Market Trends of Global Direct Current (DC) Electric Drives Industry
This section covers the major market trends shaping the Direct Current (DC) Electric Drives Market according to our research experts:
Oil & Gas Sector to Hold Significant Market Share
- The oil & gas sector is among the major consumer of DC electric drives as they offer excellent controlling capabilities. Controlling flow by adjusting speed avoids energy wasted in the throttling valves. With several large machines involved in the oil & gas sector, the electrical power savings may amount to thousands of dollars annually.
- According to Maxon Group, about 85 percent of the world's energy use is based on fossil fuel sources such as coal, oil, and gas. Furthermore, according to IEA, by 2026, global oil consumption is projected to reach 104.1 mb/d. Such trends are expected to support the growth of the studied market.
- The sector's growth is driving the demand for DC motors and, in turn, for DC drives. Maxon Group offers brushless DC motors for downhole and directional drilling. Furthermore, these motors are utilized in various drilling applications, hydraulic valve control, communication mechanisms, and measuring instrumentation.
- Furthermore, pipelines transport petroleum products from the extraction point to refineries and from refineries to demand areas. As DC drives control of the flow of petroleum products, the demand is expected to grow due to increased activities in the oil and gas industries globally.
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Asia Pacific to Holds Significant Share
- The growth of industrial and manufacturing sectors, especially across countries such as China, India, and Taiwan, is expected to drive the demand for DC electric drives during the forecast period. For instance, according to IBEF, in India, outputs increased for natural gas by 11.7%, petroleum refinery production (3.7%), coal (8.2%), steel (2.8%), cement (13.6%), electricity (0.5%), in January 2022.
- The growth of the manufacturing sector in India is also expected to be driven by several initiatives and an increasing inflow of FDIs. For instance, according to the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and June 2021, cumulative FDI inflows in the manufacturing subsectors amounted to USD 100.35 billion.
- Similarly, China's industrial and manufacturing sector has witnessed exponential growth in the past few decades. For instance, according to the National Bureau of Statistics (NBS), the manufacturing sector's output increased 9.8 percent, while the mining output rose 5.3 percent.
- Water and Wastewater are another end-user industry driving the demand for DC drives as they are used at pumping stations and wastewater treatment plants. Increasing investment in water & wastewater management infrastructure across various Asia Pacific countries is expected to further drive the growth of the studied market. For instance, according to ITA, the industrial wastewater market in China is expected to reach USD 19.4 billion by 2025. Such trends are expected to create a favorable market scenario for the DC electric drives market growth during the forecast period.
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