Variable Frequency Drive Market Overview, Growth, Opportunities, and Development 2031

The variable frequency Drive market size is projected to reach US$ 34.01 billion by 2031 from US$ 22.03 billion in 2023. The market is expected to register a CAGR of 5.6% during 2023–2031. The growing digitalization and government initiatives to promote the adoption of energy-efficient solutions are likely to remain key trends in the market.

Variable Frequency Drive Market Analysis

A variable frequency drive (VFD) is a type of motor controller that regulates the frequency and voltage of an electric motor's power supply. The VFD can also control the motor's ramp-up and ramp-down during start and stop cycles, respectively. Even though the drive regulates the frequency and voltage of power supplied to the motor, it is commonly referred to as speed control because the consequence is an adjustment of motor speed. A few of the major reasons why VFDs are preferred over other motor controlling technologies, such as soft starters and across-the-line contactors, are: save energy and increase system efficiency, convert electricity for hybridization purposes, match the speed of the drive with the process requirements, match the torque or power of a drive with the process requirements, improve the work environment, reduced noise levels, such as from fans and pumps. These applications are the reason for the rising variable frequency drive market share in the overall motor control market. Energy saving is the most important factor considered when selecting VFDs for motor-driven systems. In the current market, fans, pumps, and compressor applications hold a major chunk of the variable frequency drive market forecast.

Variable Frequency Drive Market Overview

One of the major factors driving the variable frequency market growth is the need for energy savings in drive control systems used in industries. VFDs can dramatically cut energy use, lowering production costs. VFDs control pumps and fans in a system using an alternating current motor rather than valves and dampers. In the US, rotating machinery consumes 50% of the total electrical energy generated. Current estimates indicate that centrifugal or flow-related applications, such as fans, blowers, compressors, and pumps, require 65% of the total. Variable speed drive technology is a cost-effective way to tailor driver speed to load needs, resulting in lower operating costs and increased productivity. Major energy consumers such as chemical industries, oil and gas industries, refiners, automotive industries, and others are constantly investing in improving energy consumption. These industries are expected to be in a better position to replace conventional motor control systems with VFD. Variable frequency drives are predefined solutions for some applications, such as extruders, bigger reciprocating pumps, displacement pumps, and large agitators (up to 1 kW). However, in other applications, the use of variable frequency drives is proposed and investigated. If the machines are routinely operated at partial load, the savings potential increases. Individually, the use of a VFD can cut energy expenses by 40%.

Also, the variable frequency drive market is witnessing digital trends. Wireless diagnostics represent the future of VFDs, whether they are Wi-Fi, Bluetooth, or something else entirely. In a typical facility where access to a drive in a closed enclosure is limited, engineers can use the drive's wireless signal to connect directly to the system from a distance. The Internet of Things (IoT), a global trend across all industries, has had an impact on VFDs by speeding up and simplifying the flow of data from machine to technician and back. These variable frequencies drive market trends and further generate potential for the growth of the market.

Variable Frequency Drive Market: Strategic Insights

Variable Frequency Drive Market Drivers and Opportunities

Increasing application in HVAC systems to Favor Market

VFDs are very beneficial for centrifugal loads like pumps and fans. Variable-loaded air compressors (usually rotary screw type), boiler and chiller feedwater pump motors, cooling tower fans, air handler supply and return fans, exhaust fans, and others are common commercial and industrial VFD uses. VFDs are especially useful in applications with long working hours since there are more opportunities to harvest energy savings and offset the cost of the equipment. Variable frequency drives (VFDs) are increasingly used in the HVAC sector for a variety of applications. They can control the motor speed very smoothly across a large range. Reduced motor speed leads to a considerable loss in motor power. VFDs have been used in building HVAC systems for more than 4 decades. However, variable frequency drives have only recently been implemented in a growing number of HVAC systems within buildings, owing to their improved energy-saving characteristics. The global HVAC industry is growing with a CAGR of about 8%. This rise in the HVAC market will significantly impact the variable frequency drive market trends as these are being increasingly used for energy efficiency in these systems. The variable frequency drive market report emphasizes such key factors driving the market and prominent players' developments.

Rising Demand for Energy Efficiency Among Industries

Industries across the globe are transforming their operations towards the adoption of sustainable and energy-efficient infrastructure for mitigating and reducing environmental impact. This increases the demand for variable frequency drives for enhancing energy efficiency in industrial processes. Industries increasingly demand variable frequency drives for precisely controlling motor speed and power consumption. Moreover, numerous industries such as infrastructure, power generation, industrial, oil and gas, and others are adopting variable frequency drives for ensuring precise temperature and ventilation, navigating complex terrain, and optimizing operations by promoting energy efficiency. These factors are anticipated to create significant growth opportunities for the market during the forecast period.

Variable Frequency Drive Market Report Segmentation Analysis

Key segments that contributed to the derivation of the variable frequency drive market analysis are type, voltage, application, and end user.

• Based on type, the variable frequency drive market is divided into AC drives, DC drives, and servo drives. The AC drives segment held a larger market share in 2023.
• By voltage, the market is segmented into low voltage (up to 690 V) and medium voltage (more than 690 V)). The low voltage (up to 690 V) segment is anticipated to expand during the forecast period.
• By application, the market is segmented into pumps, fans, compressor, conveyors, and others. The pumps segment is anticipated to expand during the forecast period.
• In terms of end users, the market is segmented into infrastructure, power generation, industrial, oil and gas, and others. The oil and gas segment is anticipated to expand during the forecast period.

Variable Frequency Drive Market Share Analysis by Geography

The geographic scope of the variable frequency drive market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Asia Pacific holds one of the largest global variable frequency drive market share. Asia Pacific is the manufacturing hub of the world. Countries such as China, Japan, South Korea, and India, among others, are at the forefront of manufacturing activities and industrial investments. For instance, foreign direct investment in China's manufacturing industry increased by 1.9 percent year on year to 283.44 billion yuan (US$39.47 billion) in the first 10 months of 2023, while high-tech manufacturing increased by 9.5 percent, according to China's Ministry of Commerce data. Similarly, according to the 8th annual "State of Smart Manufacturing Report" by Rockwell Automation, a major share of manufacturers in India are investing in advanced technologies. Manufacturers in India invest 35% of their operational budgets in technology, outpacing the global average (23%) and countries such as the United States (27%) and Japan (24%).

Major manufacturers in the Asia Pacific are increasingly turning their focus on energy-efficient operations in their manufacturing establishments. This initiative creates a potential for the variable frequency to drive market growth in this region. Some of the instances signifying this trend are,

In 2021, ADB approved a new energy policy to assist developing member countries (DMCs) in accelerating Asia-Pacific's low-carbon transition. The energy strategy identifies a number of major priorities and technologies that our DMCs should investigate, notably those related to energy efficiency and renewable energy.

Variable Frequency Drive Market Regional Insights

The regional trends and factors influencing the Variable Frequency Drive Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Variable Frequency Drive Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Variable Frequency Drive Market Report Scope

Variable Frequency Drive Market Players Density: Understanding Its Impact on Business Dynamics

The Variable Frequency Drive Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Variable Frequency Drive Market News and Recent Developments

The variable frequency drive market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the variable frequency drive market are listed below:

• Siemens AG launched Sinamics G220, a new high-performance frequency drives that join the Sinamics family in the run-up to Hannover Messe 2023. The innovative frequency drives are equipped with so-called clean power technology. This reduces harmonics by up to 97 percent without the need for line harmonic chokes or DC link chokes. (Source: Siemens AG, Company Website, March 2023)

Variable Frequency Drive Market Report Coverage and Deliverables

The “Variable Frequency Drive Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Variable frequency drive market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Variable frequency drive market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Variable frequency drive market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the variable frequency drive market
• Detailed company profiles