The servo motors and drives market is expected to grow at a compound annual growth rate of 5.79% over the period 2019 to 2025. Servo motors and drives are used in every bit of machinery that requires precise position control. Increasing adoption of automation in various end-user industries is expected to be one of the prime drivers for the growth of the market during the forecast period. Servo motors and drives serve the purpose of automation which in turn is used in industrial processes to reduce cost and errors while improving accuracy and efficiency. Growing demand for energy-efficient solutions and technological advancement are a pair of key factors driving the growth of this market. Servo motors and drives help in boosting the production capacity of industries like semiconductors, automotive and packaging among others. Lightweight machines, new trends in robotics and reduced size of machines provide a good opportunity for the growth of servo motor and drive the market. In addition, due to intense competition, different firms are adopting different strategies to improve their margins. Large enterprises look for strategic partnerships including mergers and acquisitions and joint ventures to boost their market share. For instance, in June 2019, Mitsubishi Electric Corporation, invested to take an equity stake in a Singapore-based linear servo motor and linear stages Akribis Systems Pte Ltd (Akribis) to strengthen its industrial automation solution at the global market. The market also witnesses collaborative efforts by market players to accelerate the design and servo motors and drives. Like, in November 2019, STMicroelectronics a global semiconductor leader and Maxon a leading precision-motor provider are working together to accelerate the design of robotics applications and industrial servo drives. Also, the advent of industrial 4.0 and expanding manufacturing facilities in developing regions also widen up the growth opportunities for vendors and manufacturers over the forecast period. However, the lack of skilled workforce involved in the whole value chain coupled with high prices associated with it is expected to restrain the growth of the market in the coming years.
Automotive is having a significant share in the market
By application, automotive is expected to hold a significant share in the market owing to expanding the automotive industry and increasing the adoption of servo motors. Today’s, automotive manufacturers are aiming to upgrade systems by adding inspection and networking capabilities and have a competitive edge over the competitors. Material handling and packaging industry are anticipated to witness substantial growth on account of the growing need for motion control components in motors and drives by the industries. Also, servo motors and drives decrease downtime and provide better diagnostic tools, and provides smooth accelerations and decelerations with very fast moves, such functions are critical in packaging machines as it increases its overall efficiency and longer life for machines with less cost of repair.
The Asia Pacific is witnessing exponential growth during the forecast period
Geographically, Asia Pacific is expected to be one of the fastest-growing markets during the forecast period due to initiatives being taken by various governments towards the manufacturing sector. In the North America region, United States is holding a significant share on account of expanding the automotive industry in the country which is creating an ample number of opportunities for servo motors and drives vendors and manufacturers in the coming years. In fact, according to the International Organization of Motor Vehicle Manufacturers (OICA), automotive production in the United States has increased from 11,066,432 in 2013 to 11,314,705 in 2018.
Major players in the servo motors and drives market have been covered along with their relative competitive position and strategies. The company profiles section details the business overview, financial performance for the past three years, key products and services being offered along with the recent developments of these important players in the servo motors and drives market.
Frequently Asked Questions (FAQs)