Variable Frequency Drives Market size to increase by USD 7.12 billion between 2022 to 2027, Market Segmentation by End-user and Geography, Technavio

NEW YORK, April 18, 2024 /PRNewswire/ -- The global variable frequency drives market size is estimated to grow by USD 7124.1 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 5.5% during the forecast period. The oil and gas industry's reliance on motor equipment for controlling operations makes it a key player in the variable frequency drives (VFD) market. Energy efficiency initiatives and eco-friendliness drive the demand for VFDs in sectors like HVAC, pumps, and power generation. Factors like motor life, cybersecurity, and hybrid systems also influence the market. Crude oil prices and energy efficiency are significant factors affecting demand. Key applications include motors, building management systems, and renewable energy sources.

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The End-user segment emerges as the fastest-growing segment in the variable frequency drives market

The Variable Frequency Drives (VFD) market encompasses industrial robots and factories, where energy efficiency and process optimization are paramount. VFDs, including frequency converters, serve various applications such as compressors, fans, conveyors, crushers, and extruders. In the power generation industry, VFDs enable grid interfaces, ensuring stability and efficiency. VFDs are integral to pump storage systems, carbon capture processes, and hydrogen generation. In transportation, they optimize energy consumption in electric vehicles and trains. Local vendors compete with international players like ABB, Siemens, and Schneider Electric in the electrical drives and motors market. VFDs come in various voltage classes, from low-power range types to high-power drive cabinets with input transformers and contactors. Compact designs, dynamic torque control, energy-saving, adjustable speed, and power generation capabilities make VFDs indispensable in infrastructure development and the manufacturing sector, particularly in the metal & mining industry. As the world transitions to energy-efficient products, VFDs adhere to regulations like the Ecodesign Regulation (EU). AC drives and DC drives cater to diverse applications, with low-power range types suitable for specific industries. General Electric and other key players continue to innovate in industrial automation, shaping the future of VFD technology.

The Variable Frequency Drives (VFD) market in APAC is experiencing robust growth, driven by industrialization in countries like China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. Factories in these regions are investing in process optimization, grid interfaces, and frequency converters for medium and low voltage motors. VFDs are essential for powering industrial robots, pump storage, carbon capture, hydrogen generation, and transportation applications. In the power generation industry, VFDs enable energy-saving and adjustable speed in AC and DC drives, contributing to infrastructure development and CO2 reduction. Global players like General Electric lead the market, while local vendors offer compact designs with drive cabinets, input transformers, and input contactors. Voltage classes range from low-power to high, with Dynamic torque control and energy-efficiency being key features. The market expansion is influenced by the manufacturing sector, metal & mining industry, and the Ecodesign Regulation (EU). VFDs are integral to industrial automation and power generation, reducing the carbon footprint and promoting energy-efficient products.

Commenting on the market trends, a Senior Analyst of Technavio, stated," Variable frequency drives (VFDs) in industries such as robotics, factories, and power generation utilize matrix designs to generate AC output directly from AC input, eliminating the need for DC buses and associated harmonics mitigation equipment. Matrix VFDs offer compact designs, energy savings, and dynamic torque control. Key players include General Electric and vendors supplying AC and DC drives for infrastructure development, manufacturing, and power generation sectors, adhering to energy-efficient regulations like the EU Ecodesign."

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Analyst Review

In the power generation industry and infrastructure development, Variable Frequency Drives (VFDs) play a crucial role in dynamic torque control, ensuring energy savings and adjustable speed in the manufacturing sector, particularly in the metal & mining industry. VFDs help reduce CO2 impact by optimizing energy efficiency initiatives in industrial automation. Electric motors, HVAC systems, AC drives, DC drives, and servo drives all benefit from VFD technology, which comes in various power ranges. In the context of renewable energy sources and smart grids, VFDs are essential for integrating electric vehicles and building management systems into the power network. Corporate Social Responsibility drives the adoption of VFDs, as companies seek to minimize their carbon footprint and enhance cybersecurity in hybrid VFD systems.

Market Overview

The Variable Frequency Drive (VFD) market encompasses the production, sales, and installation of electric motors that adjust their frequency and voltage in response to varying process needs. VFDs are essential in energy management systems, enabling efficient power transmission and reducing energy waste. The market is driven by factors such as increasing industrial automation, growing demand for energy-efficient technologies, and the need for reliable power supply. Key players in the VFD market include Siemens, ABB, Schneider Electric, and Danfoss. The market is expected to grow significantly due to the rising adoption of renewable energy sources and the increasing demand for smart grid technologies. Additionally, the integration of IoT and AI in VFD systems is expected to further boost market growth. The VFD market is segmented by application, end-use industry, and region. Applications include water and wastewater treatment, HVAC, and pumps among others. End-use industries include oil and gas, power generation, and manufacturing among others. The market is expected to grow at a CAGR of over 6% during the forecast period.

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SOURCE Technavio