Rise in Revenues in the French Electric Drives Market Hinges on the Effective Development of Client-focussed R&D24 January 2006
With Economic uncertainties and increasing competition in the French electric drives market are compelling manufacturers to reduce profit margins to sustain their market share. As a result, manufacturers that invest in client-focussed R&D to develop sophisticated application-specific drive systems are likely to succeed in increasing their market presence.
Encouraged by the potential of the French electric drives market, new competitors are emerging from China and South Korea providing low-cost options to end users. "Chinese companies, due to their low production and labour costs, are building their plants and processes to high standards, thus enabling them to offer their products at lower prices," says Richard Tamworth, Research Manager at Frost & Sullivan (http://industrialautomation.frost.com). "This trend has emerged despite the lack of belief by Western manufacturers in the ability of developing economies to do so."
Thus, in the midst of intensifying competition, manufacturers would do well to safeguard their existing end-user base, as this would provide them with a competitive edge over new entrants. Further, as the electric drives market is technologically mature, manufacturers should seek differentiation by offering value-added services such as consultancy, training and technical support. Offering high-quality servicing during the lifecycle of the product, especially pres-sales, is also likely to be crucial to success.
Additionally, poor domestic demand, the ongoing process of industrial restructuring and globalisation have resulted in several original equipment manufacturers (OEMs) relocating to Asian and eastern European countries in order to benefit from lower production costs. This shift in base has significantly affected market growth. To offset it, manufacturers will have to emphasise product differentiation as well as develop client-focussed R&D.
Growing preferences by end users for more comprehensive and flexible solutions with additional features, such as built-in programmable macro functions or automatic motor tuning, have underpinned the decentralisation of manufacturing processes. The consequent advantages include a reduction in the cost of inputs and materials as well as faster integration, which are likely to benefit manufacturers.
"These trends combined with evolving customer requirements, which demand complex, integrated applications, are driving manufacturers to produce more intelligent, application-specific drives", states Mr Tamworth. "The development of the anticipated new generation of electric drives will allow easy programming, remote operation and independent functioning and lead to market growth."
Hence, awareness of technological trends such as the decentralisation of manufacturing processes and the integration of ethernet in the communication process will also become vital in meeting changing customer requirements. Moreover, in keeping with the growing importance of factory automation systems such as supervisory control and data acquisition (SCADA) and distributed control systems (DCS), developing drives that communicate as part of a wider manufacturing network will become crucial.
"As sections of the market become more demanding in terms of technological integration, the electric drives market must adapt its offerings according to the increasingly complex, automated manufacturing environment," explains Mr Tamworth. "While end users are seeking integrated packages due to the savings in costs and space as well as the ease of installation, investing in these packages is also likely to benefit manufacturers by increasing their profit margins."
Supported by these trends, market revenues are likely to grow from US$309.8 million in 2005 to US$347.4 million by 2011. Also, the growing demand in certain industry sectors combined with continued manufacturing and product developments (particularly related to AC servo technology) will contribute to market growth.
AC servo drives are forecast to be the fastest-growing market segment as the demand for high-precision applications increases. However, AC standard solutions (particularly low power-rated solutions) will continue to dominate the market, supported by continuing technological developments.
In view of the current market trends, the French electric drives market is likely to be dominated by a concentration of larger participants, while niche market participants will occupy specific sectors.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the French Electric Drives Sourcebook, then send an e-mail to Magdalena Oberland, Corporate Communications, at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, fax number, e-mail address and source of information. Upon receipt of the above information, an overview will be sent to you through e-mail.
Title: French Electric Drives Sourcebook
Code: B354-17
Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
Media Contacts:
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Magdalena Oberland
Corporate Communications
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E: magdalena.oberland@frost.com
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E: tori.foster@frost.com
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E: djeremiah@frost.com
India:
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List of key industry participants: KEB, Yaskawa, Lenze, Schneider Electric, Mitsubishi, SEW, ABB, ABB Automation, Baumueller, Rockwell, Bosch Rexroth Group, Elau, Danfoss, Omron, Siemens, Harmonic Drive, Danaher Motion GmbH, Lust DriveTronics GmbH, VACON GmbH, GE Fanuc Automation, ESR Pollmeier GmbH, Lust Antriebstechnik GmbH, Schneider Electric SA, ABB Automation SNC, Alstom Power Conversion, Siemens VDO Trading France, Leroy-Somer, SSD Drives Parvex SA, Danfoss SARL, Lenze SA, SEW Usocome - Eurodrive, Mitsubishi, Vacon, Rockwell Automation - Allan Bradley, Nord Reducteurs SARL, Bosch Rexroth SA Commandes et Entrainements Electriques (Chelles), Bonfiglioli Transmissions SA, GE Fanuc Automation France, Crouzet Automatismes SA, Flender, ATB Selni, Helmke SARL, Infranor SA
List of keywords in this press release: France, French electric drives, AC standard solutions, AC servo drives, China, South Korea, Asia, eastern Europe, intelligent drives, supervisory control and data acquisition system, SCADA, distributed control system, DCS
Source: prnewswire
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