A recent report from the firm Frost & Sullivan on the integrated motor and drive market in Europe got me thinking about issues beyond the forecast itself.
First, the specifics. The reports anticipates an annual growth rate for the European integrated motor and drive market of 12.1% from 2010 to 2017. The growth is being projected on the basis of a demand for high efficiency and the need to reduce energy consumption, which together will spark more demand for integrated motor and drives across a wide range of industrial applications.
I got a few things out of the report. First, it struck me as one example of the interconnectedness of markets and industries because of how design variables such as expected efficiency and a concern with energy consumption, and therefore the need to create more energy-efficient systems and products, can drive product designs and trends in many diverse fields.
It also highlights how influential new energy conservation and efficiency standards issued by government agencies and countries are as drivers for industry design and business decisions.
At the same time, I wonder about the role of such forecasts; their impact on businesses and industries and the role they play in decision-making. We’re all well aware of how often rosy or even slightly optimistic (or pessimistic) projections turn out to fall far short of reality.
So what role do forecasts and projections play in your industry? Do you take them to heart or with a grain of salt? Let me know.