Oil & gas industry powers sales for medium voltage motor drives market
Date: 14 November 2011

Medium voltage drives sales into the oil & gas industry will outpace the market in 2011 due primarily to the high oil prices in 2010 and early 2011, increasing investment for production capacity expansion, according to a new study, “The World Market for Medium Voltage Motor Drives”, from IMS Research.

In the past, oil companies reported significant profits when oil prices rose above $50 per barrel. IMS Research believes the threshold has changed to be closer to $80-$100 per barrel due to more cautious investment behavior for large capital expenditures following the downturn. In 2010, the price of oil was between $75 and $85 per barrel, which led to re-investment in the oil & gas industry. Even stronger, the first half of 2011, oil prices were between $85 to $110 per barrel providing a significant catalyst for the medium voltage drives market. Due to the profits seen from expanding production capacity at higher oil prices, medium voltage motor drives sold into the oil & gas industry are estimated to grow by over 20% worldwide in 2011.

Analyst Jenalea Howell states, “Sales of medium voltage motor drives into the oil & gas segment is predicted to continue increasing, as orders of medium drives in the oil & gas industry during the second half of 2011 remain strong, only increasing current backlogs and growth for 2012. However, growth will continue to slow due to the difficulties of sustaining such high growth, and more importantly high oil prices. ”

In addition, liquid natural gas (LNG) investment as well as oil & gas exploration and extraction in developing countries such as Brazil, Russia, and China will contribute to the continued growth into 2015. Overall, the oil & gas industry for the MV drives market is forecast to grow by a 17.1% average annual growth rate in terms of revenues from 2010 to 2015.

Editors Note :

The World Market for Medium Voltage Motor Drives report will present highly detailed statistics for the medium voltage motor drives market defined as 1kV and above. Statistics are presented in three regional volumes (EMEA, Americas and Asia Pacific), together with an aggregate world chapter. Market segmentations by power, industry, application, country/region, sales channel, as well as technical analyses are presented. Data is presented as revenues, unit shipments as well as the average selling prices. Growth forecasts will be provided through 2015, along with a discussion of any factors and important growth trends affecting the market. 2010 and 2011 revenue based market shares are presented for the leading suppliers in each region.

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, bespoke research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Japan, Taiwan and South Korea. To find out more, contact IMS Research: enquiries@imsresearch.com; T: +44 (0) 1933 402255; http://imsresearch.com

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