Global Variable Frequency Drive Market Report and Forecast 2024-2032

Global Variable Frequency Drive Market Outlook

The global variable frequency drive market size attained a value of USD 23.66 billion in 2023. The market is further expected to grow at a CAGR of 6.1% between 2024 and 2032, to reach a value of USD 40.17 billion by 2032.

Key Trends in the Market

A variable frequency drive (VFD), also known as variable speed drive, refers to a motor controller which optimises the drive of an electric motor by the altering voltage and frequency supplied to it. In other words, a VFD can reduce or increase the load on an electric motor to facilitate proper functioning. Variable frequency drives save energy, optimise efficiency of a system, and reduce mechanical stress on machines to expand their lifetime.

• According to the variable frequency drive market analysis, the growing energy demand across the industrial sector, unbalanced distribution of energy, and increasing intensity of resource competition are the driving factors of the variable frequency drives market. The growing sophistication of electrical appliances and power industrial equipment and increasing investments in waste water management are further shaping the variable frequency drive market forecast.

• Rising investments in alternative fuel vehicles (AFV) are likely to result in increasing replacement of traditional vehicles with AFVs. This factor is expected to offer greater application opportunities for variable frequency drives, leading to expansion of variable frequency drive market size. Increasing fuel prices and growing focus on switching to alternative fuels for greater sustainability are expanding the scope for AFVs.

• The variable frequency drive market report also suggests that the rapid industrialisation and urban development across emerging economies are fuelling the demand for variable frequency drives to manufacture various industrial components. Favourable policies of various governments encouraging energy efficiency are likely to further garner the variable frequency drive market growth in the forecast period.

• As per the variable frequency drive market research, the robust modernisation of power distribution infrastructure to combat blackouts, achieve energy optimisation, and cope with the increasing energy demand of the manufacturing sector are likely to provide impetus to the variable frequency drive (VFD) market. Stable power distribution is becoming a necessity worldwide, leading to increased investments in VFD.

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Market Analysis

Based on type, the market is segmented into AC drive, DC drive, and servo drive. On the basis of voltage type, the market is bifurcated into low and medium. By power rating, the market is classified into micro (0-5 kW), low (6-40 kW), medium (41-200 kW), and high (>200 kW). Based on application, the market is segmented into pumps, conveyors, fans, and compressors, among others. On the basis of end-use, the market is categorised into oil and gas, industrial, power, and infrastructure, among others. The regional markets for variable frequency drive are divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the global variable frequency drive market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• ABB Ltd.

• Siemens AG

• Danfoss

• Schneider Electric SE

• General Electric

• Hitachi, Ltd.

• Honeywell International Inc.

• Techsuppen Enterprises.

• CG Power & Industrial Solutions Ltd.

• Others

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Market Share by Type

The AC drive segment, based on type, accounts for a healthy share of the variable frequency drive market. AC drives can enhance the process control of various sectors by controlling the speed of an electric motor. Particularly in industrial applications, AC drives are likely to witness a healthy demand in the years to come, in order to enhance performance and achieve cost-effectiveness in the processes. AC drives are compact in size, less expensive, and widely available, while requiring minimal maintenance, due to which they are commonly used in applications and settings where regular access may be restricted. Without brushes involved, they are suited for high speed operations, thereby extending their application range further.

Market Share by Voltage Type

Based on voltage type, the low (6-40 kW) segment accounts for a significant portion of the variable frequency drive market share which can be attributed to the wide range of applications of this equipment. Low voltage variable frequency drives can support control over stopping and starting as well as the motor speed in between. These VFDs are suited for a wide range of industries and applications, and are available in general and industry-specific models, further increasing their usefulness and demand. Moreover, low voltage VFD is used to manufacture various critical industrial components such as pumps, fans, and conveyers, among others, which are expected to contribute towards the growth of global variable frequency drives market in the coming years.

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Competitive Landscape

ABB Ltd. is a leading multinational automation company which provides control room solutions, drives, electric vehicle charging solutions, industrial software, low voltage products and systems, and medium voltage products, among others. It caters to the diverse demands of sectors such as oil and gas, mining, power generation, and pulp and paper, among others. It was founded in 1988 and is headquartered in Zurich, Switzerland.

Siemens AG is a prominent technology company which focusses on sectors such as infrastructure development, transport, and healthcare. It provides products and services related to building technologies, energy, financing, industrial automation, and mobility, among others. The company was founded in 1847 and is currently headquartered in Munich in Germany.

Danfoss is a multinational energy company which supplies cutting edge technologies to various sectors. The company provides products such as compressors, valves, smart heating, switches, heat exchangers, system modules, fire safety, emission monitoring, and sensing equipment, among others. It was established in 1933 and is currently based out of Nordborg, Denmark.

Other market players include Schneider Electric SE, General Electric, Hitachi, Ltd., Honeywell International Inc., Techsuppen Enterprises., and CG Power & Industrial Solutions Ltd., among others.

Key Highlights of the Report