Oil & Gas Variable Frequency Drives Market Size - By Voltage (Low, Medium), By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder) & Global Forecast, 2024 - 2032

Oil & Gas Variable Frequency Drives Market Size

Oil & Gas Variable Frequency Drives Market was valued at USD 3.4 billion in 2023 and is projected to observe a growth rate of 3.9% between 2024 and 2032. Growing demand for efficient alternatives across energy-intensive industries coupled with positive outlook towards reducing the operational expenses will favor the deployment of industry size. The devices are designed to provide enhanced equipment protection and prevent equipment wear & tear by gradually starting and stopping motors, reducing mechanical stress.
 

Variable frequency drives (VFDs) are electronic devices that enables the precise control of an electric motor's speed by adjusting the frequency and voltage of the electrical power supplied to the motor. The devices are also called as variable speed drives (VSDs) or adjustable speed drives (ASDs). In addition, VFDs are commonly used in various industries, including the oil and gas sector, to regulate the speed of pumps, fans, compressors, and other equipment. Moreover, the growing integration of Internet of Things (IoT) technology into industrial processes to enhance operational efficiency and predictive maintenance positively catering to the oil & gas variable frequency drives market demand.
 

COVID- 19 Impact

Oil & gas variable frequency drives market has observed a significant setback amid the COVID-19 pandemic on account of lack of funds across high investment oil & gas operations, delays in manufacturing & delivery of devices, and project delays. In addition, the industry has observed considerable disruptions owing to stringent lockdowns, supply chain challenges, and reduced economic activity impacting the product demand. However, the growing emphasis on energy efficiency and boost cost savings, increasing need for remote monitoring & control of industrial processes, and new measures to fortify supply chain resilience will proliferate the business dynamics.
 

Oil & Gas Variable Frequency Drives Market Trends

Oil & gas variable frequency drives industry is set to observe substantial momentum owing to the rapidly increasing energy demand along with growing utilization of high-capacity pumps for the extraction & transportation of crude oil, refined products, and other fluids. Moreover, various developed as well as emerging nations have exhibited significant reliance on the fossil fuels to streamline operations in residential, commercial, and industrial establishments, propelling the investments across oil & gas facilities, thereby augmenting the industry landscape.
 

For instance, as per the data by the U.S. Energy Information Administration (EIA), the total energy consumption in the country equaled over 100.4 quadrillion British thermal units (Btu) in 2022 while petroleum & natural gas accounted for about 69% of the total intake. Moreover, the industry players are also incorporating digital advancements including cloud-based data storage, analytics, and remote assistance to support customers in optimizing the performance of VFD systems catering to the industry growth.
 

Oil & Gas Variable Frequency Drives Market Analysis

Low voltage drive industry across oil & gas industry accounted for major share on account of their wide deployment across pumping systems to optimize energy consumption and maintain a consistent flow of liquids such as crude oil, refined products, and water. In addition, the growing research & development activities to design advanced units to withstand extreme temperatures, humidity, corrosive substances, and vibrations gained traction will further favor the oil & gas variable frequency drives market revenue.
 

The AC drives segment held over 76% of the oil & gas variable frequency drives market share in 2022. Growing economies require more energy to power industries, transportation, and households, leading to increased consumption of oil & gas, thereby augmenting the industry growth. Moreover, the adoption of digital technologies, including data analytics and artificial intelligence for hydrocarbon exploration & production activities will positively cater to the industry expansion.
 

The oil & gas variable frequency drives market from pump applications are projected to experience substantial growth till 2032, due to growing demand for pumping stations for oil & gas pipelines flow of products over long distances coupled with integration of advanced units with condition monitoring systems to minimize downtime & prevent equipment failures.
 

The increasing exploration & production of conventional & unconventional reserves including shale oil & gas have observed significant growth over the years. Moreover, the increasing demand for energy-efficient systems coupled with the implementation of stringent regulations aimed at reducing energy consumption, is set to drive the industry growth.
 

The Asia Pacific oil & gas variable frequency drives market size dominated around USD 1.5 billion in 2022, owing to rapid rate of urbanization, industrialization, and mounting investments across energy-intensive industry verticals. Rapid industrial growth and the expansion of manufacturing sectors in various countries including China and India, have driven up demand for energy, including natural gas, to power factories and production processes. Moreover, various nations have observed a push to transition from coal to natural gas for power generation with lower carbon emissions will attract new investments in oil & gas infrastructures fostering the industry dynamics.
 

Oil & Gas Variable Frequency Drives Market Share

Key companies operating across the oil & gas variable frequency drive market are emphasizing on integrating new technological advancements and strategic initiatives to deliver flexible & customizable solutions across various applications. Eminent manufacturers operating across the industry consist of

• WEG
• ABB
• Siemens
• Honeywell International Inc.
• Danfoss
• TMEIC
• Rockwell Automation
• CG Power & Industrial Solutions Ltd.
• YASKAWA ELECTRIC CORPORATION
• Emerson Electric Co
• Schneider Electric
• Eaton
• Nidec Motor Corporation
• General Electric
• Fuji Electric Co., Ltd.

Oil & Gas Variable Frequency Drives Industry News

• In July 2023, WEG announced to expand its manufacturing location in Itajaí, Brazil to boost the output capacity of frames and spare parts for VFDs, special switches, and soft starters. In addition, the company also confirmed to establish a new plugs & sockets factory at the same location to serve building infrastructure requirements. The new projects have observed an investment of over USD 17 million and is expected to commence by the end of 2024.
   
• In April 2023, ABB presented its ACS 2000 medium voltage VFD units with the rated capacity of 400 to 1,000 kVA coupled with the voltage rating of up to 6.9 kV. The launched product is designed with advanced technology to optimize operations of fans, pumps, compressors, and others across a wide range of industries including chemical, oil & gas, metallurgy, cement, and mining, among various others.
   

This oil & gas 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

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