$26.8 Billion Variable Frequency Drive Market Projected to Grow by 2027, Growing at a CAGR of 4.8% – Report by MarketsandMarkets™
MarketsandMarkets Research Pvt. Ltd.
6 min read
MarketsandMarkets Research Pvt. Ltd.
Chicago, June 19, 2023 (GLOBE NEWSWIRE) -- Variable Frequency Drive Market size is projected to grow from USD 21.2 billion in 2022 to USD 26.8 billion by 2027, at a CAGR of 4.8% according to a new report by MarketsandMarkets™. The global variable frequency drive (VFD) market is expanding rapidly as companies seek more energy-efficient and optimised motor control solutions. The growing need for energy efficiency and sustainability is driving the introduction of variable frequency drives. VFDs provide for accurate control of motor speed as well as energy optimisation by regulating the power consumption of the motor based on demand. This capability results in significant energy savings, lower carbon emissions, and lower operational costs for enterprises in a variety of industries.
Browse in-depth TOC on “Variable Frequency Drive Market” 182 – Tables 60 – Figures 253 – Pages
Type, Voltage Type, Power Rating, Application, End-user Industry, and Region
Geographic Regions Covered
Asia Pacific, North America, Europe, Middle East, Africa, and South America
Companies Covered
ABB (Switzerland), Siemens (Germany), Danfoss (Denmark), Schneider Electric (France), Rockwell Automation (US), Fuji Electric (Japan), TMEIC (Japan), Delta Electronics (Taiwan), Sew-Eurodrive (Germany), Parker Hannifin (US), Inovance Technology (China), Shenzhen Gozuk (China), General Electric (US), Eaton (Ireland), NIDEC (Japan), WEG SA (Brazil), Hitachi (Japan), Honeywell International (US), Yaskawa (Japan), Anaheim Automation (US), Nord Drive Systems (Germany), Techsuppen (India), CG Power (India), Saksun Industries (India) and A.S. Automation (India).
Various types of variable frequency drives are available in the market that can be customized according to the requirement of the end user. The different types of variable frequency drives include AC Drive, DC Drive and Servo Drive. AC drives convert the AC supply to DC with the help of a converter and invert it back from DC to AC using an inverter to run AC motors. In contrast, DC drives only convert the input AC supply to DC using a converter circuit based on a rectifier to run the DC motor. The servo drive controls the servomotor according to the information received from the programmable logic controller (PLC) or other controllers and performs feedback control with the help of signal encoders or other components.
The Variable Frequency Drive Market, by voltage type, has been classified into low voltage type and medium voltage type. Engineers of most plants use low voltage variable frequency drives to control motor (and equipment) speed to increase productivity and reduce maintenance requirements. Medium voltage variable frequency drives are integrated into large-sized motors operating at high voltages.
The Variable Frequency Drive Market, by power rating, has been segmented into micro power drive, low power drive, medium power drive, and high-power drive. Mining and oil & gas are the major industries where variable frequency drives of different capacities are used, depending on the type/nature of the job. ABB, Siemens, and Danfoss, among others, offer variable frequency drives with different power ratings based on customers’ requirements.
Variable frequency drives can reduce energy consumption by up to 60% when integrated into centrifugal fans and pumps. They can also reduce the risk of cavitation in pumps. According to Control Engineering Europe (CEE), efficiency regulations for electric motors came into force in January 2017, requiring all AC motors with a rated output of 0.75–375 kW to run efficiently. With advancements in power electronics technology, the cost and size of variable frequency drives have decreased, while performance has improved. Over the years, energy-efficient electric motors using superior magnetic materials and displaying higher tolerance levels have been developed. High-performance IE4 and IE5 motors offer immediate benefits to OEMs, as well as end users. Limited conventional power generation, coupled with a continuous rise in electricity prices, has encouraged companies to invest in energy-efficient equipment to increase energy efficiency. Energy-intensive industries such as oil & gas, metals & mining, pulp & paper, cement, and water & wastewater treatment are using variable frequency drives to reduce energy consumption and CO2 emissions. Thus, providing ample opportunities for variable frequency drive manufacturers.
The study focuses on the variable frequency drive industry's core regional markets, which include North America, Europe, Asia Pacific, and the Rest of the World. Due to fast industrialization, infrastructural expansion, and the increased use of energy-efficient solutions in countries such as China and India, Asia Pacific is likely to dominate the market.
Key Market Players
The leading players in the global Variable Frequency Drive Market include ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Danfoss (Denmark), and Rockwell Automation (US).
Recent Developments
In April 2021, Siemens introduces a new, compact, and powerful SINAMICS G115D drive system specifically designed for horizontal conveyor applications. The drive system comprises the motor, drive, and gearbox in one unit and is offered in two versions — wall-mounted and motor-mounted.
In Febraury 2020, Schneider Electric introduced an Altivar 360, a variable speed drive for applications from 0.37 to 22 kW / 0.5 to 30 HP. The compact size of this drive, its robust design, ease of installation, based on the principle of Plug & Play, integrated functions, and macro configuration make it particularly suitable for applications involving industrial machines and certain consumer machines.
In November 2020, Danfoss Drives and other Danfoss business segments are expected to supply the technology company Wartsila's research, product development, and production center Smart Technology Hub with a significant number of AC drives and other products.
In September 2020, ABB invested approximately USD 43.3 million in new research & development facilities and office space for its Motion and Industrial Automation Businesses at the company’s largest Swiss location in Turgi in the canton of Aargau. The investment is expected to enable ABB strengthen its position in a number of high-growth areas while also enabling the company to expand its capabilities in innovation.
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