Global Variable Frequency Drive (VFD) Market Size, Trends, and Analysis - Forecasts To 2026 By Type (AC Drives, Servo Drives, DC Drives), By Application (Pumps, Conveyors, Compressors, Fans, Others), By Voltage (Low Voltage, Medium Voltage), By Power Rating (Low Power Drive, High Power Drive, Micro Power Drive, Medium Power Drive), By End-User (Industrial, Infrastructure, Oil & Gas, Power, Others), By Region (North America, Asia Pacific, CSA, Europe, and the Middle East and Africa); End-User Landscape, Company Market Share Analysis & Competitor Analysis
The variable-frequency drive is an electrical device that uses an electric motor to adjust the frequency of the voltage applied to the motor. To decrease energy consumption, it helps to regulate the running speed. Rising energy efficiency requirements and the increasing prevalence of process optimization would also drive market development. VFDs are mostly used to reduce the mechanical stress on devices, which essentially increases their shelf life. The increasing rate of urbanization is surging the consumer demand, technological innovation, and developments which are the vital factors that influence the Variable Frequency Drive (VFD) market. The increasing installation of building temperature maintenance HVAC systems increases the deployment of variable frequency drives. Furthermore, the increasing demand for energy optimization products & operational benefits coupled with the increasing integration of renewable energy & aging power infrastructure is boosting the demand for market growth.
The three different categories include AC drives, servo drives, and DC drives. The category AC drives segment is estimated to hold the largest shareholder in terms of value in 2019. Over the forecast timeframe, the widespread use of AC drives in heavy and medium industries such as pulp and paper, power generation, food and beverages, oil and gas, and automotive industries is expected to fuel segment growth. Moreover, the rising investment in infrastructural activities and the increasing need for energy efficiency are also expected to fuel demand growth in the coming years.
According to the application report, the four segments are pumps, conveyors, compressors, and fans, among others. The leading group in terms of sales growth is the segment of compressors with a high CAGR. To improve manufacturing and energy efficiency, variable frequency drives are built into compressors. Variable frequency drive-equipped compressors can change speed, optimize production performance, and enhance mechanical resonances. Operational and electrical pressures on the engine are also reduced.
The low power range is projected to exhibit the greatest market share in 2019 during the forecast period. It is due to the benefit it provides, including low capital costs, improved process management of the industries in which it is used is one of the key factors driving the market growth of this segment. Low-power variable frequency drives are often used for applications including pumps, metal processing machines, cranes, machine tools, fans, fluid machines, and food processing machines, among others.
In the projected timeframe, low voltage is expected to rise at a substantial CAGR. The market scenario will be increased by the growing applicability of speed drives across major production units, including cement metals & mining and utilities, and petrochemicals, among others.
In terms of the end-user outlook, manufacturing, infrastructure, oil & gas, and electricity, among others, can be divided into four divisions. It is anticipated that the industrial segment will account for the largest market share in 2020. The increasing adoption of automation in the production sector to minimize downtime is one of the primary reasons for an increase in demand for variable frequency drives.
Based on revenue generation by the North American region, the prominent market segment is retained. This is attributed to the increasing oil and gas sector, the increasing trend in investment in the energy sector, and the replacement of the aging electricity grid, which are some of the key drivers of the region's demand growth. Furthermore, the Asia Pacific region is expected to be the segment with the highest growth over the forthcoming years. This is attributable to the growing demand for electricity and the increasing capacity to produce renewable energy sources are pushing utilities in the countries such as India, Japan, China, and South Korea to invest in transmission and distribution infrastructure. There has also been an increasing energy efficiency initiative that increases variable frequency drive demand.
ABB, Danfoss, Eaton, Hitachi, Nidec, Delta Electronics, Parker Hannifin, Techsuppen Saksun Industries, Siemens, Rockwell Automation, Yaskawa, General Electric, Tmeic, Honeywell International, Nord Drive Systems, Shenzhen Gozuk, A.S. Automation & Controls, Schneider Electric, Crompton Greaves Power and Industrial Solution, Fuji Electric, Anaheim Automation, Inovance Technology, and WEG, among others, are the major vendors competing in the Variable Frequency Drive (VFD) market.
Please note: This is not an exhaustive list of companies profiled in the report.
In December 2020, Rockwell Automation has re-launched its Kinetix 5100 servo drive with a voltage availability of 480V for a wide range of applications, including packaging, conversion, print & web, and system and assembly.
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The Global Variable Frequency Drive (VFD) Market has been studied from the year 2019 till 2026. However, the CAGR provided in the report is from the year 2021 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply side analysis for the Variable Frequency Drive (VFD) Market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the companies and customer analytics.
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