Market Challenges And Opportunities

Increasing demand for efficient power utilization and need to reduce energy losses is expected to boost growth of the market

To reduce the cost of electricity consumption, various organizations and industry participants are focused on investing in efficient industrial products and equipment. The need to limit the consumption of electricity without compromising the energy efficiency is expected to present considerable growth prospects for the low harmonic drives market players. Furthermore, the need to meet distinct and stringent regional regulatory compliances relating to efficient power consumptions is also expected to offer significant market growth. For instance, China’s 12-5 Plan, EPA Power Sector Regulations in the U.S., and Electricity Industry Act 2010 in New Zealand are among the few directives that are in place to regulate the electricity consumption. However, high switching costs for end users is expected to be the only challenge that will negatively impact the market growth over the forecast period.

Oil & Gas end-use industry segment held dominant position in the market in 2016

Increasing oil exploration activities such as shale related and offshore explorations are expected to boost demand for low harmonic drives, thereby adding in growth of the oil & gas end-use industry segment. Moreover, increasing focus on generation of renewable energy will present considerable growth prospects for the industry participants over the long run.

High utilization of gasoline in conjunction with low prices of pumps and relaxation in diesel and gasoline taxes in the Europe is expected to present considerable growth opportunities for the industry participants in the region. Moreover, increasing manufacturing activities in Asia Pacific is expected to boost growth of the market.