Market Trends of Servo Drives Industry
This section covers the major market trends shaping the Servo Drives Market according to our research experts:
Discrete Manufacturing is Expected to Grow Significantly
- Servo drives find robust applications across the discrete manufacturing industry, which deals with the mass production of automobiles, aircraft, defense equipment, electronic products, semiconductors, and textiles.
- The UK government passed the law in 2019 to reduce greenhouse gas emissions to net-zero by 2050, and the green industrial revolution initiative pledges to stop the sale of fossil fuel vehicles by 2030, which could boost the adoption of electric cars creating the demand for servo motors and hence for the servo drives.
- The spending on manufacturing and R&D has increased, with the annual investments in the EU region in the past few years by the major players of different industries. For instance, in March 2022, Intel announced the first phase of its plan to invest EUR 80 billion in the EU over the next decade along the entire semiconductor value chain from research and development (R&D) to manufacturing to state-of-the-art packaging technologies. The growth in the manufacturing operations is expected to create a wide scope for the market.
- Furthermore, the rising industrialization, infrastructure activities, and oil & gas industry growth in developing countries of the Asia Pacific region is likely to dominate the demand for servo drives. In addition, the worldwide population is growing at an exponential rate, has led to urbanization over the last decade, and raised the demand for products and services across various industry verticals; as a result, industrialization is rising.
- Moreover, the government of India approved the PLI scheme for 16 plants in the pharmaceutical industry. Establishing these 16 plants would result in a total investment of USD 47.01 million. The commercial development of these plants is expected to begin by April 2023. Also, the government announced USD 1 billion to each semiconductor company to establish manufacturing units in the country.
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Asia Pacific is Anticipated to Hold Significant Share
- China is witnessing growth in the adoption of robotic process automation, owing to the growing adoption of automation technologies in Asia-Pacific. The region is an essential market for boosting robotic adoption and AI development. Also, several local businesses in the countries like China and India have started implementing automation journeys to manage costs and improve business value.
- The energy concern in the region is also increasing the adoption of servo drives & motors and stimulating many industries to develop technologically advanced energy-efficient devices, hence further driving the servo drives growth. For instance, according to the International Energy Agency (IEA) report 2022, the electricity demand in 2021 is increased by 8% from a low of 2% in 2020 in the Asia Pacific region and mostly driven by China and India up by around 10%.
- The control systems in the region have emerged across various fields, like the energy, oil and gas, transportation, water, and municipal sectors. Due to the deep integration of information technology and industry and the rapid development of the Internet of Things, the networked control system is becoming the development trend of industrial automation in countries.
- Furthermore, India is another country that offers vast potential for the studied market vendors. The country is a newly industrialized landscape due to increasing investment in advanced technologies, becoming a preferred manufacturing hub. For instance, the Indian government plans to boost domestic production of chemicals and petrochemicals to cut down imports and make India a manufacturing hub for the sector, expected to create the demand for servo forgives in the forecast period.
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