Variable Frequency Drive Market (By Product: AC Drives, DC Drives, Servo Drives; By Power Range: Micro, Low, Medium, High; By Application: Pumps, Electric Fans, Conveyors, HVAC, Extruders; By End-use: Oil & Gas, Power Generation, Industrial, Infrastructure, Automotive, Food & Beverages) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030

Published Date : Oct 2021 | No. of Pages : 150+ Pages | Category : ICT

The global variable frequency drive market size is expected to be worth around US$ 40.7 billion by 2030, according to a new report by Vision Research Reports.

The global variable frequency drive market size was valued at US$ 23.5 billion in 2020 and is anticipated to grow at a CAGR of 7.5% during forecast period 2021 to 2030.

Report Coverage

Report Scope Details
Market Size US$ 40.7 billion by 2030
Growth Rate CAGR of 7.5% From 2021 to 2030
Base Year 2021
Forecast Period 2021 to 2030
Segments Covered Product type, power range, application, end-use 
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Companies Mentioned ABB; Eaton; General Electric; Hitachi, Ltd.; Rockwell Automation, Inc.; Schneider Electric; Siemens AG; The Danfoss Group; WEG S.A.; Yaskawa Electric Corporation

Growth Factors

 Increasing technological advancements in the emerging economies and growing awareness and demand for energy efficiency are anticipated to be the key driving factors for the variable frequency drive (VFD) market over the forecast period. Besides, ongoing investment to spread awareness about energy efficiency is also expected to act as a significant driving factor. Integration of VFDs with electric drives allows end-users to control the torque and speed, thereby increasing their operating efficiency and reducing energy consumption. Thus, increased use of variable frequency drives across major industries such as oil and gas, power generation, food and beverages, and automotive is also expected to boost the market growth.

By Product Type Analysis

The AC drives segment accounted for a dominant share in 2021 and is estimated to expand at the highest CAGR of 7.8% from 2021 to 2030. The widespread application of AC drives in medium and heavy industries, such as power generation, oil and gas, food and beverages, infrastructure, pulp and paper, and automotive is expected to boost the segment growth over the forecast period.

The DC drive segment is estimated to register a minimal growth rate over the forecast period. The demand for DC drive is limited owing to high cost of DC technology as compared to the AC technology.

By Power Range Analysis

The low power range segment comprises of variable frequency drives that can drive motors with power ranging from 6 kW to 40 kW. The segment accounted for more than 40% of the revenue share and is anticipated to dominate the market throughout the forecast period.

The medium power range segment comprises variable speed drives with power ranging from 41 kW to 200 kW. The segment is projected to expand at the highest CAGR of 7.8% over the forecast period owing to the growing demand for variable frequency drives from end-use sectors, such as power, oil and gas, marine, and chemical sectors.

By Application Analysis

The pumps segment accounted for a dominant share of the market in 2019. In industries such as wastewater, oil and gas, etc., the hydraulic drives assimilated with pumps are being substituted by variable frequency drives, to smoothen the operations of the motors and simultaneously lower the energy consumption. 

The HVAC application segment is estimated to expand at the highest CAGR of 8.0% over the forecast period. Increasing residential and non-residential construction across the developed and emerging economies are expected to increase the demand for the HVAC systems. 

By End-Use Analysis

 Based on end-use, the market for VFD is segmented into oil and gas, industrial, power generation, infrastructure, food and beverages, automotive, and others. The oil and gas segment is expected to hold a dominant share throughout the forecast period.

The infrastructure segment is projected to expand at the highest CAGR of 8.8% from 2021 to 2030, owing to increasing demand for variable frequency drives from the construction industry.

By Regional Analysis 

The Asia Pacific market was valued at USD 7.7 billion in 2021, holding a dominant share of the overall variable frequency drive market. Rising demand for energy optimization, supportive government regulations and policies, and increasing focus on developing the manufacturing sector are the key factors leading to the market growth in the region. 

The Latin American market is projected to expand at the highest CAGR over the forecast period owing to increasing industrialization in emerging countries such as Brazil and Mexico. 

Key Players 

  • ABB

  • Eaton

  • General Electric

  • Hitachi Ltd.

  • Rockwell Automation Inc.

  • Schneider Electric

  • Siemens AG

  • The Danfoss Group

  • WEG S.A.

  • Yaskawa Electric Corporation

Market Segmentation

  • By Product Type

    • AC Drives

    • DC Drives

    • Servo Drives

  • By Power Range

    • Micro

    • Low

    • Medium

    • High

  • By Application 

    • Pumps

    • Electric Fans

    • Conveyors

    • HVAC

    • Extruders

    • Others

  • By End-Use

    • Oil & Gas

    • Power Generation

    • Industrial

    • Infrastructure

    • Automotive

    • Food & Beverages

    • Others

  • Regional

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

The Variable Frequency Drive market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Variable Frequency Drive market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Variable Frequency Drive market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Variable Frequency Drive market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Variable Frequency Drive market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Variable Frequency Drive capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Variable Frequency Drive by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Variable Frequency Drive market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Variable Frequency Drive market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Variable Frequency Drive market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Variable Frequency Drive industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

Variable Frequency Drive market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Variable Frequency Drive market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Variable Frequency Drive market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Variable Frequency Drive market. These factors have benefited the growth of the global market for Variable Frequency Drive. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Variable Frequency Drive. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Variable Frequency Drive are as follows:

  • History Year: 2017-2020
  • Base Year: 2021
  • Forecast Year 2021 to 2030

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2030);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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