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
Source: Frost and Sullivan Analysis
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
Source: Frost and Sullivan Analysis
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%)
Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan analysis.
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
Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan analysis.
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
Source: Frost and Sullivan Analysis
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.
Source: Frost and Sullivan Analysis
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
Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan analysis.
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%
Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan analysis.
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
Anna Zanchi
Marketing & Communications Executive,
Industrial Automation & Process Control -
Europe
+39.02.4651 4819
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Practice Director,
Industrial Automation & Process Control -
Europe
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Europe
+91 44 6681 4186
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