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Electric Drives Market by Product, End-user, and Geography - Forecast and Analysis 2021-2025

  • Published: Feb 2021
  • Pages: 120
  • SKU: IRTNTR70274
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The electric drives market share is expected to increase by USD 4.88 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.31%.

This electric drives market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers electric drives market segmentation by product (AC drives and DC drives), end-user (process industry and discrete industry), and geography (APAC, Europe, North America, South America, MEA, APAC, Europe, North America, South America, and MEA). The electric drives market report also offers information on several market vendors, including ABB Ltd., Danfoss AS, Mitsubishi Electric Corp., Nidec Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., WEG Equipamentos Eletricos SA, and Yaskawa Electric Corp. among others.

What will the Electric Drives Market Size be During the Forecast Period?

Electric Drives Market Size

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Electric Drives Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The increasing focus on automating manufacturing process es is notably driving the electric drives market growth, although factors such as high cost of installation and maintenance may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the electric drives industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Electric Drives Market Driver

Increasing focus on automating manufacturing processes is the major driver influencing the electric drives market. Automation has become prevalent across process and discrete industries for improved production and efficiency. Various manufacturing processes have been mechanized, and various steps are being undertaken by original equipment manufacturers (OEMs) to produce automated machines. AC drives are among the electric drives that can be connected to multiple motors and pumps, and based on the feedback, they can regulate the motor frequency to achieve the desired speed. This allows effective operational control and lower manual intervention to regulate motor speed. All these factors have rendered electric drives, such as servo drives and AC drives, an effective option for enhancing motor operations in precision applications, such as in conveyors, robotics, and material-handling processes.As most motors used in industrial operations are a critical part of the manufacturing process, any uneven circumstances can affect the operational efficiency and result in high OPEX and lower revenue. Therefore, most industrial operators are switching toward electric drives to automate their motor operating process and increase their operational efficiency.

Key Electric Drives Market Trend

Technological advances in electric drives are the major trend influencing the electric drives market. onventional AC drives use active front-end (AFE) rectifier and multi-purpose transformers to mitigate harmonics. Although this additional equipment helps in mitigating harmonics during operations, it has downsides, such as an increase in wiring requirement, space requirement, and cost. To overcome this challenge, vendors are focusing on matrix design in AC drives. In conventional AC drives, due to the presence of the DC bus, the drive draws non-linear current, which creates harmonics. Whereas in the matrix design, electric drives use nine bi-directional IGBTs, which are arranged in a matrix design to generate AC output from AC input, bypassing any need for DC bus. When a motor is stopped suddenly, the driven load is higher than the driving load; in such cases, the motor acts as a generator, thereby sending voltage back to the drives. As conventional electric drives made use of dynamic braking resistors to divert the regenerated power to protect the DC bus from the over-voltage condition, leading to low optimization of power utilization. The development of matrix bi-directional arrangement helps in directing back to the power source, ensuring optimum utilization of energy during the motor control operation. This arrangement provides protection from non-linear loads and ensures high energy savings through power regeneration. With a growing focus on energy efficiency, the demand for regenerative electric drives is expected to increase during the forecast period.

Key Electric Drives Market Challenge

The high cost of installation and maintenance is a major hindrance to the electric drives market. The major issue for electric drives is operating with inappropriate power supply, such as overvoltage and under-voltage. These drives require a proper power supply to work efficiently, as control panels in electric drives can vary the frequency only when they receive a fixed voltage. To solve this issue, drives are integrated with harmonic mitigation devices. However, such devices increase the size and overall cost of drives. In addition, cooling facilities are required to regulate the heat and improve the performance of drives, leading to higher costs. The other factors that increase the cost of electric drives include customized requirements and raising the horsepower capacity of electric drives. Though electric drives provide better ROI over a long duration, end-users must make significant investments compared to the economical alternatives for motor control methods, such as throttling valves or hydraulic couplers, which are used with pumps to control the speed of pumping operations. The high cost is a major obstacle for end-users of electric drives. SMEs, due to the shortage of capital, resort to economical traditional methods. Although these traditional motor control methods are not energy-efficient, the high overall cost of implementing and maintaining electric drives tends to avert end-users from deploying electric drives.

This electric drives market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global electric drives market as a part of the global electrical components and equipment market within the global electrical equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the electric drives market during the forecast period.

Who are the Major Electric Drives Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

  • ABB Ltd.
  • Danfoss AS
  • Mitsubishi Electric Corp.
  • Nidec Corp.
  • Rockwell Automation Inc.
  • Schneider Electric SE
  • Siemens AG
  • Toshiba Corp.
  • WEG Equipamentos Eletricos SA
  • Yaskawa Electric Corp.

 

This statistical study of the electric drives market encompasses successful business strategies deployed by the key vendors. The electric drives market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The electric drives market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Electric Drives Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the electric drives market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of global electrical components and equipment market includes the following core components:

  • Inputs
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • Service
  • Support activities
  • Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Which are the Key Regions for Electric Drives Market?

Electric Drives Market Market segmentation by region

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37% of the market's growth will originate from APAC during the forecast period.  China and Japan are the key markets for electric drives in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The growing industrialization is one of the prime factors will facilitate the electric drives market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The market in the region witnessed various challenges due to the COVID-19 pandemic in 2020. India, Pakistan, Bangladesh, and China are some of the countries that have been affected by the pandemic in the region. For instance, according to the European Centre for Disease Prevention and Control, as of January 2021, the total number of COVID-19 cases in India reached 10.9 million. Some of the countries in the region have announced lockdown measurements, including stringent travel restrictions. The CAPEX on manufacturing activities and developments has been reduced as a result of a halt in operations and a reduction in demand. For instance, in February 2021, Auckland, New Zealand, entered a lockdown after the discovery of new cases of COVID-19. Hence, the closure of manufacturing units due to COVID-19 has affected the demand for electric drives in the manufacturing sector, which, in turn, can hinder the growth potential of the market in the region during the forecast period.Vendors are finding it difficult to cope up with high supply-demand fluctuation due to the COVID-19 pandemic. Electrical drive technology is indispensable in industrial production. It plays a key role in machines and plants for production and logistics processes. The use of mobile robots can help e-commerce companies focus on the express delivery of goods and services. Such developments are expected to provide high growth opportunities for vendors that are focused on automation through electric drives during the forecast period.

What are the Revenue-generating Product Segments in the Electric Drives Market?

Electric Drives Market Segmentation

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AC drives have simplified operations and provide higher efficiency compared with DC drives. Therefore, they are the most suitable devices to control motor movement in industries such as food and beverages, water and wastewater treatment, automotive, oil and gas, and others. Rising investments in these industries will support the growth of the market in this AC drives segment during the forecast period. Hence, the growth of the market segment will exhibit a fast growth rate during the forecast period.

Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the electric drives market size and actionable market insights on post COVID-19 impact on each segment.

 

Electric Drives Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 4.31%

Market growth 2021-2025

USD 4.88 billion

Market structure

Fragmented

YoY growth (%)

3.67

Regional analysis

APAC, Europe, North America, South America, MEA, APAC, Europe, North America, South America, and MEA

Performing market contribution

APAC at 37%

Key consumer countries

China, US, Germany, Japan, and UK

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

ABB Ltd., Danfoss AS, Mitsubishi Electric Corp., Nidec Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., WEG Equipamentos Eletricos SA, and Yaskawa Electric Corp.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period

Customization purview

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What are the Key Data Covered in this Electric Drives Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive electric drives market growth during the next five years
  • Precise estimation of the electric drives market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the electric drives industry across APAC, Europe, North America, South America, MEA, APAC, Europe, North America, South America, and MEA
  • A thorough analysis of the market's competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of electric drives market vendors

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1 Executive Summary

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 01: Parent market
  • 2.2 Market characteristics
    • Exhibit 02: Market characteristics
  • 2.3 Value chain analysis
    • Exhibit 03: Value chain analysis: Electrical components and equipment market

3 Market Sizing

  • 3.1 Market definition
    • Exhibit 04: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis
    • Exhibit 05: Market segments
  • 3.3 Market size 2020
    • 3.4 Market outlook: Forecast for 2020 - 2025
      • Exhibit 06: Global - Market size and forecast 2020 - 2025 ($ million)
      • Exhibit 07: Global market: Year-over-year growth 2020 - 2025 (%)

    4 Five Forces Analysis

    • 4.1 Five forces analysis
      • Exhibit 08: Five forces analysis 2020 & 2025
    • 4.2 Bargaining power of buyers
      • Exhibit 09: Bargaining power of buyers
    • 4.3 Bargaining power of suppliers
      • Exhibit 10: Bargaining power of suppliers
    • 4.4 Threat of new entrants
      • Exhibit 11: Threat of new entrants
    • 4.5 Threat of substitutes
      • Exhibit 12: Threat of substitutes
    • 4.6 Threat of rivalry
      • Exhibit 13: Threat of rivalry
    • 4.7 Market condition
      • Exhibit 14: Market condition - Five forces 2020

    5 Market Segmentation by Product

    • 5.1 Market segments
      • Exhibit 15: Product - Market share 2020-2025 (%)
    • 5.2 Comparison by Product
      • Exhibit 16: Comparison by Product
    • 5.3 AC drives - Market size and forecast 2020-2025
      • Exhibit 17: AC drives - Market size and forecast 2020-2025 ($ million)
      • Exhibit 18: AC drives - Year-over-year growth 2020-2025 (%)
    • 5.4 DC drives - Market size and forecast 2020-2025
      • Exhibit 19: DC drives - Market size and forecast 2020-2025 ($ million)
      • Exhibit 20: DC drives - Year-over-year growth 2020-2025 (%)
    • 5.5 Market opportunity by Product
      • Exhibit 21: Market opportunity by Product

    6 Market Segmentation by End-user

    • 6.1 Market segments
      • Exhibit 22: End user - Market share 2020-2025 (%)
    • 6.2 Comparison by End-user
      • 6.3 Process industry - Market size and forecast 2020-2025
        • Exhibit 24: Process industry - Market size and forecast 2020-2025 ($ million)
        • Exhibit 25: Process industry - Year-over-year growth 2020-2025 (%)
      • 6.4 Discrete industry - Market size and forecast 2020-2025
        • Exhibit 26: Discrete industry - Market size and forecast 2020-2025 ($ million)
        • Exhibit 27: Discrete industry - Year-over-year growth 2020-2025 (%)
      • 6.5 Market opportunity by End-user
        • Exhibit 28: Market opportunity by End-user

      7 Customer landscape

      8 Geographic Landscape

      • 8.1 Geographic segmentation
        • Exhibit 30: Market share by geography 2020-2025 (%)
      • 8.2 Geographic comparison
        • Exhibit 31: Geographic comparison
      • 8.3 APAC - Market size and forecast 2020-2025
        • Exhibit 32: APAC - Market size and forecast 2020-2025 ($ million)
        • Exhibit 33: APAC - Year-over-year growth 2020-2025 (%)
      • 8.4 Europe - Market size and forecast 2020-2025
        • Exhibit 34: Europe - Market size and forecast 2020-2025 ($ million)
        • Exhibit 35: Europe - Year-over-year growth 2020-2025 (%)
      • 8.5 North America - Market size and forecast 2020-2025
        • Exhibit 36: North America - Market size and forecast 2020-2025 ($ million)
        • Exhibit 37: North America - Year-over-year growth 2020-2025 (%)
      • 8.6 South America - Market size and forecast 2020-2025
        • Exhibit 38: South America - Market size and forecast 2020-2025 ($ million)
        • Exhibit 39: South America - Year-over-year growth 2020-2025 (%)
      • 8.7 MEA - Market size and forecast 2020-2025
        • Exhibit 40: MEA - Market size and forecast 2020-2025 ($ million)
        • Exhibit 41: MEA - Year-over-year growth 2020-2025 (%)
      • 8.8 Key leading countries
        • Exhibit 42: Key leading countries
      • 8.9 Market opportunity by geography
        • Exhibit 43: Market opportunity by geography ($ million)

      9 Drivers, Challenges, and Trends

      • 9.1 Market drivers
        • 9.2 Market challenges
          • Exhibit 44: Impact of drivers and challenges
        • 9.3 Market trends

          10 Vendor Landscape

          • 10.1 Competitive scenario
            • 10.2 Vendor landscape
              • Exhibit 45: Vendor landscape
            • 10.3 Landscape disruption
              • Exhibit 46: Landscape disruption
            • 10.4 Industry risks
              • Exhibit 47: Industry risks

            11 Vendor Analysis

            • 11.1 Vendors covered
              • Exhibit 48: Vendors covered
            • 11.2 Market positioning of vendors
              • Exhibit 49: Market positioning of vendors
            • 11.3 ABB Ltd.
              • Exhibit 50: ABB Ltd. - Overview
              • Exhibit 51: ABB Ltd. - Business segments
              • Exhibit 52: ABB Ltd. – Key news
              • Exhibit 53: ABB Ltd. - Key offerings
              • Exhibit 54: ABB Ltd. - Segment focus
            • 11.4 Danfoss AS
              • Exhibit 55: Danfoss AS - Overview
              • Exhibit 56: Danfoss AS - Business segments
              • Exhibit 57: Danfoss AS – Key news
              • Exhibit 58: Danfoss AS - Key offerings
              • Exhibit 59: Danfoss AS - Segment focus
            • 11.5 Mitsubishi Electric Corp.
              • Exhibit 60: Mitsubishi Electric Corp. - Overview
              • Exhibit 61: Mitsubishi Electric Corp. - Business segments
              • Exhibit 62: Mitsubishi Electric Corp. – Key news
              • Exhibit 63: Mitsubishi Electric Corp. - Key offerings
              • Exhibit 64: Mitsubishi Electric Corp. - Segment focus
            • 11.6 Nidec Corp.
              • Exhibit 65: Nidec Corp. - Overview
              • Exhibit 66: Nidec Corp. - Business segments
              • Exhibit 67: Nidec Corp. – Key news
              • Exhibit 68: Nidec Corp. - Key offerings
              • Exhibit 69: Nidec Corp. - Segment focus
            • 11.7 Rockwell Automation Inc.
              • Exhibit 70: Rockwell Automation Inc. - Overview
              • Exhibit 71: Rockwell Automation Inc. - Business segments
              • Exhibit 72: Rockwell Automation Inc. – Key news
              • Exhibit 73: Rockwell Automation Inc. - Key offerings
              • Exhibit 74: Rockwell Automation Inc. - Segment focus
            • 11.8 Schneider Electric SE
              • Exhibit 75: Schneider Electric SE - Overview
              • Exhibit 76: Schneider Electric SE - Business segments
              • Exhibit 77: Schneider Electric SE – Key news
              • Exhibit 78: Schneider Electric SE - Key offerings
              • Exhibit 79: Schneider Electric SE - Segment focus
            • 11.9 Siemens AG
              • Exhibit 80: Siemens AG - Overview
              • Exhibit 81: Siemens AG - Business segments
              • Exhibit 82: Siemens AG – Key news
              • Exhibit 83: Siemens AG - Key offerings
              • Exhibit 84: Siemens AG - Segment focus
            • 11.10 Toshiba Corp.
              • Exhibit 85: Toshiba Corp. - Overview
              • Exhibit 86: Toshiba Corp. - Business segments
              • Exhibit 87: Toshiba Corp. – Key news
              • Exhibit 88: Toshiba Corp. - Key offerings
              • Exhibit 89: Toshiba Corp. - Segment focus
            • 11.11 WEG Equipamentos Eletricos SA
              • Exhibit 90: WEG Equipamentos Eletricos SA - Overview
              • Exhibit 91: WEG Equipamentos Eletricos SA - Business segments
              • Exhibit 92: WEG Equipamentos Eletricos SA – Key news
              • Exhibit 93: WEG Equipamentos Eletricos SA - Key offerings
              • Exhibit 94: WEG Equipamentos Eletricos SA - Segment focus
            • 11.12 Yaskawa Electric Corp.
              • Exhibit 95: Yaskawa Electric Corp. - Overview
              • Exhibit 96: Yaskawa Electric Corp. - Business segments
              • Exhibit 97: Yaskawa Electric Corp. – Key news
              • Exhibit 98: Yaskawa Electric Corp. - Key offerings
              • Exhibit 99: Yaskawa Electric Corp. - Segment focus

            12 Appendix

            • 12.1 Scope of the report
              • 12.2 Currency conversion rates for US$
                • Exhibit 100: Currency conversion rates for US$
              • 12.3 Research methodology
                • Exhibit 101: Research Methodology
                • Exhibit 102: Validation techniques employed for market sizing
                • Exhibit 103: Information sources
              • 12.4 List of abbreviations
                • Exhibit 104: List of abbreviations

              Research Framework

              Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

              TechnavioINFORMATION SOURCES

              Primary sources

              • Manufacturers and suppliers
              • Channel partners
              • Industry experts
              • Strategic decision makers

              Secondary sources

              • Industry journals and periodicals
              • Government data
              • Financial reports of key industry players
              • Historical data
              • Press releases
              Technavio

              TechnavioDATA ANALYSIS

              Data Synthesis

              • Collation of data
              • Estimation of key figures
              • Analysis of derived insights

              Data Validation

              • Triangulation with data models
              • Reference against proprietary databases
              • Corroboration with industry experts
              Technavio

              TechnavioREPORT WRITING

              Qualitative

              • Market drivers
              • Market challenges
              • Market trends
              • Five forces analysis

              Quantitative

              • Market size and forecast
              • Market segmentation
              • Geographical insights
              • Competitive landscape
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              Electric Drives Market market growth will increase by $USD 4.88 bn during 2021-2025.
              The electric drives market market is expected to grow at a CAGR of 4.31% during 2021-2025.
              Technavio has segmented the electric drives market market by product (AC drives and DC drives) ,end user (Process industry and Discrete industry) , and geography (APAC, Europe, North America, South America, and MEA).
              ABB Ltd., Danfoss AS, Mitsubishi Electric Corp., Nidec Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., WEG Equipamentos Eletricos SA, Yaskawa Electric Corp. are a few of the key vendors in the electric drives market market.
              APAC will register the highest growth rate of 37% among the other regions. Therefore, the electric drives market market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.
              The key factors driving the electric drives market market growth are:
              • increasing focus on automating manufacturing process es
              • Gradual recovery in oil and gas upstream activities
              The electric drives market market vendors should focus on grabbing business opportunities from the ac drives segment as it accounted for the largest market share in the base year.
              • What are the key global market and the regional market share?
              • What are the revenue-generating key market segments?
              • What are the key factors driving and challenging this market’s growth?
              • Who are the key market vendors and their growth strategies?
              • What are the latest trends influencing the growth of this market?
              • What are the variables influencing the market growth in the primary regions?
              • What are the factors influencing the growth of the parent market?
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              • Five-force market analysis

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