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Energy-savings and Improved Process Performance Benefits Trigger Extensive Adoption of Low-voltage Drives in Latin America - New analysis from Frost & Sullivan, Latin American Low-voltage Drives Markets, finds that market earned revenues of $223.1 million in 2006 and estimates this to reach $359.5 million in 2012
Energy-savings and Improved Process Performance Benefits Trigger Extensive Adoption of Low-voltage Drives in Latin America

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2007/11/19 - New analysis from Frost & Sullivan, Latin American Low-voltage Drives Markets, finds that market earned revenues of $223.1 million in 2006 and estimates this to reach $359.5 million in 2012.

   
 
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Increasing awareness of its ability to save energy and enhanced production process performance benefits among end-users is powering the demand for low-voltage drives in Latin America. As countries in this region are falling short of energy infrastructure and lack investments cause frequent blackouts, companies across all verticals are increasingly adopting low-voltage drives to reduce energy costs.

New analysis from Frost & Sullivan, Latin American Low-voltage Drives Markets, finds that market earned revenues of $223.1 million in 2006 and estimates this to reach $359.5 million in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants with an overview of the Latin American Low-voltage Drives Markets, then send an email to José María Jantus, Corporate Communications, at jose.jantus[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

Complex applications in many industries including heavy commodities exporters are increasingly using low-voltage drives as a way to gain efficiency, mainly for mid-range and high-end drives. Hence, increasing industry awareness of high-end segments furthers progressive adoption of low-voltage drives.

"At present, low-voltage DC drives are used mainly by the more traditional industrial segments such as wire and conductors factories, metal industries, cement companies, agriculture, and pulp and paper companies in countries such as Mexico and Argentina," say Frost & Sullivan Industry Analyst, Alejandra Etcharrán. "Although end-users are expected to begin migrating to AC technology, low-voltage DC drives are still required for the replacement or performance improvement of older machines by companies that are yet not willing to invest in updating their infrastructure and acquiring AC motors."

There has been promising sales in the Latin American low-voltage drives market with the great majority of units sold being micro drives, mainly due to its affordable prices and short life-cycle. In 2006, the low-end segment contributed substantially with a large parcel of total units sold.

However, increasing competition has resulted in price reduction, especially in the micro and low-end drives. The presence of a local manufacturer that benefits from tax exemption, WEG, and the decreasing exchange rates pressure prices downward. Moreover, participation of Asian companies is further intensifying competition. As a result, prices among competitors have become similar making it hard for companies to profit from sales.

In addition, political and economic instabilities inherent to the region are likely to postpone infrastructure investments of companies.

"Participants can benefit from concentrating their efforts toward the mid-range and high-end segments that are expected to have higher growth rates," explains Etcharrán. "They must aim at developing specialized portfolios and specific solutions for each vertical, selling the whole solution including equipment other than drives."

As end-users are greatly demanding local technical support for repairing broken equipment or solving malfunctions, participants can also strengthen their position in the market by offering faster response and improved technical support to end-users, which will help achieve higher customer loyalty.

"The low-voltage drives market in Latin America is also witnessing another trend, whereby companies are striving for large contracts and dominance by verticals through strategic marketing and distribution campaigns", notes Etcharran.

As market participants do not cover all countries, distributors play an important role in the market and most companies implement regular training and seminars for their distributors to assure the best client support. This helps achieve better branding and aids in sustaining market shares.

Latin American Low-voltage Drives Markets is part of the Growth Partnership Service program, which also includes research in the following markets: Distributed Control Systems, Programmable Logic Controllers, Advance Process Control & Simulation, Lasers, Robotics, Welding, Machine Tools, and Bearings market sectors. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Energy-savings and Improved Process Performance Benefits Trigger Extensive Adoption of Low-voltage Drives in Latin America

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Publisher Contact: José María Jantus 
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