PUBLISHER: The Business Research Company | PRODUCT CODE: 1657053
PUBLISHER: The Business Research Company | PRODUCT CODE: 1657053
A variable frequency drive (VFD) is a type of motor controller designed to alter the frequency and voltage to drive an electric motor. These drives have the capability to manage the gradual increase or decrease in motor speed. They play a crucial role in conserving energy and enhancing system efficiency, finding widespread application in fans, pumps, conveyors, and compressors.
The primary categories of variable frequency drives include AC drives, DC drives, and servo drives. AC drives are employed to regulate the speed of an electric motor, contributing to improved process control, reduced energy consumption, and efficient energy generation. AC drives come in various power ratings, including low power rating, medium power rating, micropower rating, and high power rating. They find application in pumps, fans, compressors, conveyors, and various other industrial processes. End-users of variable frequency drives span across industries such as food and beverages, oil and gas, power generation, infrastructure, and others.
The variable frequency drive (VFD) market research report is one of a series of new reports from The Business Research Company that provides variable frequency drive (VFD) market statistics, including variable frequency drive (VFD) industry global market size, regional shares, competitors with a variable frequency drive (VFD) market share, detailed variable frequency drive (VFD) market segments, market trends and opportunities, and any further data you may need to thrive in the variable frequency drive (VFD) industry. This variable frequency drive (VFD) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The variable frequency drives market size has grown strongly in recent years. It will grow from $19.83 billion in 2024 to $20.89 billion in 2025 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to rising demand for energy efficiency and process optimization, the growing adoption of automation and industry 4.0 initiatives,the rapid growth of the electric vehicle (ev), expanding industrial applications and market diversification, cost savings.
The variable frequency drives market size is expected to see strong growth in the next few years. It will grow to $26.74 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to growing demand for condition-based maintenance, global industrialization, efforts to reduce carbon footprint, government incentives,incresing renewable energy integration. Major trends in the forecast period include retrofitting and modernization, smart and digital vfds, industry 4.0 integration, customized vfd solutions, regenerative VFDS.
The growth of the market is being propelled by an increasing need for energy efficiency and government regulations across various industries. Industries worldwide are striving to optimize energy usage, and governments are enforcing stringent regulations to ensure energy efficiency in these sectors. Variable frequency drives (VFDs) are recognized for their energy efficiency and convenience, making them valuable for reducing energy consumption in industries. An example of such regulations is the Energy Conservation Building Code (ECBC) in India, which establishes minimum energy standards for new commercial buildings, fostering the growth of the variable frequency drives market through compliance with government efficiency standards.
The rising demand for renewable energy is expected to drive the growth of the variable frequency drives market in the coming years. Renewable energy refers to energy sourced from naturally occurring, replenishable resources that are not exhausted upon use. Variable frequency drives (VFDs) improve the reliability, efficiency, and performance of renewable energy systems while facilitating the integration of variable energy sources such as wind and solar into the electrical grid. For instance, in January 2023, the International Energy Agency (IEA), an autonomous intergovernmental organization based in France, reported that power generation from solar photovoltaic systems reached a record 270 TWh in 2022, marking a 26% increase from 2021. Following wind and hydropower, solar PV remains the third-largest renewable electricity technology, accounting for 4.5% of the world's total electricity production. Therefore, the growing demand for renewable energy is likely to enhance the variable frequency drives market.
Numerous companies in the variable frequency drives market are creating intelligent variable frequency drives to enhance their clients' experiences. Intelligent variable frequency drives (IVFDs) are advanced devices that control the speed and torque of electric motors, incorporating smart features for improved performance and efficiency. For example, in June 2024, Danfoss, a manufacturing company based in Denmark, launched the iC2 and iC7 drives. The iC2 drive boosts efficiency by up to 40% and is compatible with various motor types, making it ideal for pumps, fans, and material handling applications. It boasts a compact design and is easily retrofittable for the VLC Micro Drive FC51. The iC7 drive optimizes energy consumption across different applications, ranging from process control to packaging, and is recognized as the world's first secure-by-design AC drive, ensuring data integrity and robust security. Both drives are designed to enhance operational efficiency and support sustainability initiatives across various industries.
Leading companies in the variable frequency drives market are concentrating on launching advanced products to secure a competitive advantage. Advanced Variable Frequency Drives (VFDs) are complex motor control devices utilized in industrial and commercial settings to accurately manage the speed, torque, and power consumption of electric motors. For example, in September 2024, MEAN WELL, a manufacturer of power supply products based in China, introduced a new series of VFDs. This series features industrial brushless DC motor controllers and drivers tailored for applications that demand high efficiency and reliability. The innovative product line includes models with power ratings between 150W and 750W and is offered in both DC and AC configurations.
In May 2022, Black Bay Energy Capital LLC, a US-based private equity firm, acquired a majority interest in Advanced Industrial Devices (AID) from Rock Island Capital. This strategic move aims to enhance AID's production, engineering, and servicing capacity to meet growing customer demand in the expanding market for electric motors and VFDs. AID specializes in designing and selling custom variable frequency drive control systems (VFD) for industrial, oil, and gas sectors, contributing to the broader adoption of VFD technology.
Major companies operating in the variable frequency drives market include Eaton Corporation, Hitachi Hi-Rel Power Electronics, Rockwell Automation, Johnson Controls, Anaheim Automation, Werner Electric GmbH, ASEA Brown Boveri, Nidec Motor Corporation, Siemens AG, Danfoss, Honeywell International, Toshiba Mitsubishi-Electric Industrial Systems Corporation, Fuji Electric Corp, Schneider Electric, Yaskawa Electric Corporation, General Electric, Delta Electronics, Phase Technologies LLC., Inovance Technology, GE Power Conversion, Shenzhen INVT Electric Co. Ltd., Hiconics Eco-energy Technology, VEICHI Electric Co. Ltd., HopeSenlan Science and Technology, EURA Drives GmbH, POWTRAN Technology Co. Ltd., Sichuan Jialing Electric Power Co. Ltd.
Asia-Pacific was the largest region in the variable frequency drives market share in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the global variable frequency industry report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The countries covered in the variable frequency drives market report is Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The variable frequency drive market consists of sales of pilot devices, safety switches, control circuit. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Variable Frequency Drives Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on variable frequency drives market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for variable frequency drives ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The variable frequency drives market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.