Variable Frequency Drive Industry Overview
The global variable frequency drive market size was valued at USD 24.9 billion in 2021 and is anticipated to reach USD 39.7 billion by 2030, registering a CAGR of 5.5% During the forecast year.
Increasing penetration of connected devices in various sectors such as commercial, industrial, and residential sectors, coupled with rising demand for variable frequency drive (VFD) due to their benefits such as adjustable speed, dynamic torque control, and energy-saving from sectors such as power generation, automotive, and oil & gas are crucial factors expected to drive the market growth. Additionally, increasing investment in infrastructure development is resulting in high demand for HVAC systems which calls for solutions to improve building energy efficiency this factor is expected to positively impact the target market growth.
Gather more insights about the market drivers, restrains and growth of the Global Variable Frequency Drive Market
Rapid industrialization in developing countries is resulting in high growth in the industrial and manufacturing sectors, which supports the demand for variable frequency drive. Likewise, the power generation sector is widely adopting variable frequency drive as they use it to smoothly start large motors and continuously adjust the speed as required by the process. Thus, increasing demand for variable frequency drive from the power generation sector is expected to augment the target market growth. Industries such as metal & mining, food processing, and oil & gas use various equipment for operations that vary in technology. VFDs are used by induction, forced draft fans, boiler feed pumps, service water pumps, and conveyors that provide high power, precise speed control, and significant energy savings.
Governments across the globe are implementing stringent regulations to lower the CO2 impact on the environment and save energy which is resulting in the adoption of energy-efficient products. Also, they are planning to meet energy efficiency and CO2 emission goals to reduce greenhouse gas emissions. This is resulting in the implementation of new rules, thereby supporting market growth. For instance, in October 2019, Ecodesign Regulation (EU) 2019/1781 came into effect which was implemented in two stages the first stage in July 2021 and the second in July 2023. In the first stage, the regulation covered the IE2 efficiency class mandatory for AC drives.
The major challenges faced by the global variable frequency drive market are the high initial cost of the variable speed drives and economic slowdown. Due to the economic slowdown, the industrial and commercial sectors witnessed slow growth which lowered the demand for variable frequency drive. Also, due to covid-19, there was a disruption in the supply chain of raw materials which impacted the availability of products. Additionally, lack of skilled labor and high cost associated with maintenance are factors expected to hamper the global market growth
The outbreak of COVID-19 globally significantly impacted the global market growth. Implementation of strict lockdown and shut down of manufacturing facilities resulted in a decline in demand for variable frequency drives. However, in the second quarter of 2021, the manufacturing sector witnessed growth gradually increasing the demand for VFD and by the second quarter of 2022, the market is expected to witness growth at its full potential.
Variable Frequency Drive Market Segmentation
Based on the Product Type Insights, the market is segmented into AC drives, DC drives and servo drives
Based on Application Insights, the market is segmented into pumps, electric fans, conveyors, HVAC, extruders and others
Based on the Power Range Insights, the market is segmented into micro (0-5 kw), low (6-40 kw), medium (41-200 kw) and high (>200 kw)
Based on End-use Insights, the market is segmented into oil & gas, power generation, industrial, infrastructure, automotive, food & beverages and others
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Market Share Insights:
Key Companies Profile:
Key players that dominated the market in 2021 include ABB, Eaton, General Electric, and Hitachi Ltd. Major player are focused on enhancing the business and increasing the customer base by the introduction of new products.
Some prominent players in the global variable frequency drive market include:
Order a free sample PDF of the Variable Frequency Drive Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.
Web: https://www.grandviewresearch.com
Media ContactCompany Name: Grand View Research, Inc.Contact Person: Sherry James, Corporate Sales Specialist – U.S.A.Email: Send EmailPhone: 1888202951Address:Grand View Research, Inc. 201 Spear Street 1100 San Francisco, CA 94105, United StatesCity: San FranciscoState: CaliforniaCountry: United StatesWebsite: https://www.grandviewresearch.com/industry-analysis/variable-frequency-speed-drives-vfd-vsd-market