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Growth expectations have varied tremendously over the last decade. In 1999, IMS Research forecast 25% per annum growth for linear motors. Compared to the bullish optimism permeating the market at the time, this was considered by many as a conservative forecast. However, by 2003 the sentiment in the market had reversed considerably. This inversion in optimism was a result of the slowdown in the economy, and in particular the collapse of the semiconductor machinery market, which over a period of a couple of years shrank by 50%. Being one of the major
industries using direct drive technology, this had a massive impact on the linear motor market, and even resulted in some direct drive manufacturers exiting the market.
A lack of customer education in the market also contributed to the initial buzz followed by the check in growth. At the turn of the millennium many companies were purchasing direct drives (primarily linear motors) almost as following a fashion, partly driven by the promotion of the high levels of performance from this technology. Awareness of the limitations of this technology were not as frequently considered. Therefore, whilst some companies optimistically predicted a mass migration to this "new" technology, much at the expense of traditional mechanical products, the reality was that most of the market was not realistically addressable at the time. Limitations included: the additional upfront cost of the product; increased levels of education needed to successfully install and operate the equipment; the lack of need for the higher levels of performance provided (direct drives were over-specified for many applications).
Whilst new applications do contribute heavily to the growth of this market, as with flat panel display machinery, replacement of existing technologies in other applications also provides suppliers with a reason for optimism. The technologies most frequently being replaced by direct drive solutions are traditional mechanical products.
In the rotary motion market noticeable success has been observed for companies selling torque motors as an alternative to gearboxes and geared motors. Whilst this market still represents less than 1% of the total EMEA market for geared products, the opportunity for these products is significant. This is highlighted by the fact that the torque motor component market was forecast to grow from an estimated $47M in 2007 at a rate of around 10%.
Suppliers of linear motor products have similarly had success competing with the mechanical ball screw and belt driven technologies. This replacement trend has been ongoing for a number of years, having contributed to the linear motor component market growing to an estimated $246.0M in 2007. Growth rates in this market are not as high as for torque motors, and this partly due to the greater level of "saturation" of these products that has already taken place in the linear motion market. The advantages of direct drive products include: higher levels of acceleration and accuracy, longer lifetime, and reduced maintenance. In contrast, some of the disadvantages of the technologies: higher upfront costs, need for technical expertise, potential redesign of machines. However, in many cases the advantages outweigh the disadvantages and have resulted in replacement of tradition mechanical products.
This has already been well observed in industry sectors such as machine tool, semiconductor equipment and plastic extrusion. However, it is becoming increasingly noticeable in other generally less demanding applications such as packaging machinery and material handling. This potential for continued growth within the direct drives market has attracted a number of companies. With continued market penetration offering good potential for direct drive suppliers.
A number of companies active in competing markets have jumped on the direct drive band wagon, this includes companies such as Festo, Parker Hannifin and Bosch Rexroth, who originated as provides of fluid power products. In like manner many suppliers of mechanical products, such as INA, THK, NSK have also invested in developing direct drive technology.
The roller coaster ride the direct drive market has had a over the last few years, will continue in certain areas, due to they cyclical peaks
in supply and demand in the flat panel display and semiconductor equipment markets. However, as sales of these products increases in many less volatile markets the general sentiment
of the market is now more one of conservative optimism for the future.
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