AC Technology Anticipated to Boost Sales in Variable Speed Drives Market.

LONDON--(BUSINESS WIRE)--Dec. 3, 1996--Continued development and strong advances in AC technology can be expected to lead to a significant increase in orders from both traditional fixed-speed applications as well as other sectors of the variable speed drives market.

The severity and unexpected length of the recession in Europe as well as more limited interest in many important end-user sectors resulted in a prolonged decline in overall demand for many types of variable speed drives.

The market as a whole was further affected by the maturity of the technology in certain sectors, which were actively declining in both volume and value; however, the variable speed drives industry has now staged a recovery.

According to a report by international marketing consultant Frost & Sullivan, the primary factors behind market growth are expected to be strong demand in the electrical AC sector, with continued technological innovation resulting in high quality drives offering improved performance, reliability and control.

Frost & Sullivan adds that rising demand for hydraulic variable speed drives, which will also extend their scope of application, is anticipated to lead to rising revenues. New and improved designs, more competitive prices and increased customer understanding of the scope and application of AC technology are further factors expected to fuel continued rises in revenues.

Rising interest across the Continent in many important end-user sectors, including the important HVAC, water, food and beverage, chemicals and power markets, contributes to the improving market climate. Variable speed drives can be expected to expand their overall scope of application and continue to be utilized in a wide range of industrial fields.

According to Dr. Lia Paschalidou, the European market for variable speed drives is expected to rise from its 1995 level of US$1.78 billion to US$2.23 billion by the end of the study period, 2002. However, the overall increase will be limited by the continued decline of the electrical DC and mechanical sectors.

The product market is dominated by electrical AC drives, estimated to have been worth US$906.0 million in 1995 and predicted to reach US$1,508.7 million by the end of the study period in 2002. This sector is expected to strengthen its leading position in the market as AC drives expand their overall scope of application into many fields and gain orders from customers that traditionally used alternative variable speed drives.

Ranking second is the electrical DC drives market, expected to experience an accelerated decline from US$473.1 million in 1995 to US$332.4 million by the year 2002. This is followed by mechanical and hydraulic drives, valued in 1995 at US$247.5 million and US$153.7 million, respectively. Mechanical variable speed drives are expected to see limited interest, with the overall maturity of the technology and an accelerated switch to electrical drives reducing customer demand on an annual basis.

Companies participating in this market include: ABB Industry Oy, ABM Greiffenberger Antriebstechnik GmbH, Adan Ltd, Aerotech Ltd, A Friedrich Flender AG, Alldales Drive Systems, Allen-Bradley, Allgaier-Werke KG, Amir Power Transmission Ltd, Ansaldo Industria SpA, AOIP Instrumentation, Baldor UK Ltd, Baumller Nrnberg GmbH, Bevi, Bonfiglioli Riduttori SpA, Brevini SpA, Brook Hansen Belgium, Brush Electrical Machines Ltd, Carlo Gavazzi GmbH, Cegelec, CGE SpA, Control Techniques, Danfoss A/S, Denison Hydraulics (UK) Ltd, Eberhard Bauer GmbH & Co, Elettronica Santerno SpA, Elpro Leit- und Energietechnik GmbH, Emotron AB, Engel GmbH, Eurotherm Drives Ltd, Fenner Power Transmission United Kingdom, Fluidrive Engineering Company Ltd, GE Fanuc Automation Europe SA, Getriebebau Nord, Ghirri Motoriduttori, G W Potts (Electrical) Ltd, Hgglunds Drives AB, Heenan Drives Ltd, Hill Graham Controls Ltd, Holec, HMK & Elgo, IMO Precision Controls Ltd, JM Voith GmbH, Klckner Moeller GmbH, Laurence Scott & Electromotors Ltd, Lenze GmbH & Co KG, Leroy Somer Ltd, Loher AG, Mannesmann Demag Frdertechnik AG, Mannesmann Rexroth GmbH, Maschinenfabrik Paul Pleiger Gmbh & Co KG, Mazorati Tecnica Industriale SpA, Mitsubishi Electric UK Ltd, Motovario SpA, OMRON Electronics BV, Papst-Motoren GmbH & Co KG, PIV GmbH, Poclain Hydraulics, Powerpak Ltd, Powertronic Drive Systems, Reliance Electric (UK) Ltd, Renold Gears, Robert Bosch GmbH, Rockwell Automation BV, Rossi Motoriduttori SpA, Sauer- Sundstrand Ltd, Scandialogic AB, Schneider Elektrotechnik GmbH, SEW-Eurodrive GmbH & Co, SIEB & MEYER Elektronik GmbH, Siemens AG Drives and Standard Products, Simplatroll Ltd, SITI SpA, SKF Engineering Products Ltd, Sprint Electric Ltd, Stromag AG, Sturm Drives Ltd, Telemecanique Groupe Schneider, Theo Halter GmbH, Toshiba International (Europe) Ltd, Transfluid Srl, and Vaasa Control Ltd.

Frost & Sullivan is an international marketing consulting company that monitors the semiconductors industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications and to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.

Code: 3289-26 Publication Date: March 1996 Price: $3950

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