North America Variable Frequency Drives Market - By Voltage (Low, Medium), By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder), By End Use & Forecast, 2024 – 2032

North America Variable Frequency Drives Market Size

North America Variable Frequency Drives Market was valued at USD 4.4 billion in 2023 and is projected to grow at a CAGR of 4% between 2024 and 2032.
 

The increasing utilization of industrial automation, introduction of energy efficiency initiatives, and the growing need for precise motor control in various applications are among the key imperatives augmenting the business dynamics. Moreover, stringent government regulations aimed at reducing carbon emissions and promoting energy conservation have propelled the adoption of VFDs across the region. Various initiatives including the Energy Policy Act (EPAct) along with different state-level energy efficiency programs incentivize the deployment of energy-saving technologies, including VFDs, further driving market growth.

North America Variable Frequency Drives Market Trends

North American variable frequency drives (VFDs) industry is witnessing significant expansion, driven by heightened demand within industrial automation sectors and the imperative to fortify against erratic energy price fluctuations. Different electrical equipment including the pump systems represent a critical aspect of industrial infrastructure and significantly contribute to energy demand. For instance, as highlighted by the U.S. Department of Energy, pumping systems account for 25% of the total energy consumption by electric motors in the national industrial sector. In addition, growing measures to mitigate the energy loss and boost energy-efficiency of different industrial operations will positively cater to the industry landscape.
 

North America Variable Frequency Drives Market Analysis

Based on voltage, the market can be broadly segmented into low and medium. Low voltage frequency drive holds over 88% market share in 2023. The advancements in VFD technology have led to more efficient and cost-effective solutions, making them increasingly accessible to a wider range of industries and applications. Additionally, government incentives and initiatives aimed at promoting energy efficiency further bolster the adoption of VFDs, providing financial incentives for businesses to invest in low voltage drive technologies.
 

Based on drive, the market is segmented as AC. DC, and Servo. AC drive market will witness a growth rate of over 4% through 2032. The advancements in AC drive technology, such as the integration of IoT capabilities and smart functionalities, are enhancing their performance and functionality. Furthermore, the versatility and scalability of AC drives make them suitable for a wide range of applications, from small-scale operations to large industrial facilities.
 

U.S. variable frequency drive market is poised to surpass USD 4.3 billion by 2032 on account of the modernization of aging infrastructure coupled with the upgradation of existing equipment with low energy alternatives. As industries prioritize energy optimization, VFDs have emerged across industries to optimize energy usage by controlling motor speed, resulting in significant energy savings. Additionally, the influx of new investments across various end-use verticals to significantly boost the functional capabilities will further boost the industry outlook. For instance, in January 2022, the U.S. Energy Information Administration (EIA) reported a noteworthy surge in oil production within the Permian Region, reaching approximately five million barrels per day (Mbpd) witnessing a substantial 13% uptick compared to the corresponding month in 2021.
 

North America Variable Frequency Drives Market Share

ABB, a manufacturer, and service provider in the field of variable frequency drive (VFD) manufacturing, epitomizes innovation and excellence in electrical engineering solutions. The major industry participants compete based on diverse factors including product quality, performance, reliability, pricing, and customer service. Additionally, the companies are significantly investing in R&D activities to innovate & introduce new technologies to address evolving customer requirements, shaping the industry dynamics.
 

North America Variable Frequency Drives Market Companies

The key players operating across the industry include:

• ABB
• Anaheim Automation, Inc.
• Danfoss
• Delta Electronics, Inc.
• Eaton
• Emerson Electric Co.
• Fuji Electric Corp. of America
• Hitachi Industrial Equipment & Solutions America, LLC
• Johnson Controls
• Mitsubishi Electric Corporation
• Nidec Industrial Solutions
• PARKER HANNIFIN CORP
• Phase Technologies, LLC.
• Rockwell Automation
• Schneider Electric
• Siemens
• TMEIC
• TRIOL CORPORATION
• WEG
• Yaskawa America, Inc.
   

North America Variable Frequency Drives Industry News:

• In August 2023, Danfoss A/S rolled out the VLT Real-time Clock MCB 117 option across its entire VLT drives lineup, heightening data precision by equipping them with a reliable system clock backed by battery support. This addition streamlines error analysis and troubleshooting processes, bolstering event comprehension and root cause identification, with its straightforward installation and synchronization protocols, designed to deliver superior operational insights across Danfoss's comprehensive range of VLT drives.
   
• In May 2022, Schneider Electric demonstrated its commitment to aiding customers in future-proofing their businesses by expanding its service offerings with the introduction of the EcoStruxure Service Plan designed for VFDs. This plan, previously available for other electrical assets, now extends its benefits to variable speed drives, offering proactive maintenance, expert guidance, and digital monitoring capabilities.
   

The North America variable frequency 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 Drive

• AC
• DC
• Servo

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:

• U.S.
• Canada
• Mexico