Variable Frequency Drive (VFD) Market Forecasts to 2028 – Global Analysis By Voltage Type (Low Voltage, Medium Voltage), Application (Pumps, Electric Fan), End User, and By Geography

Variable Frequency Drive (VFD) Market Forecasts to 2028 – Global Analysis By Voltage Type (Low Voltage, Medium Voltage), Application (Pumps, Electric Fan), End User, and By Geography

According to Stratistics MRC, the Global Variable Frequency Drive (VFD) Market is accounted for $20.22 billion in 2021 and is expected to reach $32.06 billion by 2028 growing at a CAGR of 6.8% during the forecast period. Variable frequency drives are electrical equipment utilized with electric motors, which change the applied voltage supplied to the motor. It helps to control the operating speed to reduce energy consumption. These drives combine software solutions to monitor the functioning of speed and thus improve its overall efficiency.

Market Dynamics:

Driver:

Increasing industrialization

Industries that use variable frequency drives are chemical & petrochemical, mining, oil & gas, pulp & paper, and water & wastewater treatment. The cement and manufacturing industries in many countries offer profitable opportunities for the variable frequency drive market. With the rising infrastructure projects, cement demand is likely to increase. The expanding pulp & paper in many countries are likely to boost the sales of electric motors and, in turn, drive the variable frequency. By reducing the motor speed to match the application’s needs, variable frequency drives have the potential to significantly save energy and reduce operational costs for a variety of motor-driven applications. The increasing industrialization and rising demand for energy efficiency are likely to fuel the demand for variable frequency to drive market growth.

Restraint:

High installation cost

As variable frequency drives provide energy efficiency benefits; so, the cost associated with installing these devices may restrict the market growth. The use of these drives in any industry and application leads to better efficiency of the process; however, during the advancement and expansion of any projects, the power requirement is regularly changed, which may result in deployment of the drive as per user requirement for the distribution system, which will increase the total cost of installation.

Opportunity:

Increasing demand for energy-efficient solutions

The electricity consumption as energy is dominated by buildings and industrial infrastructure, and it is likely that electric-powered motors consume around 45% of the world’s electricity in buildings and industrial applications. The increasing growth in public awareness of the requirement for action on climate change and the use of sustainable technology is likely to deliver better benefits for the environment while the global economy will propel the demand for variable frequency drives, as adding variable speed drives, particularly in pump, fan or compressor applications that are widespread across all industries and buildings can typically reduce power consumption by an additional 25%. The design of modern, high-efficiency motors, paired with variable-speed drives, tends to be flexible and reliable, resulting in the drive's use for HVAC systems in buildings with advancements in energy savings features.

Threat:

Shortage of components and parts because of supply chain distribution

Several industry players are anticipating delivery and construction slowdowns, owing to the shutdown of industrial operations to curb the spread of the virus or because the workers have tested positive. Many components and parts used in the manufacturing of electric motors are procured from China, the US, and some European countries. The rejection of manufacturing activities in China and the US has hampered the production of variable frequency drives.

The alternating current (AC) drive segment is expected to be the largest during the forecast period

The alternating current (AC) drive segment is estimated to have a lucrative growth as AC Drive is utilized to control the motor’s speed in many industries. Companies in the metals & mining industry deploy equipment such as conveyors, mills, grinders, crushers, and fans/blowers, which need AC drives. These drives also find applications in wind turbine power generation, water supply pumping, HVAC systems, boiler feed pumps, power generators, and flow hydronic systems.

The low voltage segment is expected to have the highest CAGR during the forecast period

The low voltage segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the easy configuration and less installation time leading to the adoption in general purpose applications and making it one of the premier choices in various industry verticals. Low voltage variable frequency drives are used in many applications, such as pumps, fans, belt conveyors, centrifugal pumps, and centrifugal compressors.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to the growing privatization of the industrial sector in emerging economies and increasing demand from the water treatment sector. Electricity is set to experience a surge in demand during the forecast period. The majority of this increase will occur in the fast-growing Asia Pacific region, resulting in the largest share of the VFD market.

Region with highest CAGR:

South America is projected to have the highest CAGR over the forecast period owing to counties witnessing privatization and urbanization and investment activities across mining and oil & gas industries. Increasing demand from various end-use industries such as cement, chemical, and pulp is expected to support the variable frequency drive market growth in this region.

Key players in the market

Some of the key players profiled in the Variable Frequency Drive (VFD) Market include Anaheim Automation, Yaskawa, WEG SA, TMEIC, Siemens, Delta Electronics, Schneider Electric, Rockwell Automation, Parker Hannifin, NIDEC, Inovance Technology, Honeywell International, Sew-Eurodrive, Hitachi, General Electric, Fuji Electric, Eaton, Danfoss, Shenzhen Gozuk and ABB.

Key Developments:

In April 2021, Siemens launched 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 February 2020, Schneider Electric launched 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.

Types Covered:
• Servo Drive
• Direct Current (DC) Drive
• Alternating Current (AC) Drive

Voltage Types Covered:
• Low Voltage
• Medium Voltage

Power Ratings Covered:
• Micro Power Drive
• Medium Power Drive
• Low Power Drive
• High Power Drive

Applications Covered:
• Pumps
• Conveyors
• Heating, Ventilation, and Air Conditioning (HVAC) Systems
• Extruders
• Electric Fan
• Compressors

Original Equipment Manufacturers Covered:
• Material Handling
• Rotating Equipment
• Material Working

Application Types Covered:
• Regenerative
• Standard

End Users Covered:
• Water & Waste Water
• Transportation and Infrastructure
• Solar System
• Pulp and Paper
• Oil & Gas
• Metal, Mineral and Mining
• Industrial
• Food & Beverage Processing
• Automotive
• Consumer Products
• Energy and Power
• Agriculture

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances