LONDON, Feb. 15, 2017 /PRNewswire/ -- "The variable frequency drive market is projected to grow at a CAGR of 5.94% from 2016 to 2021"
The variable frequency drive (VFD) market is projected to reach USD 24.8 billion by 2021, at a CAGR of 5.94% from 2016 to 2021. VFD are used in infrastructural activities which include commercial buildings such as hospitals, and educational institutions. Increasing urbanization and industrialization in developing countries such as India, growing need for energy efficiency, reduction in operating costs of any energy intensive industry, regulations on energy efficiency, growing trend of industrial automation, and regulations to ensure efficiency are expected to drive the variable frequency drive market.
"The AC drives segment is expected to grow at the highest CAGR from 2016 to 2021"
Based on segment, AC drives are expected to constitute the fastest growing market from 2016 to 2021. AC drives are witnessing an increase in demand, as they are more efficient, requires less maintenance as compared to dc drives. Therefore, the AC drive segment has higher market share than the DC drive segment.
"Variable frequency drives in the low voltage segment is expected to grow at the fastest CAGR from 2016 to 2021"
With regard to voltage, the low voltage segment is estimated to grow at the fastest CAGR. The demand from industries such as utilities, petrochemicals, water & wastewater, metals & mining, and cement, would drive the low voltage drives market. The low voltage drives are generally employed in applications such as pumps, compressors, conveyors, crushers & mills, fans, and kiln applications.
"Asia-Pacific: The largest market for variable frequency drives"
Asia-Pacific is currently the largest market for VFD, closely followed by Europe. The Asian market is primarily driven by countries such as China, India, Japan, Australia, Indonesia, and South Korea. China is expected to dominate the variable frequency drives market, followed by Japan and India. Urbanization and industrialization will drive the Asia-Pacific market during the forecast period.
Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1- 60%, Tier 2- 27%, Tier 3- 13%
By Designation: C-Level- 35%, Manager-Level- 25%, Others- 40%
By Region: Americas- 40%, Europe- 19%, Asia-Pacific- 17%, Middle East- 15%, and Africa- 9%
Note: The tier of the companies has been defined based on their total revenue; as of 2015: Tier 1 = >USD 20 billion, Tier 2 = USD 10 billion to USD 20 billion, and Tier 3 =
The leading players in the variable frequency market include ABB Ltd (Switzerland), Siemens AG (Germany), Schneider Electric (France), Danfoss (Denmark), Rockwell Automation, Inc. (U.S.), and WEG (Brazil).