Variable Frequency Drive Market is expected to boost the growth at CAGR of 5.5% from 2022 to 2030

 Variable Frequency Drive Industry Overview

The global variable frequency drive market size was valued at USD 24.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030. 

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.

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Variable Frequency Drive Market Segmentation

Grand View Research has segmented the global variable frequency drive market based on product type, power range, application, end-use, and region:

Variable Frequency Drive Product Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • AC Drives
  • DC Drives
  • Servo Drives

Variable Frequency Drive Power Range Outlook (Revenue, USD Billion, 2018 - 2030)

  • Micro (0-5 kW)
  • Low (6-40 kW)
  • Medium (41-200 kW)
  • High (>200 kW)

Variable Frequency Drive Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Pumps
  • Electric Fans
  • Conveyors
  • HVAC
  • Extruders
  • Others

Variable Frequency Drive End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Oil & Gas
  • Power Generation
  • Industrial
  • Infrastructure
  • Automotive
  • Food & Beverages
  • Others

Variable Frequency Drive Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Market Share Insights

  • May 2021: Emerson Electric Co., a global electric component manufacturer announced the launch of Copeland Variable Frequency Drives. 
  • 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. 

Key Companies profiled:

Some prominent players in the global variable frequency drive market include:

  • ABB
  • Eaton
  • General Electric
  • Hitachi Ltd.
  • Rockwell Automation Inc.
  • Schneider Electric
  • Siemens AG
  • The Danfoss Group
  • WEG S.A.
  • Yaskawa Electric Corporation

 

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, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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