Large Scale Variable Frequency Drives Market Analysis

Large Scale Variable Frequency Drives Market Analysis

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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.