May 2020 | Report Format: Electronic (PDF)
The global variable frequency drive market size is estimated to reach USD 37.4 billion by 2027, expanding at a CAGR of 6.5% over the forecast period, according to a study conducted by Grand View Research, Inc. Increasing technological advancements in the emerging economies and growing awareness and demand for energy efficiency are anticipated to be the key driving factors for the variable frequency drive (VFD) market over the forecast period. Besides, ongoing investment to spread awareness about energy efficiency is also expected to act as a significant driving factor. For instance, according to the International Energy Agency (IEA), the total investment in energy efficiency amounted to USD 240 billion across transport, buildings, and industry sectors.
Integration of VFDs with electric drives allows end-users to control the torque and speed, thereby increasing their operating efficiency and reducing energy consumption. Thus, increased use of variable frequency drives across major industries such as oil and gas, power generation, food and beverages, and automotive is also expected to boost the market growth. Additionally, increasing energy prices is also leading to the deployment of VFDs across multiple industries.
The Asia Pacific market is estimated to hold a dominant share owing to rapid advancement of infrastructure, increasing demand for greater power efficiency, and high degree of industrial growth. Emerging economies such as India, Japan, and China are expected to be the major contributors in the VFD market growth, owing to enormous investment in the manufacturing industries by the government of these countries to support their economic growth.
The VFD market is highly dynamic owing to the presence of public as well as private companies. The companies are investing in research and development to develop advanced technology products to withstand the competition in the market. For instance, in March 2019, ABB announced the launch of an all-compatible ACS6080 MV drive for high-performance applications, which enables plants to produce higher quality output and operate more efficiently.
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Further key findings from the study suggest:
- The AC drives segment held a dominant share of 68.1% in 2019 owing to their reduced levels of vibrations and noise, low maintenance cost, and easy integration
- The medium power range segment is projected to register the highest CAGR of 6.8% over the forecast period owing to growing demand from oil and gas, chemical, marine, and power sectors
- The HVAC application segment is estimated to expand at a significant CAGR over the forecast period owing to growing number of HVAC systems in residential as well as commercial buildings
- The oil and gas segment dominated the variable frequency drives market in 2019 and is expected to reach USD 1.8 billion by 2027. Increasing integration of VFDs in the heavy power motor-driven pumps and pumping systems is anticipated to support the segment growth
- The Latin America regional market is estimated to register the highest CAGR of 7.2% from 2020 to 2027 owing to increasing industrialization in emerging economies such as Brazil and Mexico
- The key industry competitors include ABB; Siemens AG; Schneider Electric; Rockwell Automation, Inc.; and Eaton.
