Automotive Low Voltage Drives Market - By Application (Educational Institutes, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality), & Forecast, 2024 – 2032

Automotive Low Voltage Drives Market Size

Automotive Low Voltage Drives Market was evaluated at over USD 2.4 billion in 2023 and the industry is set to grow at a rate of 4.5% by 2032. Automotive low voltage drives industry is anticipated to grow owing to the rising concerns towards related to the greenhouse gases and carbon emissions along with the growing sales of vehicle fleet backed by the presence of favorable incentive schemes and programs.
 

For instance, as per the data by the International Organization of Motor Vehicle Manufacturers (OICA), the annual passenger cars sales volume totaled about 57.5 million units in 2022, experiencing above 6.6% increase over a couple of years from 53.9 million units in 2020.
 

Rising demand for surge in adoption of electric vehicles & clean transportation coupled with the large-scale investments by both private and public authorities will augment the market size. Moreover, the integration of energy-efficient variable frequency drives across a wide range of operations across automotive industry along with the continuous research & development by key industry players will play a pivotal role in shaping the industry outlook.
 

A low voltage drive is a device used to control the speed and torque of an electric motor in applications where a variable speed is required. Low voltage typically refers to drive systems that operate at voltage levels common in industrial and commercial settings. The device allows the motor to run at optimal speeds based on the actual load requirements, leading to significant energy savings compared to fixed-speed operation. Moreover, the LV drive units significantly aids in optimizing material handling processes and precise control of machine tools utilized across the automotive manufacturing plants exhibiting significant adoption potential over the forecast timeline.
 

The automotive low voltage drives industry have been significantly affected amid the COVID-19 pandemic attributed by the challenges in terms of supply chain, production, and utilization. The impact of the pandemic on industries, including automotive and manufacturing, has been dynamic, with fluctuations in demand, supply chain disruptions, and changes in operational priorities. In addition, reduced consumer spending, economic uncertainties, and stringent lockdown protocols have led to a decline in vehicle sales and shift in consumer behavior impacting the industry demand. However, the introduction of economic stimulus packages and support measures by respective governments coupled with the growing adoption of electric vehicle fleet supported by encouraging financial policies and lower carbon emissions will positively stimulate the industry landscape.
 

Automotive Low Voltage Drives Market Trends

Respective governments and authorities across the globe are shifting their focus towards low carbon technologies to meet climate targets, further creating a positive industry outlook. Moreover, the adoption of decarbonization targets in various developed as well as emerging economies to encourage the reduction in the overall carbon footprint and the development of related infrastructure will propel the industry growth. For instance, in November 2023, the Federal Highway Administration (FHWA), under the U.S. Department of Transportation has unveiled the country-wide framework to map GHG emissions related to the transportation network. In addition, the initiative will aid the states to track carbon footprint and set individual emission reduction targets, collectively attaining over USD 27 billion through federal funding programs. Moreover, the growing investments to establish advanced automotive manufacturing facilities with enhanced automation capabilities will further add to the market expansion.
 

Automotive Low Voltage Drives Market Analysis

Based on power range, the industry is broadly bifurcated into micro and low. Low power range drives are set to observe a growth rate of over 4% through 2032 attributed by their enhanced motor protection features including overcurrent protection, overvoltage protection, and thermal protection along with the growing emphasis on energy efficiency. Moreover, the integration of smart features including remote monitoring, predictive maintenance, and data analytics for enhanced performance & efficiency coupled with the growing adoption of digitalization and industry 4.0 principles will add to the industry landscape.
 

Based on drive, the automotive low voltage drives market is primarily categorized into AC, DC, and servo. AC low voltage drives accounted for about 75.3% revenue share in 2023 and is projected to hold a dominating position across the forecast timeline. The ongoing trend is toward optimizing motor performance by adjusting speeds based on load requirements coupled with their compact & modular designs will boost the product adoption. Moreover, continuous efforts by the major manufacturers to enhance the efficiency of drives to meet sustainability goals and reduce energy consumption will further complement the industry size.
 

Servo drives are set to observe considerable expansion in the automotive industry on account of the growing need for accurate positioning & velocity control aiming to improve efficiency & accuracy across various tasks. In addition, the research & development (R&D) initiatives by the key product manufacturers in servo drive technology to advancing the capabilities, efficiency, and applications of servo systems will further sway the industry landscape. For instance, in April 2023, Applied Motion Products Inc. introduced a new range of CSM34 conveyor smart motor, equipped with the company’s StepSERVO technology to deliver advance control, compact footprint, easy installation, and extended operational life across conveyor applications.
 

• Asia pacific automotive low voltage drives industry was estimated at over USD 1.1 billion in 2023 and is projected to expand significantly on account of the transition toward low carbon mobility coupled with the rising investments to boost the manufacturing capabilities. In addition, continuous expenditure towards the expansion in the production and research & development capabilities by the key industry players will further propel the industry dynamics. For instance, in September 2023, Japan Automobile Manufacturers Association reported that the total R&D expenditure in the national automotive manufacturing industry equaled above USD 24.3 billion in financial year (FY) 2021 growing from USD 20.8 billion in FY 2019, experiencing around 16.9% incremental growth between two years.
   
• The rising awareness of new technologies along with the growing demand for carbon-negative energy resources, particularly in the transportation sector, will contribute to the positive industry dynamics. Moreover, favorable initiatives by component manufacturers, the introduction of innovative production technologies, and expansion of regional automakers with new investments are among the key factors driving the Asia Pacific low voltage drives industry landscape.
   

Automotive Low Voltage Drives Market Share

The automotive low voltage drives industry includes a wide range of manufacturers and suppliers competing to provide efficient, reliable, and cost-effective solutions. The ongoing efforts by major industry players to develop and introduce innovative technologies deigned to deliver consistent & reliable performance across diverse operating conditions will play a pivotal role in shaping the market rivalry. For instance, in June 2023, OMRON Corporation introduced a new range of integrated global AC drives solution called OMRON M1 enabling a wide spectrum of motors to relate to the drive system. The new product is designed to deliver various advantages including innovative system integration capabilities, optimized flexibility, enhanced efficiency, and compact size, among others. Moreover, the competitive dynamics are significantly shaped by the influence of various factors including technological advancements, energy efficiency requirements, stringent manufacturing standards, and customized user requirements.
 

Automotive Low Voltage Drives Market Companies

The key market players operating across the industry include:

• ABB
• Danfoss
• Eaton
• Emerson Electric Co.
• Fuji Electric Co., Ltd.
• General Electric
• Infineon Technologies AG
• Kostal Industrie Elektrik GmbH & Co. KG
• MAHLE GmbH
• NIDEC CORPORATION
• OMRON Corporation
• Renesas Electronics Corporation
• Rockwell Automation
• Schneider Electric
• WEG
• Yaskawa America, Inc.
   

Automotive Low Voltage Drives Industry News

• In September 2023, Rockwell Automation announced to join forces with Infinitum to offer highly efficient motors integrated with low-voltage VFDs delivering low power consumption, reduced carbon footprint, and compact operations. Rockwell will deliver its LV drives for deployment in Infinitum’s Aircore motors to deliver a wide range of advantages including 50% reduction in size & weight, 66% lower copper content, and 10% reduction in the overall energy consumption. Moreover, the new product line is anticipated to be available in the market by late 2024 aiming to reduce the carbon emissions from different industrial operations.
   
• In March 2023, Siemens launched a new company called Innomotics headquartered in Nuremberg, Germany, operating as a wholly owned subsidiary of Siemens AG. The company is set to combine Siemens’ offerings including medium-voltage converters, geared motors, low- to high-voltage motors, and motor spindle, along with the advanced solutions & digitalization portfolio that was previously integrated in the company’s Large Drives Applications and Digital Industries division.
   

The automotive low voltage drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘’000 Units’ and ‘USD Million’ from 2019 to 2032 for the following segments:

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Market, By Power Range

• Micro
• Low

Market, By Drive

• AC
• DC
• Servo

The above information has been provided for the following regions and 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