Influx of Foreign Companies in the Southern Cone Expected to Fuel Automation and Sale of Electric Drives, Finds Frost & Sullivan

Spreading product awareness and exploring untapped potential will raise participants' revenue shares

Nov 13, 2012, 10:24 ET from Frost & Sullivan

BUENOS AIRES, Argentina, Nov. 13, 2012 /PRNewswire/ -- Electric drives have not yet taken off in a big way in the Southern Cone region. Their application has been restricted to low-power appliances due to the region's reluctance to invest in automation processes. However, the entry of foreign enterprises will energize this tepid market environment by compelling domestic companies to invest in automation and hence, electric drives.

New analysis from Frost & Sullivan (, Analysis of the Electric Drives Market in the Southern Cone Region, finds that the market earned revenues of $70.0 million in 2011 and estimates this to reach $121.3 million in 2016, at a compound annual growth rate of 11.6 percent. AC standard and servo drives are expected to gradually nudge out DC drives from the market.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at, with your full name, company name, title, telephone number, company email address, company Web site, city, state and country.

The small size of the economies in the Southern Cone region translates to fewer resources to spare for modernization of industrial processes. Further, the abundant cheap labor and lack of strong external competition has stalled automation drives; but the rising presence of foreign players is prompting local participants to improve production efficiency and make their exports worthy of the global stage.

"To compete against multinational companies in all fields, industrial plants are investing in higher automation to diminish losses in the production process, thereby increasing the relevance of electric drives," said Frost & Sullivan Research Analyst Alejandro Diaz Lopez.

Electric drive manufacturers will be aware that there is significant untapped market potential, given the low penetration rates. This, along with pressure on industries to improve electric motor efficiency, will considerably boost the demand for electric drives.

"Market participants have to create greater market awareness of the benefits of electric drives," noted Diaz Lopez. "They have to highlight its ability to aid energy efficiency and thereby, save production costs in the long term."

Analysis of the Electric Drives Market in the Southern Cone Region is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: Analysis of the Andean Region Market for Electric Drives, Brazilian Market for Electric Drives, Southern Cone Market for Electric Motors, and Brazilian Markets for Electric Motors. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Analysis of the Electric Drives Market in the Southern Cone Region

Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300

SOURCE Frost & Sullivan