During the forecast period to 2028, a compound annual growth rate of 4% is expected, which is in line with expectations for the entire manufacturing economy.
The low-voltage AC drive market will exceed $14 billion in revenue in 2023, but growth in the first half of 2023 was driven by a large backlog of orders, with drive suppliers reporting a sharp decline in those orders in the second half. After years of rising average selling prices and unprecedented demand, the market has slowed significantly, growing just 2.7% in 2023.
This trend is expected to continue into 2024 as weak demand and downward pricing pressure push the market into a period of decline, with global revenue growth expected to be 0.3%. This applies to all three regions, with the exception of Asia Pacific (APAC), where China’s manufacturing economic growth is expected to outpace many other major regions – China is expected to account for 28 % of total drive market revenues.
Market volatility has decreased to a large extent in 2021 and 2022, which has impacted price movements. In 2023, average global selling prices decreased by -0.3% due to lower prices in the Asia-Pacific region.
Brianna Jackson, research analyst at Interact Analysis, explained that rising prices for many commodities pushed up hard drive selling prices in 2021 and 2022, but they are now down significantly from their 2022 peak. This has led to pressure from customers to reduce prices and we expect prices to continue to fall in 2024, with an expected decline of -1.5% for the year.
Interact Analysis analyst Vanessa Lopez took a closer look at the Siemens acquisition announcement. Over the past few years, Siemens has made a huge wave of sales and acquisitions. Most recently, the company sold several business units worth almost €3 billion to the newly created Innotics, which is currently up for sale.
The low voltage AC drive market is currently undergoing profound changes. Traditionally, drives have been viewed and sold as individual components, but the current needs of equipment manufacturers and end users require a more holistic view of drives as part of an overall system solution.
In her latest note, Interact Analysis analyst Vanessa Lopez breaks down the landscape and examines the top buyers who could acquire Innotics. This information is part of Interact Analysis’ annual report on the low voltage AC motor market.
After double-digit revenue growth in 2022, the low-voltage AC motor market will slow down significantly in 2023. Despite the positive dynamics, the market showed modest revenue growth of 4.2% during the year. Compared to growth of 21.5% and 16.4% in 2021 and 2022, respectively, the growth rate of 4.2% indicates a significant slowdown in the market.
Global market research company Interact Analysis recently made some changes to its forecast for global manufacturing prospects. The outlook for global production is grim and looks likely to persist into 2024 and early 2025, according to the company’s latest research.
Interact Analysis has been involved in motors and drives since its inception. In the AC motors and drives market, low voltage typically refers to voltages less than 690 V. In last year’s annual study of the low voltage AC motor market, we noticed a common term being “ultra-low voltage.”
Post time: Jul-08-2024