Variable Frequency Drive Market is Estimated to Grow at a CAGR of 4.5% from 2022 to 2028
As stated in our extensive report; the Global Variable Frequency Drive Market accounted for USD 20.7 Billion in 2021.
The market is expected to grow as a result of the rise in the adoption of connected devices across numerous industries, including the commercial, residential, and industrial sectors, as well as the growing demand for Variable Frequency Drives because of their advantages, including dynamic torque control, adjustable speed, and energy-saving, from industries like oil & gas, power generation, and automotive. Additionally, mounting infrastructure investment is driving up demand for HVAC systems, which necessitates finding ways to augment building energy efficiency. This factor is anticipated to have a beneficial impact on the target market’s growth. Furthermore, the industrial and manufacturing sectors are expanding quickly due to rapid industrialization in developing nations, supporting the demand for Variable Frequency Drives. The energy-efficient products are being adopted due to the strict rules being implemented by governments worldwide to reduce the environmental impact of CO2 and conserve energy.
Factors Influencing Global Variable Frequency Drive Market Growth
The growth of the Global Variable Frequency Drive Market can be attributable to the following:
- The market for Variable Frequency Drives is predicted to increase more quickly due to increasing demand for energy-efficient systems and rising industrial use of these drives.
- Different industry verticals have seen a significant trend toward digitization, networking, and automating industrial processes, which has seen a growing need for Variable Frequency Drive to let them remotely monitor the process.
- Because AC drives are a crucial component of equipment like pumps, hydraulic systems, fans, and other devices, they are one of the most widely used electrical components in different industries, including oil & gas, agriculture, steel, and robotics. This has helped the market develop.
- A growing number of industrial applications are utilizing technologies like the Industrial Internet of Things (IoT), driving the rapid growth of the Global Variable Frequency Drive Market.
- The modernization of power infrastructure is a result of the growing need for stable and dependable transmission and distribution (T&D) networks due to the rising energy consumption on a global scale, which is providing a favorable market scenario.
- Government policies favoring energy conservation, rapid industrialization, and the emergence of Industry 4.0 are additional factors boosting the market growth.
However, the capital-intensive installation required for Variable Frequency Drives can restrain this industry.
Asia Pacific region Dominates the Global Market
Geographically, the Asia Pacific dominates the Variable Frequency Drive Market and is anticipated to keep doing so in the years to come. Regional market expansion is expected to be aided by the government’s business-friendly policies, fast industrialization in developing countries, and rising building activity. Furthermore, due to the expanding energy demand, it is also projected that higher Variable Frequency Drive adoption by energy producers will support regional growth. In addition, extensive water treatment, automotive, and food and beverage industries operating in China, Japan, and India are projected to enhance the supply of Variable Frequency Drives to improve working efficiency and reduce power usage.
The growing demand for energy efficiency, the increased digital and automation, and rising industrialization have positively impacted the overall Variable Frequency Drive Market.
The well-known players of the Global Variable Frequency Drive Market include ABB Ltd, Siemens AG, Danfoss A/S, Rockwell Automation, GE Energy Power Conversion, Toshiba International Corporation, Schneider Electric, Mitsubishi Electric Corporation, Honeywell International Inc., Emerson Industrial Automation, Fuji Electric Co. Ltd, Johnson Controls Inc., Eaton PLC, Hitachi Ltd. and others.