The global variable frequency drive (VFD) market size is projected to reach USD 37.4 billion by 2027 and registering 6.5% CAGR during the forecast period from 2020 to 2027, according to a new report by Million Insights. Growing technological advancements in developing economies and increasing awareness for energy efficiency are key factors driving the growth of the market.
Government across several countries are striving to increase awareness regarding energy efficiency, which is expected to be one of the major factors for market growth. For example, the International Energy Agency (IEA) invested around USD 240 billion in energy efficiency across buildings, industry sectors and transport.
The integration of VFDs with electric drives enables users to control speed and torque, thereby helps to increase their operating efficiency as well as reduces energy consumption. Therefore, rising application of VFD across different industries including power generation, automotive, food & beverage, and oil & gas is projected to propel the market growth. In addition, growing energy prices are also anticipated to increase the deployment of VFDs across multiple industries.
The Asia Pacific dominated the global market due to rapid advancement in infrastructure, industrial growth, and growing demand for greater power efficiency. In this region, China, Japan, and India are the major contributors to VFD regional market growth. This growth is characterized by huge investment in manufacturing industries in these countries by the government to boost their economic growth.
The VFD market is highly competitive due to the presence of private and public companies. The market players are focusing on investing in R&D to develop technologically advanced products to sustain in the competitive market. For example, ABB Ltd. announced the launch of an all-compatible ACS6080 MV drive for better performance applications that enable plants to manufacture high-quality products and work more efficiently.
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Further key findings from the report suggest:
• In 2019, the AC drives segment accounted for the largest market share of over 68.0% due to its several benefits such as reduced level of noise and vibration, easy integration, and low maintenance cost.
• The medium power range segment is expected to grow at thefastest CAGR of 6.8% from 2020 to 2027. This growth is attributed to the increasing demand from chemical, marine, power sector, and oil and gas.
• Application-wise, the HVAC segment is projected to grow with a significant growth rate during the forecast period due to the increasing adoption of HVAC systems in commercial and residentialbuildings.
• In 2019, the oil and gas sector dominated the global market and projected to reach around USD 1.8 billion by 2027. Increasing application of VFDs in pumping systems and heavy power motor-driven pumps is projected to drive the segment growth.
• The Latin America market is anticipated to grow at the highest CAGR of more than 7.0% from 2020 to 2027 due to increasing industrialization in developing countries such as Brazil and Mexico.
• The key market players include Rockwell Automation, Inc.; Schneider Electric; Eaton; and ABB.
Million Insights 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, 2016 - 2027)
• AC Drives
• DC Drives
• Servo Drives
Variable Frequency Drive Power Range Outlook (Revenue, USD Billion, 2016 - 2027)
Variable Frequency Drive Application Outlook (Revenue, USD Billion, 2016 - 2027)
• Electric Fans
Variable Frequency Drive End-Use Outlook (Revenue, USD Billion, 2016 - 2027)
• Oil & Gas
• Power Generation
• Food & Beverages
Variable Frequency Drive Regional Outlook (Revenue, USD Billion, 2016 - 2027)
• North America
• Asia Pacific
• South Korea
• Latin America
• Middle East & Africa