Variable Frequency Drives Global Market Report 2024

A variable frequency drive (VFD) is a type of motor controller designed to alter the frequency and voltage to drive an electric motor. These drives have the capability to manage the gradual increase or decrease in motor speed. They play a crucial role in conserving energy and enhancing system efficiency, finding widespread application in fans, pumps, conveyors, and compressors.

The primary categories of variable frequency drives include AC drives, DC drives, and servo drives. AC drives are employed to regulate the speed of an electric motor, contributing to improved process control, reduced energy consumption, and efficient energy generation. AC drives come in various power ratings, including low power rating, medium power rating, micropower rating, and high power rating. They find application in pumps, fans, compressors, conveyors, and various other industrial processes. End-users of variable frequency drives span across industries such as food and beverages, oil and gas, power generation, infrastructure, and others.

The variable frequency drive (VFD) market research report is one of a series of new reports that provides variable frequency drive (VFD) market statistics, including variable frequency drive (VFD) industry global market size, regional shares, competitors with a variable frequency drive (VFD) market share, detailed variable frequency drive (VFD) market segments, market trends and opportunities, and any further data you may need to thrive in the variable frequency drive (VFD) industry. This variable frequency drive (VFD) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The variable frequency drives market size has grown strongly in recent years. It will grow from $18.99 billion in 2023 to $20.17 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. The expansion observed in the historical period can be ascribed to an increasing need for energy efficiency and process optimization, a widespread adoption of automation and Industry 4.0 initiatives, the swift proliferation of electric vehicles (EV), the broadening of industrial applications and market diversification, and the pursuit of cost savings.

The variable frequency drives market size is expected to see strong growth in the next few years. It will grow to $25.73 billion in 2028 at a compound annual growth rate (CAGR) of 6.3%. The anticipated expansion in the forecast period can be linked to an increasing demand for condition-based maintenance, the global trend of industrialization, initiatives aimed at reducing the carbon footprint, government incentives, and the rising integration of renewable energy. Key trends projected in the forecast period involve retrofitting and modernization, the implementation of smart and digital variable frequency drives (VFDs), the integration of Industry 4.0 principles, the development of customized VFD solutions, and the utilization of regenerative VFDs.

The growth of the market is being propelled by an increasing need for energy efficiency and government regulations across various industries. Industries worldwide are striving to optimize energy usage, and governments are enforcing stringent regulations to ensure energy efficiency in these sectors. Variable frequency drives (VFDs) are recognized for their energy efficiency and convenience, making them valuable for reducing energy consumption in industries. An example of such regulations is the Energy Conservation Building Code (ECBC) in India, which establishes minimum energy standards for new commercial buildings, fostering the growth of the variable frequency drives market through compliance with government efficiency standards.

The rising demand for renewable energy is expected to drive the growth of the variable frequency drives market. Renewable energy, derived from naturally replenishable resources, is witnessing increased demand globally. Variable frequency drives (VFDs) play a crucial role in enhancing the reliability, efficiency, and performance of renewable energy systems. They facilitate the integration of variable energy sources like wind and solar into the electrical grid. As per the International Energy Agency, renewable electricity generation is set to expand by over 8% in 2021, reaching 8,300 TWh. This increasing demand for renewable energy sources contributes significantly to the growth of the variable frequency drives market.

Technological advancements are a prominent trend gaining traction in the variable frequency drives market. Companies are actively developing new products to enhance the user experience and offer advanced functionalities. For instance, in June 2021, Ireland-based power management company Eaton introduced the POWER XL DM 1 Micro Variable Frequency Drive. This drive incorporates IoT and Ethernet communication, providing customers with greater efficiency, safety, and reliability. The advanced features of this drive enhance integration and ease of use, reflecting the trend of technological innovation in the variable frequency drives market.

Major companies in the variable frequency drives market are concentrating on introducing advanced solutions to gain a competitive advantage. Advanced Variable Frequency Drives (VFDs) are sophisticated motor control devices utilized in various industrial and commercial applications to precisely regulate the speed, torque, and power consumption of electric motors. Emerson Electric Co., a US-based component manufacturing corporation, launched Copeland Commercial Variable Frequency Drives (VFDs) in May 2021. These VFDs, designed to work with natural refrigerant compressors, can significantly reduce energy consumption, offering a quick return on investment (ROI). The technology allows for better control over temperature and humidity, reduced noise levels, and adaptability to changing loads and weather conditions.

In May 2022, Black Bay Energy Capital LLC, a US-based private equity firm, acquired a majority interest in Advanced Industrial Devices (AID) from Rock Island Capital. This strategic move aims to enhance AID's production, engineering, and servicing capacity to meet growing customer demand in the expanding market for electric motors and VFDs. AID specializes in designing and selling custom variable frequency drive control systems (VFD) for industrial, oil, and gas sectors, contributing to the broader adoption of VFD technology.

Major companies operating in the variable frequency drives market include Eaton Corporation, Hitachi Hi-Rel Power Electronics, Rockwell Automation, Johnson Controls, Anaheim Automation, Werner Electric GmbH, ASEA Brown Boveri, Nidec Motor Corporation, Siemens AG, Danfoss, Honeywell International, Toshiba Mitsubishi-Electric Industrial Systems Corporation, Fuji Electric Corp, Schneider Electric, Yaskawa Electric Corporation, General Electric, Delta Electronics, Phase Technologies LLC., Inovance Technology, GE Power Conversion, Shenzhen INVT Electric Co. Ltd., Hiconics Eco-energy Technology, VEICHI Electric Co. Ltd., HopeSenlan Science and Technology, EURA Drives GmbH, POWTRAN Technology Co. Ltd., Sichuan Jialing Electric Power Co. Ltd.

Asia-Pacific was the largest region in the variable frequency drives market share in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the global variable frequency industry report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the variable frequency drives market report is Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The variable frequency drive market consists of sales of pilot devices, safety switches, control circuit. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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