Market Snapshot
| Study Period: | 2020-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | Asia-Pacific |
| CAGR: | 4.9 % |
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Market Overview
The global servo drives market is expected to register a CAGR of 4.9% over the forecast period (2022-2027). The growing mobile robotics and electric mobility continuously drive the innovation in servo drives. This includes warehouse and factory automation, as well as automation in people-centric industries like grocery stores, shopping malls, and hospitals.
- Mobile robotics such as Automated Guided Vehicles (AGV), Autonomous Mobile Robots (AMR), and Automated Storage and Retrieval Systems (AS/RS) have been driving demand for servo drives, and this is expected to continue in the future. These mobile robots are being used in warehouses by large companies and municipalities.
- For instance, in 2021, Advanced Motion Control will start packaging its FlexPro drives as multi-axis products and make them available as standards. They will essentially be several individual FlexPro drives mounted to a single PCB with a common power and interface.
- In the case of motors other than servo motors, they must be deployed with different torque and speeds. But the servo motors provide a diverse range of torque and speeds as a single unit. Further, these drives require less maintenance which are some factors adding demand for servo drives for different applications.
- Governments in various countries are installing energy-saving equipment to decrease energy consumption at industrial and commercial levels, where servo drives play an important role. Also, the demand for energy in coming years is anticipated to rise owing to the growing industrial automation, bolstering the market demand studied. However, the complexity of the operation and high initial setup cost are the factors hindering the market growth.
- The Covid-19 outbreak has weakened the demand for servo drives as the use of motors and its demand from various industries such as oil & gas, mining, food processing, automobile, and others has declined. Also, the disruption in the supply chain due to pandemic restrictions has affected the demand and supply of servo drives in the market.
Scope of the Report
A servo drive is the key part of motor operations as it helps manage the motor's actions using the command or feedback signals received from the controllers and amplifiers. Servo Drives Market is segmented By Voltage (Low, Medium), By End-user Industry (Oil & Gas, Chemical & Petrochemical, Food & Beverage, Water & Wastewater, Power Generation, Metal & Mining, Pulp & Paper, Discrete Industries), and Geography.
Key Market Trends
Discrete Manufacturing is Expected to Grow Significantly
- Servo drives find robust applications across the discrete manufacturing industry, which deals with the mass production of automobiles, aircraft, defense equipment, electronic products, semiconductors, and textiles.
- The UK government passed the law in 2019 to reduce greenhouse gas emissions to net-zero by 2050, and the green industrial revolution initiative pledges to stop the sale of fossil fuel vehicles by 2030, which could boost the adoption of electric cars creating the demand for servo motors and hence for the servo drives.
- The spending on manufacturing and R&D has increased, with the annual investments in the EU region in the past few years by the major players of different industries. For instance, in March 2022, Intel announced the first phase of its plan to invest EUR 80 billion in the EU over the next decade along the entire semiconductor value chain from research and development (R&D) to manufacturing to state-of-the-art packaging technologies. The growth in the manufacturing operations is expected to create a wide scope for the market.
- Furthermore, the rising industrialization, infrastructure activities, and oil & gas industry growth in developing countries of the Asia Pacific region is likely to dominate the demand for servo drives. In addition, the worldwide population is growing at an exponential rate, has led to urbanization over the last decade, and raised the demand for products and services across various industry verticals; as a result, industrialization is rising.
- Moreover, the government of India approved the PLI scheme for 16 plants in the pharmaceutical industry. Establishing these 16 plants would result in a total investment of USD 47.01 million. The commercial development of these plants is expected to begin by April 2023. Also, the government announced USD 1 billion to each semiconductor company to establish manufacturing units in the country.
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Asia Pacific is Anticipated to Hold Significant Share
- China is witnessing growth in the adoption of robotic process automation, owing to the growing adoption of automation technologies in Asia-Pacific. The region is an essential market for boosting robotic adoption and AI development. Also, several local businesses in the countries like China and India have started implementing automation journeys to manage costs and improve business value.
- The energy concern in the region is also increasing the adoption of servo drives & motors and stimulating many industries to develop technologically advanced energy-efficient devices, hence further driving the servo drives growth. For instance, according to the International Energy Agency (IEA) report 2022, the electricity demand in 2021 is increased by 8% from a low of 2% in 2020 in the Asia Pacific region and mostly driven by China and India up by around 10%.
- The control systems in the region have emerged across various fields, like the energy, oil and gas, transportation, water, and municipal sectors. Due to the deep integration of information technology and industry and the rapid development of the Internet of Things, the networked control system is becoming the development trend of industrial automation in countries.
- Furthermore, India is another country that offers vast potential for the studied market vendors. The country is a newly industrialized landscape due to increasing investment in advanced technologies, becoming a preferred manufacturing hub. For instance, the Indian government plans to boost domestic production of chemicals and petrochemicals to cut down imports and make India a manufacturing hub for the sector, expected to create the demand for servo forgives in the forecast period.
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Competitive Landscape
The global servo drives market is fragmented owing to players such as Danfoss, ABB, Schneider Electric, etc., that offer high-quality devices with technological advancement. The competition will likely intensify due to rising activities such as mergers and acquisitions and product launches by vendors to enhance their presence in the market.
- March 2022 - ADVANCED Motion Controls has released seven new micro-sized FlexPro servo drives rated to output 60A continuous. The 60A continuous current rating is 33% higher than previous models for the same size making these their highest power-density servo drives. This offering includes PCB Mount, Machine Embedded, and Development Board form factors.
- March 2021 - Yaskawa Electric Corporation announced the launch of the AC servo drives “Σ-X Series,” the successor to the reputed “Σ-7 Series,” to enhance customer added value with the industry’s best motion performance and digital data solution.
Major Players
Recent Development
- February 2021 - Motion control specialist Trio Motion Technology has expanded its motion controller range with the launch of a servo drive and motor package. With a complete plug-and-play solution, OEMs can now benefit from Trio's specialist motion control performance, enabling faster machine development and optimum cost-effectiveness. Launching the new DX4 servo drive and MX servo motor series expands Trio's machine solution and makes it faster and easier for OEMs to utilize the high-performance motion control available from Trio's range of Motion Coordinators.
- February 2021 - Mitsubishi has introduced its MELSERVO MR-J5 series of TSN-compatible servo drives. The company says that end users and machine builders can drive up the performance of their lines and systems to a frequency response of 3.5kHz and a communication cycle time of 31.25μs. These servo drives meet precision, dynamics, and multi-axis synchronization requirements in printing/converting applications.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porters Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Industrial Automation
5.1.2 Growing Regulations Regarding Energy Efficiency
5.2 Market Challenges
5.2.1 High Initial and Installation Cost
6. SEGMENTATION
6.1 By Voltage
6.1.1 Low
6.1.2 Medium
6.2 By End-user Industry
6.2.1 Oil & Gas
6.2.2 Chemical & Petrochemical
6.2.3 Food & Beverage
6.2.4 Water & Wastewater
6.2.5 Power Generation
6.2.6 Metal & Mining
6.2.7 Pulp & Paper
6.2.8 HVAC
6.2.9 Discrete Manufacturing
6.2.10 Other End-user Industries
6.3 Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 United Kingdom
6.3.2.2 Germany
6.3.2.3 Italy
6.3.2.4 France
6.3.2.5 Russia
6.3.2.6 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 India
6.3.3.3 Japan
6.3.3.4 South Korea
6.3.3.5 Australia & New Zealand
6.3.3.6 Rest of Asia-Pacific
6.3.4 Latin America
6.3.4.1 Brazil
6.3.4.2 Mexico
6.3.4.3 Chile
6.3.4.4 Rest of Latin America
6.3.5 Middle East & Africa
6.3.5.1 United Arab Emirates
6.3.5.2 Saudi Arabia
6.3.5.3 Turkey
6.3.5.4 Rest of Middle East & Africa
7. VENDOR MARKET SHARE ANALYSIS
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Danfoss
8.1.2 Rockwell Automation
8.1.3 Schneider Electric
8.1.4 Siemens
8.1.5 ABB Ltd
8.1.6 Emerson Electric Co.
8.1.7 Hitachi Ltd.
8.1.8 Mitsubishi Electric Corporation
8.1.9 Yaskawa Electric Corporation
8.1.10 WEG
*List Not Exhaustive9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Servo Drives Market market is studied from 2020 - 2027.
What is the growth rate of Servo Drives Market?
The Servo Drives Market is growing at a CAGR of 4.9% over the next 5 years.
Which region has highest growth rate in Servo Drives Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Servo Drives Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Servo Drives Market?
Danfoss, Rockwell Automation Inc., Schneider Electric, Siemens AG, ABB are the major companies operating in Servo Drives Market.
