
- India
- Australia
- Latin America
- Brazil
- Mexico
- Chile
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- Turkey
- Rest of Middle East
Major Vendors
- ABB
- Danfoss
- Emerson Electric
- Fuji Electric
- Mitsubishi Electric
- Parker-Hannifin Corporation
- Siemens
- Rockwell Automation
- Schneider Electric
- WEG
- Nidec Corporation
- Yasakawa Electric
Other Prominent Vendors
- Hiconics Drive Technology
- Inovance Technology
- KEB Automation
- Sew-Eurodrive
- Teco Westinghouse
- Toshiba International Corporation
Explore our industrial machinery profile to know more about the industry.
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About Arizton:
Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
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