Home > Energy, Mining, Oil & Gas > Middle East & Africa Low Voltage Drives Market
Industry Trends
Middle East & Africa Low Voltage Drives Market size was valued at over USD 500 million in 2020 and is set to grow at a CAGR of over 6% through 2027. The growing infrastructural spending owing to rapid urban & industrial development has increased the demand for electricity capacity expansion. Network reliability, reduction in the overall maintenance, equipment longevity, energy consumption, and generation along with supply costs are some of the key parameters stimulating the installation of low voltage drives.
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An upsurge in the demand for continuous and reliable power supply to meet the ever-increasing consumption of electricity will strengthen the business growth. Growing opportunities for new integrated power & control systems along with the stabilization of global economic growth and increasing aim of manufacturers toward cost-competitiveness will continue to drive the product demand.
| Report Coverage | Details |
|---|---|
| Base Year: | 2020 |
| Market Size in 2020: | 452.45 Million (USD) |
| Forecast Period: | 2021 to 2027 |
| Forecast Period 2021 to 2027 CAGR: | 6.2% |
| 2027 Value Projection: | 733.45 Million (USD) |
| Historical Data for: | 2017 to 2020 |
| No. of Pages: | 300 |
| Tables, Charts & Figures: | 489 |
| Segments covered: | Power Range, Capacity, Drive, Technology, System, Application, End-Use |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Escalating energy demand along with shifting focus toward energy savings to drive the market trends of DC low voltage drives
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The Middle East & Africa low voltage drives market from DC drives is projected to rise over USD 174 million by 2027. Key product features including higher efficiency, operator-friendly, cost-effective, and easy implementation will drive the demand for DC drives. These drives are power modulators or amplifiers, which integrate DC motors and controllers. Increasing adoption across high power, regenerative, and other industrial applications will influence the product adoption. Expanding manufacturing base across the developing nations in the region will boost the industry outlook.
Growing demand for efficient drives from the automotive sector will boost the system deployment
The Middle East & Africa LV drives market from automotive sector is anticipated to grow at a CAGR of over 6% between the period 2021 and 2027. Rising requirements for customer-centric solutions are enabling a convenient & integrated mode of transport, which will strengthen the business scenario. Factors including the growing middle-class population, changing customer preferences around ownership, the introduction of sustainability policies, and significant upcoming infrastructure developments have provided immense opportunities in the region, thereby augmenting the product demand.
Ongoing government investments to boost domestic manufacturing in the region along with devising plans and introducing incentives to establish regional automobile manufacturing hubs will drive the industry landscape. For instance, a leading publisher reported that the number of passenger cars in use in the GCC is projected to grow to 13.2 million in 2020 from an estimated 10.3 million in 2015.
Government focus on infrastructure spending in the GCC countries will positively sway the business trends
Growing requirements for infrastructure including transport and utilities coupled with the increasing youth population across GCC countries and inclined norms to deploy energy-efficient systems will fuel the business outlook. Ongoing investments in hard infrastructure comprising ports, roads, and electricity along with upcoming investments in social infrastructure catering to the young population will sway the industry potential. Rising demand to improve the quality of infrastructure on account of enhanced consumer spending will augment the MEA low voltage drives market statistics.
Governments across the region do not have sufficient funds to cope up with the surging demand for infrastructure development. Additional financing from the private sector along with the active involvement of governments in setting up privatization programs and creating PPPs will strengthen the industry landscape. Ongoing economic development programs including Saudi Arabia’s Vision 2030 and the UAE Vision 2021, among others will support the development of a diverse & sustainable economy.
Growing significance of energy conservation across the diverse application areas will drive the industry trends
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The Middle East & Africa low voltage drives market is witnessing a swift shift toward energy-saving potential along with a reduction in electricity bills. Technological advancements coupled with the introduction of regulatory norms & standards will lead to an upsurge in the demand for energy-efficient systems. Reduction of motor speed, efficient power, and electrical energy utilization will influence product installation across applications including fans and compressors, among others.
The growing demand for air compressors and pumps in the petrochemical industry utilized for production processes will complement the business scenario. These drives are also an effective tool to minimize operational costs and enhance the overall system performance.
Shifting focus toward alternative energy sources will boost the UAE market expansion
Reduced dependency on gas for electricity production along with low carbon footprint will stimulate the adoption of drives in the country. The country further is planning to achieve energy efficiency through smart cities initiative and introduction of advanced technologies to optimize energy usage. The favorable government regulations in line with increased R&D activities will stimulate the demand for low voltage drive system across the energy sector in the country.
The UAE holds a promising and robust automotive markets in the GCC due to low import tariffs, favorable tax regime, low fuel costs and high per capital disposable income. Growing presence of attractive finance and insurance options have increased the demand for passenger vehicles among the consumers. Ongoing initiatives toward adoption of highly efficient systems in the automotive industry will positively impact the business scenario.
Ongoing strategic partnerships along with contractual agreements to improve the industry presence of the players
Eminent players are improving system models & designs to optimize operations, reduce energy consumption, and improve energy efficiency. Favorable government standards pertaining to the establishment of green buildings along with the need for low maintenance devices will result in ground-breaking innovations in the industry. For instance, in January 2021, Rockwell Automation launched the Kinetix TLP servo motor along with the Kinetix 5100 servo drive. The products offer key advantages including built-in Safe Torque Off (STO), enabling operators to remove motor torque without detaching the power from the entire machine.
Industry participants functioning across the Middle East & Africa low voltage drives market include Hitachi Ltd., Danfoss, Beckhoff Automation, ABB, Siemens, WEG, Fuji Electric, Schneider Electric, Nidec Corporation, Mitsubishi Electric Corporation, Yaskawa Electric Corporation, Rockwell Automation, and Bosch Rexroth AG.
Players are inclined toward inorganic growth strategies such as collaborations and joint ventures, among others along with new product developments to enhance product penetration in the region. For instance, in 2021, WEG launched a decentralized drive package with geared motors and variable speed drives. The company offers drive technology that has a wide installation across indoor & outdoor applications.
Middle East & Africa low voltage drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘000 Units’ and ‘USD’ from 2017 to 2027, for the following segments:
By Power Range
- Micro Drives
- Low Drives
By Capacity
- < 2.2 kW
- 2.2 - 7.4 kW
- 7.5 - 22 kW
- 23 - 75 kW
- 76 - 110 kW
- 111 - 500 kW
- > 500 kW
By Drive
- AC
- DC
- Servo
By Technology
- Standard Drives
- Regenerative Drives
By System
- Open Loop
- Closed Loop
By Application
- Pump
- Fan
- Conveyor
- Compressor
- Extruder
- Others
By End-Use
- Oil & Gas
- Power Generation
- Food Processing
- Automotive
- Mining & Metals
- Pulp & Paper
- Textile
- Marine
- Others
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