APAC Electric Drives Market Size

APAC Electric Drives Market Analysis

The Asia Pacific electric drives market is expected to register a CAGR of 4.8% over the forecast period (2022-2027). Electric drives deliver a highly-efficient production process at a low cost. As electricity consumption is the major cost component across end-user industries, the demand for electric drives has increased considerably to gain an advantage over electricity consumption.

• The massive shifts in manufacturing due to Industry 4.0 and the acceptance of IoT to advance production, with technologies to achieve greater production capacity and output, have propelled the demand for the electric drives market. Also, the additional drive benefits such as minimized maintenance requirements and improved process control are the factors fueling adoption.
• The increasing usage of electric drives in the manufacturing processes and their automation across different industry verticals is boosting the demand. The growing need for greater output energy efficiency further strengthens the electric drive market.
• Furthermore, the automation in the industries of Japan and the development of Industrial version 4.0 is speeding up faster. Japan has emerged to become a manufacturing hub for factory automation products, supplying them to other regional markets in the Asia-Pacific region, making factory automation more affordable in the area.
• Several government initiatives in India, such as the Production Linked Incentive (PLI) schemes, announced that the electronics manufacturing and pharmaceuticals sectors could be usefully combined with the Section 65 scheme for added benefits. This resulted in the growth and expansion of manufacturing industries with the adoption of technology to cater to the market's demand. For instance, according to Goldman Sachs, new investment and order activities in the manufacturing industry in India have witnessed a 210% increase in FY 2022.
• Moreover, the made-in-China 2025 initiative to reduce China's dependence on foreign technology is helping the domestic manufacturing industry to strengthen their businesses and cater to a large market by expanding their businesses, adding up the demand for electric drives.
• The growth in industrialization has raised the demand for automated and motor-driven equipment that needs AC drives in the countries such as China, India, etc. However, the initial setup cost, maintenance, and presence of alternative options to Electric drives are the factors impeding the market's growth.
• The shutdown of factories and plants during the Covid-19 pandemic significantly impacted manufacturing facilities and decreased the demand for electric drives across different industry verticals such as oil & gas, construction machinery, and power generation. The pandemic has also highlighted the need for factory automation to replace labor to deal with a skilled labor shortage and avoid disruption in the workflow due to the unprecedented nature of the situation.