Variable Frequency Drives Market Analysis

Variable Frequency Drives Market Analysis

The low voltage drive segment is anticipated to experience a growth rate of over 4% through 2032 owing to the growing emphasis on energy efficiency across industries, increasing focus on industrial automation, and ongoing technological advancements to improve performance & functionality. These units are cost-effective alternatives to several household, commercial, and industrial systems that require less maintenance further augmenting the product deployment. Numerous industry participants are focusing on research and development initiatives to fulfil the regulatory standards and norms, augmenting the variable frequency drives market size.
 

In March 2023, Invertek Drives Ltd. announce to open an innovation center at its global headquarters. This facility will receive an investment of over 7.9 million and will offer state-of-the-art R&D facilities for designing of next-gen electric motor control variable frequency drives. This expansion will allow the company to accelerate its VFD production capacity to 1.2 million units from 460,000 annually. Moreover, the accelerating demand for energy efficient systems coupled with technological enhanced systems will further drive the industry growth.
 

The medium voltage drive segment is set to grow rapidly in the upcoming timeframe, due to the widely integration across heavy-duty industrial operations requiring MW scale power outputs to suffice the high load bearing conditions. Ongoing technological advancements including instantaneous energizing of equipment controls motors along with new product launches across the industry.
 

For instance, In March 2022, WEG launched CFW900 variable frequency drives at the Drives & Controls 2022 exhibition held in UK. This unit was considered to be the first geared motor range that was fully developed by the WEG and comprises parallel shaft, helical, and bevel gear units offering torques between 50 & 18,000 Nm. Furthermore, a paradigm shift toward the ongoing deployment of energy-efficient products to deliver power security while maximizing the energy utilization will drive the variable frequency drives market growth.
 

The variable frequency drives market from AC drives segment was surpassed USD 16.3 billion in 2023, on account of better functioning capabilities at full load and variable load conditions. Due to the operational attributes of these units offering improved energy efficiency, reduced mechanical stress on the motor and equipment, smoother starting and stopping, and improved process control will increase the variable frequency drive market deployment. These units deliver maximum machine output across a wide range of applications by using numerous motor types such as dynamic linear motors, normal AC induction motors, energy-saving hybrid motors, among others which will fuel the product adoption.

The pump application is expected to dominate the variable frequency drives market through 2032, credited to its broad application possibilities and fast increasing industrial infrastructure. VFDs are commonly used in pumps to provide greater control over the electrical power frequency in order to properly change pressure or flow in the system. Furthermore, favorable scenario for driving energy-efficient systems together with continual technical improvements will further influence the business dynamics.
 

Replacement and refurbishment of prevailing technologies in small, medium, and big industrial applications along with shifting inclination toward energy efficiency will drive the variable frequency drives market expansion. In addition, the implementation of various energy efficiency regulations reinforced by the respective authorities, in line with a significant movement in customer preference towards renewable technology will stimulate the product penetration. The ongoing integration of monitoring and control systems throughout hydrocarbon exploration and production operations will drive up demand for VFD units.
 

Asia Pacific variable frequency drives market is anticipated to reach over USD 14.5 billion by 2032, on account of steadily developing clean power generation, increasing industrial investments, favorable governmental norms and policies, and the availability of cost-effective products. In addition, rapid infrastructure construction and development along with increasing demand for energy-efficient motor control systems are some of the key factors accelerating the demand for VFDs. Moreover, the elevating requirement for high-tech driven goods across a variety of heavy-duty industrial applications, including metals and mining, oil and gas, and power generation, will positively stimulate the Asia Pacific drives industry landscape. The market for variable frequency drives in US will cross a valuation of USD 2.5 billion during the forecast period.