Global Variable Frequency Drives Market By Product Type (AC Drives, DC Drives, and Servo Drives), By Power Ranges (Micro (0-5 kW), Low (6-40 kW), and Others), By Application, By End-Use, and by Region and Companies Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032.

Variable Frequency Drives Market Overview:

The Variable Frequency Drives Market size is expected to be worth around USD 45.29 Billion by 2032 from USD 25.13 Billion in 2021, growing at a CAGR of 5.5% during the forecast period 2022 to 2032.”

This market research report is expected to grow due to the increasing penetration of connected devices across commercial, residential, automotive, industrial sectors, and infrastructure sectors. In addition, infrastructure investment is driving a high demand for Heating, Ventilation, and Air Conditioning system. This will have a positive impact on the market’s annual growth rate.

Market Scope:

Product Type Analysis

In 2021, the AC drives segment was responsible for 67.5% of all revenue. AC drive offers many benefits, including high power rating, ease of installation, high maintenance cost, and low cost. These advantages are appealing to many industries, including food and beverage, power generation, and automotive. The segment’s fastest growth is expected to be supported by a high demand for AC drives.

The DC drive segment is expected to see the fastest growth in the target markets and will register a 6.1% CAGR from 2023 to 2032. Because of its high maintenance services, DC drive technology is not widely used in industries. DC drive technology cannot be used in extreme conditions and is therefore not energy-efficient. These factors could hinder the fastest growth of the infrastructure sector.

Power Ranges Analysis

The low-power range segment is leading the global market in terms of revenue share. In 2021, it accounted for more than 47%. It is used to operate equipment such as pumps, fans, centrifugal, and pumps. Manufacturers are making huge investments in developing compact, low-voltage drives, high-performance, medium-voltage drives, and low-temperature. Due to the widespread adoption of low voltage frequency driving market growth across various industry verticals and increased R&D investment, this segment is expected to dominate the development of the industrial investment and infrastructure sector.

A large portion of the revenue came from medium electric power range frequency drives. This is expected to increase by 6.8% between 2023-2032. The medium power range frequency drive provides greater operational flexibility and better control functionality. It is a popular choice in many industries such as mining, wastewater treatment, and petrochemical. This oil and gas segment is on the rise. This is due to the Petrochemical Industry is highly demanded.

Application Analysis:

In 2021, pumps accounted for 28.7%. Pumps are used extensively in the oil and gas, water treatment, and metal industries. Variable frequency drives are a great way to reduce energy prices and save money. Variable frequency drives can be used to adjust speeds without the need for a gearbox.

Variable frequency drives are a hot commodity within the oil and gas, oil treatment plant, and oil & Gas sectors. VFDs can help support market growth strategy by increasing efficiency and reducing growth rates.

However, the variable frequency drives market is highly competitive as well as regional players offering cost-competitive products it is expected to create immense opportunities for the growth of the variable frequency drive market during the forecast period.

Market Opportunities: Recently, are expected to remain preferred, owing to growing power requirements by key end-use industries. Other industry verticals, such as infrastructure power generation, have also experienced a negative impact due to delays in projects, and reduced electricity demand.

Between 2023-2032, the Heating, Ventilation, and Air Conditioning segment will see a 5.9% increase in revenue and account for a substantial largest share of that segment’s overall revenue. Due to rapid economic growth in commercial and residential construction, the demand for HEATING, VENTILATION, AND AIR CONDITIONING systems is expected to increase. VFDs can be attached to Heating, Ventilation, and Air Conditioning systems to increase renewable energy efficiency and control the speed of pumps, blowers, or compressors.

End-Use Analysis:

Oil & Gas dominated global markets with a 21.2% share of the revenue in 2021. Oil & Gas makes heavy use of motors and pumps at its production site. These are used for many purposes, including pumping, extraction, distribution, and so on. The variable-frequency drive can be combined with motors to increase output and reduce power consumption, and energy consumption.

VFD demand will increase because players want to maximize profits and improve efficiency. Industrial activities will generate a significant amount of the target market’s revenue.

The infrastructure segment will experience a 6.8% CAGR between 2023 and 2032. This is due in part to an increase in the industrial segment worldwide. VFDs will be in high demand because of the construction of different industry verticals which is looking to replace mechanical drives with electric motors.

Market Segments:

By Product Type

• AC Drives
• DC Drives
• Servo Drives

By Power Range

• Micro (0-5 kW)
• Low (6-40 kW)
• Medium (41-200 kW)
• High (>200 kW)

By Application

• Pumps
• Electric Fans
• Conveyors
• HVAC
• Extruders
• Other Applications

By End-Use:

• Oil & Gas
• Power Generation
• Infrastructure
• Other End-Uses

Market Dynamics:

Due to the rapid industrialization occurring in developing countries, variable frequency drives are highly in demand. The power supply industry is also adopting variable frequency drives. These drives can be used to start large motors quickly and adjust speed accordingly. Variable frequency drives are expected to increase in demand from the power generation sector. This will likely drive the fastest growth in the market size.

Different equipment is needed for different operations, such as metal & mining, food processing, and oil & Gas. VFDs are compatible with induction fans, forced draft fans, and boiler feed pumps. VFDs can also be used to control speed and save energy costs. It also enables predictive maintenance as well as real-time monitoring. These parameters need to be considered while operating with heavy loads,

Global governments have adopted stringent regulations in order to conserve energy saving and reduce CO2’s environmental impact. This is leading to more energy-efficient products. They also plan to reach energy efficiency targets and reduce greenhouse gas emissions.

New rules have been introduced to support market stagnant growth. The Eco-design Regulation (EU) 2019/1781 came into effect in 2019. It was implemented for the first time in 2021 and again in July 2023. The first stage of the regulation covered the IE2 efficiency rating, which is mandatory for AC induction motors.

Variable frequency drives are a market that has seen a significant increase in its market share in Asia-Pacific. This is due to a wide range of energy efficiency benefits. As well as, the cost of the initial investment in rising energy demand is expected to increase the requirement for the distribution system, which will increase the total cost of installation. These devices are used in construction to operate with the help of variable frequency drive for medical refrigeration and torque control during their operations.

Due to high initial costs and slowdowns in the economy, the global variable frequency drive market is facing major challenges. Variable frequency drive demand declined due to a slow growth strategy in the industrial, commercial, and infrastructure sectors. Covid-19 caused disruptions to the supply chain of raw materials, which impacted the availability and pricing of products. A lack of skilled labor and high maintenance services costs will hinder the global market’s stagnant growth.

The spread of COVID-19 has had a major impact on the global dominant market share. After strict lockdowns and shutdowns of manufacturing plants, variable frequency drives saw a decline in demand. Variable frequency drives saw a gradual increase in demand during the second quarter of 2021. This trend is expected to continue into 2022.

Regional Analysis

The Asia Pacific market size was valued at USD 8,572 million in 2021. Over the next few decades, it will continue to dominate the market. It is expected that the region’s rapid industrialization will be supported by favorable government policies, increased construction activity, and improved government policies. The expected increase in demand for energy consumption will also support the region’s fastest growth.

Due to the rapid commercialization of large automotive, food, and drink manufacturers in countries such as India, China, and Japan, strong and steady economic fastest growth is expected to be supported by increased VFD demand. This will increase working efficiency, decrease demand for energy efficiency, and boost employment.

South America is expected to grow at 7.1% CAGR during the region – Forecast period. This is due to Brazil and Mexico’s privatization and urbanization. This is due to the increased demand from the end-user industry like pulp, cement, gas industry, and chemicals.

Кеу Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

ABB, Eaton Corporation, General Electric, Hitachi Group, Honeywell International, Rockwell Automation Inc., Schneider Electric, Siemens AG, The Danfoss Group, WEG S.A., Hitachi Ltd., Yaskawa Electric Corporation, and Other Prominent Players are the key trends in the Variable Frequency Drives market ABB, Eaton, digital solutions and General Electric dominated the market in 2021. Hitachi Ltd was the leading player.

They are focused on increasing their customer base and enhancing their business by introducing new product development. Emerson Electric Co., which is a global manufacturer of electric components, announced 2021 the launch of Copeland Variable Frequency Drives. This new product launch will attract new customers and increase the company’s customer base. The following are some of the most prominent players in global variable frequency driving dominant market share.

Маrkеt Кеу Рlауеrѕ:

• ABB
• Eaton Corporation Plc
• General Electric
• Hitachi Group
• Rockwell Automation Inc.
• Schneider Electric
• Siemens AG
• Anaheim Automation Inc.
• Hitachi Ltd.
• Nidec Motor Corporation
• Mitsubishi Electric Corporation
• Johnson Controls Inc.
• Honeywell International Inc.
• Toshiba International Corporation
• The Danfoss Group
• WEG S.A.
• Yaskawa Electric Corporation
• Other major Companies

For the XXXXX Market research study, the following years have been considered to estimate the market size: