PRN: Electric Drives: European Repairs and Refabrication Market Fuelled by Advanced Services at Reasonable Prices, Says Frost & Sullivan
Electric Drives: European Repairs and Refabrication Market Fuelled by Advanced Services at Reasonable Prices, Says Frost & Sullivan
- Increasing awareness on the benefits of drives servicing and newer methods attract end users in process industries
LONDON, Aug. 8, 2012 /PRNewswire/ -- The demand for high efficiency - along with the need to reduce energy consumption - is driving growth in the repairs and refabrication market for electric drives in Europe. However, growth will be slow in the short term owing to economic instability, decreased end user confidence and the ongoing debt crisis.
New analysis from Frost & Sullivan (http://www.motors.frost.com), Repairs and Refabrication Market for Electric Drives, finds that repairs and refabrication of electric drives is likely to account for about 1/3 of the revenues generated by sales of electric drives to various end users across Europe. The market accounted for about â¬599.5 million in 2011, increasing by 5.7% in 2011 after experiencing fall in demand in 2010. Revenues are estimated to reach â¬940.3 million in 2018.
The shift from traditional servicing methods to predictive and preventive maintenance techniques allows service providers to take measures to avert malfunction or minimize its effect and downtime. These technologies are progressively being made available at a reasonable price, thus attracting end users.
"The implementation of more complex manufacturing processes, together with the increasing focus on improving plant profitability and reducing downtime, are expected to continue steering the European drives services market," says Frost & Sullivan Research Analyst Ramasubramanian Natarajan. "The energy saving potential of electric drives increases with regular corrective and predictive maintenance and ensures reduced down time and increased profitability."
Repairs and maintenance needs accounted for about 40% of the total servicing demands in 2011. Customised servicing packages and rising customer awareness of the potential benefits of regular servicing, combined with further technological advancements in repair and refabrication procedures and more competitive price levels, should all contribute to increase the demand for drives services in the future. However, it is likely that the demand for value-added services - such as technical consulting and total drives management - will gain importance over the long term.
On the other hand, the fragmented nature of the drives' repairs and refabrication industry reins in the pace of growth. Neither manufacturers nor private service providers of drives hold a considerable customer base or have effective supply chain management. The looming shortage of skilled labour willing to work for field/site related applications could also reduce the ability to meet servicing demands.
In addition, the cost gap between servicing of an older drive system and purchasing a new advanced one is also reducing year on year. End users may therefore opt to replace the older drives with new advanced ones at little extra cost premiums rather than spending on the repair of old drive units.
An effective supply chain management and collaborative approach between large drives manufacturers and service providers operating locally with niche markets will also work out for mutual benefit. The shift towards advanced technologies of servicing and availability of these technologies at a reasonable price may help increase adoption levels and bolster future market growth.
"Increased awareness of the potential benefits of servicing - such as reduced down time and improved and regularized efficiency levels - has helped the adoption of advanced maintenance technologies across varied applications," concludes Ramasubramanian. "For instance, the trend towards electric vehicles manufacturing is likely to attract large investments in drives servicing, particularly in the automotive sector."
If you are interested in more information on this study, please send an email with your contact details to Anna Zanchi, Corporate Communications, at email@example.com.
Repairs and Refabrication Market for Electric Drives is part of the Power Transmission Growth Partnership Service programme, which also includes research in the following markets: Electric Drives Market in European Packaging Industry, European Market for Integrated Motors and Drives, Electric Drives in European HVAC industry, European Gearbox and Gear Motors Market, among others. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?