Global demand for high-power AC drives will advance at an 8.9% compound annual growth rate for the next five years. Such growth will drive annual sales from $3.2 billion to $5 billion in that period. That's according to a report recently released by ARC Advisory Group.

Escalating energy costs in recent years have forced manufacturing to focus on conservation measures—spurring the use of high power AC drives. "With energy costs increasing and drive prices falling, the payback period is becoming shorter, helping users to justify capital expenditures on AC drives," according to senior analyst Himanshu Shah, co-author of the study.