The global frequency converter market by revenue is expected to grow at a CAGR of 5% during 2020-2026.
The market is expected to grow due to the growth in industrial production, technological advancements, urbanization, and industries' expansion. Static frequency converters are expected to witness the highest revenue share by product type, driving the market growth. The market is expected to grow at a stable rate in the short term due to industrial development restrictions; however, the market is anticipated to grow during the forecast period backed by industrial and economic development across the globe. Emerging markets such as APAC and Latin America are expected to witness the highest growth during the forecast period due to or increased investments by developed countries, favorable government policies, and FDIs, and shifting focus toward domestic manufacturing. Automation, robotization, energy conservation, and decarbonization trends are expected to boost frequency converters' demand.
The following factors are likely to contribute to the growth of the frequency converter market during the forecast period:
The rise in Offshore Wind Electricity Generation Capacity
High Demand for Automotive Applications
Development of High-Speed Rails
Increasing Demand for Water and Wastewater Treatment Plants
The study considers the frequency converter market's present scenario and its market dynamics for the period 2020-2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.
Global Frequency Converter Market Segmentation
The global frequency converter market research report includes a detailed segmentation by product type, sales channel, end-user, geography. Static frequency converters are likely to grow at a CAGR of over 5% due to high-frequency stability and output voltage. These devices deliver the required power under fixed conditions in manufacturing units and commercial applications, which are increasing their demand. These machines have low installation costs, and they do not require any heavy machinery and careful alignment. They occupy less space and generate low noise than mechanical converters. Rotary frequency converters (RFC), on the other hand, are observing high application in several end-user segments, including aerospace & defense, rail & hydro facilities, sensitive electronics lab and research centers, process automation, and manufacturing lines. RFCs provide 100% electrical isolation at high-frequency conversions along with vertical and horizontal configurations, thereby observing the demand across the globe. They are highly reliable and can produce high starting surge current for short periods, making them ideal for motor loads. However, they require regular maintenance and have a conversion efficiency of less than 85%.
Direct sales of frequency converters are expected to reach over $22 billion by 2026. Strategic partnerships between vendors and OEMs and vendors and system integrators reduce operational costs. OEMs and system integrators are key contributors to the overall value chain of the frequency converter market. However, new entrants in the market are expected to rely on indirect sales channels, which, in turn, is expected to decrease the usage of direct sales channels. Indirect sale channels include third-party purchases through distributors and dealers. A lack of awareness of brands, variety, and price factors drive customers to opt for indirect sales channels. Although indirect networks do not incur any distribution infrastructure, the price of frequency converters increases via indirect sales channels; hence, they are preferred.
The metal & mining industry generated the highest demand for frequency converters owing to the expansion of mining activities in China, Australia, Brazil, India, the US, and the Middle East. Advances in technology strongly support the growth of the industry; however, due to the COVID-19 pandemic, the demand for metals has become highly uncertain. The metals and mining industry growth is highly unpredictable in the short term; however, it is expected to witness significant growth in the long run. Pumps, conveyors, compressors, fans, and positioning & synchronizations are the major applications of frequency converters in the food and beverage industry. To maintain and boost productivity to satisfy the increasing customer demands for food products, the F&B industry relies heavily on several processing equipment and conveyance systems. Hence, frequency converters are likely to grow in the food industry.
Key Questions Answered 1. What is the frequency converter market size and growth rate during the forecast period? 2. What is the impact of the COVID-19 pandemic on the frequency converter market? 3. What are market opportunities and trends enabling the frequency converter market growth? 4. Which end-user segments are likely to generate the largest revenue during the forecast period? 5. What is the growth of the APAC frequency converter market during the forecast period?
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope Of The Study
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