The global Variable Frequency Drive market is estimated to reach USD 41.5 billion in 2030, with a growth rate of 6.8% during the forecast period 2022-2030. It was valued at USD 25.2 billion in 2022.
The variable frequency drive (VFD) market is growing due to rising investments in infrastructure development and increased use of VFDs across various industry verticals. Furthermore, as the use of connected devices grows in the commercial, industrial, and residential sectors and technological improvements, the demand for variable frequency drives is predicted to rise internationally. Furthermore, Processing and manufacturing industries use a variety of components and equipment that differ by industry, operation mode, and technology. Oil and gas, power generation, food and beverage, and metal and mining are just a few industries that use AC drives. Variable speed drives regulate rotating equipment in the manufacturing process, such as conveyors, fans, pumps, and machine spindles, and improve the industry’s energy efficiency. Over the projection period, development in the end-use sector is expected to propel overall VFD market growth.
The frequency and voltage of an electric motor’s power supply are controlled by a variable frequency drive (VFD), a form of the motor controller. The VFD can also control the motor’s ramp-up and ramp-down during start and stop. Adjustable speed drive, variable speed drive, adjustable frequency drive, inverter AC drive, and Microdrive are used to describe VFDs. The most general applications for VFDs are to regulate fans, pumps, and compressors. They’re commonly used in the HVAC industry.
Variable frequency drives are becoming more popular in the industrial and infrastructural sectors. Cement, chemical, petrochemical, mining, oil & gas, pulp & paper, and water & wastewater treatment are all industries that use variable frequency drives. Conveyors, fans, utility pumps, process pumps, fans, blowers, air compressors, compressors, coolers, cooling tower fans, grinders, crushers, and chippers all use variable frequency drives. Furthermore, variable frequency drives offer the potential to save energy and lower operational costs for a range of motor-driven applications by adjusting motor speed to match the application’s needs. The rising demand for energy efficiency and expanding industrialization are projected to fuel demand for variable frequency drives and drive market growth.
The requirement for robust and reliable transmission and distribution (T&D) networks has grown in response to rising energy consumption. According to the US Department of Energy (DOE), only a system capable of handling abrupt power fluctuations can assure uninterrupted power. The main causes of the rising blackouts include old infrastructure, limited investment, and a lack of clear grid-modernization strategies. More blackouts occur in the United States than in any other developed country. Furthermore, even though there are more energy-efficient products and structures than in prior years, electricity demand has increased over the last decade. Recent legislation across the globe, particularly in North America, Europe, and portions of Asia Pacific, to reduce/limit the number of power blackouts and upgrade old power networks are upgrading the entire value chain across the power sector equipment. As a result, modernization of power infrastructure is likely to stimulate demand for variable frequency drives, providing attractive prospects for market participants.
One of the most important end-user sectors for variable frequency drives is oil and gas. Due to falling exploration and production operations, the industry has been experiencing lackluster growth over the past few years. The exploration, development, production operations, and capital spending by oil and natural gas corporations all influence the demand for variable frequency drives in this industry. Oil and natural gas price fluctuations have a direct impact on these activities. The oscillations are caused by changes in oil and natural gas supply and demand, government regulations, such as those governing the exploration, production, and development of oil and natural gas reserves, weather conditions, natural disasters, and other reasons. Because many large-scale development projects are begun for a long time, oil and gas corporations may reduce or defer big investments based on the perception of long-term low oil and natural gas prices. Furthermore, the drop in capital expenditures by oilfield operators and service providers directly impacts the growth of the variable frequency drives industry.
Before the pandemic, the variable frequency drive (VFD) market was expected to be driven by increasing technical breakthroughs in emerging nations and increased awareness and demand for energy efficiency over the projected period. With the rise of urbanization and industrialization, particularly in developing countries, many residential and commercial buildings are expected to be built, resulting in increased cement usage. Variable Frequency Drive is used in the cement industry, and its demand is expected to rise as well.
The coronavirus epidemic has badly impacted businesses, resulting in an unprecedented collapse of economic activity. The COVID-19 pandemic cases are the result of direct or indirect human interaction. The belief that animals spread the coronavirus disease-2 has resulted in a rise in pet abandonment. The epidemic has disrupted the supply chain for nutritional supplements and other treatments. There has been a significant drop in personnel, which has negatively influenced the animal health industry.
The market is being driven by rising demand for energy efficiency. Instead of employing valves and dampers, a VFD uses an AC motor to regulate pumps and fans in a system. Fixed-speed motors are traditionally controlled via valves and dampers, but they waste a significant amount of energy. VFDs may produce the same energy flow without the requirement for high pressure or power to modify the flow, resulting in significant energy savings. In addition, innovative and modern drives incorporate networking and diagnostic features for improved performance and efficiency. Intelligent motor control, energy savings, and a reduction in peak current drawn are just a few reasons why every motor-driven system should use a VFD as the controller.
Based on Type, the global Variable Frequency Drive market is classified into AC Drive, DC Drive, and Servo Drives. The AC Drive segment accounts for the dominating share in the global Variable Frequency Drive market during the forecast period by 2030. The introduction of new techniques and increased demand for enhanced veterinary care are expected to propel the industry forward. The rising prevalence of chronic disorders in dogs, such as diabetes and liver disease, is expected to increase the need for improved clinical biochemistry even more. The expansion is being fueled by an increase in the use of glucose monitoring for point-of-care treatment due to pet owners’ growing worries.
Figure: Global Variable Frequency Drive Market, By Type, Market Share, 2021
Based on voltage, the global Variable Frequency Drive market is segregated into Low Voltage, Medium Voltage. The Low Voltage segment accounts for the largest share in the global Variable Frequency Drive market over 2022-2030. Pumps, fans, belt conveyors, centrifugal pumps, and centrifugal compressors are examples of low voltage variable frequency drives. The demand for low voltage variable frequency drives is growing due to this widespread use.
Based on application, the global Variable Frequency Drive market is segregated into Pumps, Conveyors, Fans, Compressors, and Others. The Pumps segment accounts for the dominating share in the global Variable Frequency Drive market over 2022-2030. Variable frequency drives replace hydraulic drives incorporated with pumps in industries such as wastewater, oil and gas to smooth out motor operations while lowering energy consumption. Aside from that, the variable frequency drive eliminates the need for a throttling valve, lowers maintenance expenses, and makes piping installation and design easier. As a result, the market expansion is likely to be supported by increased benefits associated with the integration of VFDs with pumps and growing demand from major end-use industries.
Based on End-use, the global Variable Frequency Drive market is segregated into Oil & Gas, Industrial, Power, and Infrastructure. The Oil & gas segment accounts for the dominating share in the global Variable Frequency Drive market over 2022-2030. Heavy-duty motor-driven pumps and pumping systems are used extensively in the oil and gas sector for production, distribution, and refining applications. VFDs are thus incorporated to maximize the operational profit, fueling their demand during the forecast period, and run these electric motors at maximum performance with the lowest possible energy consumption.
Based on the regional segmental analysis, the Variable Frequency Drive market is characterized by North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific segment accounts for the dominating share in the market over the forecasted period by 2030. The region’s primary factors driving market expansion include the rising need for energy optimization, supporting government rules and policies, and a growing focus on strengthening the manufacturing sector. In addition, Asia Pacific is seeing strong economic growth due to India’s, China’s, Japan’s, Australia’s, and Indonesia’s rapid commercialization and industrialization, which is expected to drive up demand for VFDs in a variety of end-use sectors.
ABB, Eaton, General Electric, Hitachi Ltd., Rockwell Automation Inc., Schneider Electric, Siemens AG, The Danfoss Group, WEG SA, Yaskawa Electric Corporation, and Other prominent players.
Key Stakeholders
Report Attribute | Details |
---|---|
Revenue in 2021 | USD 21.2 Billion |
The revenue forecast in 2028 | USD 29.5 Billion |
CAGR | 4.8% |
Historical data | 2017 – 2020 |
Base Year | 2021 |
Forecast period | 2022 – 2028 |
Region covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
Key companies Profiled | ABB, Eaton, General Electric, Hitachi Ltd., Rockwell Automation Inc., Schneider Electric, Siemens AG, The Danfoss Group, WEG SA, Yaskawa Electric Corporation, and Other prominent players. |
By Type
By Voltage
By Application
By End-use
By Region
The frequency and voltage of an electric motor’s power supply are controlled by a variable frequency drive (VFD), a form of the motor controller. The VFD can also control the motor’s ramp-up and ramp-down during start and stop. Adjustable speed drive, variable speed drive, adjustable frequency drive, inverter AC drive, and Microdrive are used to describe VFDs.
The global Variable Frequency Drive market is estimated to reach USD 41.5 billion in 2030, with a growth rate of 6.8% during the forecast period 2022-2030. It was valued at USD 25.2 billion in 2022.
The variable frequency drive (VFD) market is growing due to rising investments in infrastructure development and increased use of VFDs across various industry verticals. Furthermore, as the use of connected devices grows in the commercial, industrial, and residential sectors and technological improvements, the demand for variable frequency drives is predicted to rise internationally.
The stagnant growth of oil & gas industries is predicted to create an obstacle to the growth of the global market over the forecasted period by 2028.
The Asia Pacific is expected to dominate the Variable Frequency Drive Market and continue this growth rate.
ABB, Eaton, General Electric, Hitachi Ltd., Rockwell Automation Inc., Schneider Electric, Siemens AG, The Danfoss Group, WEG SA, Yaskawa Electric Corporation, and Other prominent players.
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