Low Voltage Drives Market Share Report, Size, Analysis and Forecast 2031

[Research Report] The Low Voltage Drives Market size is expected to grow from US$ 19.13 billion in 2022 to US$ 27.39 billion by 2030; it is estimated to grow at a CAGR of 4.6% from 2022 to 2030.    

Analyst Perspective:

The low voltage drives market has witnessed significant growth in recent years, driven by the evolution of Industry 4.0, infrastructural development, industrial expansion, and growing investment in smart city projects. Increasing smart city projects in countries like the US, China, India, the UK, Japan, Germany, Singapore, France, Norway, and the Netherlands, among others, are boosting the market growth. Stringent government policies for installing energy-efficient solutions are fueling the market growth in the near future. These drives are already used in numerous automotive, energy generation, and improving safety in oil and gas plants worldwide. The growing adoption of low voltage drives among industries to increase productivity and energy efficiency by reducing maintenance costs, fueling the low voltage drives market. However, rising demand for industrial automation and energy-efficient solutions among consumers is creating opportunities in the market.

Low Voltage Drives Market Overview:

Low-voltage drives are electromechanical devices used for controlling and adjusting the speed and torque of motors. These drives are designed to convert AC power into DC and back to varying input frequency and voltage. These drives can operate at low voltages ranging between 100 to 690 volts or below 1000 volts. These drives are widely used in different industries to regulate motor speed, reduce maintenance costs, and improve energy efficiency by enabling precise control in fans, pumps, and conveyors. The demand for low-voltage drives has rapidly increased in recent years, due to rising expenditure in the adoption of electric vehicles. Increasing complexities in the grid infrastructure in developing countries raise the demand for low-voltage drives, fueling the market. Low-voltage drives are connected to the grid to generate a 3-phase voltage, which is adjustable in amplitude and frequency. This allows control of the torque and speed of the electrical motor. Moreover, the energy generation mix is undergoing a drastic transformation due to rapid urbanization, the development of smart grid infrastructure, and the increasing use of renewable energy sources, boosting market growth soon.

Strategic Insights

Low Voltage Drives Market Driver:

Growing Demand for Electric Vehicles (EVs) Among Consumers is Driving the Market

Low voltage drive is used to improve the performance and safety of electric vehicles. Growing demand for electric vehicles among consumers is driving the low-voltage drive market. For instance, according to International Energy Agency data from April 2023, 10% of passenger vehicles will be sold in 2022 due to consumers' growing adoption of sustainable solutions. Countries like Norway (80%), Iceland (41%), Sweden (32%), the Netherlands (24%), and China (22%) will increase their adoption of electric vehicles in 2022, which will increase the demand for low-voltage drives among consumers. Low voltage drive increases the voltage by reducing electric vehicle safety problems. Moreover, growing electric vehicle adoption among consumers encourages market players to develop cost-effective and sustainable solutions. For instance, nanoFlowcell Management AG developed a 48VOLT low-voltage electric drive suitable for sports cars and electric vehicles. 48VOLT low-voltage electric drives are highly scalable and fit in compact, super sports, and electric cars. nanoFlowcell Management AG’s 48VOLT low-voltage electric drive is the most powerful, cost-effective, safe, and eco-friendly solution for electric cars. Low voltage drive helps electric vehicle manufacturers by providing the capacity to regulate the magnetic field while lowering the voltages of its electrical motors. The drive functions as a virtual gearbox to regulate EV torque by adjusting the magnet field, which helps the driver shift gears in response to changes in the road.

Additionally, these drives provide significant benefits to the electric vehicle user in adjusting its magnetic poles. The low voltage drives offer efficiency between 95%-97% at high torque speeds in electric vehicles, increasing the demand among manufacturers and users. However, shifting consumer preference towards adopting low-voltage drives over conventional drive systems is fueling the market during the forecast period.

Low Voltage Drives Market Segmental Analysis:

Based on power rating, the market is segmented into <2.2kW, 2.2kW to 7.4kW, 7.5kW to 22kW, 23kW to 75kW, 76kW to 110kW, 111kW to 500kW, and >500kW. The > 500 kW low voltage drives segment is projected to expand during the forecast period. Increasing demand for high-performance and reliable low-voltage drives in the oil and gas industry is driving the market. > 500 kW low voltage drives provide precise control over motor speed and reduce energy consumption by offering actual energy requirements to the systems. These drives offer significant benefits to the users, such as controlled module options and simple installations driving the segment demand among consumers. Rising demand for > 500 kW low voltage drives from numerous industries including food processing, power generation, pulp & paper, mining & metal, and textile for controlling frequency fluctuation, are creating opportunities in the market.

Low Voltage Drives Market Regional Analysis:

The Asia Pacific low voltage drives market was valued at US$ XX billion in 2022 and is projected to reach US$ XX billion by 2030; it is expected to grow at a CAGR of XX% during the forecast period. The market in Asia Pacific is expected to dominate shortly, owing to rising demand for sustainable and energy-efficient products among consumers. Growing focus on energy conservation and renewable energy in countries like China, India, and Australia is driving the market. For instance, according to Invest India, the government of India invested US$ 2.4 billion in its National Hydrogen Mission to promote renewable energy use among consumers. This mission will increase green hydrogen production by up to 5 million metric tons (MMT) by 2030. The rising production of green hydrogen increases the demand for these drives for controlling components like compressors, pumps, and electrolyzes. These drives also help supply electrical power to these components to ensure precise, reliable, and efficient operations.

Similarly, China has also increased its adoption of low-voltage drives in renewable energy production. According to the International Energy Agency (IEA), China plans to expand its wind energy production capacity by 2024. The country plans to deliver almost 70% of new offshore wind projects, over 60% of onshore wind, and 50% of solar PV projects globally, increasing the demand for these drives. These drives convert DC electricity to AC electricity to improve wind turbine capabilities, driving the market. However, increasing the adoption of low-voltage drives helps the user ensure grid security, fueling the Asia Pacific market during the forecast period.

Low Voltage Drives Market Key Player Analysis:

The low voltage drives market analysis consists of players such as Infineon Technologies AG, ABB Ltd, Siemens AG, Hitachi Hi-Rel Power Electronics Pvt Ltd, Danfoss LLC, Rockwell Automation Inc, Schneider Electric SE, Fuji Electric Co Ltd, Nidec Corp, and Yaskawa Electric Corp, among the key market players profiled in the report.

Low Voltage Drives Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the market. A few recent key market developments are listed below: 

• In December 2023, ABB Ltd displayed the latest technologies including ACH580-31 ultra-low harmonic drive, HDS high-performance AC permanent magnet servo motor, AC500 PLC, E530 servo drive, HX explosion-proof servo motor, high-performance PLC system, industrial computing platform, servo drive and motor, HMI, OPC UA FX, digital solutions, and machine vision solutions at 23rd China International Industry Fair.
• In September 2023, Rockwell Automation Inc. and Infineon Technologies AG signed an agreement to jointly develop and distribute a new class of highly efficient, integrated low-voltage drive and motor technology. The technology helps the user significantly save energy and eliminate additional costs for industrial customers by reducing their carbon footprint.
• In March 2022, Harju Elekter UAB signed a contract with U.S. Steel Corporation (Exploratory Ventures LLC) to produce low-voltage drives and MCC systems. The contract is valued at US$ 10.99 million for continuing production and deliveries till April 2023. These drives and systems help manage and control 500 motors at Arkansas's new Big River Steel complex.
• In December 2019, Nidec Corp was acquired by Roboteq, Inc. to strengthen its low-voltage drive business. Nidec Corp is also adding Roboteq, Inc.’s Ultra Low Voltage (ULV) drives in its product portfolio to fulfill the rapidly growing demand for AGV robots.
• In November 2019, Siemens AG added a new Simatic Micro-Drive F-TM Servodrive to its protective extra-low voltage product portfolio. Simatic Micro-Drive F-TM Servodrive is designed for 24- to 48-volt EC motors. The drive supports accurate and dynamic positioning in a small space in the performance range of up to 280 watts.

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