Energy efficiency regulations and rising electricity prices are also encouraging end users to implement electric drives in drive systems. Furthermore, manufacturers benefit from modular electric drives, which can be modified to include servomechanisms based on specific requirements. As a result, electric drives will be an unavoidable part of all manufacturing equipment by the end of 2018.
A new Frost & Sullivan analysis, "Opportunities in the European Electric Drives Market for Discrete Industries," estimates that the market generated $1.18 billion in revenue in 2013 and is projected to reach $1.41 billion by 2018. Western Europe and Scandinavia will account for a larger share of the demand for electric drives, while a significant portion of adoption in Eastern and Central Europe (ECE) will come from new installations.
“The automotive and transportation industries, as well as consumer packaged goods, can contribute significantly to market revenue in Europe,” says Krishna Raman, senior analyst at Frost & Sullivan in the industrial automation and process control area. “Servomotors are expected to be the fastest-growing product segment, with major applications in machine tools, electronics, communications, and packaging.”
However, the relocation of manufacturing plants to developing economies will limit the overall market potential in the region. The use of electric drives in the printing industry is also expected to decline due to the likely replacement of printing materials with electronic media.
The major challenge for vendors in Europe is communicating the value of electric drives to end users in a way that encourages them to invest in the product. Establishing a marketing strategy focused on the energy savings achieved through electric drives and centered around brand strengths will go a long way toward accelerating sales. Collaborating with local sales partners and independent distributors will also expand the customer base.
"While manufacturing growth in the EEC region will provide opportunities for Tier II and III vendors, success in this market will depend on companies' relationships with end-user and original equipment manufacturer headquarters, and their ability to provide after-sales support," Raman reiterated. "Therefore, existing Tier I companies have the advantage in the European electric drive market."
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