Government Cloud Authors: Elizabeth White, Liz McMillan, Gopala Krishna Behara, Raju Myadam, Kevin Jackson

News Feed Item

Client Focused R&D to Offer Greatest Potential for Protecting Future Revenues in German Electric Drives Market

Client Focused R&D to Offer Greatest Potential for Protecting Future Revenues in German Electric Drives Market

LONDON, December 7 /PRNewswire/ -- Increasing demand from end users for technological integration is compelling German drives manufacturers to adapt product offerings and increase investment in research and development (R&D) to complement the already complex and automated manufacturing environment.

"The growing popularity of factory automation systems means that drives need to integrate within the wider manufacturing network environment" explains Frost & Sullivan (http://automation.frost.com/) Research Analyst Martina Blazkova. "Some manufacturers are already positioning themselves to take advantage of this trend and combat the increasing price competition from Far Eastern manufacturers at the less-intelligent end of the market."

With end users showing a clear preference for space and cost savings and easily installed products, there has been a significant rise in demand for a variety of new, compact and multi-functional products. At the high end of the market, other technological developments are being directed towards supporting the decentralisation of "intelligence" of the manufacturing IT network, including, for example, supporting the adoption of Ethernet-based technologies in the communication process, and meeting more demanding safety and security regulations.

Increasingly, manufacturers are being expected to support extensive product ranges, covering all segments of the drives market. Despite the growing divergence in the functional capabilities of drives and their ability to adapt to specific manufacturing sectors, end users are looking to limit their supply chains, and are showing movement towards companies able to support an extensive range of products. In time, this is likely to create R&D issues for manufacturers as they look to balance the potentially conflicting demands of features such as miniaturisation, improved remote control facilities and the capacity for greater independence and network communication.

Advanced features are boosting overall revenues in the German drives market. In 2004, the total electric drives market was valued at $778.1 million and is expected to grow at a compound annual growth rate (CAGR) of 1.8 per cent to reach $884.1 million by 2011.

Although R&D is taking on greater priority, drive manufacturers cannot afford to sacrifice quality in a bid to increase the range of sophisticated technical features. This is largely because China and South Korea are entering the market with low-cost and increasingly high-quality options, forcing current market participants to bring in a variety of value-added features.

"The challenge to overcome the threat posed by new entrants will be to prevent these companies from gaining a foothold in the market and changing the market's existing perception," says Ms. Blazkova. "Therefore existing suppliers should emphasise their tradition and reputation within the market - while new entrants may offer purchase cost advantages, existing suppliers may be able to offer better implementation, training and consultancy services".

These developments and innovations are forced by customers' requirements such as shorter time-to-market, increased productivity, reduction of life cycle costs as well as high product quality and reliability.

The ongoing product developments are expected to support the future demand of electric drives with manufacturers already offering more precise, smaller-sized compact complex solutions, particularly in the alternate current (AC) servo drives market.

In fact, the AC servo market is proving to be the main engine of total market revenue growth, supported by the on-going, if slow, restructuring of key German industrial sectors, such as food & beverage towards smaller and more flexible industrial units.

However, the largest market remains the AC standard electric drives, which is expected to continue on an upward trend due to the number of end users opting to shift from direct current (DC) to AC applications.

Further, DC standard drives have been losing market to new AC products, where developments in terms of accuracy, reliability and attractive pricing mean that end-users can exploit the advantages of the wide availability of cheap AC power without sacrificing performance objectives.

The eastern enlargement of European Union is also having a positive impact on the German drives market, with the easing of restrictions proving to be advantageous for export-oriented and internationally active German companies across all industry sectors.

Looking ahead, since drives are a relatively difficult product to differentiate from a technical point of view, the generic strategy of market niching by particular product type or industry sector will provide some benefits.

"This increasing sophistication in manufacturing systems will result in higher average prices, while the shift from AC to DC systems should produce increasing unit shipments for the overall market," observes Ms. Blazkova.

However, even in some of the fastest growing areas, end users will have significant power to restrict manufacturer's pricing options. In such a scenario, both the manufacturer's brand and the product's reputation are likely to become critical factors in protecting sales margins.

"End-user's familiarity with companies and modes of operation are gaining importance, reiterates Ms. Blazkova. "Drives manufacturers must focus on smaller industrial units that are traditionally less price sensitive, purchase in lower volumes and are more interested in establishing strong relationships."

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 German Electric Drives Sourcebook, then send an e-mail to Magdalena Oberland, Corporate Communications, at [email protected] 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.

As part of the Electric Drives series Frost & Sullivan has also published the UK Electric Drives Sourcebook, French Electric Drives Sourcebook, Italian Electric Drives Sourcebook, UK Electric Drives End-User Analysis, German Electric Drives End-User Analysis, French Electric Drives End-User Analysis and Italian Electric Drives End-User Analysis.


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: Europe: Magdalena Oberland Corporate Communications P: +44-(0)-20-7915-7876 E: [email protected] Americas: Tori Foster Corporate Communications P: +1-210-477-8448 E: [email protected] Asia Pacific Donna Jeremiah Corporate Communications P: +603-6304-5832 E: [email protected] India: Surbhi Dedhia Corporate Communications P: +91-22-2832-4705 Ext: 131 E: [email protected] Australia: Sharmin Jassal Corporate Communications P: + 61-2-8247-8900 E: [email protected]

Key Words in this Press Release : electric drives, Germany, Ethernet, alternate current, AC, AC drives, AC servo drives, direct current, DC, DC drives, research, information, market, trends, technology, service, forecast, market share

List of Key Industry Participants: Siemens, ABB Automation Products, SEW-EURODRIVE, Bosch Rexroth, KEB, Yaskawa, Lenze, Schneider Electric, Berger Lahr, Mitsubishi, Baumueller, Danfoss, Omron, ,VACON, Lust Antriebstechnik.

Frost & Sullivan

CONTACT: Media Contacts: Europe: Magdalena Oberland, Corporate
Communications, P: +44-(0)-20-7915-7876, E: [email protected].
Americas: Tori Foster, Corporate Communications, P: +1-210-477-8448, E:
[email protected]. Asia Pacific: Donna Jeremiah, Corporate
Communications, P: +603-6304-5832, E: [email protected]. India: Surbhi
Dedhia, Corporate Communications, P: +91-22-2832-4705 Ext: 131, E:
[email protected]. Australia: Sharmin Jassa, Corporate Communications, P: +
61-2-8247-8900, E: [email protected]

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)