US Variable Frequency Drives Market

U.S. Variable Frequency Drives Market Size

U.S. variable frequency drives market was estimated at USD 3.3 billion in 2024. The market is expected to grow from USD 3.4 billion in 2025 to USD 4.5 billion in 2034, at a CAGR of 3.1%, according to a recent study by Global Market Insights Inc.

• The increasing integration of advanced technological systems for accurate speed and process control, along with the rising trend of automation across various industrial sectors, is significantly shaping the future of the industry. Ongoing technological innovations to enhance operational efficiency, precision and support scalable, intelligent manufacturing environments is complementing the business landscape.
  
• For instance, in July 2024, the U.S. Department of Commerce launched a competitive initiative to support advanced semiconductor packaging research and development, with funding up to USD 1.6 billion. As part of the CHIPS for America program, around USD 150 million will be awarded to selected projects, aiming to boost domestic innovation while attracting private sector investment.
  
• The variable frequency drives industry is set to grow on account of the ongoing industrial infrastructure transformation along with the increasing demand for advanced mechanical components. Paradigm shift toward adoption of energy-efficient products coupled with the rising levels of consumer spending is positively influencing the industry landscape. The industry plays a critical role in improving energy efficiency, optimizing processes, and enhancing overall system performance in various sectors, driving its expansion and offering ample opportunities for businesses which will positively impact the industry landscape.
  
• Ongoing industrial infrastructure transformation and the increasing demand for automation and advanced mechanical components will further augment the industry growth. For instance, in September 2024, WEG launched add-on instructions for its CFW500, CFW11, CFW900 drives and SSW900 soft starters. These AOIs are designed to improve integration with Studio 5000-based PLCs such as CompactLogix and ControlLogix, enabling smoother communication and more efficient operation.
  
• Low emissions, less maintenance requirements, longer lifespan, and lower operating costs are some of the prominent factors accelerating product deployment. By adjusting the motor speed to match the load requirements, VFDs can optimize energy consumption, resulting in significant energy savings compared to traditional fixed-speed motor control methods which will positively influence the business dynamics.
  
• Increasing expenditure for the development of manufacturing facilities along with refurbishing operations to replace or upgrade prevailing technologies at different enterprises will fuel the product demand. For instance, in May 2023, ABB announced to accelerate its growth strategy in the U.S. by investing approximately USD 170 million into various initiatives, including manufacturing, innovation, and distribution operations. The focus of the investment lies in fortifying the company’s electrification and automation businesses to effectively cater to the increasing customer demand.
  

U.S. Variable Frequency Drives Market Trends

• The U.S. variable frequency drives industry is rapidly evolving on account of rapidly growing industrial infrastructure and rising demand for industrial automation. Several industries including manufacturing, oil and gas, power generation, and HVAC (heating, ventilation, and air conditioning), continue to modernize and automate their operations has further accelerated the demand for these units.
  
• For instance, in April 2024, Rockwell upgraded its PowerFlex 6000T medium voltage VFD to support permanent magnet motors, enabling high-speed operation up to 120 Hz across 2.3–11 kV and 680 A. It offers predictive maintenance by monitoring real-time health of components, reducing downtime and enhancing reliability in sectors like HVAC, and oil & gas.
  
• The ability of VFDs to offer energy efficiency, precise motor control, and optimize processes, making them essential components in enhancing operational efficiency. Moreover, the increasing demand for advanced pumps, fans, and other mechanical components will further fuel industry growth.
  
• For instance, in August 2024, Yaskawa enhanced its GA800 variable speed drive series to support up to 1,000 HP, all within a compact design. These drives deliver precise motor control across a wide range of uses—from basic fan and pump systems to advanced setups like high-performance dynamometers. The GA800 is engineered for reliability, flexibility, and efficient operation in demanding environments.
  
• These units are widely used in applications such as pumping systems, HVAC systems, conveyor belts, and compressors, where the ability to control motor speed and optimize energy consumption is required which will further boost product deployment. Industries are seeking to improve energy efficiency, reduce maintenance costs, and enhance overall system performance which in turn will complement the business landscape.
  
• Stringent directives and standards for energy efficiency together with shifting customer inclination toward renewable energy integration will positively influence business dynamics. In addition, surging investments across smart and sustainable infrastructures coupled with rising electricity demand and flourishing industrial sector will positively complement business outlook.
  

U.S. Variable Frequency Drives Market Analysis

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• Based on voltage, the industry is segmented into low and medium. The low voltage segment dominated U.S. variable frequency drives market accounting for over 90% in 2024 and is anticipated to grow at a CAGR of 2.8% through 2034.
  
• The market for low voltage drives has witnessed revenue of over USD 3 billion in 2024. The growth of the low voltage drives market will be facilitated by a diverse range of product options available. Furthermore, the expansion of the low voltage drives segment will be influenced by comprehensive standards governing the installation and operation of these drives, ensuring adherence to safety and efficiency guidelines.
  
• For instance, in June 2025, Dart Controls launched the EZ VFD series, designed for simple and efficient motor control in ¼ to 2 hp applications. These plug-and-play drives require no parameter setup and feature adjustable trimpots for fine-tuning. With dual voltage input and 3-phase output, they suit various installations. Key features include 0–5VDC speed control, overload protection, anti-coast deceleration, and motor braking. Available in open chassis and NEMA 4X enclosures, EZ VFDs offer reliable, quiet operation for conveyors, fans, pumps, and compressors.
  
• The medium voltage drives industry in the U.S. is projected to observe a CAGR of over 5.5% through 2034. The medium voltage drives market is set to grow owing to its utilization across several applications to control the speed and torque of AC motors. The utilization of these units has accelerated owing to the reduction in their size & cost across industrial powertrains including petrochemical, mining, and manufacturing. Moreover, operational attributes, such as control accuracy, energy savings & operational flexibility, will augment product deployment.
  
• For instance, in April 2024, Rockwell expanded its PowerFlex medium voltage drive offerings to support permanent magnet motor applications. These drives are engineered for high-speed operations, delivering output frequencies up to 120 Hz and operating within a voltage range of 2.3 kV to 11 kV. Designed for versatility, PowerFlex MV drives cater to industries such as HVAC, oil & gas, metals, and paper, providing efficient and reliable solutions for permanent magnet motor systems.
  

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• Based on the drive, the U.S. variable frequency drives market is segmented into AC, DC and servo. The AC segment holds 79.8% of market share in 2024 with a 3.4% CAGR by 2034. AC variable frequency drives industry is set to grow as these devices are widely integrated across a wide range of industries due to their effective performance in both full-load and variable load conditions. The integration of compatible power variable frequency drive (VFD) devices can greatly enhance the speed control of these systems, enabling them to meet specific requirements.
  
• The AC drives segment of U.S. VFD market is undergoing significant growth, owing to their superior functionality under full-load and variable load conditions and effective incorporation can greatly enhance system speed control, thereby meeting desired specifications. Furthermore, the ongoing refurbishment initiatives in industrial establishments, along with the increasing installation of advanced automation and feedback communication systems, will positively influence the AC drives industry growth.
  
• For instance, in August 2024, at the Turbomachinery & Pump Symposia, ABB presented its ECP5000 severe duty motors, built for demanding industrial environments like horizontal pumping. The company also featured ACS880 high-speed drives for efficient compressor and blower operations, and ACQ580 drives. These units are suitable for water and wastewater systems, ensuring simplified control and energy savings, while all products are stocked in the U.S. for rapid delivery.
  
• Rising use of robotics across industries including manufacturing, HVAC, and oil & gas is accelerating along with increasing automation and continuous technological innovation, is boosting demand for advanced AC drives. The integration of sensors and performance-enhancing features is improving system functionality and efficiency, while efforts to reduce emissions are further supporting adoption. Additionally, the versatility of these units in both large-scale industrial facilities and smaller operations strengthen the low voltage AC drives industry outlook.
  
• The DC drives segment is projected to grow at a CAGR of over 2% by 2034. Increasing adoption of digital technologies and IoT integration along with continuous innovation and frequent product launches by key players are fueling product demand. For instance, ElectroCraft introduced the EZ Drive in September 2024, a motor control solution for brushless DC motors, designed for use in medical, laboratory, and industrial applications.
  
• Servo segment was evaluated at over USD 270 million in 2024. The servo drives market is set to significantly gain momentum owing to increasing efforts toward digital transformation and the growing demand for high-speed, precision motor control in industrial operations. Strict energy efficiency regulations and the continuous modernization of existing machinery are further encouraging the adoption of these systems. Industries are striving for smarter and more efficient processes which led servo drives as an essential component in achieving optimized performance and sustainable operations.
  
• For instance, in April 2024, Applied Motion Products has launched the MDX+ series, integrating a servo drive, motor, and encoder into a compact unit for low-voltage applications. Available in 100 to 550 W outputs, it supports multiple communication protocols and operates on 24–60 VDC. With frame sizes of 40, 60, and 80 mm, it offers encoder options, optional electric brakes, and IP65-rated models for harsh environments, though STO signal support is currently unavailable.
  
• Based on the application, the U.S. variable frequency drives market is segmented into pump, fan, conveyor, compressor, extruder, and others. The pumps market in the U.S. VFD industry is projected to hold a significant momentum owing to its ease of integration across various industry verticals. Pump systems are a critical component of industrial infrastructure and account for a significant portion of energy demand. The growing focus on optimizing the operation of pumping systems to enhance profitability and reduce operational and maintenance costs will drive the industry progression.
  
• For instance, in October 2024, PD Water Systems launched the SMARTTI variable frequency drive, optimized for submersible pump systems. Engineered for efficiency and ease, SMARTTI ensures constant pressure, compact installation, and quick setup. With a rugged NEMA 3R enclosure, intuitive backlit display, and ETL certification, it’s built for durability and user convenience. Available in MM Series (1-phase motors ≤ 2 hp) and MT Series (3-phase motors ≤ 5 hp), SMARTTI delivers industry-leading performance and fast lead times.
  
• Furthermore, VFD units are commonly installed with industrial fans to minimize the motor starting current along with reducing the impact of fans on electrical systems. This helps in reducing overall costs associated with fan operation. By incorporating VFDs into industrial fan systems, companies can achieve energy efficiency and cost savings which is set to proliferate the industry outlook.
  
• Based on the end use, the U.S. variable frequency drives market is segmented into oil & gas, power generation, mining & metals, pulp & paper, marine and others. Rising demand in the oil & gas generation industry in line with escalating investments & expenditure for the development of manufacturing and power generation establishments will further fuel product demand. Paradigm shift toward energy efficiency along with increasing productivity, lowering energy consumption, and reducing operational costs has inclined manufacturers’ focus to deploy centrifuges, evaporators & conveyer technologies that are compliant with traditional codes & standards.
  
• For instance, in September 2024, Rockwell introduced the compact PowerFlex 755TS frame 7A drives with TotalFORCE technology, offering up to 500 Hp (355 kW) in a panel-mount design that’s 75% smaller than traditional units. Ideal for industries including oil and gas, mining, and water treatment, these drives simplify installation, commissioning, and maintenance while supporting both basic and advanced motor control applications.
  
• Power generation sector is set to grow owing to shifting focus toward energy-efficient technologies in line with favorable regulatory frameworks for the adoption of renewables has accelerated the industry growth. In addition, the growing number of industrial facilities and utility infrastructure along with urban localities has accelerated the need for energy generation and integration of electrical components, further augmenting the business landscape.
  
• For instance, Sprint Electric introduced its new Generis AC regeneration drive in October 2023, set to debut at the SPS exhibition in Nuremberg this November. Designed for efficient and reliable AC motor control, it features energy recovery and low harmonic distortion. Initially available up to 22 kW from February 2024, the range will expand to 200 kW over the next three years.
  
• The application of variable frequency drives in pulp & paper sector holds a significant share across the industry owing to rising energy costs, need for flexible, scalable motor control solutions, and the push for automation. Rising disposable incomes together with a better standard of living across developing and developed nations will positively stimulate the demand for energy-efficient systems that cater to the industry dynamics. The increasing adoption of industry 4.0, predictive maintenance, and integration with IIoT platforms are accelerating the product demand.
  
• The adoption of variable frequency drives across mining and metals industry will witness significant momentum owing to introduction of stringent directives for the implementation of clean energy infrastructure to gain sustainability in the energy sector and meet the escalating energy demand in a balanced manner. Favorable policies, resiliency initiatives, state incentives, and environmental regulations are some of the prominent government measures, encouraging product adoption.
  
• For instance, in January 2024 AHR Expo in Chicago, Invertek Drives Ltd. highlighted the advantages of its variable frequency drive technology. The company featured its Optidrive Eco and Optidrive Coolvert solutions, with the Coolvert drive offering precise control for BLDC and permanent magnet compressors. It dynamically adjusts compressor speed to meet changing system demands, enhancing efficiency and performance.
  

U.S. Variable Frequency Drives Market Share

• The top 5 players operating across the U.S. variable frequency drives industry include ABB, GE Vernova, Siemens, Mitsubishi Electric and Danfoss accounting for around 38% of the market share in 2024.
  
• Leading VFD manufacturers in the U.S. are prioritizing innovation and expanding their product lines to accommodate emerging technologies. To strengthen market presence and global reach, companies are actively engaging in mergers, acquisitions, partnerships, and joint ventures. These strategic collaborations help improve brand visibility, streamline marketing efforts, and enable cost efficiencies while introducing more specialized and competitive products.
  
• Over the past three years, the U.S. VFD market has shown strong resilience despite global economic challenges. The industry has observed an improved supply chain dynamics and a growing emphasis on energy reliability boosted adoption. Looking ahead to the near future, infrastructure development in emerging economies and the push for low-emission, energy-efficient technologies are expected to further drive demand across diverse industrial sectors.
  
• Danfoss offers compact low-voltage and medium voltage drives designed to enhance energy efficiency and save space in industrial applications. The iC7-Automation drive stands out for its reliability, advanced connectivity, and integrated safety features like STO SIL3. Its modular architecture and compatibility with various communication protocols make it well-suited for Industrial IoT environments and system optimization.
  
• ABB’s lifecycle management approach ensures consistent drive performance through customized support at every stage of the product’s life. Its servo drive solutions cater to industries such as packaging, electronics, and textiles, delivering precise motion control. Additionally, ABB’s drives for water and wastewater applications improve energy efficiency and system reliability, supporting effective pump operations across a wide power range.
  
• Mitsubishi Electric inverters are designed to maximize motor efficiency while also promoting longer equipment lifespan. With a diverse range of models available, users can choose the ideal solution tailored to their specific application needs, ensuring optimal performance and energy savings across various industrial environments.
  

U.S. Variable Frequency Drives Market Companies

Major players operating in the U.S. variable frequency drives industry are:

• ABB
• Applied Motion Products, Inc.
• Bosch Rexroth Corporation
• Beckhoff Automation
• Danfoss
• Eaton
• Emerson Electric Co.
• Franklin Electric Co., Inc.
• Fuji Electric Corp. of America
• GE Vernova
• Hitachi Industrial Equipment & Solutions America, LLC
• Honeywell International, Inc.
• Johnson Controls
• Mitsubishi Electric Automation Inc.
• Nidec Motor Corporation
• Rockwell Automation
• Schneider Electric
• Siemens
• WEG
• Yaskawa America, Inc.

• In 2024, Danfoss generated USD 11.37 billion in revenue, marking a 9% decline compared to the previous year. Danfoss brings its expertise in AC drive technology to the VACON 1000, an air-cooled medium-voltage drive ideal for general-purpose industrial applications, especially variable torque loads like pumps and fans. The VACON 3000 Enclosed Drive offers a modular, cabinet-based design that ensures high performance, simplified maintenance, and reduced system complexity. Its compact and robust build makes it a competitive solution where space, weight, and durability are critical.
  
• ABB reported USD 8.9 billion in revenue for Q2 2025, reflecting an 8% year-over-year increase and 6% growth on a comparable basis. The company’s total revenue for 2024 reached USD 32.9 billion. The company is a global leader in motion control technologies, delivering high-performance low and medium voltage variable speed drives, drive systems, and integrated solutions for industries, infrastructure, and machine builders.
  
• Siemens delivered strong results in Q3 2025, with a 28% surge in comparable orders and a 3% rise in revenue, totaling USD 22.6 billion. For the full year 2024, Siemens recorded USD 88.5 billion in revenue. SINAMICS variable frequency drives offer a comprehensive solution for diverse drive applications, covering everything from low-voltage to DC systems. Designed for high efficiency and adaptability, these drives help elevate industrial operations into the digital age. Their advanced capabilities make them ideal for modernizing processes and achieving reliable, energy-efficient performance across a wide range of industries.
  
• Mitsubishi Electric, Japan-based reported annual sales of USD 34.93 billion for 2024. In the first quarter of 2025 alone, the company achieved USD 8.72 billion in revenue. The company’s variable-frequency drives (VFDs) are engineered to deliver peak efficiency in motor performance, energy usage, and cost savings. Their advanced design helps maintain comfort and performance across various applications, making them ideal for modern energy-conscious environments.
  
• GE Vernova offers MV variable speed drive systems combine either a voltage source inverter (VSI) or load commuted inverter (LCI) with an electric motor to deliver flexible and efficient performance. The company’s revenue was reported for 6 months in 2025 was USD 17.14 billion and for the complete year 2024, it was reported at USD 34.93 billion. The company’s drives systems are designed to suit a wide range of industrial applications, offering reliable speed and torque control across various operating conditions.
  

U.S. Variable Frequency Drives Industry News

• In February 2025, Invertek Drives showcased its latest HVAC innovations at AHR Expo 2025 in Orlando. Their Optidrive VFDs offer precise motor control, improving energy efficiency by up to 30%, reducing maintenance, and extending equipment life. These drives enhance HVAC performance in fans, pumps, and compressors while ensuring quieter operation and system reliability. Featured products include Optidrive Coolvert, optimized for BLDC and PM compressors using eco-friendly refrigerants, and Optidrive Eco, a versatile, cost-effective solution for various HVAC applications.
  
• In December 2024, Eaton unveiled PowerXL DX1, a high-performance VFD designed for precise speed and torque control in various industries. Supporting both permanent magnet and induction motors, it features an intuitive touchscreen interface for simplified setup and diagnostics. Key benefits include speed accuracy of ≤0.01%, advanced safety, flexible customization via option card slots, onboard PLC and oscilloscope, and robust cybersecurity compliance with IEC/EN 62443-4-2.
  
• In November 2024, Beckhoff introduced the AF1000 series, a compact and cost-effective variable frequency drive solution for key applications like conveyors, pumps, and fans. Fully integrated with TwinCAT via EtherCAT, it simplifies commissioning and diagnostics. Available in single-phase and three-phase versions, the AF1000 comes in single- or dual-axis modules. It supports asynchronous and reluctance motors without feedback and includes built-in control power supply, DC link capacitors, and ballast circuit for efficient operation.
  
• In October 2024, PD Water Systems, LLC introduced the SMARTTI Variable Frequency Drive, tailored for submersible pump systems. It ensures constant water pressure, reduces tank size, and offers fast, user-friendly installation. Key features include a bright graphic display, rugged NEMA 3R enclosure, and ETL certification. Available in MM Series for 1-phase motors up to 2 hp and MT Series for 3-phase motors up to 5 hp, it delivers reliable performance with industry-leading lead times.
  
• In September 2024, WEG announced the launch of MW500, a decentralized variable speed drive designed for efficient speed and torque control in three-phase motors. Featuring a modern design and advanced technology, it delivers reliable performance across demanding applications. Its IP66/NEMA 4X rating ensures strong protection against dust and water, making it suitable for harsh environments. Compact and robust, the MW500 is ideal for industrial establishments and processes requiring durability and precision.
  

The U.S. variable frequency drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume “000 Units” and revenue “USD Million” from 2025 to 2034, 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