PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1668761
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1668761
The Variable Frequency Drive market is projected to reach USD 30.36 billion by 2029 from an estimated USD 23.46 billion in 2024, at a CAGR of 5.3% during the forecast period (2024-2029). Increased industrialization increases the energy consumption and complexity in the manufacturing process, hence the need for VFDs to increase the motor efficiency, reduce the energy consumption costs, and optimize system performance. The growing focus on energy conservation and business operation efficiency is a further driver of the increase in VFD adoption.
Scope of the Report | |
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Years Considered for the Study | 2020-2029 |
Base Year | 2023 |
Forecast Period | 2024-2029 |
Units Considered | Value (USD Million) and Volume (Thousand Units) |
Segments | Type, End User, Power rating, Application, Voltage, and Region. |
Regions covered | North America, Europe, Asia Pacific, South America, and Middle East & Africa |
"AC Drives is expected to grow as the largest segment during the forecast period."
The AC drive is considered the fastest-growing product segment in the VFD market due to the ability to provide fine motor control and high energy efficiency. In these times of growing industrialization, energy-saving solutions will achieve great deal-breakers in manufacturing, mining, and HVAC systems, among others. AC drives present reduced energy consumption, lower operation cost, as well as improved performance that aligns with businesses' interests in improving productivity at the lowest possible cost. Further, the decreasing cost of AC drive technology and the ongoing improvements in production methods are making this an accessible and attractive option for industries around the world.
"Pumps segment is expected to emerge as the largest segment by application."
The use of pumps accounts for the most prominent segment of the Variable Frequency Drive market because their energy saving potential is at a very high scale, and they are being increasingly adopted in various industries. VFDs can control variable speed of pumps, thereby allowing more efficient performance while at the same time reducing energy consumption in water treatment and HVAC to the oil and gas industries. The VFDs minimize and avoid energy waste as well as mechanical wear through the modulation of the motor speed to meet the demands for effective efficiency. Very relevant to this application in centrifugal pumps is where the need for variable control of flow reduces energy, hence increasing the lifespan of equipment under base loads by using VFDs for pump-based systems.
"India to grow at the highest CAGR for Asia Pacific Variable Frequency Drive market."
The fastest-growing country in the VFD market is India, as it rapidly industrializes and focuses on energy efficiency. Significant infrastructure development in the country along with a rising demand for automation in manufacturing sectors, water treatment plants, and HVAC systems is pushing up the growth of the VFD market. India's energy efficiency initiatives and government policies supporting industrial growth are the other reasons for increased VFD adoption. With a burgeoning industrial base and moving closer to modernizing its infrastructure, India is likely to witness significant market growth going forward, especially in the areas where efficient motor control systems are critical.
By Company Type: Tier 1- 30%, Tier 2- 45%, and Tier 3- 25%
By Designation: C-Level- 30%, Director Levels- 20%, and Others- 50%
By Region: North America- 18%, Europe- 8%, Asia Pacific- 60%, the Middle East & Africa- 10%, and South America- 4%
Note: Others include sales managers, engineers, and regional managers.
Note: The tiers of the companies are defined based on their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million
ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Danfoss (Denmark), Rockwell Automation (US) are some of the key players in the Variable Frequency Drive market.
The study includes an in-depth competitive analysis of these key players in the Variable Frequency Drive market, with their company profiles, recent developments, and key market strategies.
The report defines, describes, and forecasts the Variable Frequency Drive market by Type (AC Drives, DC Drivers and Servo Motors), By Power Rating (Micro Power Drive, Low Power Drive, Medium Power Drive and High Power Drive), By Application (Pumps, Compressors, Conveyors, Fans and Others), By End User (Oil & Gas, Industrial, Power, Infrastructure), By Voltage (Low Voltage and Medium Voltage) and By Region (North America, South America, Europe, Asia Pacific, and Middle east & Africa). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the Variable Frequency Drive market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; Contracts, partnerships, agreements. new product & service launches, mergers and acquisitions, and recent developments associated with the Variable Frequency Drive market. Competitive analysis of upcoming startups in the Variable Frequency Drive market ecosystem is covered in this report.
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