Research and Markets: Ability to Cut Energy Costs of Material Handling Equipment to Boost Uptake of Drive Solutions within the European Material Handling Industry

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/8d97ed/electric_drives_ma) has
announced the addition of Frost & Sullivan's new report "Electric Drives Market
in the European Material Handling Industry" to their offering.

This research service aims at providing a comprehensive analysis of the electric
drives market in the European Material Handling industry. The study is built on
the foundation of strong qualitative analysis along with quantitative analysis.
The study identifies the industry challenges and the major market drivers and
restraints for the forecast period after careful consideration of the current
market scenario. Based on a thorough understanding of the impact of currents
trends, the research service provides a perception of the market's future with a
listing of the trends with respect to market, technology and pricing.

Market Overview

Electric drives are increasingly being used to reduce the energy consumption of
material handling equipment. A growing number of drive manufacturers are
offering drives with more value-added features at lower prices, decreasing the
payback period of the customers' investment in drives. Such strategies are
fuelling the expansion of the electric drives market in the European material
handling industry. The most important need in material handling equipment is to
cut energy consumption due to spiralling energy costs. This has triggered the
need for energy-efficient solutions for equipment so that net energy consumption
falls. In this context, electric drives are gaining acceptance as the most
cost-effective solution to combat increasing energy costs.

"The mounting demand for intelligent and flexible drive systems is propelling
the sales of drives," notes the analyst of this research. "Heightened adoption
is also being supported by the growing demand for energy-efficient systems by
end users of material handling industry to combat rising energy costs." Some
European governments are offering incentives to organisations to install
energy-efficient systems in their production facilities. Growing awareness about
the advantages of using drives to conserve energy has fuelled uptake levels,
while encouraging demand for more effective drive solutions.

High Installation Costs act as Deterrent

The high installation costs associated with drives have resulted in end users
opting for inexpensive alternate technologies. Furthermore, end users are
reluctant to invest in new material handling machinery, as it is expensive. Old
systems tend either to be repaired or refurbished. The lack of new systems is
restricting the number of buyers for drives, thereby slowing down the growth of
the drives market and investment in new technology. The material handling
industry finds maximum application for electric drives with power ratings of
less than 22 kW. This is resulting in intensifying competition for low-power
electric drives. The pressure on manufacturers in this industry is high as there
is limited scope for profitability for drives with power ratings below 22 kW.
The dearth of OEMs, who form a major segment of the distribution channel, has
also dampened market growth.

"End users have been opting for low-cost technologies due to the high
installation cost of drives," remarks the analyst of this research. "However,
the reduction of prices due to intensifying competition will widen the potential
end-user base." Drive manufacturers should invest in R&D and devise solutions
that will enable them to offer drives at a lower price and with more value-added
features. Customised drives for specific solutions and for particular industries
could be some of the effective strategies that drive manufacturers can adopt to
expand the market. "The onus is on large manufacturers to differentiate
themselves from the competition," concludes the analyst of this research. "They
can achieve this by offering cost advantages on their electric drives."

Market Sectors

This report examines the following product sectors in this research:

* AC drives
* DC drives
* Servo drives

By Application:

* Loading equipment, lifting and transport equipment
* Storage equipment and retrieval system
* Automated handling equipment
* Robotics

Table of Contents:

* Executive Summary
* Summary of Major Findings
* Industry Challenges
* Forecast for Total Electric Drives Market in the European Material Handling
Industry
* Regional Analysis for Total Electric Drives Market in the European Material
Handling Industry

For more information visit
http://www.researchandmarkets.com/research/8d97ed/electric_drives_ma

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
Fax (USA): 646-607-1907
Fax (International): +353-1-481-1716

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