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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 torque and AC motor speed by changing motor input frequency and voltage. VAD is categorized into two types namely electronic drive DC and electronic drive AC. Electronic drive AC is a simple power converter that uses silicon control rectifier (SCR) to convert AC power to DC power. AC drives function on AC power input and transforms it into DC. DC drives are electrical instruments used to control the speed of a DC motor.

The global variable frequency drive (VFD) market is estimated to be valued at US$ 18,878.1 million in 2021 and is expected to exhibit a CAGR of 8.4% over the forecast period (2021-2028).

Recent Developments:

In June 2019, CG Power and Industrial Solutions Limited introduced Emotron VSX & VSM Series variable speed drives for use in the critical application that provides enhanced protection and cost-saving ability.

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)

In May 2019, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) introduced TMdrive-Guardian, an outdoor enclosure for its popular TMdrive-MVe2 medium voltage (MV) variable frequency drive (VFD).

Figure 1. Global Variable Frequency Drive (VFD) Market Value (US$ Mn), by Region, 2020

Variable Frequency Drive (VFD)  | Coherent Market 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

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. 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%.

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.

Market Opportunities

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.

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Variable Frequency Drive (VFD) Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2021: US$ 17,805.3 Mn
Historical Data for: 2016 to 2019 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 8.4% 2028 Value Projection: US$ 33,158.1 Mn
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Western Europe: Germany, U.K., France, Italy, and Rest of Western Europe
  • Eastern Europe: Poland, Russia, and Rest of Eastern Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, Israel,  South Africa, North Africa, Central Africa, Rest of Middle East
Segments covered:
  • 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

Market Trends

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. 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.

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

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 70.7% share in the global variable frequency drive (VFD) market in 2020. The segment is expected to reach US$ 23,210.7 million in 2028, owing to its product characteristics that make them compatible for all types of AC induction motors.

Market Dynamics- 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.

Competitive Section

Major companies involved in the global 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., Danfoss India, General Electric Company, Honeywell International Inc., and Hitachi Limited.

Key Developments

  1. Major companies in the market are focused on agreements and contracts, in order to gain a competitive edge in the market. For instance, in January 2017, Mitsubishi Electric Sales Canada Inc., a subsidiary of Mitsubishi Electric Corporation of Japan, entered into an agreement for corporate marketing with the National Hockey League (NHL) to promote its Electric brand of commercial and residential products among NHL fans.
  2. Key players in the market are involved in product launches, in order to expand the product portfolio. For instance, in January 2017, Fuji Electric Co. Ltd. introduced FRENIC-Ace, which is a full-featured drive with integration capabilities including applied power ratings, variable frequency drives with a sensor, PM synchronous motor control, 2-channel onboard RS485 communication port, and others.

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. The most common application of a variable frequency drive is to replace the primary (or center) source of an electric motor. When the engine does not run at full speed, the machine software uses the VFD to compensate for this, and the machine operates at the appropriate speed.

Market Dynamics

Increasing demand from diverse end-use industries including cement, petrochemical, chemical, mining, oil & gas, and pulp & paper is expected to boost the global variable frequency drive (VFD) market growth over the forecast period. VFD is widely used in numerous industries as it allows pumping in a smooth regime, which reduces energy consumption as compared to multi-regime pumping. Furthermore, these types of drives can enhance the reliability of the equipment. In fact, VFD has the capacity to control ramp-up and ramp-down of the motor during the start or stop.

Furthermore supportive environmental policies are expected to the accelerate growth of the global variable frequency drive (VFD) market in the near future.  

Key features of the study:

  • This report provides in-depth analysis of the 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 the global 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., Danfoss India, 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
  • The global 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 the global variable frequency drive (VFD) market

Detailed Segmentation:

  • Global Variable Frequency Drive (VFD) Market, By Drive Type:
    • AC Drive
    • DC Drive
    • Servo Drive
  • Global Variable Frequency Drive (VFD) Market, By Voltage Range:
    • Low Voltage Range
    • Medium Voltage Range
  • Global Variable Frequency Drive (VFD) Market, By Application Type:
    • Standard
    • Regenerative
  • Global Variable Frequency Drive (VFD) Market, By End-use Application:
    • Pump
    • Fan
    • Compressor
    • Conveyor
    • HVAC
    • Other Applications
  • Global Variable Frequency Drive (VFD) Market, By End-use Industry:
    • Oil & Gas
    • Food Processing
    • Automotive
    • Mining & Metals
    • Pulp & Papers
    • Others (Power generation, chemical processing, etc.)
  • Global Variable Frequency Drive (VFD) Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • 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.
    • Danfoss India
    • General Electric Company
    • Honeywell International Inc.
    • Hitachi Limited.

*Browse all the market data tables and figures on “Global Variable Frequency Drive (VFD) Market- Forecast to 2028”

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. Global 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. Global 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)
    • Medium Voltage Range
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  6. Global 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. Global 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)
    • Other Applications
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  8. Global 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)
    • Applications Others (Power generation, chemical processing, etc.)
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  9. Global Variable Frequency Drive (VFD) Market, By Region, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2028 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Drive Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Voltage Range, 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)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.S.
        • Canada
    • Western Europe
      • Regional Trends
      • Market Size and Forecast, By Drive Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Voltage Range, 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)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Rest of Europe
    • Eastern Europe
      • Regional Trends
      • Market Size and Forecast, By Drive Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Voltage Range, 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)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Poland
        • Russia
        • Rest of Eastern Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Drive Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Voltage Range, 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)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Drive Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Voltage Range, 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)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Drive Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Voltage Range, 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)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  10. 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
      • Danfoss India
        • 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
  11. Section
    • References
    • Research Methodology
    • About us and Sales Contact

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

FAQgrowicon

Frequently Asked Questions

The global variable frequency drive (VFD) market is estimated to be valued at US$ 18,878.1 in 2021 and is expected to exhibit a CAGR of 8.4% over the forecast period (2021-2028).
Rising demand from oil & gas and food processing industry is one of the key trends in the market.
Increasing energy efficiency is expected to drive growth the market during the forecast period
High initial costs of medium voltage VFDs is expected to hinder the market growth over the forecast period.
Provision of one package solution can offer major business opportunities in the market.
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.
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