The need for infrastructure development throughout advanced and emerging economies will spur capital investment on a large scale, which in turn will increase demand for medium voltage AC drives, according to a new study from ARC Advisory Group.
As global financial stability is being restored, the market for AC drives is expected to have steady growth through 2015 due to heavy investments in the energy sectors and infrastructure industries worldwide.
This trend will see capital investments in areas such as oil and gas, water and wastewater, electric power, building automation and metals and mining, all of which is driven by a need for improved infrastructures and energy reduction.
The market for medium voltage AC drives will be driven largely by the significant global consumption occurring the power generation, oil and gas, and metals and mining markets, says Himanshu Shah, a senior analyst for ARC and the principal author of the study, Medium Voltage AC Drives Worldwide Outlook.
According to Shah, emerging economies such as China, India, Brazil and several of the eastern European countries, are facing a scarcity in energy and have inadequate infrastructures, due to their rising middle class and population growth. Most developed countries, meanwhile, are facing deteriorating infrastructures, many of which are in critical need of modernization.
In addition to speed, control, and energy costs, AC drives also offer greater reliability, soft-start, a higher power factor and improved efficiency.
Chinas market has been the fastest growing region due to heavy domestic demand for medium voltage AC drives from many growing industries as well as its energy saving initiatives.