ENGINEERINGNET.EU - 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 ROI and lower CO2 emissions.
New analysis from Frost & Sullivan finds that the market earned revenues of €204.89 million in 2010 and estimates this to reach €313.14 million in 2017.
“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 decentralised, rather than centralised, drives due to the reduced cost and project planning time they offer.
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 labour 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.”
(picture: Wastech)
