Low-power drives market defies the downturn
The global market for low-power AC drives will grow at a CAGR (compounded annual growth rate) of 8.9% over the coming five years, expanding from $7bn in 2007 to nearly $11bn by 2012, according to a new study by the ARC Advisory Group.
Emerging economies, such as those in the China, India, Brazil, Russia and Eastern Europe, are helping propel this growth.
Despite a softening US economy, automation suppliers in North America have continued to post strong revenue growth, ARC reports, propelled by green field plant construction in developing regions and by strong project activity in the oil and gas sector.
Significant order backlogs in the US ensure that business will continue at a healthy pace, says ARC. While the North American market may face some economic challenges, demand for automation products will remain strong, it adds, because of much-needed modernisation of the industrial infrastructure now under way.