Some good things come in small packages. A perfect example is the servo drive. This nifty device can power up not only machines, but also robots, giving it a place in multiple industries. To give everyone a better idea of its popularity, use and demand, here’s our free servo drive market information. It covers the latest market trends, factors that drive its growth, and both opportunities and challenges.
As expected, different market research reports generate various percentages of compound annual growth rates (CAGR) for the servoi drive market. One thing is certain, though: the market will continue to increase.
• According to Technavio, the market will
rise at a steady pace of 5% in 2020.
• A
MarketsandMarkets report pegs the annual growth rate at 6.25% between 2016 and 2022. Within the same period, the revenues will grow by nearly $16 billion. It’s a massive increase of almost $6 billion compared to 2015.
Servo Drive Market Size Trends and Forecast
Technavio also cited at least three market regions for servo drives in the following order: the Americas, Asia-Pacific, and Europe, Middle East, and Africa. According to Research Nester, both Canada and the United States will drive the growth of servo drives in the Americas. However, between these two countries, the
demand will be higher in the United States. Canada’s need, meanwhile, will further expand until 2027. The servo drive market share also varies according to type. Some of the known options these days include AC, DC, low voltage, and high voltage. Among them, the most popular will be the AC type, according to Research and Market. This is because it’s smaller and more lightweight. The DC
compact servo drives, however, will also gain traction, especially the newer designs like the DC Whistle. Users can mount this on the wall, so it takes up less space. It also has motion-control technology for a more stable operation.
Growth Factors
Advancement in Technologies
At least two factors will drive the growth of the servo drive market size around the globe: advancement in technologies and automation. When it comes to tech, one of the biggest changes is the “consolidation” of power wires with the encoder signals. This process helps decrease the number of cables needed to connect the drive and the motor. In fact, it can reduce the installation costs of the hardware by around 10%, according to Control Engineering. Servo drives can now also work on more efficient and faster processors. This way, a system can already handle multiple loops, increasing productivity.
Automation
The MarketsandMarkets predicted that factory automation will grow exponentially with a CAGR of nearly 10% from 2018 to 2024. During the forecast period, the market value will climb from $160 billion to $269.5 billion. Robotics also plays a major role in automation. The Allied Market Research believes that it will achieve almost the same annual growth rate as automation from 2017 to 2023. By the end of the latter year, the industry may earn over $70 billion. Companies, from the automotive to electronics sectors, both need automation and robotics to help deal with the growing skilled labor shortage and the high production costs that come with it.
Restraints
Perhaps one of the biggest challenges faced by the servo drive market today is the COVID-19 pandemic. This severe health issue is closing almost all types of businesses, especially the biggest ones. These include those in the manufacturing, retail, and travel sectors. In fact, recent reports suggest that if the problem extends for as long as a year, it may bring the world to another deep recession, wiping any recovery it made since 2008. As businesses struggle to gain a foothold, they may invest less for a while.
Servo Drive Market Segmentation
The good news is that servo drives have diverse applications. According to Persistence Market Research, its CAGR may be around 8% from 2019 to 2029. Their uses extend to the following industries:
• Controlled toys
• Medical devices
• Electronics
• Robotics
• CNC machines
• Printing and packaging equipment
• Other industry machinery
Among these, robotics accounts for the biggest market share followed by medical devices. Electronics takes the third spot, while other industrial machinery claims fourth place. Do note that these are only forecasts. You also have to remember that in a flash, the entire world enters into uncertain times. Nevertheless, as long as businesses still see the vitality of automation, especially in reducing costs and improving productivity, servo drives will thrive.