Market Size of APAC Electric Drives Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 4.70 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
APAC Electric Drives Market Analysis
The Asia Pacific electric drives market is expected to register a CAGR of 4.8% over the forecast period (2022-2027). Electric drives deliver a highly-efficient production process at a low cost. As electricity consumption is the major cost component across end-user industries, the demand for electric drives has increased considerably to gain an advantage over electricity consumption.
- The massive shifts in manufacturing due to Industry 4.0 and the acceptance of IoT to advance production, with technologies to achieve greater production capacity and output, have propelled the demand for the electric drives market. Also, the additional drive benefits such as minimized maintenance requirements and improved process control are the factors fueling adoption.
- The increasing usage of electric drives in the manufacturing processes and their automation across different industry verticals is boosting the demand. The growing need for greater output energy efficiency further strengthens the electric drive market.
- Furthermore, the automation in the industries of Japan and the development of Industrial version 4.0 is speeding up faster. Japan has emerged to become a manufacturing hub for factory automation products, supplying them to other regional markets in the Asia-Pacific region, making factory automation more affordable in the area.
- Several government initiatives in India, such as the Production Linked Incentive (PLI) schemes, announced that the electronics manufacturing and pharmaceuticals sectors could be usefully combined with the Section 65 scheme for added benefits. This resulted in the growth and expansion of manufacturing industries with the adoption of technology to cater to the market's demand. For instance, according to Goldman Sachs, new investment and order activities in the manufacturing industry in India have witnessed a 210% increase in FY 2022.
- Moreover, the made-in-China 2025 initiative to reduce China's dependence on foreign technology is helping the domestic manufacturing industry to strengthen their businesses and cater to a large market by expanding their businesses, adding up the demand for electric drives.
- The growth in industrialization has raised the demand for automated and motor-driven equipment that needs AC drives in the countries such as China, India, etc. However, the initial setup cost, maintenance, and presence of alternative options to Electric drives are the factors impeding the market's growth.
- The shutdown of factories and plants during the Covid-19 pandemic significantly impacted manufacturing facilities and decreased the demand for electric drives across different industry verticals such as oil & gas, construction machinery, and power generation. The pandemic has also highlighted the need for factory automation to replace labor to deal with a skilled labor shortage and avoid disruption in the workflow due to the unprecedented nature of the situation.
APAC Electric Drives Industry Segmentation
The electric drive is the electromechanical system that controls the motion of the electrical machines and mechanisms and process control applications. Electric drives are generally used for the speed control applications such as machine tools, mills, robots, motors, etc. Asia Pacific Electric Drives Market is segmented By Type (AC Drives, DC Drives, Servo Drives), By Voltage (Low, Medium), By End-user Industry (Oil & Gas, Chemical & Petrochemical, Food & Beverage, Water & Wastewater, Power Generation, Metal & Mining, Pulp & Paper, HVAC, Discrete Industries) and Country.
By Type | |
AC Drives | |
DC Drives | |
Servo Drives |
By Voltage | |
Low | |
Medium |
By End-user Industry | |
Oil & Gas | |
Chemical & Petrochemical | |
Food & Beverage | |
Water & Wastewater | |
Power Generation | |
Metal & Mining | |
Pulp & Paper | |
HVAC | |
Discrete Industries | |
Other End-user Industries |
By Country | |
China | |
India | |
Japan | |
South Korea | |
Australia and New Zealand | |
Rest of Asia-Pacific |
APAC Electric Drives Market Size Summary
The Asia Pacific electric drives market is experiencing significant growth, driven by the increasing demand for efficient and cost-effective production processes across various industries. The adoption of Industry 4.0 and IoT technologies has further propelled this demand, as these innovations enhance production capacity and output. Electric drives offer benefits such as reduced maintenance and improved process control, making them increasingly popular in manufacturing automation. Countries like Japan are leading in factory automation, supplying affordable solutions to the region, while initiatives in India and China are boosting domestic manufacturing and reducing reliance on foreign technology. Despite challenges like high initial setup costs and alternative options, the market continues to expand, supported by government initiatives and economic recovery in major economies.
The demand for electric drives is also fueled by the need for energy efficiency in power generation and industrial automation. The pandemic highlighted the importance of automation to mitigate labor shortages and maintain workflow continuity. As electricity demand rises in China and India, investments in power infrastructure and capacity expansion are expected to drive further growth. China's focus on industrial robots and control systems, along with its aim to double manufacturing robot density, underscores the region's commitment to modernization and automation. The market is characterized by intense competition among regional and international players, with ongoing mergers, acquisitions, and product innovations enhancing market presence and technological advancement.
APAC Electric Drives Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 AC Drives
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2.1.2 DC Drives
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2.1.3 Servo Drives
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2.2 By Voltage
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2.2.1 Low
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2.2.2 Medium
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2.3 By End-user Industry
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2.3.1 Oil & Gas
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2.3.2 Chemical & Petrochemical
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2.3.3 Food & Beverage
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2.3.4 Water & Wastewater
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2.3.5 Power Generation
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2.3.6 Metal & Mining
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2.3.7 Pulp & Paper
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2.3.8 HVAC
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2.3.9 Discrete Industries
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2.3.10 Other End-user Industries
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2.4 By Country
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2.4.1 China
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2.4.2 India
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2.4.3 Japan
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2.4.4 South Korea
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2.4.5 Australia and New Zealand
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2.4.6 Rest of Asia-Pacific
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APAC Electric Drives Market Size FAQs
What is the current APAC Electric Drives Market size?
The APAC Electric Drives Market is projected to register a CAGR of 4.70% during the forecast period (2024-2029)
Who are the key players in APAC Electric Drives Market?
Danfoss, Rockwell Automation, Schneider Electric, Nidec Corporation and TMEIC are the major companies operating in the APAC Electric Drives Market.