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AC Drives Market Size By Voltage (Low, Medium), By Application (Pump, Fan, Conveyor, Compressor, Extruder), By End-Use (Oil & Gas, Power Generation, Food Processing, Automotive, Mining & Metals, Pulp & Paper, Textile, Marine) & Forecast, 2024 - 2032

  • Report ID: GMI5925
  • Published Date: Jun 2023
  • Report Format: PDF

AC Drives Market Size

AC Drives Market size surpassed USD 16.3 billion in 2023 and is projected to grow at 4.7% from 2024 to 2032 owing to the increasing demand for the need of energy-efficient motor control solutions, technological advancements, along with the integration of motor control with industrial automation.
 

AC Drives Market

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The market is expected to continue expanding as industries increasingly recognize the benefits of AC drives in terms of energy savings, improved process control, and extended equipment lifespan. The demand for these units is driven by the key factors including increasing industrialization, automation, and a growing emphasis on energy efficiency. The wide adoption of these units in several industries, including manufacturing, oil and gas, HVAC, water, and wastewater treatment, will further augment the industry growth. By varying the frequency and voltage, the ability of these units to control the motor speed and torque will further enhance product deployment.

COVID- 19 Impact

The COVID-19 pandemic has had a significant impact on various industries, including the AC drives market. The pandemic led to disruptions in global supply chains, including the manufacturing and distribution of AC drives. Lockdowns, travel restrictions, and reduced workforce availability in manufacturing facilities impacted production capacities and delayed deliveries of components and finished products. These disruptions have affected the availability and delivery times of AC drives across several verticals and end use applications.
 

Many industries experienced a slowdown or temporary shutdown of operations during the pandemic due to government-imposed restrictions and reduced demand. This has resulted in a decline in new installations and project delays, impacting the demand for AC drives. The increased focus on major sectors including healthcare, food production, and critical infrastructure have gained priority in terms of investments and equipment procurement further accelerating the industry landscape.
 

AC Drives Market Trends

The installation of AC drives will be encouraged by an increase in the demand for continuous and dependable power supply to counteract the ever-increasing electricity consumption, along with the introduction of stringent rules & regulations to promote energy efficiency. Moreover, stabilizing global economic development and shifting manufacturers' focus on the cost effectiveness is set to accelerate the AC drives market outlook.
 

The enormous potential of these units to offer low energy consumption, together with the related monetary advantage from installing these drives, will continue to foster the industry overview. In addition, the growing integration of advanced industrial automation technologies including Industrial Internet of Things (IIoT) across large-scale energy intensive industrial operations will positively cater to the medium voltage AC drives industry dynamics.
 

AC Drives Voltage Market Analysis

AC Drives Market Size, By Voltage, 2021 – 2032, (USD Billion)

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Low voltage AC drives market crossed valuation of USD 14.5 billion in 2022 and is set to observe a substantial growth during the forecast period. The products are designed specifically for controlling the speed of small AC motors in low-power applications finding integration across various small machinery applications including pumps, fans, and conveyors. Their compact size, which makes them well-suited for installations with limited space constraints. In addition, precise speed control and the ability to enable efficient energy usage by adjusting the motor speed according to the specific requirements of the application is set to accelerate the product demand.
 

AC Drives Market Revenue Share, By Application, 2022

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Accelerating demand for pumps and air compressors across the petrochemical sector for improved production process will business growth. As the power consumption fluctuates with load size, installing AC drives offering a significant energy-saving can have substantial energy-saving effect. As per the US Department of Energy (DOE), HVAC systems accounted for a significant amount of a facility's energy use as these systems require 40-60% of a facility's power. Also, increased efficiency, the introduction of improved technology, and the ongoing trend towards cost reduction through enhanced manufacturability are expected to expedite the future development of intelligent drive systems.
 

Continuous technological enhancements coupled with the implementation of stringent regulatory rules and regulations for AC drives market, will result in an increase in demand for energy-efficient systems. The increasing emphasis on lowering the power expenditures along with energy-saving possibilities is elevating the demand for these units across several application verticals Moreover, installing these systems allows fans, pumps, compressors, extruders, and conveyers to perform optimally and at a decreased capacity, as well as the ability to lower motor speed, so efficiently utilizing electrical energy, is fueling the product usage across industrial applications.
 

The demand for AC drives is increasing in a wide range of sectors, including oil and gas, power generation, food processing, automotive, mining and metals, pulp and paper, maritime, and textile. The oil and gas industry are essentially reliant on the active and dependable functioning of big pumps and compressors, which results in accelerated product demand. Some of the prominent factors driving the use of products in O&G industry include lower environmental impact, greater reliability, and better efficiency.
 

The continuous and expanding move towards gas turbine motor product implementation is driven by their ability to provide operational and economic viability in a wide range of O&G applications. These units require low maintenance, lower maintenance expenses, ability to improve production, and enhanced productivity of the operation are some of the vital factors bolstering AC drives market growth.
 

Rising popularity of AC drives in the food processing sector led by the demanding and distinctive requirements in numerous verticals such as poultry and fish, meat, dairy, and bakery goods, as well as applications such as mixers, conveyers, and grinders. These units will witness a significant demand on account of excellent machine operations, long-lasting technology, and greatest possible energy efficiency level throughout their lives. Moreover, continued technical advancements, as well as increased R&D spending for product innovation, will drive the industry outlook.
 

Asia Pacific AC Drives Market Size, 2021 – 2032, (USD Billion)

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The Asia Pacific AC drives market was valued at over USD 5.7 billion in 2022 and is set to observe a significant expansion on account of accelerating expenditures in the manufacturing sector along with increased use of high-power machinery. Rising energy prices, as well as worries about supply and environmental effect, have heightened the transition towards energy-efficient technologies. Hence, the regional industry is propelled by continuous technical innovation, which is bolstered by a slew of regulatory requirements and harmonization policies aiming at increasing energy efficiency. The ongoing use of greater performance and more efficiency motors in energy-intensive industrial industries will push the installation of low voltage drives in the region.
 

AC Drives Market Share

Key manufacturers operating in the AC drives industry’s competitive landscape include

  • ABB
  • Siemens
  • Fuji Electric. Co., Ltd.
  • Rockwell Automation
  • Schneider Electric
  • TMEIC
  • Eaton
  • General Electric
  • Johnson Controls
  • WEG
  • Danfoss
  • Emerson Electric Co.
  • Hitachi Hi-Rel Power Electronics Private Limited
  • YASKAWA ELECTRIC CORPORATION
  • PARKER HANNIFIN CORP
  • NIDEC CORPORATION
  • Danfoss

Key AC drives market leaders are actively engaging in strategic alliances, partnerships, mergers, and acquisitions to drive technological innovations and strengthen their market presence. These initiatives help them expand their product portfolios, enhance their geographic reach, and tap into new customer segments. The growing partnerships and acquisitions allow companies to leverage their strengths and resources, accelerate innovation, and offer comprehensive solutions to a larger customer base throughout the industry.
 

Global AC Drives Industry News

  • In May 2023, ABB announced the opening of its manufacturing plant in Peenya, located in Bengaluru, India which will produce a new line of variable frequency drives. This factory will produce and offer drives ranging from 75 kW to 250 kW along with will catering to the major industrial segments. The expansion will strengthen the company’s domestic supplier eco-system for low voltage AC drives product portfolio and enhance its market position across AC drives industry.
     
  • In May 2023, Emotron Drives Power Control LLC, part of CG Drives & Automation inaugurated a new manufacturing facility in UAE. This state-of-the-art production plant will manufacture AC drives and will further enable shorter delivery times of high-powered variable frequency drives. This expansion will expand the company’s market presence across the region and is set to enhance its position across AC dives industry.
     

This AC drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2019 to 2032 for the following segments:

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Market, By Voltage

  • Low
  • Medium

Market, By Application

  • Pump
  • Fan
  • Conveyor
  • Compressor
  • Extruder
  • Others

Market, By Power Range

  • Oil & Gas
  • Power Generation
  • Mining & Metals
  • Pulp & Paper
  • Marine
  • Others

The above information has been provided for the following countries:

  • North America
    • U.S.
    • Canada
    • Mexico 
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Denmark
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Middle East & Africa
  • Saudi Arabia
    • UAE
    • South Africa
  • Latin America
    • Brazil
    • Argentina

 

Authors: Ankit Gupta, Divyendu Sharma

Frequently Asked Questions (FAQ) :

The market size of AC drives surpassed USD 16.3 billion in 2023 and is likely to grow at 4.7% CAGR from 2024 to 2032 attributed to the increasing need for energy-efficient motor control solutions.
Low voltage AC drives industry was valued at more than USD 14.5 billion in 2022 and is set to record substantial growth till 2032 driven by rising adoption due to compact size for installations at limited spaces.
Asia Pacific AC drives industry recorded over USD 5.7 billion in 2022 and is set to observe significant expansion through 2032 on account of the accelerating expenditures in the manufacturing sector along with increasing adoption of high-power machinery.
Some of the prominent manufacturers of AC drives are ABB, Siemens, Fuji Electric. Co., Ltd., Rockwell Automation, Schneider Electric, TMEIC, Eaton, General Electric, Johnson Controls, WEG, Danfoss, Emerson Electric Co., and Hitachi Hi-Rel Power Electronics Private Limited

AC Drives Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 17
  • Tables & Figures: 706
  • Countries covered: 20
  • Pages: 495
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