Europe Electric Drives Market Size

Europe Electric Drives Market Analysis

Europe Electric Drives Market is expected to register a CAGR of over 7% during the forecast period (2022 - 2027). Growing adoption of electric vehicles as a result of rigorous standards emission standards, combined with a government push to adopt EVs through grants and incentives for EV purchase, is expected to boost demand for smart electric drives in the coming years.

• Electric drives are one type of technology that provides a highly efficient manufacturing process at a low cost. Because electricity consumption is a major cost component across end-user industries, demand for electric drives is expected to rise significantly over the forecast period. Furthermore, increasing energy-saving awareness and stringent government regulations fuel the demand for electric drives in the studied region.
• Europe is a major player in the medium voltage AC drive market. Extra spending on sustainable and clean technologies for electricity production in the region, such as wind and solar, can be attributed to the region's regional dominance. Implementing strict rules to reduce GHG emissions from power generation facilities is an important factor that is likely to encourage using renewable energy sources in electricity production facilities.
• Intelligent motor management is being introduced to medium voltage drives as part of Industry 4.0 to provide critical information to the control system about process factors and drive health. Furthermore, the market is expected to benefit from the steady increase in related businesses. Software solutions make it easier and faster to integrate medium voltage AC drives into control systems.
• Government policies played a significant role in the promotion of electric vehicles in the European region. The results can be seen in many European countries, where electric cars have accounted for a sizable portion of the total vehicle population. For instance, according to IEA, electric car sales continued to increase in Europe, with an increase of more than 65% year-on-year the EV sales reached 2.3 million in 2021.
• The control panels in electric drives can alter the frequency only when they receive a fixed voltage. Hence, to work efficiently these electric drives require a proper power supply. To solve this issue, drives are often integrated with harmonic mitigation devices, which increases the size and overall cost of these drives.
• During the COVID-19 pandemic, major component manufacturers such as Bosch and ZF group announced the suspension of production due to lower demand, supply chain bottlenecks, and to protect the safety of their employees in France, Germany, Italy, and Spain. Manufacturers will likely adjust production to avoid bottlenecks and plan production based on demand from OEMs and tier 1 suppliers. However, with the increase in vehicle demand following the pandemic, manufacturers have adjusted their production planning to meet OEM demand.