Growing focus of end user organizations to enhance energy efficiency and business productivity is driving growth of the variable frequency drive market across the globe. Also, compatibility of advanced variable frequency drives with existing motors is increasing the uptake across various end user verticals. Further, broadening application area is expected to increase the adoption of variable frequency drives such as AC, DC and servo drive, propelling market growth. However, technical irregularities associated with these drives are expected to hamper growth of the variable frequency drive market. Additionally, high cost of deployment is impeding the adoption of variable frequency drive with medium voltage, especially in developing regions.
Report Scope
This report analyzes the global variable frequency drive market in terms of drive type, application, service, end user, and geography. The global variable frequency drive market has been segmented based on drive type into alternating current (AC) drive, direct current (DC) drive and servo drive. By voltage, the market is bifurcated into low range and medium range. On the basis of application, the global variable frequency drive market is segmented into pump, fan, compressor, conveyor, HVAC, and other application. Based on end user, the market is classified into oil & gas, food processing, automotive, mining & metals, pulp & papers, and others. The global variable frequency drive market covers major geographies such as North America, Europe, Asia Pacific, and Rest of World.
Major players operating in the variable frequency drive market follow the strategy of operational expansion in order to enhance their production capacity, market presence and customer base. Also, acquisition and mergers to expand geographical and market share is another major strategy adopted by key vendors in the variable frequency drive market. Some of the prominent players identified in the variable frequency drive market are Fuji Electric Co., Ltd, Mitsubishi Electric Corporation, Siemens AG, ABB Ltd., American Electric Technologies Inc. (AETI), GE Energy Power Conversion, Hitachi Ltd., Honeywell International Inc., Johnson Controls Inc., and Schneider Electric.
1.1 Report Description
Purpose of the Report
The purpose of this strategic research study titled “Global Variable Frequency Drive Market - Growth, Share, Opportunities, and Competitive Analysis, 2020 – 2028” is to offer industry investors, company executives, and industry participants with in-depth insights to enable them make informed strategic decisions related to the opportunities in the global Variable Frequency Drive market.
Target Audience
USP and Key Offerings
The report titled “Global Variable Frequency Drive Market- Growth, Share, Opportunities, and Competitive Analysis, 2020 – 2028” offers strategic insights into the global Variable Frequency Drive market along with the market size and estimates for the duration 2018 to 2028. The said research study covers in-depth analysis of multiple market segments based on drive type, end user, and cross-sectional study across different geographies. In order to help strategic decision makers, the report also includes competitive profiling of the leading variable frequency drive vendors, their SCOT (Strength, Challenges, Opportunities, and Threats) analysis, market positioning, and key developments. Other in-depth analysis provided in the report includes:
Overall, the research study provides a holistic view of the global variable frequency drive market, offering market size and estimates for the period from 2018 to 2028, keeping in mind the above mentioned factors.
On the basis of application, the global variable frequency drive market is categorized into following sub-segments:
As of 2019, pump was the dominant application segment among all types of applications in the global variable frequency drive market, accounting for over 30% share of the overall market revenue. Additionally, the segment is expected to continue its dominance till 2028. Increasing replacement of hydraulic drives with variable frequency drives in pump applications particularly in oil & gas and wastewater management industries is driving the segment growth across the globe. Other application segment is the second largest segment, in terms of revenue, owing to growing usage of variable frequency drive for small application in various industries. However, heating, ventilation, and air condition (HVAC) segment is expected to witness highest CAGR from 2020 to 2028. Variable frequency drive is considered to be one of the most successful energy manage tools to enhance HVAC system performance. Also, advanced drives reduces overall maintenance and operational cost once deployed, which, in turn, is increasing the uptake of VFDs in HVAC application.
On the basis of end user, the global variable frequency drive market is categorized into following segments:
In 2019, the global variable frequency drive market was dominated by oil & gas end user segment. The segment accounted for over 17% of the global variable frequency drive market revenue in the same year. Food processing is the second-largest end user segment in terms of revenue generation. Growing deployment of variable frequency drives for major applications such as belt, chain and auger conveyors, palletizer, pumps, and hoist in the sector is boosting the market growth. Also, food processing industry has witnessed healthy growth in the recent past and is projected to enjoy positive growth trend in the near future. This is likely to increase the uptake of AC and DC drives in the food processing industry to enhance energy efficiency and reduce long term operational cost. However, the variable frequency drive market in mining and metals industry is expected to expand at the highest CAGR of over 8% over the forecast period.
By geography, Asia Pacific was the largest regional market, in the overall variable frequency drive market in 2019. The region constituted more than 30% market share in the same year. Additionally, Asia Pacific is expected to retain its dominance during the forecast period. Major end user verticals such as mining and oil & gas, especially in China and India are increasingly deploying advanced variable frequency drives improve performance of pumps and conveyor. Also, increasing demand for medium voltage drives for long-wall systems in mining and metals industry is boosting growth of the market in the region. However, the variable frequency drive market in Latin America is projected to expand at a considerable CAGR between 2020 and 2028. Major growth is coming from emerging markets such as Brazil and Mexico, propelling market growth. Additionally, favorable government regulations in these countries are expected to drive market growth.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Variable Frequency Drive market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Drive Type
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Voltage Range
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Application
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End User
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
