HVAC boom boosts electric drives market

The boom in Europe’s HVAC industry has significantly buoyed the electric drives market, according to new analysis from Frost & Sullivan.

The HVAC industry’s status as one of the major consumers of electrical energy among European industries has compelled electric drive manufacturers to develop energy-efficient systems which incorporate variable frequency drives.

The recent hike in energy costs has bolstered this significantly.

Analysis from Frost & Sullivan electric drives market found that the market earned revenues of £148m in 2007, and that this will reach £231m in 2014.

Currently, HVAC accounts for almost 10% of the electric drives market’s revenue.

Rising competition is squeezing electric drive manufacturers’ profit margins, however, especially with the increasing demand for smaller and low-cost HVAC drives.

Yet according to Frost & Sullivan Research Analyst Venkataraman, the falling prices have also had a positive fallout.

“The declining prices of the drives have ensured that the payback period of the investment on these drives has shortened.

“With shorter payback periods, users are able to justify the capital expenditure on these products,” said Salavakkam.

Sales of electric drives are likely to be boosted by the products’ ease of use.

Improvements in technology have eliminated the need for operators to have excellent technical expertise or an understanding of the machines and processes.