The food and beverage (F&B) industry has been a major end-user of electric drives in Europe. The economic slowdown had however an adverse impact on most industries, including the F&B one, impacting on the demand for electric drives. Current dynamics have heightened the need for energy-efficient, highly reliable and appropriate product customization.
New analysis from Frost &
Sullivan(www.motors.frost.com),Strategic Analysis of Electric Drives Market in European Food and
Beverage Industry, finds that the market earned revenues of Euro
204.89 million in 2010 and estimates this to reach Euro 313.14 million in 2017.
Drives represent 66%
of the energy draw
Electric drives represent
almost 2/3 of the energy consumption demand in the F&B industry. Surging
energy prices have however had a negative impact on the performance of this
industry. In this context, energy-efficient drives have helped companies reduce
production costs, improve return-on-investment (ROI) and lower CO2 emissions.
"The F&B industry is
becoming completely automated, resulting in increased power consumption during
the production process," states Frost & Sullivan Research Analyst Raaj
Thilak Raveendran. "Companies are also looking to reduce their energy
usage by implementing energy-efficient drive technology. Although expensive,
energy-efficient drives provide high ROI and reduce operating costs – two
advantages that will boost their uptake over the forecast period."
Another important trend is the
growing interest of OEMs in decentralized, rather than centralized, drives due
to the reduced cost and project planning time they offer. Electric drive
manufacturers are planning to launch new products in this segment, which will
boost the sales of decentralized drives in the short and medium terms of the
Price drops 3% yearly
As the market expands, a major
challenge will be intensifying competition. With over 100 drive manufacturers,
there is relentless price pressure, resulting in eroding profit margins. "Small
participants face challenges like sizeable labor costs, eroding profit margins
and industry consolidation," adds Raveendran. "Market participants
state that there is a price drop of 3% in electric drives every year, which affects
the profit margins of all market participants."
To succeed in this highly
competitive market, manufacturers need to expand their product range or
identify new applications for their existing products.
"Ease-of-use and cost
efficiency are the two main advantages of electric drives in comparison to
rival technologies," concludes Raveendran. "Due to these advantages,
electric drives have been able to find new applications. To sustain market
momentum, manufacturers need to provide a complete range of products that suit
the application requirements of both OEMs and end-users."