AC Servo Motors and Drives Market Size, Share & COVID-19 Impact Analysis, By Product Type (Servo Motors (Synchronous and Induction) and Servo Drives), By Voltage Range (Low Voltage, Medium Voltage, and High Voltage), By Phase Type (Two-Phase and Three-Phase), By Communication Protocol (Fieldbus, Industrial Ethernet, and Wireless), By End-Use Industry (Aerospace & Defense, Automotive and Transportation, Semiconductor and Electronics, Printing & Packaging, Food & Beverage, Chemicals and Petrochemicals, and Others), and Regional Forecast, 2020-2027

The global AC servo motors and drives market size was USD 6.80 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with the AC servo motors and drives witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth of 1.20% in 2020. The market is projected to grow from USD 6.88 billion in 2020 to USD 10.79 billion in 2027 at a CAGR of 6.64% during the 2020-2027 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The AC servo motors and drives together form a closed-loop control system that utilizes position feedback to control its speed, motion, and final position. The market growth can be further attributed to an increased demand for servo motors and drives from the industrial manufacturing sector to design and develop more automated closed-loop control machinery. The closed-loop AC servo system provides several advantages, including high stability, low sensitivity to parameter variation, and enhanced performance.

The various industry verticals such as automotive, semiconductor and electronics, printing & packaging, paper, textile, food & beverage, chemicals, and petrochemicals need modern machinery for large volume production. Therefore, the increasing trend towards adopting industry automation technology to cater to the high product demand is expected to contribute to the growth of the market.

Recently, in September 2020, Yaskawa Electric Corporation announced that the company’s AC servo motor shipments reached 20 million units in August 2020. In February 2012, the company shipped 10 million units of the cumulative AC servo motor and presently offers a wide range of servo motors and drives for motion control applications.

COVID-19 Impact: Acceptance of Smart Manufacturing Solution to Favor Market

The pandemic has largely affected the manufacturing processes and supply chain. It has further created a large financial impact on the manufacturing plants highly dependent on the human workforce. Therefore, to overcome the impact, players involved in the manufacturing industries are shifting their focus on adopting smart machines and robots to reduce the dependency on workers and the production cost. For instance, in October 2020, ABB, Ltd announced the deployment of high-precision robots at testing laboratories in Singapore to reduce dependency on the workforce.

According to the International Federation of Robotics, the demand for cleaning and medical robots has increased during the COVID-19 pandemic. It further states that these robots help deliver supplies across hospitals and support doctors in performing temperature and other checks. These factors are increasing the demand for AC servo motors and drives.

LATEST TRENDS

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Growing Adoption of Industrial Automation Technology to Boost Product Demand

Major industry verticals are adopting automation technology to enhance their production efficiency and capabilities. Additionally, automation aids in reducing human error during the manufacturing process. The growing penetration of emerging technologies such as artificial intelligence, machine learning, and the internet of things (IoT) in industrial manufacturing is further driving the demand for more automated, controlled, and connected industry solutions.

The smart, automated solution can reduce the production cost by properly organizing the manufacturing process. Moreover, the increasing spending on industrial automation by emerging economies is likely to boost the AC servo motors and drives. Besides, the growing development of micro-sized servo drives with high power is further expected to drive the AC servo motors and drive market growth during the forecast period.

DRIVING FACTORS

Growing Demand for AC Servo System for Industrial Application to Aid Market Growth

AC servo motors and drives have several advantages over the DC servo systems such as low noise, constant speed, high torque, high efficiency, and accuracy. Additionally, these systems offer smooth operation and high longevity and flexibility. The AC servo motor can easily deal with a changing voltage than the DC servo motor. Such advantages make AC servo motors an ideal choice for machine tools, aircraft parts, CNC machines, printing machines, food processing machines, home appliances, off-road vehicles, robots, and wafer fabrication machines. Therefore, the AC servo motors and drives demand from several end-use industries, including printing and packaging, food and beverages, textile, healthcare, semiconductor and electronics, aerospace and defense, and robotics, is anticipated to boost the market growth.

Deployment of Smart Machines and Robots for Quality Production to Foster Growth

In recent years, the penetration of industry 4.0 has been significantly high across the world. This has led to the high demand for highly automated, connected machines and robotic systems for quality and cost-effective production. The end-use industries adopt automation to reduce dependency on the workforce and develop a high-quality product with more efficiency and performance. These include aerospace & defense, automotive, semiconductor and electronics, printing & packaging, food & beverage, chemicals and petrochemicals, pharmaceutical, healthcare, and textile

According to the International Federation of Robotics, 373,240 industrial robot units worth USD 13.8 billion were installed worldwide in 2019. The automotive industry installed 28% of robots and 24% of robots by the electronics industry. Moreover, the rising adoption of automated guided vehicles (AGV) and computer numerically controlled (CNC) machines will boost the global AC servo motors and drives market growth in the forthcoming years.

RESTRAINING FACTORS

Availability of Low-Cost Substitute for AC Servo Motor to Restrain Market Growth

The low-cost substitute for an AC servo motor that is a brushless DC (BLDC) motor is expected to hamper the market growth during the forecast period. The configuration of a BLDC motor system is similar to the AC servo motor. It is powered by a DC source, which generates electricity in alternating current to energize each motor phase via a closed-loop controller. The BLDC motor offers high speed, low maintenance, and low cost, making it suitable for automobiles and several home appliances such as washing machines. However, the AC servo motor provides high consistency, accuracy, and proficiency, making it ideal for highly precise machine applications.

SEGMENTATION

By Product Type Analysis

Growing Adoption of AC Servo Motor Over DC to Aid Market Growth

Based on product type, the market is divided into servo motors and servo drives.

The servo motor product type is further subdivided into synchronous and induction AC servo motors. The servo motors segment is expected to hold the dominant share during the forecast period. This growth is attributed to the rising demand for AC servo motors from manufacturing industries. The synchronous AC servo motor with a permanent magnet provides high performance and accuracy, making it favorable for aircraft parts such as starters, flaps, landing gears, and hydraulic pumps.

The AC servo drives segment is anticipated to display significant growth during the forecast period due to the rising development of more flexible, micro-sized, and the next generation AC servo drives with high power. Moreover, the increasing acceptance of AC servo drives to operate a servo motor in motion control applications will bolster market growth.

By Voltage Range Analysis

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Low Voltage Segment to Augment Largest Market Share

The market is classified into low voltage, medium voltage, and high voltage based on voltage range.

The low voltage (Below 230V) segment held a major market share and is anticipated to grow at the highest CAGR during the forecast period. This growth is attributing to the growing utilization of low voltage servo motors for mobile robot applications. The low voltage servo motor requires a low maintenance cost.  

The medium (230-480V) and high voltage (Above 480V) segments are likely to display stable growth during the forecast period due to the rising use of medium and high voltage servo motors for improved reliability, accuracy, and quality.

By Phase Type Analysis

Increasing Acceptance of Three-Phase AC Servo Motor for Industrial Automation Application to Aid Growth

Based on phase-type, the market is segmented into two-phase and three-phase AC servo motors.

The three-phase AC servo motor dominated the market in 2019. This segment is anticipated to grow with a high CAGR during the forecast period. This growth is mainly owing to the technological developments for high-power applications. This phase-type also provides high torque and high-speed response.

The two-phase AC servo motor is likely to witness moderate growth during the forecast period. This growth is due to the increased use of a two-phase AC servo motor for low-power machine tools.

By Communication Protocol Analysis

Fieldbus Communication Protocol Segment to Hold Major Share in the Market

Based on communication protocol, the market is classified into fieldbus, industrial ethernet, and wireless.

The fieldbus communication protocol segment held a major market share due to its flexibility to support several network topologies, including tree, ring, and star. This communication protocol requires a single cable to connect with AC servo drives, reduces system complexity, and improves communication speed.

The industrial ethernet segment is expected to grow with a substantial compound annual growth rate during the forecast period. The growth is attributed to the rising use of industrial ethernet protocol for servo drives as they offer high communication speed, real-time control, and large-capacity communication. Additionally, it includes communication protocols such as CC-Link IE, EtherCAT, EtherNet/IP, and PROFINET. For example, Mitsubishi Electric Corporation offers servo amplifiers with industrial ethernet communication protocols such as MR-J4-which provide support to the PROFINET, EtherCAT, and EtherNet/IP.

The wireless ethernet segment will experience ample growth opportunities in the forthcoming years owing to the rising design and development of servo motors and drives with wireless technologies.

By End-Use Industry Analysis

Automotive and Transportation Industry Segment to Dominate Backed by Increasing Vehicle Demand

Based on the end-use industry, the market is bifurcated into aerospace & defense, automotive and transportation, semiconductor and electronics, printing & packaging, food & beverage, chemicals, and petrochemicals.

Among these, the automotive industry segment is anticipated to dominate the market in 2019 and grow faster during the forecast period. This growth can be attributed to the increasing adoption of the robotics system for high volume production to meet the rising demand for ground vehicles. Moreover, automated manufacturing can reduce the operation cost and issue related to non-automated production technology. It also helps to develop a high-quality product. As per Forbes data in 2019, the U.S. has 228 industrial robots per 10,000 of its workers. Besides, the rising adoption of smart robots for product supply is expected to drive the market growth during the forecast period

The semiconductor and electronics segment is anticipated to grow significantly due to the increasing adoption of smart home appliances, mobile phones, and other electronic devices worldwide. The rising manufacturing of these devices will create high demand for innovative internet of things (IoT) enabled advanced machinery, coupled with AC servo drives and servo motors for chip fabrication.

The demand for modern automated and motion control solutions in the printing & packaging, aerospace & defense, food & beverage, chemicals, and petrochemicals industry is increasing due to reduced operating cost and time and enhanced efficiency and quality.

REGIONAL INSIGHTS

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The global market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

Asia Pacific market stood at USD 2.35 billion in 2019 and is anticipated to dominate the global AC servo motors and drives market during the forecast period. This dominance is attributed to key market players in Japan such as Yaskawa Electric Corporation, Mitsubishi Electric Corporation, Fuji Electric Co., Ltd. The exponential growth in manufacturing industries in several countries such as China, South Korea, Japan, and India is expected to boost the AC servo motors and drives in the region. According to Forbes data, 73% of all new industrial robots were installed in just five countries, including Japan, China, South Korea, the United States, and Germany, in 2019.

North America registered a significant share in the base year due to the increased implementation of robot arms in the manufacturing process to have flexible flow lines.

The market in Europe is anticipated to witness significant growth during the forecast period due to the strong presence of end-use industries. For instance, in December 2020, Yaskawa Electric Corporation, a Japanese company, invested USD 28.03 million to establish its new European headquarters in Hattersheim.

The market in the Rest of the World is anticipated to showcase moderate growth during the forecast period. This growth is due to the rising demand for innovative electronic devices and the growing penetration of industrial automation technology in numerous industry verticals worldwide.

KEY INDUSTRY PLAYERS

Yaskawa Electric Corporation to Set New Standard with Its Innovative Servo Motor and Drives Product Line 

With its investments in the research & development of next-generation servo motors and drives, Yaskawa Electric Corporation is expected to sustain its position in the market. The company focuses on expanding the robotic systems and motion control product line with its collaborative partners. In April 2019, the company established its new robot production plant in Slovenia through a partnership with the European robotics development center. For this establishment, the company invested around USD 30.41 million. With strategic acquisitions and partnerships, the company is focused on growing its capabilities.

LIST OF KEY COMPANIES PROFILED:

• ABB Group (Switzerland)


• Delta Electronics, Inc. (Taiwan)


• FANUC Corporation (Japan)


• Fuji Electric Co., Ltd. (Japan)


• Kollmorgen Corporation (The U.S.)


• Mitsubishi Electric Corporation (Japan)


• Nidec Corporation (Japan)


• Rockwell Automation, Inc. (The U.S.)


• Schneider Electric SE (France)


• Siemens AG (Germany)


• Yaskawa Electric Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• July 2020 – Kollmorgen Corporation announced a new servo motor, drive, and cable motion package. The package includes AKD2G servo drive, 2G Motion System, and AKM2G single cable servo motors. AKD2G servo drive includes three communication protocols such as EtherCAT, CANopen, and FSoE. This new servo drives and motor package helps to improve machine performance and efficiency.


• May 2020 – Yaskawa Electric Corporation introduced SEMISTAR-GEKKO MD124D, a new high-precision and low-vibration clean robot for semiconductor wafer transfer. The newly developed robot’s arm has been driven by a direct drive motor from its AC servo motor Σ-7 series.


• April 2020 – Mitsubishi Electric Corporation announced that the launch of an innovative, advanced MELSERVO-J5 Series of AC servo motors, motion control units, and amplifiers. This new MELSERVO-J5 series of servo products offer high flexibility, performance, efficiency, and reliability and is mainly designed to be used in packaging, material handling, printing, manufacturing, converting, etc.

REPORT COVERAGE

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The AC servo motors and drives market report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, types of servo motor, and leading applications. Moreover, the report offers insights into market trends and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the market's growth over recent years.

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