Servo Drive Market Size, Share & COVID-19 Impact Analysis, By Drive (AC Drive, and DC Drive), By Voltage (Low (up to 1kV), Medium (1kV-6.6kV), High (Above 6.6kV)), By End-User (Automotive, Healthcare, Industrial Machinery & Equipment, Semiconductors & Electronics, Printing & Packaging Equipment, and Others) and Regional Forecast, 2020-2027

The global servo drive market size was USD 6.72 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with servo drives witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of nearly 10% in 2020. The market is projected to grow from USD 6.04 billion in 2020 to USD 9.31 billion in 2027 at a CAGR of 6.4% in the 2020-2027 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Motors are one of the most important components to run the equipment needed to conduct the various daily operations across industries including agriculture, residential, commercial, infrastructure, and others. Servo drives form the heart of various motor operations as they manage the actions performed by the motor using the command or feedback signals received from the control system. Drives are functioned to change the frequency of the voltage flowing into the motors to optimize working cycles. They also enable motor operations at fluctuating speeds rather than at ordinary ‘zero speed’ or ‘full speed’ to substantially cut the operating costs. Desired torque and position are some of the other important performance characteristics controlled by drives, which improve the overall energy efficiency. 

Substantial Gap in Supply and Demand for Servo Drives across Regions to Hinder Global Market Growth 

The rising concerns owing to the spread of coronavirus have negatively impacted all the supply chains and manufacturing industries across the globe. This has led to strict regulations implied by governments to control the spread of the virus and assure the safety of people. Accordingly, the outbreak of the disease has altered the demand for these drives as the use of motors and the demand for additional motors across sectors, such as oil & gas, mining, automobile, food processing, petrochemicals, and others, has declined.

Additionally, different external parameters, such as volatile international crude oil prices, unavailability of new investments, the decline in energy demand, disruptions in value chains, and ongoing price wars, will play an important role in shaping the industry trend over the pandemic situation. For instance, in April 2020, as per the International Energy Agency (IEA), the global demand for crude oil declined by a staggering 9.3 million barrels per day (mbpd) in 2020 as compared to 2019.

LATEST TRENDS

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Introduction of Advanced Tools & Services to Boost Production Output to Shape Market Dynamics

Various industry players are continuously striving to invest in research & development (R&D) activities to fortify their position & maximize the output with advanced technologies and industrial automation. Following this trend, the demand for servo motors has consequently spiked in recent years across every industry as these optimize the energy efficiency and result in minimum losses for the company. This has ultimately resulted in the growth of this market as these drives control the actions performed by servo motors.   

Increasing Preference for Servo Motors over Other Counterparts in Will Drive the Adoption of Servo Drives

In the case of motors other than servo motors, a different type of motor needs to be developed to comply with different torque and different speeds. But servo motors combine this dynamic speed/torque range in a single unit, which makes them a preferable option in the current market over other available counterparts.  Also, these motors require less maintenance and are brushless, which acts as another major plus in their favor.

DRIVING FACTORS

Increasing Energy Demand & Rising Populations to Create Lucrative Opportunities   

Over the last decade, the demand for energy in countries across the globe has observed a substantial spike stoked by the increasing population. This has led to new commercial & industrial infrastructures, increased power generation, improved use of vehicles, surging product manufacturing industry, growth in agricultural activities, and expanding exploration activities. These activities require the use of servo motors and therefore the demand for servo motors has also risen with the increasing rate of activities, making servo systems a lucrative business for industry players.  As per Enerdata, the global energy consumption has increased from 12,484 (megatonnes) Mtoe in 2010 to 13,975 Mtoe which is an approximately 12% increase in a single decade.

Focus on Improving Operational Efficiency Will Drive the Adoption

Governments in various countries are taking initiatives and working toward the installation of energy-saving equipment to increase building efficiency and reduce consumption at industrial, commercial, and residential levels. Servo drives are capable of varying the output speed of servo motors without any extra mechanical devices and therefore consume the power that is only required to operate the system. Furthermore, in the coming years, the demand for energy-efficient systems along with the rapid development of innovative devices for various applications such as industrial automation is anticipated to rise, which will bolster the market size.

RESTRAINING FACTORS

Additional and Complex Equipment Required to Ensure Safety and Higher Cost of System May Hinder Growth

As the servo system uses the feedback loop to make the required movement in the motor, the tuning of the feedback loop is an important part to stabilize the system. Similarly, a safety circuit is a mandatory requirement to ensure safety when a part of the system breaks down. These all factors increase the complexity in operation and also the cost required for servo system setup, which may lead to users preferring different options available such as stepper motor which does not require any feedback loop.

SEGMENTATION

By Drive Analysis

AC Drives Hold a Significant Share in the Market backed by Flexibility in Operation

Based on drive, the market is broadly categorized into AC drive and DC drive. The AC drives currently hold a major share in the market owing to their flexibility in operation at different speeds and being cost-effective as compared to DC drives. Other major factors that act in favor of AC servo drives include the absence of brushes and commutators, which eliminate the costs of replacement and therefore require less maintenance. AC drives are also equipped with a backup system that lets the motor operate at a constant speed even if the controller fails.

By Voltage Analysis

Vast Application Range of Low Voltage Drives to Aid the Low Voltage Segment Growth

Based on voltage, the global industry can be primarily bifurcated into low (up to 1kV) voltage, medium (1kV-6.6kV) voltage, and high (above 6.6kV) voltage. The growth of the Low voltage range segment is backed by the growing application areas for the Low voltage motors. Developing residential sectors, increasing agricultural activities, and small-scale industries across the globe have contributed to the adoption of low voltage drives.  Also, the growth across the petrochemical and oil and gas industries has helped the market segmentation as low-voltage drives are used along with hydraulic pumps in hydraulic fracturing and in the refining industry to pump the fuels using motors. Medium and high voltage drives are expected to gain pace with the expansion of application scope for servo motors.

By End-User Analysis

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Introduction of 100% Automation in the Industrial Sector to Augment Growth of the Industrial Machinery & Equipment Segment   

Based on end-user, the global market is divided into automotive, healthcare, industrial machinery & equipment, semiconductors & electronics, printing & packaging equipment, and others. Industrial machinery & equipment and semiconductors & electronics have been the frontrunners in this market with these drives being widely used in robotics, electronic devices, remotely controlled toys, automatic doors, and other applications. With the introduction of industrial automation to improve the accuracy and efficiency of operations, the demand for servo drives in the industrial sector has gone up. Also, the growing usage of solar tracking systems holds opportunities for these drives as they are used here for tracking the sun rays as per their movement along the day

Apart from these two segments, the automotive segment holds immense opportunities for the market as electric vehicles (EVs) are expected to be the most preferred medium of transport in the coming years to curb greenhouse gas (GHG) emissions. These drives are currently used in the automotive sector for various applications, such as fuel injection systems, anti-lock braking systems, cruise control, and pedal systems to control speed. 

REGIONAL INSIGHTS

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The market has been analyzed across five major regions including North America, Asia Pacific, Europe, the Middle East & Africa, and Latin or South America. The Asia Pacific is projected to dominate the global servo drive market share in the coming years owing to rising industrialization, oil & gas activities, infrastructure activities, and rich agricultural heritage in developing economies such as India and China. The population growth in the region has also been at an exponential rate, which has led to rapid urbanization over the last decade. This has ultimately raised the demand for products and services across various industry verticals and therefore leads to the expansion of available market places across the same. As per the Worldometers, the population of the region has grown from 4.2 billion in 2010 to 4.6 billion in 2020 and is projected to grow at even faster rates in the coming years.

North America and Europe are also projected to observe a considerable growth rate owing to the rapidly increasing energy demand, surging exploration and production activities (specifically hydraulic fracturing), the declining dependence on coal reserves, and steps to increase the penetration of renewable sources such as solar and wind energy. These regions are also the manufacturing hub for several products in various end-use sectors such as electronics, and the growing demand for these across the globe will help the adoption of these drives. Similarly, the market is expected to gain pace across different application sectors in Latin America and the Middle East. Brazil, Mexico, and GCC countries are expected to be the hotspots for the market in these regions.

KEY INDUSTRY PLAYERS

ABB, Siemens, and Schneider Electric to Lead the Way with Diversified Product Portfolio and Customer Reach

The market has observed different companies delivering varied solutions at country, regional, and international levels. These companies are making huge investments in research & development (R&D) activities and also collaborating with institutions and other competitors for innovative solutions aimed at efficient operations with minimum energy loss. Different companies dominate in different regions of the world with their well-versed supply chains reaching out to a maximum number of customers. ABB, Siemens, Schneider Electric which are the leading players in the market for providing servo motors and related equipment are expected to hold the pole position in the market.

LIST OF KEY COMPANIES PROFILED:

• Rockwell Automation (United States)


• Anaheim Automation Inc. (United States)


• WEG (Brazil)


• ABB (Switzerland)


• Nidec Motor Corporation (United States)


• Siemens (Germany)


• Danfoss Drives (Denmark)


• Fuji Electric (Japan)


• Schneider Electric (France)


• Yaskawa America, Inc. (United States)


• Toshiba International Corporation (United States)


• Mitsubishi Electric Automation, Inc. (United States)

KEY INDUSTRY DEVELOPMENTS:

• January 2021 – Beckhoff Automation, which provides servo motors and servo drives across 60 countries under its “New Automation Technology”, has announced its service expansion to MHI’s Solutions Community and Conveyor & Sortation Systems (CSS), which is the leading material handling, logistics, and supply chain trade organization in the U.S. The company has stepped in intralogistics and material handling and will provide its expertise in the same.


• December 2020 – OMRON launched its 1S series servo drives and servo motors, which ensure motion safety. The other plus points of the new servo system include operator safety, shortening of commissioning time and reduction in cost, components and wiring complexity, machine downtime, and production losses.

REPORT COVERAGE

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The report on the global servo drive market highlights leading regions across the world to offer a better understanding of the user. Furthermore, the market research report includes and provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the industry.

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