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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

A variable frequency drive (VFD) or also referred to as adjustable-frequency drive (AFD) is a type of adjustable-speed drive used in electro-mechanical drive systems to control AC motor speed and torque with the help of motor input frequency and voltage. Drives include various types of variable-speed drives used in different end-users industries such as shipping, manufacturing, and mining industries. Among drives, variable frequency drives find major application in commercial HVAC and manufacturing industries. An AC drive is a device that is used to control the speed of an electrical motor. Speed is controlled by changing frequency of electrical supply to the motor.

North America variable frequency drive (VFD) market is estimated to be valued at US$ 5,636.1 million in 2021 and is expected to exhibit a CAGR of 5.6 % over the forecast period (2021-2028).

Recent Developments:

In June 2021, Eaton Corporation, launched of the PowerXL DM1 micro variable frequency drive, designed for commercial, industrial and original equipment manufacturer (OEM) customers

In June 2021, Yaskawa Electric Corporation announced HV600 family of drives employs the latest advancements in variable speed control for HVAC applications

Statistics:

Figure 1. North America Variable Frequency Drive (VFD) Market Value (US$ Mn), by Country, 2020

North America Variable Frequency Drive (VFD)  | Coherent Market Insights

U.S. held dominant position in North America variable frequency drive (VFD) market in 2020, accounting for 78.6% share in terms of value, followed by Canada respectively. The growth can be attributed to various factors such as growing regulations towards energy efficiency, up gradation & modernization of aging infrastructure for safe & secure electrical distribution systems,  and increasing rate of industrialization and urbanization in the country.

North America Variable Frequency Drive (VFD) Market: Drivers

Rising energy efficiency is expected to drive growth of North America variable frequency drive (VFD) market during the forecast period

Rising energy prices have led to need for energy-efficient motor control system. It offers an alternative to throttling devices such as dampers and valves and fixed speed controllers. Thus, these factors are expected to drive growth of the North America variable frequency drive (VFD) market in the near future. For instance, in May 2015, Len Busch Roses deployed Danfoss’s variable frequency drive to regulate airflow in its snapdragon greenhouse with better precision. This helped Len Busch to reduce its energy costs by 22%.

Higher productivity efficiency is expected to propel the North America variable frequency drive (VFD) market growth over the forecast period

Operating VFD controlled motors at efficient speed results in less maintenance and downtime of motors. Furthermore, the lifespan of process equipment such as compressors, conveyors, and fans is augmented as VFD-enabled motors protect this equipment from issues such as under-voltage, overvoltage, and electro-thermal overloads. As a result of this, production levels increase thereby boosting the demand for VFDs. Hence, these factors are expected to boost the North America variable frequency drive (VFD) market growth over the forecast period.

North America Variable Frequency Drive (VFD) Market: Opportunities

Increasing adoption of smart grid technology can present lucrative opportunities

Smart grid technology is expected to offer significant business opportunities for VFD manufacturers. This is owing to emerging application of VFDs in smart grids to vary the phase angle and voltage required. This also ensures a more efficient transmission of electricity. Major companies in the market can capitalize on these opportunities and gain competitive edge in the market.

Innovation of industry-specific products can provide major opportunities in the near future

Major companies in the market are focused on product launches, in order to cater to specific industry needs and gain a competitive edge in the market. For instance, In February 2017, Toshiba International Corporation launched Toshiba T300MV2 drive, which is a medium voltage and adjustable speed drive (ASD). This adjustable speed drive is deployed in industries such as oil & gas, refinery, water/wastewater, power generation, mining & minerals, and other commercial industries. LGX Oil+Gas Inc., which is an oil & gas company, is using Toshiba T300MV2 drive.

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North America Variable Frequency Drive (VFD) Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 5636.1 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 5.6% 2028 Value Projection: US$ 8,248.7 Mn
Geographies covered:
  • North America
Segments covered:
  • By Country: U.S., Canada
  • By Drive Type: AC Drive, DC Drive, Servo Drive
  • By Voltage Range: Low Voltage Range, Medium Voltage Range
  • By Application Type: Standard, Regenerative
  • By End-use Application: Pump, Fan, Compressor, Conveyor, HVAC, Others
  • By End-use Industry: Oil & Gas, Food Processing, Automotive, Mining & Metals, Pulp & Papers, Others
Companies covered:

Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited

Growth Drivers:
  • Rising energy efficiency 
  • Higher productivity efficiency
Restraints & Challenges:
  • Technical difficulties related to VFDs
  • High initial cost of medium voltage VFDs

Market Trends

One package solution

Major market players are involved in launching bundled solutions, in order to minimize customer buying efforts and thus enhance customer experience. For instance, Key players such as ABB, Siemens, and Rockwell Automation are offering combined motor-drive packages designed as per intended application. By offering a one-stop solution, players seek to enhance customer experience and generate higher revenues.

One drive for multiple motors

Many end-use industries are increasingly moving towards single VFDs for controlling multiple electric motors, in order to minimize energy consumption. This synchronous bypass method uses one VFD to start and synchronize multiple motors by transferring load from one source to another. Such installations optimize the process as well as provide substantial cost benefits to end users by minimizing both installation and operation costs. According to Rockwell Automation, asynchronous variable frequency drive system for controlling two motors can save up to 33% of initial capital spending.

Figure 2. North America Variable Frequency Drive (VFD) Market Share, By Drive Type, 2020

North America Variable Frequency Drive (VFD)  | Coherent Market Insights

Key Takeaways of the Graph:

  • The AC Drive segment held dominant position in the market and accounted for 71.8% share in the North America Variable Frequency Drive (VFD) Market in 2020. The segment is expected to reach US$ 5,890.7 million in 2028. The widespread application of AC drives in medium and heavy industries, such as power generation, oil and gas, food and beverages, infrastructure, pulp and paper, and automotive is expected to boost the segment growth over the forecast period.
  • The low voltage segment accounted for the largest share of 81.7% in the North America Variable Frequency Drive (VFD) Market and is expected to reach US$ 6681.1 million by 2028. This is attributed to increasing demand of low power variable frequency drives are mostly used for applications such as pumps, fans, crane, machine tools, fluid machines, metal processing machines, printing machines, and food processing machines.

North America Variable Frequency Drive (VFD) Market: Restraints

Technical difficulties related to VFDs are expected to restrain growth of the North America variable frequency drive (VFD) market during the forecast period

The majority of VFDs release a series of pulses that are rampantly switched. In applications where there is a long cable between the VFDs and the motor, these reflected pulses can lead to voltage production that exceeds line voltage, causing stress in motor windings and the cable. This, in turn, results in insulation failure, especially for motors operating at 480 volts or higher. Furthermore, selecting VFD for a given motor for typical application is a daunting task. If details go unnoticed during installation, performance of VFDs can substantially hinder productivity of process systems. Thus, these factors are expected to restrain growth of the market in the near future.

High initial cost of medium voltage VFDs are expected to hamper the North America variable frequency drive (VFD)

Prices of VFDs have declined significantly over the last decade, however, medium voltage VFDs come with high price tag. For typical applications in the industrial sector, medium voltage VFDs deployment is expected to increase during the forecast period. Furthermore, end users are shifting towards low-cost products made in China to manage budget. Thus, these factors are expected to hinder the market growth during the forecast period.

North America Variable Frequency Drive (VFD) Market: Competitive Landscape

Key companies involved in the North America variable frequency drive (VFD) market are Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited.

Key Developments

Major companies in the market are focused on product launches, in order to expand product portfolio. For instance, in February 2017, Fuji Electric Co. launched FRENIC-Ace, a full-featured, versatile drive.

Key players in the market are involved in product development, in order to gain a competitive edge in the market. For instance, in February 2019, Mitsubishi Electric Automation, Inc., a subsidiary of, Mitsubishi Electric Corporation, launched FRA800-R2R Series of Variable Frequency Drives (VFD). 

A variable frequency drive (VFD) is used for controlling the speed of an AC motor. They are also used for ramping up a motor for a smooth startup, or to prevent a heavy load from straining the motor on startup.

Market Dynamics:

Launch of new products is expected to propel growth of the North America variable frequency drive (VFD) market over the forecast period. For instance, in May 2020, Mitsubishi Electric Automation Inc. launched a new lineup of variable frequency drives, the FR-E800 Series with a built-in PLC. Moreover, increasing adoption of VFD is also expected to aid in growth of the market. For instance, in August 2021, Robotsys, a robotics and automation company, enlisted the help of Automation Experts – a sales partner of Invertek Drives, a provider of VFD technology – to develop the bespoke system using Optidrive VFDs.

Players in the North America variable frequency drive (VFD) market are focused on adopting various marketing strategies to expand their product portfolio. For instance, in September 2021, Nord Drivesystems announced to exhibit its portfolio of drive solutions at PACK EXPO 2021, with a focus on products for the packaging, material handling, and intralogistics industries.

Key features of the study:

  • This report provides in-depth analysis of North America variable frequency drive (VFD) market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in North America variable frequency drive (VFD) market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • North America variable frequency drive (VFD) market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing North America variable frequency drive (VFD) market

Detail Segmentation

  • North America Variable Frequency Drive (VFD) Market, By Drive Type:
    • AC Drive
    • DC Drive
    • Servo Drive
  • North America Variable Frequency Drive (VFD) Market, By Voltage Range:
    • Low Voltage Range
    • High Voltage Range
  • North America Variable Frequency Drive (VFD) Market, By Application Type:
    • Standard
    • Regenerative
  • North America Variable Frequency Drive (VFD) Market, By End-use Application:
    • Pump
    • Fan
    • Compressor
    • Conveyor
    • HVAC
    • Others
  • North America Variable Frequency Drive (VFD) Market, By End-use Industry:
    • Oil & Gas
    • Food Processing
    • Automotive
    • Mining & Metals
    • Pulp & Papers
    • Others
  • North America Variable Frequency Drive (VFD) Market, By Country:
    • U.S.
    • Canada
  • Company Profiles
    • Fuji Electric Co., Ltd,*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Schneider Electric
    •  Mitsubishi Electric Corporation
    •  Toshiba International Corporation
    •  Siemens AG
    •  Emerson Industrial Automation
    •  ABB Ltd.
    •  Johnson Controls Inc.
    •  American Electric Technologies Inc. (AETI)
    •  Rockwell Automation Inc.
    •  General Electric Company
    •  Honeywell International Inc.
    •  Hitachi Limited

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Drive Type
      • Market Snippet, By Voltage Range
      • Market Snippet, By Application Type
      • Market Snippet, By End-use Application
      • Market Snippet, By End-use Industry
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. North America Variable Frequency Drive (VFD) Market, By Drive Type, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • AC Drive
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • DC Drive
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Servo Drive
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  5. North America Variable Frequency Drive (VFD) Market, By Voltage Range, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Low Voltage Range
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • High Voltage Range
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  6. North America Variable Frequency Drive (VFD) Market, By Application Type, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Standard
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Regenerative
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  7. North America Variable Frequency Drive (VFD) Market, By End-use Application, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Pump
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Fan
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Compressor
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Conveyor
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • HVAC
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • North America Variable Frequency Drive (VFD) Market, By End-use Industry, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Oil & Gas
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Food Processing
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Automotive
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Mining & Metals
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Pulp & Papers
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  8. North America Variable Frequency Drive (VFD)Market, By Country, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2028 (%)
    • U.S.
      • Country Trends
      • Market Size and Forecast, By Data Storage, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End-use Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2017–2028 (US$ Million)
    • Canada
      • Country Trends
      • Market Size and Forecast, By Data Storage, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End-use Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2017–2028 (US$ Million)
  9. Competitive Landscape
    • Company Profiles
      • Fuji Electric Co., Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Schneider Electric
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Mitsubishi Electric Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Toshiba International Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Siemens AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Emerson Industrial Automation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • ABB Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Johnson Controls Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • American Electric Technologies Inc. (AETI)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Rockwell Automation Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • General Electric Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Honeywell International Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hitachi Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  10. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “North America Variable Frequency Drive (VFD)Market-forecast to 2028”.

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Frequently Asked Questions

North America variable frequency drive (VFD) market size is estimated to be valued at US$ 5,636.1 Million in 2021 and is expected to exhibit a CAGR of 5.6% between 2021 and 2028.
Rising energy efficiency and higher productivity efficiency are the factors fuelling growth of the market.
The AC drive segment is the leading drive type segment in the market.
Technical difficulties related to VFDs and high initial cost of meedium voltage VFDs are factors hindering growth of the market.
Key companies involved in the market are Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited
U.S. country is expected to hold dominant position in the market over the forecast period. The growth of the market in the state is driven by rising demand for energy optimization, supportive government regulations and policies, and increasing focus on developing the manufacturing sector are the key factors leading to the market growth in the country
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