Oil & Gas Variable Frequency Drives Market Size - By Voltage (Low, Medium), By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder) & Global Forecast, 2023 - 2032

Oil & Gas Variable Frequency Drives Market Size - By Voltage (Low, Medium), By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder) & Global Forecast, 2023 - 2032

Oil & Gas Variable Frequency Drives Market size is estimated to expand at 3.8% CAGR from 2023 to 2032 propelled by the increasing focus on industrial automation worldwide. The ongoing advancements in variable frequency drive (VFD) technology, such as enhanced motor control and improved system integration capabilities are pushing the adoption of various drives in the oil and gas sector. Numerous industry players are collaborating in technology and sales as well as in trade relationships to address the rising product demand, further augmenting the industry outlook. For instance, in March 2023, Siemens established Innomotics, a new motor, and big drives firm, to merge its business activities in the sectors of low- to high-voltage motors, medium-voltage converters, geared motors, and motor spindles.

The oil & gas variable frequency drives industry is segmented into voltage, drive, application, and region.

With respect to voltage, the medium voltage oil & gas variable frequency market is set to gain significant traction between 2023 and 2032. With industries increasingly embracing energy-efficient solutions, the demand for medium voltage variable frequency drives is expected to surge. Medium voltage drives facilitate precise control of motor speed for enhancing the operational efficiency and reducing energy consumption in oil and gas applications. The soaring emphasis on cost-effective and sustainable operations will also favor the segment growth.

Based on application, the oil & gas variable frequency drives industry from the compressor application segment generated considerable revenue in 2022 and is expected to record robust growth through 2032. Variable frequency drives play crucial role in regulating the speed of compressors while ensuring optimal energy efficiency and precise control over gas and oil processing operations. With the increasing demand for cost-effective and sustainable solutions, the adoption of oil and gas variables is surging to enable operators to improve production efficiency, reduce energy consumption, and minimize operational costs.

Europe held sizable share of the global oil & gas variable frequency drives market in 2022 and is expected to foresee substantial growth from 2023-2032. This is attributed to the increasing shift towards sustainable energy practices and the greater emphasis on reducing carbon footprints. The increasing focus on optimizing oil and gas operations through advanced technologies is also boosting the demand for variable frequency drives. Rising application scope in pumping, compression, and other critical applications will further contribute to the regional industry growth.