“Motor services have transformed from a regular maintenance solution that can increase the lifespan of motors into a strategic business discipline, which can improve the overall efficiency of the asset. Increased technological changes such as predictive maintenance systems and bundled service package options provided by motor manufacturers are some of the key driving factors”, observes Research Analyst Raaj Thilak Raveendran in a recent briefing to motor manufacturers, private service providers, service partners and consultants win the European motor services market.

EU motor services market grew at a healthy rate in 2011, but the outlook for 2012 is gloomy due to the impact of the ongoing debt crisis in Europe. The need to improve uptime, increase plant profitability, process efficiency and complexity of the manufacturing process resulted in the need for increased service requirements.

Adoption of motor management, predictive maintenance systems and online data capture are the key growth factors. However, high competition between the private service companies and tier 1 companies triggers a price war that indirectly affects the total revenue of the services segment.

Highlights of the briefing included analyses of technology trends, competitive structure, customer expectation and end-user trends related to the motor services segment.

Listen here: http://www.frost.com/prod/servlet/analyst-briefing-detail.pag?mode=open&sid=259989164

Post 2010, after the infamous Stuxnet attack in Iran, cyber threats have gained considerable attention from all sections of the industry, from automation and device vendors at the plant-floor to management personnel in boardrooms.

The need for implementing security initiatives is increasingly becoming a regulatory compulsion. A practical projection of current trends indicate that regulations and standards governing cyber security is likely to surge in future, reflecting the urgency and opportunity for automation vendors to invest in this emerging market space.

This briefing will try to understand:

• the history of cyber threats
• significance to automation vendors
• contemporary security initiatives

It will provide automation vendors with an insight into some of the popular industrial perceptions towards cyber security, offering viable recommendations for security initiatives in future enterprises.

WHEN: 16 May 2012 at 2pm BST

WHERE: Online, with free registration

For more information, and to register online go to: http://www.frost.com/prod/servlet/analyst-briefing-detail.pag?mode=open&sid=259433753

The European integrated motors and drives (IMD) market has recently recorded consistently high growth rates, except in 2009 when it was affected by the economic recession. During that year, the European IMD market witnessed greater decline in demand (about 14%), compared to the global IMD market (about 13%).

However, with numerous drivers and fewer addressable challenges, the European IMD market is ready to bounce back. Frost & Sullivan anticipates a cumulative annual growth rate of 12.1% from 2010 to 2017.

“The demand for high efficiency, along with the need to reduce energy consumption, is set to attract investments in IMD solutions,” notes Frost & Sullivan Research Analyst Ramasubramanian Natarajan. “Heightened knowledge about their potential benefits will extend the implementation of IMDs across an extensive range of industrial applications.”

IMDs are expected to gain preference over stand-alone motors and drives over the long-term. This, however, will depend on anticipated technological advancements in functionality and the availability of the technology at an affordable cost.

“The optimal compatibility of the variable frequency drive (VFD) with the motor in an IMD ensures efficient performance, with efficiency levels exceeding 90%,” remarks Ramasubramanian. “This also makes IMD units easier to deploy than procuring motor and drive as two separate components and then combining them to achieve desired performance. It also reduces lag time and increases productivity.”

While these are positive signs, the immediate challenge for IMD manufacturers will be to scale down high initial costs and project product benefits more clearly to end-users. Another issue has been the technical inability, so far, to develop IMDs for higher power ratings.

“Due to technological limitations, above a certain point, the physical size of the product makes the integration of motor and drives lose its meaning,” explains Ramasubramanian. “While VFD solutions are in position to meet customer demands for higher power rating applications, IMD solutions are not perceived to be cost-effective at high power levels, thereby limiting the overall growth potential of the market.”

Technological advances and their availability across a range of power ratings will lead to the deeper penetration of IMDs into a wider range of applications. This, in turn, will boost customer acceptance of the technology. Competitive price levels will also contribute to encouraging demand for integrated motors and drives across key end-user industry segments.

According to Frost & Sullivan, the European Market for Integrated Motors and Drives market earned revenues of $285.3 million in 2010 and estimates this to reach $632.8 million in 2017. The research covers AC, DC, servo and stepper integrated motors and drives.

If you are interested in more information on this study, please send an email with your contact details to Anna Zanchi, Corporate Communications, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

GIL 2012: Europe -- The Global Community of Growth, Innovation and Leadership Annual Congress (www.gil-global.com/europe) is scheduled to be held in London on 9th May. TechVision 2020 - one of the highlights of this year's GIL Global 2012 events - will delve into technologies that are set to dramatically transform industries, strategies and businesses.

The selected technologies that will be discussed at the congress spread across nine sectors - Advanced Manufacturing & Automation, Sensors & Controls, Microelectronics, Materials & Coatings, Information & Communication Technology, Clean & Green Environment, Sustainable Energy, Health & Wellness and Medical Devices & Imaging Technology -  and represent the bulk of R&D and innovation activity today.

Assessing intelligence on several emerging and disruptive technologies and innovations from around the globe, Frost & Sullivan's analysts will nominate the top 50 technologies which it believes have the maximum potential for global adoption and possess significant commercial potential.

In the fields of Industrial Automation & Process Control and Measurements & Instrumentation, particular attention will be given for instance to breakthrough microelectronics innovations such as flexible electronics. With global CAGR expected to increase by 19% by 2014, this technology finds use in a variety of potential markets with connected needs: consumer electronics, supply chain, food packaging, medical devices and the military sector.

Wireless power transmission and smart sensor technologies will also be analyzed, as well as digital manufacturing -- or e-manufacturing. The latter refers to the use of simulation tools, product lifecycle management (PLM) software and ICT solutions to achieve higher productivity in manufacturing, thereby increasing competitiveness through collaborative new product design, agile manufacturing, and supply chain integration.

TechVision 2020 showcases each selected technology, closely assessing the potential of a given technology platform to understand the true market opportunities, while evaluating the risk-reward elements. It appraises technology maturity and adoption ratings, possible year of impact and patent landscape, examines private and government funding trends, and explores future technology and application roadmaps.

The focus at GIL 2012: Europe is on sharing, engaging, and inspiring a continuous flow of new ideas and fresh perspectives which leverage innovation as a resource to help address global challenges. This event is designed to fuel creativity and offer access to best practices, tools and strategies that will drive growth and inspire innovation.

To read more about GIL 2012: Europe please go to http://www.gilcommunity.com.

The food and beverage (F&B) industry has been a major end-user of electric drives in Europe.  The economic slowdown had however an adverse impact on most industries, including the F&B one, impacting on the demand for electric drives. Current dynamics have heightened the need for energy-efficient, highly reliable and appropriate product customization.

Electric drives represent almost 2/3 of the energy consumption demand in the F&B industry. Surging energy prices have however had a negative impact on the performance of this industry. In this context, energy-efficient drives have helped companies reduce production costs, improve ROI and lower CO2 emissions.

“The F&B industry is becoming completely automated, resulting in increased power consumption during the production process,” states Frost & Sullivan Research Analyst Raaj Thilak Raveendran. “Companies are also looking to reduce their energy usage by implementing energy-efficient drive technology. Although expensive, energy-efficient drives provide high ROI and reduce operating costs – two advantages that will boost their uptake over the forecast period.”

Another important trend is the growing interest of OEMs in decentralized, rather than centralized, drives due to the reduced cost and project planning time they offer. Electric drive manufacturers are planning to launch new products in this segment, which will boost the sales of decentralized drives in the short and medium terms of the forecast period.

As the market expands, a major challenge will be intensifying competition. With over 100 drive manufacturers, there is relentless price pressure, resulting in eroding profit margins.

“Small participants face challenges like sizeable labor costs, eroding profit margins and industry consolidation,” adds Raveendran. “Market participants state that there is a price drop of 3% in electric drives every year, which affects the profit margins of all market participants.”

To succeed in this highly competitive market, manufacturers need to expand their product range or identify new applications for their existing products.

“Ease-of-use and cost efficiency are the two main advantages of electric drives in comparison to rival technologies,” concludes Raveendran. “Due to these advantages, electric drives have been able to find new applications. To sustain market momentum, manufacturers need to provide a complete range of products that suit the application requirements of both OEMs and end-users.”

Note: Frost & Sullivan says that the market earned revenues of €204.89 million in 2010 and estimates this to reach €313.14 million in 2017.

The European programmable logic controllers (PLC) market witnessed a heavy decline in growth in 2009, owing to the recession of 2008. However, it made a strong recovery in 2010 with all major market participants in Europe experiencing high growth.

The sovereign debt crisis afflicting the Eurozone will determine the future prospects of the European PLC market. In the meantime, however, the market is likely to grow steadily over the forecast period aided by the emergence of major Eastern European economies as manufacturing hubs for the rest of Europe. The EU PLC market will add over €1B in revenues, reaching €2.6B in 2017 from its 2010 €1.6B base.

The research firm Frost & Sullivan explains their enthusiasm:. “The global economic crisis and the sovereign debt crisis of Europe have created an atmosphere of uncertainty, with fewer projects expected in the next 2 years,” begins company representative Karthik Sundaram.

But the major trend defining the market will be increasing end user concerns over cyber security.

“Cyber security is expected to be the key parameter in safety regulations and standards that are about to be introduced in January 2012,” explains Sundaram.

On the competitive front, intense competition between tier-1 companies is causing dramatic improvements in the PLC market, leading to the emergence of new products with improved design and control capabilities that surpass traditional definitions.

Steady growth in the European control valves market was derailed by the global economic recession, resulting in a significant decline in sales in 2009. Fears of a double-dip recession caused sales to slump in 2010 as well.

The market has experienced a sluggish recovery in 2011, powered by demand from the food and beverage and power generation sectors. Promisingly, however, projects that had been put on hold during the recession are back on track. These, together with newly initiated projects, are expected to drive growth.

An increased focus on reducing maintenance costs and tighter pro-environment regulations are the two factors poised to boost market prospects.

“There is heightened emphasis on incorporating a diagnostic tool within the control valve, which would eliminate the need for periodic services as well as downtime due to maintenance problems,” explains Frost & Sullivan Program Manager Ashwin Annareddy. “This would also result in a revamping of the basic design of control valves, leading to a significant increase in sales.”

Regulations regarding environmental pollution are poised to become tougher in the coming years. This will impact the design of control valves and boost the sales of valves that promote environmentally sustainable practices across various end-user industries.

Investments in the food and beverage as well as the power generation industries are also set to fuel the uptake of control valves. At the same time, Central and Eastern Europe are anticipated to emerge as the primary geographical markets.

“Manufacturers should develop broad product portfolios that would satisfy the requirements of these end-user and geographical segments,” advises Annareddy. “This strategy would enable them to broaden their market reach as well as increase their penetration of these emerging geographical markets.”

A key challenge for European market participants has been pricing due to intensifying competition from Asian low-cost alternatives. This situation has been aggravated by budgetary limitations that have affected R&D initiatives.

“To assert their competitive dominance, European control valve manufacturers have to focus on developing innovative, high-quality yet cost-effective designs that meet end-user requirements,” advises Annareddy. “Value added services that would generate valuable income and enable companies to differentiate themselves from the competition would also be critical to long-term success.”

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Strategic Analysis of Control Valves in the European Market, finds that the market earned revenues of €496.5 million in 2010 and estimates this to reach €676.3 million in 2017. Rotating shaft and sliding stem-type control valves are the product segments covered in the research.

The European heating, ventilation and air conditioning (HVAC) industry is undergoing unprecedented change. The dynamics driving the change – technological innovation in building design and energy conservation – are altering the market and ultimately affecting equipment and applications.

Escalating energy prices across Europe are underlining the need to implement electric drives to minimize energy bills and achieve better efficiency. At the same time, efforts to minimize its carbon footprint will compel the HVAC sector to limit energy usage.

These trends highlight the importance of electric drives as an advanced and cost-effective energy-reduction solution to control HVAC components.

However, the cost of implementing electric drives for low-range HVAC applications is sometimes perceived as being too high. To encourage wider use, market participants will need to manufacture low-cost, off-the-shelf solutions for specific tasks.

“Several factors, including spiraling energy costs and mandatory compliance with energy-efficiency standards, together with a focus on air quality and its impact on human health, are boosting the European HVAC electric drives sector,” notes Frost & Sullivan Research Analyst Ramasubramanian Natarajan. “Regional trends, such as infrastructural growth in Eastern Europe, are reinforcing market potential.”

“Convincing end-users to implement drives in their HVAC applications, especially during economic slowdowns, is a challenge for drives manufacturers,” adds Ramasubramanian.

Declining prices are another market growth obstacle. Intense competition is causing the prices of drives to drop, affecting the profit margins of manufacturers. This is being exacerbated by the entry of low-cost Asian competitors that have gained a significant proportion of the domestic customer base for European manufacturers over a short span of 4 to 5 years.

Penetration into regional markets in Eastern Europe is viewed as a strategic response to these challenges.

“Many drives manufacturers are shifting their manufacturing bases to Eastern Europe to reduce their production outlays and to cater to the increased automation needs of this region,” explains Ramasubramanian. “Moreover, the heavy investments being made in infrastructure, expansion of industrial and production bases and other discrete industries, of which HVAC drives are an integral part, are luring HVAC drives manufacturers to Eastern Europe.”

According to Frost & Sullivan research, the European  electric drive market serving the HVAC industry earned revenues of $275 million in 2010 and is estimated to reach $612 million in 2017.

According to analysts at Frost & Sullivan, the field of industrial automation is at a cross roads: With many suppliers acknowledging that their automation and control solutions portfolios are nearing saturation, a major trend is the narrowing product definition between individual products, in particular, programmable logic controllers (PLC) and distributed control system (DCS) product lines.

“Vendors have currently emerged with hybrid products that combine PLC and DCS functionality as a means to counter high competition and gain end-user recognition,” notes Frost & Sullivan Senior Research Analyst Karthik Sundaram. “Despite economic advantages, the emergence of such products has clouded end-user perception to a large extent, and it remains to be seen if this technical strategy yields expected results.”

Frost notes a significant shift from the traditional parameters determining the  market. Currently, it is a company’s product portfolio that yields the maximum influence in the ACS market space, followed closely by service support and cost considerations. This, however, is set to change.

Frost sees momentum away from products and towards services. As the market moves this way, suppliers will need to be in tune with on-going developments and enhance their ability to compete and succeed in the future of factories.

“..the factory of the future is catalysed by five mega trends - cyber security, mobile and wireless technology, enterprise ecosystem, cloud computing and sustainability,” says Sundaram. “These mega trends will influence all aspects of an industrial enterprise.”

For instance, operating personnel in future factories will not be confined to work stations inside control rooms. The advent of tablets and mobile platforms will enable them to track production lines, perform maintenance operations and monitor process issues from their tablets – all while on the move.

The adoption of secure cloud computing technology will enable factories access to relevant strategic data from the Internet to execute real-time decisions and enhance operational efficiency.

“In essence, future factories will have secure wireless networks supporting a highly automated production process, seamlessly interlinked with enterprise software working through the clouds,” concludes Sundaram.

Increased discussion about global warming and energy dependency is leading to massive push toward energy-efficient systems. And electric motors account for about 60% of the total industrial power use in Europe.

Slowing down a motor to its optimum speed could lead to significant energy savings and help in reducing carbon footprints. Carbon emissions are directly linked to climate change (global warming), which demands strong reduction in energy usage. The road to greater energy efficiency starts with highly efficient electric drive systems. There is a simple business sense for being more energy efficient as it has a direct impact on our investments. Lower the energy consumption, lower are the energy bills, reducing the need for energy production, contributing to lower carbon emissions. Reducing energy waste leads to decline in energy spent. Most businesses can account their contribution in balancing global warming by cutting down their energy consumption. Usage of electric drives can reduce the overall energy consumption of a plant by up to 50%, depending on how efficiently the system is implemented.

Global Warming – Statistics and Impacts:

Frost & Sullivan estimates that in the current scenario, about 25,000 million tons of CO2 is released by the industries across Europe and despite several measures this has projected an increase year on year. The need for energy has been rising steadily and as per International Energy Agency’s (IEA’s) publication, if the current policies were to be in effect in the future, the emission would increase by 120% in 2050, while oil demand would rise by 65%. The effect of global warming has already started to show adverse effects on the environment. Numerous long-term changes have already been recorded for example, increase in global average air and ocean temperatures, meltdown of Arctic and Antarctic snow and ice, leading to increase in the sea level.

Global Warming – Mitigation and Measures:

The Industrial sector is responsible for consumption of about 41.6% of the total electricity produced in Europe.

Recent years have witnessed an influx of regulations applied to all manufacturing industries across Europe. In 2001, the climate change levy was introduced, followed by climate change agreements. The European Union Emission Trading System (EU ETS) came into effect from 2005, followed by the environmental permitting regime in 2008. The most recent, Carbon Reduction Commitment Energy Efficiency Scheme is now being widely implemented across Europe, starting from April 2010. The new set of motor efficiency regulations namely IE1, IE2 and IE3 is another big step in controlling carbon emissions. All the motors entering the market on or after 16 June 2011 must comply with IE2 standards. From 1 January 2015, motors of power rating between 7.5 kW to 375 kW being placed in the market must comply to IE3 efficiency standards or IE2 standards if they are equipped with variable speed control. From 1January 2017, motors of power rating between 0.75 kW to 375 kW being placed in the market must comply to IE3 efficiency standards or IE2 standards if they are equipped with variable speed control.

Chart1: Energy Consumption: Per cent Distribution by Application Sectors (Europe), 2010

Undoubtedly, the biggest impact on energy savings can come from applying variable speed drives to many of the electric motors used throughout industries across Europe. Realizing this, Carbon Trust – an independent non-profit organization set up by the UK Government- has taken a large step in controlling CO2 emissions through its Big Business Refit program, which encourages industries across UK to invest and implement newer and more environmental-friendly technologies like variable frequency drives and energy efficient electric motors, by extending interest-free loans from £3,000 to £500,000. In the first half of 2009, Carbon Trust extended interest-free loans to hundreds of SMEs to equip their businesses with the latest energy-saving technology. Carbon Trust claims that they are saving an average of £14,000 each on their annual energy bills.

Variable Frequency Drive:
A variable frequency drive (VFD) allows a motor’s speed to be varied electrically, instead of mechanical means. The insulated gate bipolar transistor technology, which creates the variable voltage and frequency to control a motor’s speed, technically, has much greater efficiency and offers wide flexibility of operation. Apart from saving a great deal on electrical power consumption, it also offers soft-start capability, where-in the motor is slowly ramped up to the desired speed, instead of being thrown abruptly upon switching on. This reduces the mechanical stress on the motor and increases its life. The motor’s speed can be easily adapted to changing process conditions using a variable frequency drive, thereby achieving greater process control. Optimizing the speed of a motor using a VFD can result in enormous energy conservation, reducing the cost of recurring investments.

Usage of VFDs can also contribute in the reduction of other secondary cost cutting factors. For example, heating a business premise consumes significant amount of energy. It is estimated that for every 1oC of extra heat increase, there is an increase in the energy consumption by 8%, thereby adding 8% to the energy bills. Employing several electric drives, spread over the premises, can contribute to overall heating of the premises, reducing the energy required for HVAC devices.

Adopting Green Technology:
The implementation level of VFDs across European industries is estimated to be only about 45% to 50%, by 2010. This has resulted in a reduction of CO2 emissions by 6,000 million tons per annum. With increasing presence of VFDs in diverse markets across Europe, further reductions in CO2 emission is inevitable. The return of investments for today’s advanced drives is less than a year. This makes the usage of VFDs relatively economical and enables companies to be environmentally responsible, thereby making the technology sustainable.

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This is first in a DrivesMag Exclusive series of articles on the business of drives from global research company Frost & Sullivan.