Asia Pacific AC Drives Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Asia Pacific AC Drives Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Asia Pacific AC Drives Market was valued at over USD 7.3 billion in 2023. Projections indicate a growth rate of 5.2% CAGR from 2024 to 2032, driven by the rising demand for energy-efficient motor control solutions, spurred by technological advancements and the integration of motor control with industrial automation.

The industry's dynamics are further bolstered by the increasing adoption of efficient motor control units, which promise energy savings, enhanced process control, and an extended equipment lifespan. Additionally, as emerging nations industrialize and adopt advanced manufacturing processes, there's a pronounced shift towards energy efficiency, further enhancing the industry's outlook.

Driven by rapid infrastructural investments, urbanization, and industrial growth, the Asia Pacific AC drives industry is poised for significant expansion. For instance, in May 2024, Japan's Ministry of Trade and Economy rolled out a tech strategy to boost energy efficiency and pivot away from fossil fuels. This strategy highlights key tech areas vital for achieving carbon neutrality by 2050. The ministry is also championing R&D efforts to commercialize and advance these emerging technologies. Coupled with the ongoing clean energy expansion, rising industrial investments, infrastructure development expenditures, and supportive government policies, these factors are set to propel industry growth.

The APAC AC drives industry is classified based on voltage, application, end-use, and region.

Forecasts suggest the low voltage segment will surpass USD 10 billion by 2032, driven by increasing automation in industries, a heightened emphasis on energy efficiency, and technological advancements in motor controls. The demand for reliable, efficient, and cost-effective solutions, combined with a focus on reducing energy consumption, further fuels this trend. Additionally, government incentives, a stringent regulatory landscape, and financial perks for manufacturers adopting advanced technologies bolster the demand for low voltage AC drives.

The pump segment will see a CAGR of over 4.5% through 2032. The petrochemical sector's rising pump demand, technological advancements, and stringent AC drive regulations underscore the push for energy-efficient drives. Moreover, the evolution of intelligent drive systems, emphasizing efficiency and cost-effective manufacturing, paints a positive picture for the industry's future.

China AC drives market is projected to exceed USD 5 billion by 2032. The nation's emphasis on energy efficiency, operational streamlining, conservation, and emission reduction is set to shape the industry's trajectory. Authorities have implemented stringent mandates to curb energy consumption and carbon emissions. For instance, in May 2024, China's State Council introduced an action plan with ambitious 2025 targets: a 13.5% reduction in energy intensity and an 18% cut in carbon intensity, all aimed at hastening decarbonization in power and industry. Furthermore, the ongoing digital transformation and Industry 4.0, marked by IoT platform integration, further bolster industry outlook.