Darnell Publishes Integral Horsepower Motor Drives Report

May 18, 2000 by Jeff Shepard

As the dc integral horsepower (IHP) motor drive market shrinks in favor of ac drives, drive manufacturers are being forced to determine whether or not to remain in the market. This trend and more are discussed in the new Darnell Group (Corona, CA) report, "Integral Horsepower Motor Drives: Global Market Forecasts and Competitive Environment."

Worldwide IHP drive dollar sales are projected to grow from nearly $6.5 billion in 2000 to approximately $8.5 billion in 2005. This 111-page report identifies the key markets for both ac drives and dc drives, providing detailed forecasts for all segments of this market, including worldwide, Asian, European and North American geographical regions. Five-year forecasts are given for dollar sales, with unit sales and pricing included for the overall ac drive and dc drive markets.

Both ac and dc IHP drive prices are expected to decrease over the next five years, with ac motor drive systems becoming increasingly price competitive, and with dc systems at the lower horsepower ranges. Unit sales growth in the ac IHP drive market will outpace revenue growth between 2000 and 2005, as prices continue to decline. Manufacturers are reluctant to invest in new ac systems, ensuring the survival of the dc market in certain markets.

The application segments in this report include Compressors, Converting, Elevators, Extruding, Flow and Pumps, Heating and Drying, HVAC and Fans, Material Handling, Metal Fabrication, Mixing, Molding, Packaging, Strip Forming, Test Stands, Web Handling, and Other for ac drives; and Converting, Material Handling, Web Handling, Machine Control and Other for dc drives. Horsepower forecasts for ac drives include 1-5HP, >5-250HP, and >250HP; for dc drives, horsepower forecasts are given for 1-5HP and >5HP.

A Competitive Environment chapter profiles the top IHP drive manufacturers in each geographical region. Competitors in the IHP drive market are selling their drives globally and are not content to just compete in their respective home markets. Many manufacturers are realizing that their energies are best spent pursuing the growing ac market and ceding the shrinking dc market to smaller niche players.