Europe Electric Drives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Electric Drives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Electric Drives Market is expected to register a CAGR of over 7% during the forecast period (2022 - 2027). Growing adoption of electric vehicles as a result of rigorous standards emission standards, combined with a government push to adopt EVs through grants and incentives for EV purchase, is expected to boost demand for smart electric drives in the coming years.

Key Highlights

• Electric drives are one type of technology that provides a highly efficient manufacturing process at a low cost. Because electricity consumption is a major cost component across end-user industries, demand for electric drives is expected to rise significantly over the forecast period. Furthermore, increasing energy-saving awareness and stringent government regulations fuel the demand for electric drives in the studied region.
• Europe is a major player in the medium voltage AC drive market. Extra spending on sustainable and clean technologies for electricity production in the region, such as wind and solar, can be attributed to the region's regional dominance. Implementing strict rules to reduce GHG emissions from power generation facilities is an important factor that is likely to encourage using renewable energy sources in electricity production facilities.
• Intelligent motor management is being introduced to medium voltage drives as part of Industry 4.0 to provide critical information to the control system about process factors and drive health. Furthermore, the market is expected to benefit from the steady increase in related businesses. Software solutions make it easier and faster to integrate medium voltage AC drives into control systems.
• Government policies played a significant role in the promotion of electric vehicles in the European region. The results can be seen in many European countries, where electric cars have accounted for a sizable portion of the total vehicle population. For instance, according to IEA, electric car sales continued to increase in Europe, with an increase of more than 65% year-on-year the EV sales reached 2.3 million in 2021.
• The control panels in electric drives can alter the frequency only when they receive a fixed voltage. Hence, to work efficiently these electric drives require a proper power supply. To solve this issue, drives are often integrated with harmonic mitigation devices, which increases the size and overall cost of these drives.
• During the COVID-19 pandemic, major component manufacturers such as Bosch and ZF group announced the suspension of production due to lower demand, supply chain bottlenecks, and to protect the safety of their employees in France, Germany, Italy, and Spain. Manufacturers will likely adjust production to avoid bottlenecks and plan production based on demand from OEMs and tier 1 suppliers. However, with the increase in vehicle demand following the pandemic, manufacturers have adjusted their production planning to meet OEM demand.

Key Market TrendsIncreasing Demand for Electric Vehicles to Drive the Growth

• Europe has emerged among the leading regions wherein the adoption of electric vehicles has been increasing significantly. Higher awareness about environmental safety among the citizens and favorable government regulations are among the key factors driving the growth of electric cars in the region.
• For instance, the European Union's unique 750 billion euro stimulus package includes EUR 20 billion specifically to boost the sales of clean vehicles, and 1 million electric and hydrogen vehicle charging stations are to be installed by 2025.
• Most European countries are following a similar pattern and are framing supportive regulations to promote the use of electric vehicles. For instance, the United Kingdom's EV strategy includes ending the sale of new petrol and diesel vehicles by 2030. The government wants to ensure that all new cars and vans sold in the country are fully zero emission at the tailpipe by 2035.
• The impact of such initiatives is already visible, as the sales of electric and hybrid vehicles have been increasing across most countries. For instance, according to the European Automobile Manufacturers' Association (ACEA), while the overall new-car market in Europe was down 1.9 percent year on year, sales of electric vehicles increased by 63.4 percent – from 745,644 in 2020 to 1,218,360 last year.
• The growing need for energy protection is a major factor driving the growth of speed control devices. AC drives provide the best strategy for controlling the speed of electrical motors to fit load demand. This, in turn, is expected to drive market growth during the forecast period.

Germany to Hold Significant Market Share

• Germany is among the largest European country in terms of industrial infrastructure. Automotive, Electric, Chemical & Mechanical engineering is among the leading industrial industries of Germany. According to the World Bank, the value added by the manufacturing sector to Germany's GDP was about 18% in 2021.
• As the implementation of electric motors in industrial fields no longer concerns only automobiles. The industrial world is gradually getting in touch with these machines across multiple industries, including packaging, food processing, manufacturing, etc., and all those fields where there is the need to move through a motion inside the machine itself are further driving the demand for electric drives primarily for motion control purposes.
• Germany is among the largest automotive manufacturers in the world. Some of the world's leading automotive brands, such as Audi, BMW, Mercedes-Benz, and Volkswagen, have their footprint in the country. The increasing production of automobiles in the country is among the leading factor driving the demand for electric drives in the country.
• Furthermore, the increasing demand for electric vehicles across the European region is further driving investments in the country's automotive sector, which is expected to support the need for electric drives further. For instance, in February 2021, Ford announced its plans to invest about USD1 billion in an electric vehicle production facility in Cologne, Germany. The investment aligns with the company's strategy of transforming its entire passage vehicle offerings into electric.

Competitive Landscape

The European electric drives market is fragmented due to the presence of numerous regional players. Several incentive programs in European countries to replace inefficient electric motors early encourage new players to enter the European market. Some major European electric drive market vendors are Robert Bosch Gmbh, CEDS Duradrive GmbH, TECO Electric Europe Ltd., ABB Ltd., Groschopp AG, etc. These vendors focus on developing high-quality solutions and adopting organic and inorganic growth strategies to expand their market presence further.

• May 2022 - Delta, a leading provider of AC drives, launched its new compact AC motor drive MH300 series in Europe, the Middle East, and Asia (EMEA). With a power range of 0.4 to 75 kW and numerous tension control features, the recently launched product is suitable for a range of constant torque applications, such as extruding machines, machine tools, bending machines, conveyor systems, and eventually also for hoists and cranes.
• March 2022 - WEG Electric Corp., a leading motor and drive manufacturer, announced that it will launch its new CFW900 variable speed drive (VSD) at the Drives & Controls 2022 exhibition held in Birmingham, UK. According to the company, the model is the latest addition to its CFW range of frequency inverters and features increased power density, a simplified design, and improved ease-of-use that allows the user to access technical data and configurations.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.