Large Scale Variable Frequency Drives Market Size - By Voltage (Low, Medium), By Application (Pump, Fan, Conveyor, Compressor, Extruder), By End-Use (Oil & Gas, Power Generation, Mining & Metals, Pulp & Paper, Marine), & Forecast, 2023 - 2032

Large Scale Variable Frequency Drives Market Size

Large Scale Variable Frequency Drives Market was valued at USD 2.1 billion in 2022 and is projected to observe around 5.7% CAGR from 2023 to 2032. Large-scale variable frequency drives are set to witness significant growth owing to increasing demand for energy-efficient systems and the implementation of stringent regulations aimed at curbing energy consumption.
 

The operational attributes of these units, which include enhanced energy efficiency, minimized mechanical strain on both motors and equipment, smoother start-up and shutdown processes, and refined process control, are set to boost the product utilization. These units excel in optimizing machinery performance across a diverse array of applications, on account of their compatibility with various motor types, including dynamic linear motors, standard AC induction motors, energy-efficient hybrid motors, which further will significantly augmenting the product deployment.
 

COVID- 19 Impact

The COVID-19 pandemic had a significant impact on the market size owing to disruptions in manufacturing processes, facility shutdowns, labor shortages, limited product deployments, and disturbance in the supply chain network. However, both government authorities and companies responded by implementing new measures to ease restrictions and ensure continuous manufacturing output that further have led to a more positive outlook for industry growth.
 

Large Scale Variable Frequency Drives Market Trends

The large-scale variable frequency drives industry is poised for significant growth, driven by the introduction of stringent regulations related to energy consumption along with rising demand for energy efficient systems. Growing investments and expenditure for oil & gas, automation and power generation sectors has resulted in increasing demand for high powered systems offering solutions to enhance infrastructure energy output are some of the key factors positively impacting the business dynamics. The ongoing emphasis on energy efficiency, automation, and advanced motor control in various sectors, coupled with continuous technological innovations and substantial investments in the infrastructure, is set to observe substantial growth across the industry.
 

Large Scale Variable Frequency Drives Market Analysis

The low voltage variable frequency drives are expected to witness 5.5% CAGR through 2032, owing to their accelerating utilization across several industrial applications along with demand for reliable and efficient motor control components. These units are vital elements for several industrial systems including marine, oil & gas, power generation that require precision, control, maintaining speed, torque and control less maintenance further augmenting the product deployment. Several industry participants are focusing on R&D initiatives to compliant with the regulatory standards and norms and introducing enhanced technologies and innovations further positively influencing the business dynamics.
 

The large scale medium voltage variable frequency drives industry is set to grow rapidly on account of to widespread integration across heavy-duty industry operations that require MW scale energy outputs to serve the high load bearing conditions. The ongoing integration of control and monitoring systems across production operations and hydrocarbon exploration will fuel the demand for these units. Ongoing advancements in technology including instant energizing of equipment motor controls along with introduction of new and enhanced product across the industry will accelerate the product acceptance.
 

The pump application is anticipated to witness a revenue share of over 42% in 2022 and will gain momentum across the industry owing to the widespread adoption of these units across extensive range of applications along with the rapid expansion of industrial infrastructure. Large scale variable frequency drives are frequently employed in pump systems to offer precise control over the electrical power frequency, enabling the effective adjustment of pressure or flow within the system. These units are widely integrated across heavy-duty industrial operations that requires power outputs in the megawatt range to meet the rigorous demands of high-load conditions.
 

Power generation segment is likely to observe a significant upsurge on account of rising demand for consistent and dependable power supply to meet the escalating electricity consumption. This demand is driven by the implementation of stringent energy efficiency regulations, which are prompting elevated product demand. Moreover, the applicability of these systems to offer minimal downtime, increase system reliability, capacity for heavy lifting, precise control accuracy, operational flexibility, substantial energy savings, and advantages in terms of peak energy cost reduction will boost the large scale variable frequency drives market development.
 

• The Asia Pacific variable frequency drives market was worth USD 1 billion in 2022. The region has experienced robust industrial expansion, particularly in countries like China, India, Japan, South Korea, and Southeast Asian nations. This growth has led to increased demand for large-scale VFDs to control and optimize various industrial processes.
   
• The ongoing development of infrastructure projects, including energy generation, transportation, and manufacturing facilities, has driven the need for large-scale VFDs to control motors and improve energy efficiency. For instance, as per the India Brand Equity Foundation (IBEF), the Indian Government has laid out an ambitious goal of increasing the manufacturing sector's contribution to the GDP from the current 16% to 25% by 2025. To achieve this objective, the Udyog Bharat 4.0 SAMARTH program, has been initiated which aims to raise awareness about Industry 4.0 within the Indian manufacturing sector and facilitate collaborative efforts among stakeholders to address challenges related to automated material handling.
   
• Several nations have implemented stringent energy efficiency regulations and norms to reduce energy consumption and greenhouse gas emissions which further propelled the adoption of these units in industries to achieve energy savings.
   

Large Scale Variable Frequency Drives Market Share

Prominent manufacturers operating across the large scale variable frequency drive market are actively enhancing their industry presence through making strategic alliances, partnerships, and mergers and acquisitions. These initiatives are focused towards introducing innovative technologies and driving growth within the industry. Key players in the industry include:

• General Electric
• Shanghai Yixin International Trade Co., Ltd.
• Siemens
• Ingeteam Power Technology, S.A
• ABB
• WEG
• Eaton
• Rockwell Automation
• YASKAWA ELECTRIC CORPORATION
• Danfoss
• Nidec Industrial Solutions
• TMEIC
• Schneider Electric
• Fuji Electric Co., Ltd.
• CG Power & Industrial Solutions Ltd.
• Hiconics Eco-energy Technology Co., Ltd.
• General Atomics
• VEM Group
• TRIOL Corporation
• PARKER HANNIFIN CORP
   

Large Scale Variable Frequency Drives Market News

• In January 2023, CG Power & Industrial Solutions Limited launched the FDU/VFX drives that are offered in an innovative, smaller dimensions constructed using novel power electronic building blocks. These Emotron high power drives come in sizes that are up to 30% more compact than their previous counterparts. Moreover, they offer a high degree of customization to align with your specific requirements. The company also expanded TSA softstarter range to 1 MW. These attributes are conveniently packaged in a contemporary, user-friendly plug-and-play solution which further enhanced the company’s product portfolio across large scale variable frequency drives segment.
   
• In September 2022, Bosch Rexroth AG successfully finalized the acquisition of Elmo Motion Control Ltd, an Israel-based motion control company. This strategic acquisition is expected to broaden the company’s product offerings and bolster its position across automation, smart factory solutions, and robotics, further enhancing its market position across the variable frequency drives industry.
   

This large scale variable frequency drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2022 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 End-Use

• 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