electric drives market in european hvac industry

Electric Drives Market in European HVAC IndustryElectric Drives Market in European HVAC Industry

Environmental, Economical, and Biological Concerns Spur Growth in Environmental, Economical, and Biological Concerns Spur Growth in

European HVAC Drives MarketEuropean HVAC Drives Market

Ramasubramanian Natarajan, Research Analyst

Industrial Automation & Process Control- Europe

© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of

Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Industrial Automation & Process Control- Europe

27-06-2012

Functional Expertise

�Evaluating the Industrial Automation & Process Control Market

�Analysing emerging trends, technologies, market dynamics across different geographies

�New market analysis, market sizing and forecasting

�Best practices identification and trend analysis

�Market assessment and opportunity identification

Industry Expertise

�Competitive intelligence across the industrial automation sector

�Qualitative research skills in primary and secondary domain

�Industry intelligence and analytics

�Technical expertise of automation devicesRamasubramanianNatarajan

TODA

2

What I bring to the Team

�Market understanding along with technical knowhow of automation products

�Strategic data and analysis

�Ability to observe and identify beyond obvious

�Excellent Oral and Written Communication Skills

Career Highlights

�Technical understanding of electrical components with hands on experience

�Published author with insights on industry trends in the automation domain

Education

�Masters of Science in Electrical and Electronics Engineering, University of Glasgow,

Glasgow, United Kingdom

�Bachelors of Technology in Electrical and Electronics Engineering, ICFAI Institute of

Science and Technology, Hyderabad, India

Natarajan

Research Analyst,

Industrial Automation

and Process Control,

Frost & Sullivan

Chennai, India

Scope

Need for VFDs in European HVAC Industry

VFDs –A Better Technology

Facts and Figures

CONTENTS

3

Trends by Product Type and Applications

Key Factors Influencing the Market and Value Additions

Growth Prospects and Supply Chain

Key Takeaway

Segmentation by Product Type

AC

DC

Servo

Segmentation by Application

Fans

Pumps

Compressors

Variable Frequency Drive

SCOPE OF THIS BRIEFING

4

Servo Compressors

Residential Buildings

Commercial Buildings

Industrial Buildings

TYPES OF

INFRASTRUCTURE

CONSIDERED

Source: Frost and Sullivan Analysis

Scope (continued)

Germany

Italy

France

The United Kingdom (U.K.)

Iberia

Spain and Portugal

Scandinavia

Norway, Sweden, Finland, and DenmarkUNITED KINGDOM

NORWAY SWEDEN

FINLAND

DENMARKLUXEMBOURG

LATVIA

LITHUANIA

ESTONIA

IRELAND

5

Benelux

Belgium, The Netherlands, and Luxembourg

Rest of Western Europe (RoWE)

Austria, Switzerland, Greece, And Ireland

Eastern Europe (E.E.)

Bulgaria, Hungary, Poland, Latvia,

Czech Republic, Lithuania,

Slovakia, Slovenia,

Romania, and Estonia

ITALY

FRANCE

SPAINPORTUGAL

BELGIUM

THE NETHERLANDS

AUSTRIASWITZERLAND

GREECE

BULGARIA

POLAND

CZECH REPUBLIC

SLOVAKIA

SLOVENIAROMANIA

GERMANY

HUNGARY

ITALY


13.0%

13.0%

45.0%

40%4%

8%

14%

Electric Drives Market in HVAC Industry: Electricity Use, Sector Break-up (Europe), 2010

Electric Drives Market in HVAC Industry: Electricity Use in Industrial, Residential, and Commercial

Sectors by Process (Europe), 2010

Need for VFDs in European HVAC Industry

6

29.0%

45.0%

Residential Buildings Commercial Complexes

Industrial Buildings Others

23%

3%

8%

4%

HVAC Lighting Cooking

Equipments Refrigeration Water Heating

Miscellaneous

Others include: Agriculture, Transport, City Lighting, Entertainment.

Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan analysis.

VFDs –A Better Technology

Electric Drives Market in HVAC Industry: Energy Consumption Versus Required Output Load (Europe), 2010

7


Electric Drives Market in the HVAC Industry: Revenue Forecast (Europe), 2008-2016

AC Drives

CAGR:

13.3%

Servo Drives

CAGR:

6.6%DC Drives

CAGR:

(1.5%)

CAGR (2011-2016): 12.3%

Facts and Figures

2011 2016

2011 2016

2011 2016

8

(25.0)

0.0

25.0

0.0

350.0

700.0

2008 2009 2010 2011 2012 2013 2014 2015 2016

Revenue ($ Million) Revenue Growth Rate (%)

Reven

ue (

$ M

illio

n)

Year

Reven

ue G

row

th R

ate

(%)

(1.5%)


Trends by Product Type and Application

60.0%

80.0%

100.0%

89.5% 94.2%

6.8% 3.1%3.7% 2.7%

Electric Drives Market in the HVAC Industry:Per cent Share by Product Type (Europe), 2011 & 2016

60.0%

80.0%

100.0%

22.5% 22.4%

13.3% 13.1%

Electric Drives Market in the HVAC Industry:Per cent Share by Application (Europe), 2011 & 2016

9


0.0%

20.0%

40.0%

60.0%

2011 2016

89.5% 94.2%

AC Drives DC Drives Servo Drives

0.0%

20.0%

40.0%

60.0%

2011 2016

64.2% 64.5%

Fans Pumps Compressors

Key Factors Influencing the Market

Electric Drives Market in the HVAC Industry: Market Drivers and Restraints (Europe), 2012-2016

Driv

ers

Driv

ers

Rise in energy cost

Growth in construction infrastructure

Standards and directives mandating

energy efficiency Increased awareness about drives’ advantages Focus on air quality

and comfort of residents

10

Denotes long-term impactDenotes current impact

Restra

ints

Restra

ints

On-going debt crisis

Erosion of manufacturing base

Lag in Implementation of standards and directives


ValueUpkeep

Value Additions of VFDs in HVAC Industry

11

Value

Energy usage of any infrastructure can be reduced by implementing an Electric Drive.

This in turn reduces the

energy bills of the users.

Comfort

One distinctive method is to

control the flow of air using a VFD, and

enhance the comfort levels of

the residents.

Health

Advanced HVAC system coupled

with Electric Drives are being implemented to resolve health related issues.

Upkeep

VFDs reduces the starting torque

and stress on the motor

components.

This results in longer life and

lower maintenance

costs.


16.5%8.4%

11.3%

Growth Prospects for VFDs in European HVAC Industry

Electric Drives Market in the HVAC Industry: Per cent of Revenue by Geography (Europe), 2010

Iberia

Italy

The U.K

Benelux

RoWE

Germany

France

Eastern Europe

Scandinavia

Smart Buildings Market: Regional Life Cycle Analysis (Europe), 2012

Growth Potential for Electric Drives Across

Different Regions (Europe), 2012-2016

12

10.9%

13.3%

10.4%7.9%

14.0%

7.3%

Germany Italy France

UK Iberia Scandinavia

Benelux RoWE EE

Scandinavia

SpainItaly

MaturityDevelopment Growth

Eastern Europe Central

Europe

Analysis (Europe), 2012

Alpine & Benelux

France

Germany

The United Kingdom


Supply Chain Analysis

Key Decision

End-Users

OEMs

EPCs

Electric Drives Market in the HVAC Industry: Key Decision Makers (Europe), 2011

Electric Drives Market in the HVAC Industry: Distribution Channel Analysis (Europe), 2011

Key Takeaway: EPCs are the key decision makers in choosing an electric drive for an application based on their requirements and cost considerations.

13

Direct Sales

Key Decision Makers

VFD

ManufacturesOEMs

Distributors

End

15%

60%

25%


Key Takeaway: OEMs play a crucial role in successful distribution in drives to End-users by combining their drives to their equipments like fans, pumps, AHUs and compressors.

Key Takeaway

Energy efficiency regulations will give a boost to the sales of VFDs in the European HVAC industry.Energy efficiency regulations will give a boost to the sales of VFDs in the European HVAC industry.

Value-added services, such as after-sales service, are critical and determines the customer’s choice of drive.

Value-added services, such as after-sales service, are critical and determines the customer’s choice of drive.

14

Participating in trade shows involving the HVAC industry could help OEMs and end users better understand a product.

Participating in trade shows involving the HVAC industry could help OEMs and end users better understand a product.

A simpler user interface and simpler programming would ensure customer satisfaction, thereby engendering customer loyalty and increase in sales of HVAC drives.

A simpler user interface and simpler programming would ensure customer satisfaction, thereby engendering customer loyalty and increase in sales of HVAC drives.

Source: Frost & Sullivan Analysis.

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For Additional Information

Ramasubramanian Natarajan

Senior Research Analyst,

Industrial Automation & Process Control -

Europe

+91 44 6681 4169

[email protected]

Anna Zanchi

Marketing & Communications Executive,


Europe

+39.02.4651 4819

[email protected]

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Muthukumar Viswanathan

Practice Director,


Europe

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[email protected]

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