U.S. Variable Frequency Drives Market Analysis

U.S. Variable Frequency Drives Market Analysis

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.
 

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.