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Low Voltage AC Drives Market Size - By Power Range (Micro, Low), By Efficiency Class (IE 1, IE 2, IE 3, IE 4), By Application (Pump, Fan, Conveyor, Compressor, Extruder), End-Use & Global Forecast, 2024 - 2032

  • Report ID: GMI5773
  • Published Date: May 2023
  • Report Format: PDF

Low Voltage AC Drives Market Size

Low Voltage AC Drives Market size was valued at USD 14.8 billion in 2023 and is set to grow at a CAGR of 4.6% from 2024 to 2032, owing to the increasing demand for rising electricity consumption across developing economies along with the expansion of energy storage capacity will positively influence the demand for AC. The rising demand for energy efficient units across industrial automation sector along with introduction of stringent government mandates with an aim to promote environment sustainability will complement the industry landscape.
 

Low Voltage AC Drives Market

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The gaining popularity of concept of smart manufacturing in large industrial automation fields coupled with shifting focus toward enhancements in technical accompanied by launch of Industrial Internet of Things (IIoT) with an aim to offer efficient sizing of systems to optimize & ensure energy efficiency will stimulate the low voltage AC drives market growth.
 

Low voltage AC drives are also known as low voltage variable frequency drives (VFDs), are the electronic devices that are utilized to control the speed, acceleration, torque, deceleration, and rotation direction of motor by changing the frequency of electrical supply to the motors. These units are widely used across a variety of industrial applications including conveyor systems, pumps, fans, and compressors in several verticals. These drives can offer improved process control, increased energy savings, and reduce wear and tear on motors and other equipment. They can also help to reduce the overall cost of a system by allowing for the use of smaller motors and reducing the need for mechanical speed control devices.
 

COVID- 19 Impact

The COVID- 19 outbreak has impacted the low voltage AC drives market size owing to a decline in the process of manufacturing and shutdown of facilities along with labor shortages, limited product deployment and disruptions in supply chain network. However, the companies have unveiled new measures to curb the prevailing restrictions and maintain the production outputs, positively catering to the industry growth. Moreover, favorable government norms along with accelerating investments for the development of advance technological systems is set to recover the industry landscape. Several administrations have also introduced positive targets to uptake the low pollution ‘green wave’ caused by the pandemic with supporting programs for renewable technologies counterbalancing the low voltage drives industry outlook.
 

Low Voltage AC Drives Market Trends

An upsurge in the demand for continuous and reliable power supply in order to counterbalance the ever-increasing electricity consumption along with introduction of stringent norms to promote energy efficiency will encourage the LV AC drives installation. Increasing adoption of IE 3 rated drives specifically in European Union will complement the low voltage AC drives market expansion. Moreover, stabilizing global economic growth coupled with increasing manufacturers’ focus on cost effectiveness will further boost the product demand. The significant potential of the device to reduce energy consumption and the associated monetary benefit from installing the drives will continue to drive the business growth.
 

Ongoing technological advancements including battery-operated motion control devices that support quick problem identification and offer efficient work at various loads & speeds will enhance the LV drive acceptance across wide range of applications. Network reliability, minimum overall maintenance, energy consumption, equipment longevity, energy generation and supply costs are some of the key parameters stimulating the low voltage AC drives market size. Accelerating infrastructural spending and investments owing to the industrial development and rapid urbanization has seeded the demand for electricity capacity expansion and technological enhancements which will further positively impact the industry outlook.
 

Low Voltage AC Drives Market Analysis

Low Voltage AC Drives Market Size, By Power Range, 2021 - 2032 (USD  Billion)

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The micro low voltage AC drives market is projected to observe over 4% CAGR through 2032. The units are designed to control the speed of small AC motors in low power applications. They typically have a power range of up to 3kW and are commonly used in small machinery, such as pumps, fans, and conveyors. One of the primary benefits of these drives is their compact size, which makes them ideal for use in applications with limited space. They are also easy to install and operate, with user-friendly interfaces that allow for quick and easy programming.
 

Micro LV AC drives offer precise speed control, allowing for efficient energy usage and reducing wear and tear on equipment. They can also provide soft starting and stopping of motors, which helps to prolong the lifespan of mechanical components. These units are also equipped with advanced features such as PID controllers and communication protocols that enable them to integrate with other automation systems. This allows for greater control and monitoring of the system, as well as more efficient operation drives are a cost-effective and reliable solution for small motor control applications.
 

IE1 efficiency class, also known as standard efficiency which includes that motors are the least energy-efficient and are typically used in applications where energy efficiency level is around 75%. IE2 is the high efficiency class required by the EU's Ecodesign Directive for LV AC drives in new installations. It has an efficiency level of around 84% and can help to reduce energy consumption and lower operating costs.
 

IE4 is a high-efficiency class for LV AC drives, with an efficiency level of around 90%. It is becoming increasingly popular due to its energy-saving benefits and is often required for new installations in certain countries. IE 4 is the highest efficiency class for LV AC drives, with an efficiency level of around 95%. It provides the greatest energy savings and is recommended for new installations where high efficiency and energy savings are a top priority.
 

Low Voltage AC Drives Market Revenue Share, By Application, 2022

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Ongoing technological advancements along with the introduction of stringent regulatory norms and standards for LV AC drives will lead to an upsurge in demand for energy-efficient systems. The industry is witnessing a significant momentum owing to the shifting focus on reduction of electricity bills along with energy-saving potential. Recognizing the growing significance of energy conservation across application areas, low voltage AC drives are emerging as an inventive technology of choice. Moreover, installation of these systems allows pumps, fans, compressors, conveyers, and extruders to operate optimally and at a reduced capacity along with the ability to reduce the motor speed, thereby efficiently utilizing power and electrical energy will augment the low voltage AC drives market demand.
 

Rising demand for air compressors and pumps in the petrochemical industry for production process is anticipated to complement the low voltage AC drives market growth. As power consumption varies with the load size, a lot of energy can be saved by installing LV drives that produce substantial energy-saving effect. Moreover, HVAC systems constitute major proportion of energy consumption in a facility. According to the U.S. Department of Energy (DOE), HVAC systems consume 40-60% percent of power in a facility. Furthermore, improved efficiency, introduction of advanced technology along with the continued trend toward minimizing costs through improved manufacturability is set to accelerate the future development of intelligent drive systems.
 

The demand for low voltage AC drives is witnessing an expanding array of application across diverse industries including oil & gas, food processing, power generation, automotive, pulp & paper, mining & metals, marine, and textile. The O&G industry is fundamentally dependent on active and reliable operation of large pumps and compressors, which in turn create a cyclical low voltage AC drives market size.
 

Lower environmental impact, high reliability and improved efficiency are some of the key parameters accelerating the use of LVDs in this sector. The continued and ever-increasing shift toward product deployment with gas turbine motors is largely driven by their ability to offer operational and economic viability across a multitude of O&G operations. They require minimal maintenance as opposed to gas turbines which demand frequent maintenance. This allows improved production, lower maintenance expenses, and enhanced productivity of the operation which will fuel the product deployment.
 

Rising adoption of low voltage AC drives across the food processing industry owing to the demanding and unique requirements across several verticals including poultry & fish, meat, dairy & baking goods, along with the applications comprising mixers, conveyers, and grinders. The drives are experiencing a significant rise in demand owing to effective machine operations, long lasting technology, and highest possible energy efficiency level throughout their lifespan. Furthermore, ongoing technological enhancements together with accelerating R&D investments for product upgradation will further fuel the low voltage AC drives market outlook.
 

Asia Pacific Low Voltage AC Drives Market Size, 2021 - 2032 (USD Billion)

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The Asia Pacific low voltage AC drives market dominated for USD 6.4 billion revenue in 2022, due to accelerating investments across manufacturing sector including increasing utilization of high-power machinery. The growing specter of rising energy prices, along with concerns over availability and environmental impact, has amplified interest in energy efficient technologies across the region.
 

The industry in APAC is driven by persistent technological innovation reinforced by a multitude of legislative requirements and harmonization policies, aimed at energy efficiency. For instance, in March 2021, Fuji Electric launched the FRENIC-MEGA drive, which controls the rotational speed or torque of an AC motor. This product offers equipment operation optimization and helps VT Applications to attain energy savings. These drives are designed to fulfill the increasing requirement for precise & stable speed control of equipment to enhance productivity. The continued adoption of improved performance and higher efficiency motors across energy intensive manufacturing industries will continue to boost the Asia Pacific low voltage drives industry.
 

Low Voltage AC Drives Market Share

Key manufacturers in the low voltage AC drives market include

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

Major companies operating across the market are making strategic alliances and partnerships to introduce new technological innovations along with focusing on mergers and acquisitions to strengthen their industry presence.
 

Low Voltage AC Drives Industry News

  • In November 2022, IEDC Corporation introduced VF1A Doesa, new line of low voltage variable frequency drives. These units have the ability to offer versatile control, efficient operation of electrical motors across an extensive range of applications. These drives come up in 14 models with a three-phase LV AC 400 V, an allowable input voltage range of 380 V-480V AC), and the VFDs come and a capacity of up to 139 A.
     
  • In March 2022, Siemens announced to expand its extra-low voltage drives product portfolio with the launch of advanced servo drive unit called Simatic Micro-Drive. The new portfolio will include products ranging between 100 W to 1 kW and are suitable for EC motors with voltage ranges between 24-48 V with enhanced flexibility and torque control characteristics. This launch expanded the company’s product portfolio and systems and strengthened its market position across the industry.
     

This low voltage 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 Power Range

  • Micro
  • Low

Market, By Efficiency Class

  • IE 1
  • IE 2
  • IE 3
  • IE 4
  • Others

Market, By Application

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

Market, By End Use

  • Oil & Gas
  • Power generation
  • Food processing
  • Automotive
  • Mining & metals
  • Pulp & paper
  • Textile
  • Marine
  • Others

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

 

Authors: Ankit Gupta, Divyendu Sharma

Frequently Asked Questions (FAQ) :

The market size of low voltage AC drives was more than USD 14.8 billion in 2023 with an estimated 4.6% CAGR from 2024 to 2032, due to significant increase in energy demand across emerging economies and the need for higher energy storage capacities.
Micro low voltage AC drives industry share will register over 4% CAGR through 2032, owing to key product benefits such as ease of installation & operation, small size, user friendly interface and advanced features including PID controllers and communication protocols.
The O&G end-user segment will record significant growth during the coming years, with the need for reliable operations of pumps & compressors and product deployment with gas turbine motors.
APAC market value exceeded USD 6.4 billion in 2022 and is expanding with a surge in investments across the manufacturing sector where power machinery is used, along with higher interest in adopting energy-efficient technologies.

Low Voltage AC Drives Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 932
  • Countries covered: 20
  • Pages: 640
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