Supply chain issues, semiconductor shortages and the war in Ukraine continue to impact global markets.
January 23, 2023 – Strong sales in the Asia-Pacific region will drive the low-voltage AC drive market to approximately $14.2 billion in 2022, according to a new report. Much of this growth was driven by modernization opportunities across the region and stricter energy efficiency legislation. Order backlogs caused by the COVID-19 pandemic have driven industry growth over the past year, while most drive manufacturers are also reporting price increases in 2022, according to research from Interact Analysis. However, order volumes did not translate into increased sales in all cases, as supply chain issues impacted the ability of some suppliers to fulfill orders. The Low Voltage AC Motor Driver Market Report 2022 shows that prices for Low Voltage AC Motor Drivers began rising in the second half of 2021 and continued to rise in 2022, although the global average selling price (ASP) ensures a smooth transition to drives of lower power. The average increase in selling prices occurred mainly in the Americas (6.4%) and Europe, the Middle East and Africa (3.3%), while prices fell slightly in the Asia-Pacific region (-0 ,5%). Meanwhile, unit sales growth was in line with revenue growth despite extended COVID-19 shutdowns in China, the biggest driving market, driven by a backlog of orders and a strong 4.4% rise in industrial production. In 2022, sales in Japan also showed strong growth of 4.2%. However, growth was more modest in the Americas (1.8%), and despite strong demand, sales in the EMEA region declined as supply chain issues and the impact of the war in Ukraine, especially electricity costs affected industrial production volumes. and transactions Delivery speed. The global semiconductor shortage will continue to weigh on the low-voltage driver market in 2022, impacting sales and pushing power module prices to “impressive” levels while components are fully available. Some suppliers have been forced to turn to the gray market, where prices for some semi-finished products have skyrocketed from US$2-3 per unit to US$40-50. This has led to major price fluctuations, and the problem looks set to continue as although microcontroller supplies have dwindled, power supplies remain hard to come by. By 2027, revenue in the Americas region is expected to grow at a CAGR of 2.8% over the forecast period, but growth will moderate as prices slow and the trend toward decentralized drive solutions accelerates. Asia-Pacific growth is expected to slow significantly in 2023 as the order backlog dries up, but ASP growth due to demand for high-end features looks set to begin accelerating in 2023 and 2024, resulting in projected revenue CAGR by 2027 will be 4.0%. , revenue in the EMEA region will grow at a CAGR of 2.2%, with growth in 2023 primarily the result of higher prices. Unit deliveries are expected to decline by -4.1% this year due to the ongoing European energy crisis and lower order backlog. Total sales are expected to grow steadily over the forecast period from 2022 to 2027, with Asia Pacific remaining the largest low-voltage AC drive market. Brianna Jackson, research analyst at Interact Analysis, commented: “In 2023, we forecast global ASP growth, with EMEA expected to grow 7.3% and slightly higher (0.4%) due to the war in Ukraine.” due to the growing demand for hard drives with advanced features. “Our view on prices has changed from the previous edition of the report: prices will continue to rise in 2022, but due to supply chain issues and semiconductor shortages, prices are still expected to take some time to stabilize in some regions. At the same time, our drive delivery estimates have been revised downward to reflect more realistic drive-to-motor rates and significant changes in product mix. “
This is the fifth edition of Interact Analysis’s highly regarded market report, providing information and analysis of the Low Voltage AC Drives market. In this report, we provide detailed market size and forecast data for Low Voltage AC Motors by form factor, industry, application, country and power rating. In addition to this analysis, we also perform a market share analysis for any supplier with more than 1% market share.
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Post time: Sep-14-2023