The global market for low-voltage AC and DC drives will continue to expand this year, with revenue growing by 3.7% despite the global economic downturn, says a new study. However, this represents a dramatic slowdown since 2007, when the market grew 19.7% compared to the previous year.

According to the market analyst, IMS Research, high energy prices and an increased focus on energy efficiency will continue to propel the market. Over the period 2008–2012, IMS expects revenues to grow by an average annual rate of 10.4%, and to reach $13.6bn by 2012.
 
The fastest-growing regional market is Asia-Pacific which was worth nearly $2.4bn in 2007, and is expected to continue growing at the fastest rate over the five-year period. It is now the second-largest area for drives sales after the EMEA (Europe, Middle East and Africa) region.

However, the difficult economic conditions around the globe will slow growth across all regions, with the biggest impact being felt in the Americas and in Japan, IMS predicts.
 
Growth in demand from the utility, food and beverage,  petrochemical and renewable energy sectors, will offset declining demand from the metal processing, mining, textile and commercial HVAC sectors. According to IMS Research analyst, Jenalea Howell, “growth of critical industry sectors, government legislation, and stimulus packages will provide abundant opportunities for the low-voltage motor drives market to come through the recession with positive growth”.