Electric Drives in the Packaging Industry - End User AnalysisFrost & SullivanDecember 31, 2008 140 Pages - SKU: MC2292051 |
| Market Overview
Demand for Reliability and Process Efficiency in Packaging Applications Continue Promoting the Uptake of Electric Drives in the Global Packaging Industry There remains considerable scope for the global packaging industry to boost its revenues. There were considerable purchases of electric drives by the packaging industry in 2008, despite the economic meltdown. Sales figures are poised to increase further as the packaging industry is optimistic about future spending on drives. Although prices have declined in the recent past, there is pressure on prices to reduce further due to the current economic scenario. The ability of manufacturers to promote customer satisfaction and ensure technical support within a packaging plant will encourage the adoption of electric drives. “The growing demand for energy efficiency, the need to improve process control and increasing concerns about eco friendly modes of manufacturing are major drivers in the uptake of electric drives by the global packaging industry,” note the analysts of this research. “Rising satisfaction levels in the existing customer base and the tremendous growth potential in the packaging industry will lead to a spurt in demand for electric drives. “ According to end-user research by Frost & Sullivan, the products of most leading drives brands are comparable in terms of quality, reliability, and energy consumption. Hence, manufacturers should increase their R&D expenditure and try to differentiate their products from competing options. “In this context, potential market entrants should concentrate on supplying simpler technology at prices lower than existing offerings,” advises the analyst of this research. “This will enable them to capture share in a market which is otherwise dominated by a handful of leading brands.“ Manufacturers to Focus on Promoting Greater End-user Awareness About Latest Drives Technology The demand for drives has not reached its full potential due to the increasing complexity of drives technology. Although manufacturers have constantly upgraded their offerings in terms of technology, customers are not entirely convinced about their benefits. Moreover, the stand-alone drives option is not popular, particularly if there is the problem of replacing the entire machine in case of a breakdown. This pushes up the total investment cost for drives on the whole. Low awareness in the packaging industry about the latest drive technologies continues to pose a major challenge. Consumers continue to use outdated drives that result in energy wastage. Accordingly, greater knowledge about the benefits of the latest drives technologies will support higher demand. “Drive manufacturers should focus on ensuring adequate publicity about the latest available variant of drive, highlighting its most appropriate use and emphasizing its advantages,” remarks the analyst of this research. “Moreover, manufacturers should invest in R&D to differentiate their product offerings from competing brands.” Constant innovation to cater to user requirements is another important factor for success. Such innovations should be user-friendly so as to capture end-user attention. Market Sectors Expert Frost & Sullivan analysts thoroughly examine the following application sectors in this research:
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