The variable frequency drives market was valued at USD 9.04 billion in 2018 and is expected to reach a value of USD 11.87 billion by 2024, at a CAGR of 4.8%, during the forecast period (2019 - 2024)
NEW YORK, Nov. 7, 2019 /PRNewswire/ --
Market Overview
The variable frequency drives market was valued at USD 9.04 billion in 2018 and is expected to reach a value of USD 11.87 billion by 2024, at a CAGR of 4.8%, during the forecast period (2019 - 2024). The Internet of Things (IoT) is a global trend in every industry having an impact on VFDs by speeding and simplifying the flow of information from machine to a technician and back again. As such, manufacturers are making changes to everything from their machines to their information technology (IT) departments to facilitate the collection, analysis, and application of drive data.
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- The rising demand for process optimization is driving the market. Communication between modern motor controllers, such as VFD and process automation controllers, it is now possible to achieve much higher efficiency along with process improvement with reducing peak demand charges on an electricity bill by understanding in greater detail where and why power consumption varies.
- Rising demand for energy efficiency is driving the market. VFD uses an AC motor to control pumps and fans in a system without using valves and dampers. Traditionally, fixed-speed motors have to be controlled using valves and dampers, but they are a source of large amounts of energy loss. VFDs can create the same energy flow without the high pressure and power needed to adjust the flow, which saves a high amount of energy.
- Additionally, advanced and modern drives integrate networking and diagnostic capabilities into better performance and increased productivity. Intelligent motor control, energy savings, and reduction of peak-current drawn are some of the major reasons to choose a VFD as the controller in every motor-driven system.
Scope of the Report
The variable frequency drives market is growing with increase usage of VFDs across major industry verticals, rapid industrialization and urbanization, along with increasing investments on infrastructure development, and shifting focus on energy efficiency. Advanced and modern drives integrate networking and diagnostic capabilities into better performance and increased productivity for the market in applications like energy and power, mining and metals, etc.
Key Market Trends
Energy and Power Segment to Hold Significant Market Share
- Variable Frequency Drives (VFDs) play the critical role of saving energy, improving performance, simplifying the system, and cutting downtime in Nuclear Reactors. For instance, during operations when the fast passage of liquid is required to cool down the reactor core, it is usual to have four big 6kV recirculation pumps and more than 100 control values to operate simultaneously. This factor accounts for over 25% of the energy costs to run a nuclear power plant.
- Further, the applications of drive technology are assisting the plants with protecting nuclear fuel and fuel rods, both of which are vulnerable to turbulence, by ensuring continuous circulation of water without disruption. The regulations are very stringent in this respect. When the electricity supply is increased, its ascension should be gradual, which can be achieved through precise control of VFDs.
- As the advanced energy revenues are increasing, energy conservation is necessary for various applications because, with the ever-increasing demand, the need for electrical power can only be met by conserving electrical power in addition to the installation of new generating units. Variable frequency drive is one of the well-known energy-efficient drives, especially used in HVAC applications in the motor.
Asia Pacific to Witness Significant Growth Rate
- The variable-frequency drive market is anticipated to hold a significant share in China, owing to the increasing operations primarily across power generation and the oil and gas industry, along with bold spending towards the establishment of manufacturing facilities.
- Moreover, the escalating trade war between China and the United States has enabled the country to further focus on oil and gas production. In 2019, the country has initiated a capital investment in oil exploration by 20%, to USD 77 billion, in order to boost production in two old oilfields. This is expected to drive the market for variable frequency drives in the oil and gas industry in China.
- The Indian variable frequency drives market is obtaining a growth phase, with increasing energy prices leading to a need for efficient motor control systems and drives. Moreover, several government regulations to cut down energy usage, carbon emission, and electricity are likely to result in consumer inclination to uses energy-saving variable frequency drives.
- For instance, the Indian government introduced the Energy Conservation Act (EC Act), which provides a regulatory mandate for standards and labeling of equipment and appliances, and energy consumption norms for energy-intensive industries.
Competitive Landscape
The variable frequency drives market is highly competitive owing to the presence of many small and large players in the market. The market appears to be moderately fragmented with the presence of several vendors. The market has observed a growing need for energy-efficient equipment, by which international players in the market are fast increasing their footprints and local vendors find it difficult to compete with them in terms of quality, safety, and price, which is giving a high competition. Key players are Eaton Corporation, ABB Ltd., Honeywell International Inc., etc.
- Jul 2019 - Power management company Eaton announced that it completed the acquisition of Innovative Switchgear Solutions Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial, and industrial markets.
- Mar 2019 - ABB expanded its all-compatible drives offering by including the ACS6080 medium voltage (MV) drive for critical applications. The new drive introduces a breakthrough control technology, developed by ABB, that brings high performance motor control to demanding processes used in industries such as mining, metals and marine. The drive also enables plants to operate more efficiently and produce higher quality output.
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