Latin America Electric Drives Market Size

Latin America Electric Drives Market Analysis

The Latin America Electric Drives market is analyzed to grow at a CAGR of 7.21% during the forecast period 2022-2027. An electric drive (also known as an electric controller) is a device that controls the output of a motor, such as an electric actuator, to produce linear motion. As a principal source of energy, this drive uses a prime mover such as a gasoline engine, otherwise diesel, steam turbines, otherwise gas, electrical, and hydraulic motors. These prime movers will provide mechanical energy to the drive system for motion control.

• The significant adoption of electric drives in various sectors in the region is contributing to the market growth rate. For instance, Fazenda Brasileiro is an underground gold mine with a 3,500-tonne daily capacity carbon-in-pulp facility in Bahia, a state in north-eastern Brazil. The mine has been operating for more than three decades, and it has constantly renewed its mineral reserves as they have been depleted. Vacon Latin America has delivered 18 VACON X-series AC drives to manage ventilation and pumping systems underground to help with this retrofitting project. The primary cost of the electric drives is high, hence is considered a challenge for the market during the forecast period.
• The growing adoption of automation in the region is majorly contributing to the demand for the electric drives market. Manufacturing is moving closer to the customer as a result of trade tensions and COVID-19. Companies are considering nearshoring with automation as a solution to supply-chain concerns.
• After Mexico, Brazil is regarded as one of the top manufacturers in Latin America and one of the largest exporters of electrical equipment (including medical equipment) and appliances. This fuels the country's demand for factory automation. Furthermore, AI-driven simulation is likely to boost the metallurgical production sector's efficiency, which now lags behind that of industrialized nations.
• The primary cost of the electric drives is high, hence is considered a challenge for the market during the forecast period. The COVID-19 pandemic had a huge impact on the Latin American electric drive business, causing problems for various end-user industries that employ electric drives. Lockdowns were imposed across the region, bringing the industry to a halt. However, with the gradual businesses reopening in the post-COVID-19 period, the industry is expected to see an increase in the need for energy-efficient gadgets, resulting in an ancillary demand for electric drives.