The North America Variable Frequency Drive Market is estimated to be valued at US$ 6285.02 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
A variable frequency drive is an industrial device that regulates the speed of an electric motor by altering the frequency and voltage supplied to the electric motor. Variable frequency drives offer operational efficiencies by optimizing motor speed and performance based on process demand. They provide control, efficiency, and energy savings benefits across various industrial applications like pumps, fans, conveyors, and HVAC equipment.

Market key trends:
The growth of the North America variable frequency drive market size is majorly driven by increasing industrialization and infrastructural development activities across countries like the US and Canada. Variable frequency drives offer flexibility and precision control capabilities which helps end-use industries like mining, oil & gas, chemicals, and food & beverage to optimize their processes. They contribute significantly in terms of energy savings by allowing motors to run at optimal speeds based on load conditions. Stringent regulations regarding energy efficiency are further augmenting the replacement of existing drives with new energy efficient variable frequency drives across the region.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the North America variable frequency drive market is moderate. The market players need to have established supply channels and production facilities to manufacture variable frequency drives. They also need to have extensive R&D capabilities and strong brand positioning.
Bargaining power of buyers: The bargaining power of buyers is moderate to high since variable frequency drives are increasingly adopted across various industries. Buyers can negotiate on price andquality standards.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers of key components such as integrated circuits, capacitors, and motor depend on market players.
Threat of new substitutes: The threat of new substitutes is low as variable frequency drives provide advantages over alternative technologies in terms of energy savings.
Competitive rivalry: High due to presence of numerous global and regional players.

SWOT Analysis
Strength: High energy efficiency leading to operational cost savings. Ability to control speed and torque as per application requirement.
Weakness: High initial installation and components costs. Require skilled labor for installation and maintenance.
Opportunity: Increasing adoption in HVAC, water & wastewater treatment plants and oil & gas sectors. Growing focus on energy efficiency worldwide.
Threats: Volatility in raw material prices. Threat from local generic players offering low cost substitutes.

Key Takeaways
The North America variable frequency drive market size was valued at US$ 6285.02 Mn in 2023 and is expected to reach US$ 9343.73 Mn by 2030, expanding at a CAGR of 5.6% during the forecast period. Growing demand for energy efficient drives from end use industries and favorable government policies and regulations regarding energy efficient products are two major factors driving the market.

The U.S. dominated the North America variable frequency drive market in 2023, accounting for around 85% share of the North America market. Increasing investments in infrastructure development projects and presence of large manufacturing sector are contributing to the dominance of the U.S. market. Canada and Mexico are also projected to witness steady growth owing to rapid industrialization.

Key players operating in the North America variable frequency drive market are Fuji Electric Co., Ltd, Schneider Electric, Mitsubishi Electric Corporation, Toshiba International Corporation, Siemens AG, Emerson Industrial Automation, ABB Ltd., Johnson Controls Inc., American Electric Technologies Inc. (AETI), Rockwell Automation Inc., General Electric Company, Honeywell International Inc., and Hitachi Limited. The market is consolidated in nature with top players accounting for over 60% share.

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