- North American drives market for natural gas applications to more than double by 2018
MOUNTAIN VIEW, California, July 9, 2013 /PRNewswire/ -- The expansion of Greenfield shale plays, an increase in natural gas exploration and production, and new investments in transportation infrastructure spurred the North American electric drives market for natural gas applications.
New analysis from Frost & Sullivan's (http://www.motors.frost.com) Analysis of the North American Drives Market for Natural Gas Applications research finds the market earned revenue of more than $350 million in 2012. While the market is less than 20 percent of the total drives market in North America, it is expected to grow at a rate 1.5 times faster than the growth rate of the total electric drives market in North America. This provides ample growth opportunities for companies to capitalize on. Moreover, recent trends in the industry, such as the approval of liquefied natural gas (LNG) export terminals, are expected to further boost the market growth rate.
For more information on this research, please email Britni Myers, Corporate Communications, at email@example.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
"With increased emphasis on energy independence in the U.S., exploration and production companies escalated investments in natural gas extraction and new well development, thereby driving the electric drives market in the upstream segment," said Frost & Sullivan Industrial Automation and Process Control Research Analyst Anshul Sharma.
In midstream, most pipelines used in these operations are in areas with limited access to electricity, and electric drives' dependence on a steady power supply adds to operational costs, dissuading potential consumers. The lack of quick return on investment, as well as end-users' preference for proven, conventional drive systems to avoid device failures that can lead to delayed production and financial losses, further curb sale volumes.
In downstream applications, stricter environmental regulations and concerns on reducing emissions offer opportunities for low-emission electric drive systems. Electric drives also boost overall system efficiency, and are therefore used in processing applications like gas compression and pumping.
"In the upstream segment, reliability and the ability to optimize gas production are the critical factors of success," noted Sharma.
Analysis of the North American Drives Market for Natural Gas Applications is part of the Power Transmission Growth Partnership Service program. The research analyzes market dynamics, revenues, growth rates and various trends of upstream, midstream and downstream segments in natural gas applications. The analysis also evaluates trends in the low and medium voltage drives market and further breaks it down into product applications such as pump, compressor and fans.
Frost & Sullivan also provides the Competitive Advantage and Market Positioning (CAMP) analysis of the market in this research. The CAMP model identifies and qualifies the growth opportunity in any industry through M&A by leveraging Frost & Sullivan's global intelligence on key dimensions such as market, technology, econometric and demographic factors. This translates into major economic results and enhanced competitiveness for market participants. The uniqueness of the CAMP tool is its ability to provide a snapshot of the whole market at a single glance.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Analysis of the North American Drives Market for Natural Gas Applications
SOURCE Frost & Sullivan