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U.S. Variable Frequency Drives Market Size - By Voltage (Low, Medium), By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder), By End-Use (Oil & Gas, Power Generation, Mining & Metals, Pulp & Paper, Marine) & Forecasts, 2024 – 2032

  • Report ID: GMI3104
  • Published Date: Jul 2023
  • Report Format: PDF

U.S. Variable Frequency Drives Market Size

U.S. Variable Frequency Drives Market size was valued at USD 3.2 billion in 2023 and is anticipated to grow at over 3.4% CAGR from 2024 to 2032, on account of the ongoing industrial infrastructure transformation along with the increasing demand for advanced mechanical components. The paradigm shift for the 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 outlook.

U.S. Variable Frequency Drives Market

To understand key trends  

A Variable Frequency Drive (VFD) also known as an adjustable speed drive or AC drive is an electronic device used to control the torque and speed of the electric motors by adjusting the frequency and voltage of the power supplied to the motor. These units are widely used in various industries and applications where precise control over motor speed is required. These devices are designed to provide smooth and accurate speed control, allowing motors to operate at different speeds based on the specific requirements of the application.

The VFDs can offer several beneficial advantages including substantial energy savings, minimum mechanical strain on equipment, and optimized operational flexibility complementing their adoption potential across various applications.

COVID- 19 Impact

The COVID-19 pandemic emerged from China and has significantly impacted various industries, leading to negative disruptions on the economic structure of various countries. Governments at different levels have implemented strict measures to control the spread of the virus, resulting in economic turmoil. The pandemic has resulted in shut down of industrial operations, regional and national lockdowns, implementation of social distancing measures, and constrained global trade activities. These factors have adversely affected the pace of the variable frequency drives (VFD) market. Furthermore, interruptions in the global supply chain networks have hampered the availability of raw materials and final products worldwide.

Nevertheless, several prominent VFD manufacturers operating in different regions have implemented robust action plans to minimize the impact of COVID-19 on their businesses. These companies have engaged in new mergers, acquisitions, partnerships, and collaboration initiatives with the aim of redirecting their product portfolios toward emergency services, particularly healthcare establishments.

By adapting their offerings to cater to the needs of emergency services, the manufacturers are addressing the evolving demands brought about by the pandemic. This strategic move enabled them to support healthcare facilities that require reliable and efficient equipment for critical operations. By aligning their product portfolios with the requirements of emergency services, the manufacturers can adapt to changing market dynamics and continue serving essential sectors during this crisis which created a positive impact on the industry size.

U.S. Variable Frequency Drives Market Trends

The U.S. variable frequency drive market is rapidly evolving on account of rapidly growing industrial infrastructure and rising demand for industrial automation. As the industries including manufacturing, oil & gas, water & wastewater, and HVAC (heating, ventilation, and air conditioning), continue to modernize and automate their operations has further accelerated the demand for these units. 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 the market growth.

These devices are widely integrated across various applications consisting of pumping systems, HVAC systems, conveyor belts, and compressors, where the ability to control motor speed and optimize energy consumption which will boost the product deployment.

The U.S. VFD industry comprises manufacturers, suppliers, distributors, and service providers that cater to the diverse needs of different sectors. Major companies in the market offer a wide range of drives with varying power capacities, voltage ratings, and control features to meet the specific requirements of different applications. Moreover, the industry is poised for growth owing to the ongoing industrial infrastructure transformation and the increasing demand for advanced mechanical components.

U.S. Variable Frequency Drives Market Analysis

U.S. Variable Frequency Drives Market Size, By Voltage (USD Billion), 2021 - 2032

To understand key trends  

The medium voltage segment within the U.S. variable frequency drive market is poised to expand at 5% CAGR through 2032, attributed to the specific design of these products to function at voltage ratings exceeding 1,000 V, making them suitable for high-power operations. In addition, ongoing initiatives by the industry leaders to develop and introduce large-scale units with high-frequency conversion capabilities will contribute to the adoption of these VFDs.

For instance, in April 2023, ABB unveiled the ACS 2000 medium voltage variable frequency drives, offering versatile solutions for a broad range of industrial applications. These drives are designed to operate at voltage levels of up to 6.9 kV and provide a rated capacity ranging from 400 to 1,000 kV. The integration of advanced ACS 2000 drives effectively address key industry challenges such as the need for flexible power supply connections, reduced harmonics, improved energy efficiency, and simplified installation & commissioning processes, among others. Moreover, low emissions, less maintenance requirements, longer lifespan, and lower operating costs are some of the prominent factors accelerating the product deployment.

The growth of the low voltage drives market across the country will be facilitated by a diverse range of product options available. These options span from micro VFDs, which have ratings below 1 kW, to large industrial and machinery drives with outputs in the megawatt (MW) range. 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.

U.S. variable frequency drive market from AC drives segment is set to show tremendous growth till 2032, owing to their superior 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. Their superior functionality under full-load and variable load conditions and effective incorporation of compatible power VFD devices can greatly enhance system speed control, thereby meeting desired specifications further accelerating the product demand.

Furthermore, the ongoing refurbishment initiatives in industrial establishments, along with the increasing installation of advanced automation and feedback communication systems, will foster the AC drives industry dynamics.

U.S. Variable Frequency Drives Market Revenue Share, By Application, 2022

To understand key trends  

The pumps application vertical in the U.S. variable frequency drive market is predicted to hold a significant momentum during the forecast period, due 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. For instance, according to the U.S. Department of Energy, pumping systems contribute to 25% of the total energy consumption by electric motors in the national industrial sector.

The growing focus on optimizing the operation of pumping systems to enhance profitability and reduce operational and maintenance costs will drive the industry progression. 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 in industrial fan systems, companies can achieve energy efficiency and cost savings which is set to proliferate the variable frequency drives market outlook.

The ongoing efforts to modernize existing systems with advanced energy-efficient technologies will drive the demand for variable frequency drive (VFD) units across several end-use verticals. Furthermore, the introduction of new projects across various energy-intensive industries, including oil & gas, metals & mining, and power generation, will contribute to the adoption of VFDs.

For instance, in January 2022, the U.S. Energy Information Administration (EIA) reported that oil production in the Permian Region, the largest producing region in the country, reached approximately five million barrels per day (Mbpd). This marked a 13% increase in value compared to the same month in 2021. Additionally, growing initiatives to establish new renewable and conventional power generation facilities will further boost the business dynamics. The increasing utilization of these units in systems that leverage renewable energy sources such as solar and wind power, enabling the utilization of low-carbon energy to power electrical systems further augmenting the industry landscape.

U.S. Variable Frequency Drives Market Share

Major companies in the U.S. variable frequency drives market are focused on forming strategic alliances and partnerships to strengthen their market presence and increase their competitive edge over the others. Key companies operating across the industry include:

  • General Electric
  •  Siemens
  •  Johnson Controls
  •  Honeywell International Inc.
  •  Emerson Electric Co
  •  ABB
  •  Mitsubishi Electric Corporation
  •  Schneider Electric
  •  Eaton
  •  Fuji Electric Corp of America
  •  Rockwell Automation
  •  WEG,
  • Yaskawa America Inc.
  • Danfoss
  • Nidec Industrial Solutions
  •  Hitachi Industrial Equipment & Solutions America, LLC

U.S. Variable Frequency Drives Industry News

  • 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. This significant investment is aimed at creating a skilled workforce while driving ABB's expansion in the U.S. market. The focus of the investment lies in fortifying the company’s electrification and automation businesses to effectively cater to the increasing customer demand. Furthermore, the company’s commitment aligns with supporting the transition towards clean energy and addressing the growing trend of reshoring production activities within the nation.
  • In June 2022, Schneider Electric expanded its range of services by introducing the EcoStruxure Service Plan for variable speed drives. This addition showcases the company’s commitment to helping customers future-proof their businesses while prioritizing safety, resilience, and sustainability. Previously available for Electrical Asset Management, Power Management Systems, and Three-Phase Uninterrupted Power Systems (UPS) in the 10-40 kVA range, the EcoStruxure Service Plan can now be applied to variable speed drives. By opting for the EcoStruxure service plan, customers can enjoy various benefits and features, including expert guidance, proactive maintenance, and digital monitoring capabilities. This comprehensive service plan enables customers to enhance the performance and longevity of their variable speed drives, while optimizing energy efficiency and minimizing downtime.

This U.S. 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
Authors: Ankit Gupta, Divyendu Sharma

Frequently Asked Questions (FAQ) :

The market size for variable frequency drives in the U.S. was reached USD 3.2 billion in 2023 and is set to record CAGR 3.4% through 2032, on account of the ongoing industrial infrastructure transformation along with the increasing demand for advanced mechanical components.
The pumps application vertical in the industry is projected to hold a significant share during 2023 to 2032, owing to its ease of integration across various industry verticals, along with energy efficiency with cost savings.
The AC motors are extensively used in various industries owing to their superior performance in both full-load and variable load conditions, which pushing the demand for AC variable frequency drives.
General Electric, Siemens, Johnson Controls, Honeywell International, Inc., Emerson Electric Co., ABB, Mitsubishi Electric Corporation, Schneider Electric, Eaton, Fuji Electric Corp. of America, Rockwell Automation, WEG, Yaskawa America, Inc., Danfoss, Nidec Industrial Solutions.

U.S. Variable Frequency Drives Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 17
  • Tables & Figures: 105
  • Countries covered: 1
  • Pages: 108
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