September 25, 2001—The United Kingdom was the second largest market for high power rated electric drives in Europe last year, behind Germany and in front of France, according to the latest research by industry analysts Frost & Sullivan. The high power rated drives market has been defined as all electrical drives that have a power rating exceeding 75kW. The market includes alternating current (AC) drives and direct current (DC) drives.
“Conditions in the UK drives market have been tough over the past few years, as manufacturing industry has suffered from continued pressures,” said the study, “The European High Power Rated Electric Drives: Regional Analysis.” The UK was responsible for 10.7 percent ($45.6 million) of the total European revenues in 2000.
Frost & Sullivan forecasts sales of drives in the UK will increase, driven primarily by rising demand following the introduction of the climate change levy. The UK government has introduced a levy on businesses that use large levels of energy, but has looked to encourage industry to invest in energy saving, with tax rebates for purchasing machines that reduces industrial power consumption, including high power rated drives.
Companies that install high power rated drives can write off against tax some of the cost and this reduces the overall cost of a drive and acts as an incentive for customers to upgrade or install drive technology. Future demand is expected to benefit from the introduction of this scheme as price will no longer be so controlling an issue with the introduction of this scheme.
For more information, contact Frost & Sullivan.
