Variable Frequency Drive Market Growing At CAGR Of 5.6% From 2023 To 2030
Variable Frequency Drive Industry Overview
The global variable frequency drive market size was valued at USD 25.92 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.6% from 2023 to 2030. Increasing penetration of connected devices in various sectors such as commercial, industrial, and residential sectors, coupled with rising demand for variable frequency drive (VFD) owing to their advantages such as dynamic torque control energy-saving and adjustable speed from industries such as oil & gas, automotive and power generation are major factors expected to drive the market in a positive trajectory. Additionally, increasing investment in infrastructure development is resulting in high demand for Heating, ventilation, and air conditioning (HVAC) systems which call for solutions to improve infrastructure energy output is another factor that is expected to positively impact the market growth.
Gather more insights about the market drivers, restrains and growth of the Variable Frequency Drive Market
Rapid industrialization in developing countries is resulting in high growth in the manufacturing and industrial sectors, which supports the growing traction towards VFD components Likewise, the power generation sector is widely adopting variable frequency drive as they use it to smoothly start large motors and continuously adjust the speed as required by the process. Thus, increasing demand for variable frequency drive from the power generation sector is expected to augment the target market growth. Industries such as metal & mining, food processing, and oil & gas use various equipment for operations that vary in technology. VFDs are used by induction, forced draft fans, boiler feed pumps, service water pumps, and conveyors that provide high power, precise speed control, and significant energy savings.
Governments across the globe are implementing stringent regulations to lower the CO2 impact on the environment and save energy which is resulting in the adoption of energy-efficient products. Also, they are planning to meet CO2 emission and energy efficiency goals to reduce the concentration of fossil fuel emissions. This is resulting in the implementation of new rules, thereby supporting market growth. For instance, in October 2019, Ecodesign Regulation (EU) came into effect which was implemented in 2 stages the first stage in July 2021 and the second in July 2023. In the first stage, the regulation covered the IE2 efficiency class mandatory for AC drives.
The major challenges faced by the global market are the high initial cost of the variable speed drives and economic slowdown. Due to the economic slowdown, the industrial and commercial sectors witnessed slow growth which lowered the demand for VFD. Also, due to COVID-19, there was a disruption in the supply chain of raw materials which impacted the availability of products. Additionally, the lack of skilled labor and high cost associated with maintenance are factors expected to hamper the global market growth.
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- The global inertial measurement unit market size was estimated at USD 27.99 billion in 2023 and is expected to grow at a CAGR of 11.9% from 2024 to 2030.
- The global HVAC systems market size was estimated at USD 233.55 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2030.
Variable Frequency Drive Market Segmentation
Grand View Research has segmented the global variable frequency drive market report based on product type, power range, application, end-use, and region:
Variable Frequency Drive Product Type Outlook (Revenue, USD Million, 2018 - 2030)
- AC Drives
- DC Drives
- Servo Drives
Variable Frequency Drive Power Range Outlook (Revenue, USD Million, 2018 - 2030)
- Micro (0-5 kW)
- Low (6-40 kW)
- Medium (41-200 kW)
- High (>200 kW)
Variable Frequency Drive Application Outlook (Revenue, USD Million, 2018 - 2030)
- Pumps
- Electric Fans
- Conveyors
- HVAC
- Extruders
- Others
Variable Frequency Drive End-use Outlook (Revenue, USD Million, 2018 - 2030)
- Oil & Gas
- Power Generation
- Industrial
- Infrastructure
- Automotive
- Food & Beverages
- Others
Variable Frequency Drive Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- US.
- Canada
- Europe
- UK.
- Germany
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
Key Companies profiled:
- ABB
- Eaton
- General Electric
- Hitachi Ltd.
- Rockwell Automation Inc.
- Schneider Electric
- Siemens AG
- The Danfoss Group
- WEG S.A.
- Yaskawa Electric Corporation
Key Variable Frequency Drive Company Insights
Key players that dominated the market in 2023 include ABB, Eaton, General Electric, and Hitachi Ltd. Major player are focused on enhancing the business and increasing the customer base by the introduction of new products and product enhancements. For instance, in October 2022, Rockwell Automation Inc. announced that they have increased the output frequency of its variable frequency drive used in high-speed motor applications.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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