Integrated Drive Systems Market

Global Integrated Drive Systems Market Size (2024 to 2029)

The Global Integrated Drive Systems Market size is expected to grow at a CAGR of 5.92% during the forecast period 2024 to 2029 to reach USD 42.1 billion by 2029.

Integrated drive systems are systems that integrate components such as motors, sensors, gearboxes, and controllers altogether in a single system. Integrated drive systems are suitable for any automation setup, making several processes faster and easier, such as designing and plant integration. Integrated drive systems are highly used in various sectors, especially in the manufacturing and automotive industries. They help save energy costs over the entire lifespan of the system, save time and effort by simplifying the design and integration processes, and improve productivity by maximizing performance.

Global Integrated Drive Systems Market Drivers:

Increasing demand for automation in various industries driving the integrated drive systems market growth. Because automation is currently used by many industries to simplify work or industrial processes, which increases productivity and saves cost, integrated drive systems help automation by providing the requirement of components to make machinery and systems function effectively. Industries are automating various processes like manufacturing, packaging, etc., with the help of integrated drive systems, which reduces human intervention, and ultimately reduces labor costs. As automation makes organizations more profitable and helps to remain in the competition, demand for it is growing. This is greatly contributing to integrated drive systems market size expansion.

Another factor that is driving the integrated drive systems market demand is the increasing demand for energy efficiency and cost-saving solutions. For industries focusing on using less energy to get the same job done, integrated drive systems are the best suitable solutions to this demand. These systems are designed to use energy more efficiently by controlling and managing motors and other components effectively. This saves cost on energy and helps protect the environment. Since industries want to be more eco-friendly and save money, they're increasingly looking for energy-efficient solutions like integrated drive systems, and this attribute is influencing the market growth.

The increasing adoption of advanced technologies is another factor that is driving the integrated drive systems market demand. Technological advancements such as cloud computing, smart sensors, wireless technology, etc., are influencing the adoption of these systems by various industries to enhance the effectiveness and ease of operations. Such advanced technology enhances the functionality and performance of integrated drive systems, which is contributing to an increase in the market size.

The increased focus on energy conservation is offering a significant opportunity for the market. Many large industries and also small & medium businesses are focusing on being environment friendly by saving energy. The integrated drive systems help them with this attribute, as they are designed to use energy efficiently, reduce waste, and enhance the functionality of the work. This helps all types of businesses to remain sustainable and be more environmentally responsible. And this is very much influencing the integrated drive systems market shares.

The emerging advanced technologies are offering several growth opportunities for the market. New and advanced technologies like the Internet of Things (IoT), Artificial Intelligence (AI), wireless technologies, etc., are connecting with integrated drive systems to work more precisely and effectively. Due to this, these systems can make processes sophisticated by sharing information, monitoring devices or machinery distantly, and predicting any future maintenance to be done. Hence these advancements make these systems even smarter and faster, which is causing an expansion in the integrated drive systems market size.

Global Integrated Drive Systems Market Restraints:

One of the restraints of the market is the high initial implementation cost. Due to the involvement of numerous advanced components and technology, these systems are expensive to buy and implement in industries. Hence businesses with a restricted financial budget are unable or find difficulties in implementing such systems in their operations. Furthermore, the high maintenance cost of these systems restraining the integrated drive systems market demand.

Another restraint to the market is a lack of understanding and awareness about integrated drive systems. Many industries and small businesses are unaware of the advantages of adopting such systems. They might not understand how these systems are profitable to their businesses by improving productivity, energy efficiency, and overall operation processes. Due to a lack of awareness about the advanced technology used in integrated drive systems, some industries are out of market trend. Hence the lack of understanding and knowledge is an attribute contributing to a decrease in the integrated drive systems market demand.

Impact of COVID-19 on Integrated Drive Systems Market:

COVID-19 significantly impacted the integrated drive systems market growth. The pandemic resulted in supply chain disruptions, the shutdown of industries, and a shortage of human labor, which led to delays in manufacturing. Hence it affected the production and delivery or supply of these systems to end users. Also, the financial restrictions slowed down the adoption of the integrated drive systems market. However, the pandemic had a positive impact on this market by offering increased automation and digitalization due to social distancing concerns. As businesses prefer to enhance productivity and reduce the labor force, there was an increased demand for this market during the pandemic. This is how COVID-19 offered some challenges and opportunities for the integrated drive systems market growth.

REPORT COVERAGE:

This research report on the global integrated drive systems market has been segmented and sub-segmented based on type, source, application, and region.

Global Integrated Drive Systems Market - By Type:

• Fieldbus
• Industrial Ethernet
• Wireless

The wireless segment is ruling the market shares owing to improved internet access, transmission quality, and bandwidth usage. With the help of advanced wireless technologies, manufacturing and automation industries can remotely access their operations from anywhere. Due to their high functionality, ease of installation, and ability to be used as drive systems, the wireless segment is the leading share of the market wherever the industrial ethernet is expected to grow at a fast rate in the coming years as it provides fast and reliable communication between the devices and systems in various industries. This attribute influences the market size.

Global Integrated Drive Systems Market - By Component:

• Hardware
• Software
• Services

The software segment is anticipated to dominate the market during the projected period. The software offers programs and algorithms that allow control, monitoring, and management of the integrated drive systems market. This attribute is significantly driving the demand for this segment. However, the hardware segment is expected to grow at the fastest rate in the upcoming years as it includes various components such as sensors, motors, etc., which are highly used in integrated drive systems to control and drive the machinery or systems. This is majorly influencing the demand for this segment.

These components work together to control and drive the machinery or system.

Global Integrated Drive Systems Market - By Application:

• Automotive and Transportation
• Food and Beverages
• Chemical
• Oil and Gas
• Pharmaceutical
• Metal and Mining
• Energy and Utilities
• Water and Wastewater Treatment
• Pulp and Paper
• Others

The automotive and transportation industry is ruling the market share. Owing to the automobile industry's innovation, technical advancements, and significant changes in production technology. And these systems help boost the efficiency of processing and production facilities in the automotive industry; the integrated drive systems market is expanding. However, the water and wastewater treatment segment is expected to grow at the fastest rate during the projected period. As integrated drive systems enable precise control, energy saving, and remote monitoring, it is highly being adopted in the wastewater treatment processes. This segment is significantly driving the market growth.

Global Integrated Drive Systems Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

The Asia Pacific region is anticipated to dominate the market in the coming years.

The integrated drive systems help in increasing the efficiency of energy and production processes in various industries. This attribute is highly contributing to the increased demand for the integrated drive systems market in this region. North America is expected to grow at the fastest CAGR during the projected period. The significant presence of key industries like automotive, aerospace, and food & beverages are majorly contributing to an increase in the demand for this market in this region.

KEY MARKET PLAYERS:

Major Key Players in the Global Integrated Drive Systems Market are ABB, Bosch Rexroth, Emerson, Schneider Electric, Siemens, Eaton, Integrated Drive Systems, Mitsubishi Electric, Rockwell Automation, TQ Group, Yaskawa Electric, and others.

RECENT HAPPENINGS IN THE MARKET:

• In 2020, To identify and solve the ergonomic problems that caused the injury on its assembly line, Ford Motor Company used Motion Analysis systems. After the system was put in place, injuries brought on by repetitive stress, such as rotator cuff tears, strains, and spinal compression, significantly decreased.
• In 2020, Siemens undertook the renovation of three press lines, drive motor technology, and automation components for the Volkswagen factory in Wolfsburg, Germany. The integrated drive system SINAMICS $120 and SIMOTION D had gone through virtual simulation testing before installation.