Variable Frequency Drive Industry Overview
The global variable frequency drive market size is anticipated to reach USD 39.7 billion by 2030, registering a CAGR of 5.5% from 2022 to 2030, according to a new study by Grand View Research Inc. Rapid technological advancement in semiconductor technology, coupled with increasing awareness related to the use of energy-efficient products are factors expected to drive the market growth. Likewise, increasing energy demand globally, coupled with increasing use of variable frequency drive to control speed and fan flow to avoid energy loss is expected to support the global market growth in coming years.
Variable Frequency Drive Market Segmentation
Grand View Research has segmented the global variable frequency drive market based on product type, power range, application, end-use, and region:
Based on the Product Type Insights, the market is segmented into AC Drives, DC Drives, Servo Drives.
- The AC drives segment accounted for a revenue share exceeding 68% in 2021. This growth can be attributable to the benefits of AC drives such as providing high power, easy installation compared to others, and minimal maintenance.
- The DC drive segment is anticipated to witness moderate growth in the target market and is expected to register a CAGR of 4.8% from 2022 to 2030. The use of DC technology in industries is limited as they have high maintenance cost compared to AC technology. Also, DC technology is not considered energy-efficient, and cannot operate in critical conditions these factors are anticipated to hamper the segment growth.
Based on the Power Range Insights, the market is segmented into Micro (0-5 kW), Low (6-40 kW), Medium (41-200 kW), High (>200 kW).
- The low power range segment dominated the global market in terms of revenue share accounting for more than 40% in 2021. End-use industries use low voltage frequency drives for operating equipment such as pumps, fans, belt conveyors, centrifugal pumps, and centrifugal compressors.
- The medium power range frequency drive accounted for a significant revenue share and is expected to register a CAGR of 5.7% from 2022 to 2030. Medium (41-200 kW) power range frequency drive provides the advantages such as greater operational flexibility and better control which is a major reason its demand from various industries such as wastewater plants, petrochemical, mining, etc. is increasing.
Based on the Application Insights, the market is segmented into Pumps, Electric Fans, Conveyors, HVAC, Extruders, Others.
- The pumps segment accounted for a revenue share of 29% in 2021. Pumps are widely used in the water treatment industry, metal industry, and oil & gas industry. These pumps are integrated with variable frequency drives which help them reduce power consumption, decreasing the cost to operate a pump and help operate at variable speeds without a gearbox.
- The HVAC segment is anticipated to account for a significant revenue share and register a CAGR of 6.8% from 2022 to 2030. The rapid increase in residential and commercial construction activities is anticipated to augment demand for HVAC systems.
Based on the End-use Insights, the market is segmented into Oil & Gas, Power Generation, Industrial, Infrastructure, Automotive, Food & Beverages, Others.
- The oil & gas segment dominated the global market by accounting for a revenue share of 20% in 2021. The oil & gas sector uses heavy pumps and motors at the production site for various applications such as extraction, pumping, distribution, etc. Integrating the variable frequency drive with the motors helps in increasing the output by lowering the energy consumption.
- The infrastructure segment is anticipated to grow at a CAGR of 6.6% from 2022 to 2030. This growth can be attributed to increasing construction activities across the globe.
Variable Frequency Drive Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Key players that dominated the market in 2021 include ABB, Eaton, General Electric, and Hitachi Ltd. Major player are focused on enhancing the business and increasing the customer base by the introduction of new products.
Some prominent players in the global variable frequency drive market include
- ABB
- Eaton
- General Electric
- Hitachi Ltd.
- Rockwell Automation Inc.
- Schneider Electric
- Siemens AG
- The Danfoss Group
- WEG S.A.
- Yaskawa Electric Corporation
Order a free sample PDF of the Variable Frequency Drive Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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