The revenue generated by variable frequency drive market was USD 23.56 billion in 2022, and it will propel at a compound annual growth rate of 5.20% by the end of this decade, to touch USD 35.34 billion by 2030, as mentioned in one of the reports of P&S Intelligence.
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| Variable Frequency Drive Market Size and Share Analysis Report |
Rapid industrialization also drives the demand for such drives. With increasing number of industries established all over the world, the requirement for variable frequency drives is on the rise, as they are put to use in mixers, conveyors, welders, ventilation fans, pumps, cutting machines, grinders, and many more.
The AC drive had a revenue share of over 69% in 2022. This is due to the fact that most of the traditional DC drives are replaced by AC drives, as a result of their higher costs of operation and maintenance and generation of carbon dust. They also produce poor power factors, damaging to electrical systems.
Furthermore, in AC drives, the requirement for power system apparatuses is low, as there is no necessity for breakers, transformers, and HT capacitors.
Also, these reduce consumption of energy and improving life of the equipment. Therefore, these factors will boost the requirement for AC drives in the years to come.
The low-voltage drive category dominated the variable frequency drive market in 2022, and it will continue like this in the years to come as well. This is due to the fact that these drives offer numerous industry-specific and general solutions with numerous functions.
Furthermore, they are used in numerous industrial automation applications in various industries, for example rubber, and plastics, pulp & paper, cement, oil & gas, steel & metal, mining, sugar, water & wastewater.
Similarly, as a result of their capability to work for both low- and high-power uses, the requirement for these drives is on the rise.
APAC dominated the industry with 35% share in 2022. It will also have the fastest growth. This is because of the fast industrialization, driven by Japan, China, India, and Australia; numerous initiatives of the government for reducing the consumption of energy through energy-efficiency standards; and the increasing investments, leading to the progression in technology to concentrate on high dependability and reduced costs of energy.
Furthermore, the requirement for VFDs is also growing in North America, as a result of strict regulations for energy efficiency, the upgradation of infra to secure electrical distribution systems, and quick industrialization.
As a result of the rising demand for energy efficiency all over the world, the impact will be positive on the demand for variable frequency drives, and they will be demanded more in the years to come.
