We have an updated report [Version - 2024] available. Kindly sign up to get the sample of the report.
all report title image

The global Variable Frequency Drive market size was valued at US$ 18.46 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.60% from 2023 to 2030. A variable frequency drive or Variable Voltage/ Variable Frequency drive, AC drives, inverter drives, AC waveform drives, digital drives, ribbon drives, spindle drives, plenum drives, line speed drives, power cable drives, and flash memory drives are some of the common computer drives that use this technology. A variable frequency drive varies the output frequency and / or voltage of an electric motor to provide better overall system performance at a given operating speed. A variable frequency drive is more power-efficient than other hard drives.

Global Variable Frequency Drive Market: Regional Insights

Asia Pacific held dominant position in the global variable frequency drive (VFD) market in 2020, accounting for 40.9% share in terms of value, followed by North America and Europe, respectively.

Global Variable Frequency Drive (VFD) Market- Drivers Moreover, Asia Pacific is also projected to show significant growth in the global Variable Frequency Drive market over the forecast period.

Figure 1: Global Variable Frequency Drive (VFD) Market Share (%), By Region, 2022

VARIABLE FREQUENCY DRIVE MARKET

To learn more about this report, request a free sample copy

Global Variable Frequency Drive Market Drivers:

Increasing energy efficiency to drive growth the global variable frequency drive (VFD) market

Increasing energy efficiency is expected to drive growth the global variable frequency drive (VFD) market during the forecast period. Constantly increasing energy prices has led to the necessity of energy-efficient motor control systems. Process engineers and other executives managing the operation department are increasingly preferring deployment of variable frequency drives, in order to reduce energy consumption. This acts as an alternative to throttling devices such as dampers and valves and fixed speed controllers.

Extending areas of applications of VFD to propel the global variable frequency drive (VFD) market

Extending areas of applications of VFD is expected to propel the global variable frequency drive (VFD) market growth over the forecast period. Since the prices of VFDs are decreasing, the application areas have broadened significantly. Consumers are familiar with the advantages of VFDs and are deploying it for indoor applications as well. VFDs, when installed along with a flow-meter, ensure appropriate water volume and eliminate energy wastage due to worst-case design philosophy.

Global Variable Frequency Drive Market Opportunities:

Increasing adoption of advent of smart grid technology

Advent of smart grid technology can provide lucrative growth opportunities. Smart grid technology is being increasingly adopted in emerging applications of VFDs in smart grids. This is done to vary the phase angle and voltage required. This, in turn, ensures more efficient transmission of electricity. Thus, market players can capitalize on these opportunities and gain a competitive edge in the market.

Provision of one package solution can offer major business opportunities. Key players in the market are focused on launching bundled solutions in order to reduce customer buying efforts, thereby enhancing overall customer experience. 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.

Variable Frequency Drive Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2022: US$ 18.46 Bn
Historical Data for: 2017 to 2021 Forecast Period: 2023 to 2030
Forecast Period 2023 to 2030 CAGR: 8.6% 2030 Value Projection: US$ 35.72 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, Israel, South Africa, North Africa, and Central Africa
Segments covered:
  • By Deployment: On-premise and Cloud
  • 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, Other Applications
  • By End-use Industry: Oil & Gas, Food Processing, Automotive, Mining & Metals, Pulp & Papers, Applications Others (Power generation, chemical processing, etc.)
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., Danfoss India, General Electric Company, Honeywell International Inc., and Hitachi Limited

Growth Drivers:
  • Increasing energy efficiency
  • Extending areas of applications of VFD
Restraints & Challenges:
  • High initial costs of medium voltage VFDs
  • Technical challenges related to VFDs

Global Variable Frequency Drive Market Trends:

Growing digitization trends and increased digital data production is a major trend in the market

Global oil and gas expenditure is decreasing across upstream, downstream, midstream, offshore and liquefied natural gas sub-sectors. However, the demand for industrial automation products, especially in low and medium voltage drive, is expected to remain steady during forecast period. Currently, AC variable frequency is witnessing a major surge in the petrochemical industry. Air compressor and aerostatic press are both main equipment in the petrochemical industry, which work uninterruptedly and thus, consume maximum electricity. Deploying VFDs is helping end users reduce energy consumption in these applications by 20–30%.

Low voltage drives hold a dominant position in the global variable frequency drive market. This is owing to widespread applications across several industries such as food and beverages, oil & gas, and mining and metals. Furthermore, low voltage range is expected to witness significant growth in the near future, owing to rampant expansion in industrial base and manufacturing capacities across emerging economies.

Global Variable Frequency Drive Market Restraints:

High initial costs of medium voltage VFDs is expected to hinder the global variable frequency drive (VFD) market growth over the forecast period. Although prices of VFDs have declined over the last decade, medium voltage VFDs come with a high price tag. Medium voltage VFDs are typically used in industrial sector and are expected to increase during the forecast period. However, high initial costs associated with medium voltage VFDs are a major hindering factor. Moreover, end users are preferring low-cost products made in China to manage budgets.

Technical challenges related to VFDs is expected to hamper growth of the global variable frequency drive (VFD) market during the forecast period. A majority of VFDs emit a series of pulses that are rapidly switched. In the presence of long cable between the motor and VFDs, these reflected pulses can lead to voltage production that exceeds line voltage, causing stress in motor windings and the cable. This, in turn, is leading to insulation failures, particularly for motors operating at 480 volts or higher. If these details are overlooked during installation phase, performance of VFDs can significantly hamper productivity of process systems, which can further lead to revenue losses.

Global Variable Frequency Drive Market COVID-19 Impact Analysis:

The COVID-19 impact across industries varies, as the outbreak has flipped the growth switch in every sector of the economy and the Variable Frequency Drive (VFD) Market is no exception. Owing to the slowdown in logistics and the lack of availability of labors in throughout the world stopped shipping non-essential items, including the majority of infrastructure and automotive products, which had an impact on the Variable Frequency Drive (VFD) Market. The COVID-19 severely impacted the semiconductor industries. Infrastructure and automobile projects either faced delays or were postponed due to the unavailability of manpower and material as supply chain operations were disrupted during the pandemic. This had a direct impact on the Variable Frequency Drive (VFD) market and hence exhibited slow growth during the pandemic.

Figure 2: Global Variable Frequency Drive Market Share (%), By End-use Industry, 2022

VARIABLE FREQUENCY DRIVE MARKET

To learn more about this report, request a free sample copy

Global Variable Frequency Drive Market Segmentation:

The global Variable Frequency Drive market report is segmented into deployment, tool, organization size, and end user.

The AC Drive segment held dominant position in the market and accounted for 70.7% share in the global variable frequency drive (VFD) market in 2021.

Global Variable Frequency Drive Market: Key Developments

In April 2021, Siemens, a Germany-based industrial product manufacturing company launched a new, compact, and powerful SINAMICS G115D drive system and such a system is designed for horizontal conveyor applications.

In May 2021, SFC Energy AG, a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions has received an initial order for their fully integrated Variable Frequency Drive systems (VFDs) from an Alberta Oil Producer. The order is for electric submersible pumps (ESPs)

On September 2020, ABB is investing about US$ 43.5 million in new research and development facilities and office space for its Motion and Industrial Automation Business in Turgi, Switzerland. Through this investment ABB to strengthened its position several high-growth areas and to expand its innovation capabilities.

Global Variable Frequency Drive Market: Key Companies Insights

Some of the key players in the global Variable Frequency Drive 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., Danfoss India, General Electric Company, Honeywell International Inc., and Hitachi Limited

*Definition: A Variable Frequency Drive is an electronic devices which regulates the speed and torque output of an electrical motors by adjusting the frequency and voltage of the power supplied to it.

 

Frequently Asked Questions

The global Variable Frequency Drive market size is estimated to be valued at US$ 18464.1Billion in 2022 and is expected to exhibit a CAGR of 8.6% between 2023 and 2030.

Increasing energy efficiency is expected to drive growth the market during the forecast period

AC Drive segment held dominant position in the market.

High initial costs of medium voltage VFDs is expected to hinder the market growth over the forecast period.

Major 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., Danfoss India, General Electric Company, Honeywell International Inc., and Hitachi Limited.

View Our Licence Options

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Customize Now

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail

Request Discount
Logo

Reliability and Reputation

ESOMAR
DUNS Registered
Clutch
DMCA Protected

9001:2015

Reliability and Reputation

27001:2022

Reliability and Reputation

EXISTING CLIENTELE

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo