Revenues for variable frequency drives (VFDs) showed a flat growth rate (0.3% CAGR) from 2011 to 2013, according to IHS. European countries have been cautious to invest. Export demand from Asia Pacific has provided minimal incentives to invest. Unit shipments have increased slightly over the same time frame (at 2.6% CAGR), with lower-priced VFD sales accelerating marginally.
Although market revenues did not significantly increase in 2013, indications for 2014 suggest investment sentiment has improved, which is expected to lead to accelerated growth in upcoming years.
"After several years of a repressed economic environment, Europe’s process markets will recover towards the end of 2014," said IHS analyst Kevin Schiller. "In addition, the upcoming Energy-related Products Directive deadline in 2015 will spur additional growth in the European variable frequency drives market.”
As process markets improve in Europe, growth will recover in VFD markets, which will in turn lead to a recovery in premium drives sales. With the exception of Japan, economic activity is expected to accelerate for all major countries through 2016. IHS projects that gradual increases in global economic activity will pick up, to 2.9% in 2014 and 3.5% in 2015.
to Daily News