North America Variable Frequency Drives Market Analysis

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.