Variable Frequency Drive Market (By Product: AC Drives, DC Drives, Servo Drives; By Power Range: Micro, Low, Medium, High; By Voltage Type: Low Voltage Medium Voltage; By Voltage Type: Low Voltage Medium Voltage; By End User: Oil & gas, Industrial, Power, Infrastructure) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030

The global variable frequency drive market size accounted for USD 19.21 billion in 2021 and is projected to be worth around USD 43.75 billion by 2030 with a registered CAGR of 9.58% during the projection timeframe 2022 to 2030.

Variable Frequency Drive Market Size 2022 to 2030

Key Takeaway

  • By product, the North America variable frequency drive market was valued at USD 5.7 billion in 2021 and is expected to grow at a CAGR of 5.3% from 2022 to 2030.
  • By end-use industry, the food processing sector was valued at US$ 5.3 billion in 2021.
  • By product, the AC drives segment held 69% of total sales. 
  • The DC drive product segment is estimated to grow at a CAGR of 4.9% during forecast period. 
  • Based on power range, the low power range segment garnered revenue share of 41% and medium power range frequency drive is predicted to grow at a CAGR of 5.8% from 2022 to 2030.
  • By Application, the pumps section contributed for 30% of total sales in 2021. 
  • The HVAC application segment is estimated to grow at a CAGR of 6.9%.
  • In 2021, the Asia Pacific region's market was worth USD 8.7 billion.
  • Latin America is predicted to grow at a CAGR of 6.6% over the projection period.

Growth Factors

Due to ever increasing penetration of connected devices across the various sectors including residential sectors, commercial and industrial sectors, demand for variable frequency drive (VFD) is consistently growing. Variable frequency drive comes with numerous benefits; such as dynamic torque control, adjustable speed and energy-saving. These factors are crucial for power generation, auto motive as well as oil and gas industry. These elements are expected to impact the market in positive manner.

Furthermore, another considerable factor for market is growth in investment percentage for infrastructure development. Since investments are pouring in, demand for HVAC systems is as high as never before. HVAC systems are used to energy efficiency of buildings, due to which expected power savings are achieved. Hence, these demands for the systems are also to drive the market further. Throughout world industrialization is making its way faster than ever before. Specially, in developing countries rapid industrialization is underway which ultimately results in growth of industrial and manufacturing sectors, which further are propelling the demand for variable frequency drive. 

Similarly, the power generation sector is widely adopting variable frequency drive at large scale these days as they are using it to operate large motors and continuously make the speed fluctuations as required by the process. Variable frequency drive is not limited to power generation sector only. More industries are adapting to the market trend. To name a few oil and gas, metal and mining and food processing industries are on top for now.

Climate change and Carbon emission are the biggest threat for planet’s environment and biodiversity. To preserve the planet’s depleting biodiversity and lower the carbon emission, governments across the globe are implementing stringent rules and regulations. Due to which there is significant rise in demand for products to assist energy saving to further achieve energy efficiency. Owing to favorable rules and policies are projected to boost market expansion, as it is one of the prime reasons of industrial investment in energy conservation globally. This is especially true of policies enacted by major industrial manufacturers such as India, China, Europe and the United States. For example, the Ecodesign Regulation (EU) 2019/1781 went into force in October 2019, with the first stage taking effect in July 2021 and the second one in July 2023. The first part of the legislation addressed the IE2 efficiency class, which is required for AC drives.

Report Scope of the Variable Frequency Drive Market

Report Coverage Details
Market Size by 2030 USD 43.75 Billion
Growth Rate from 2022 to 2030

CAGR of 9.58%

Asia Pacific Market Share in 2021 46%
Fastest Growing Market  Latin America 
Base Year 2021
Forecast Period 2022 to 2030
Segments Covered Product, Power Range, Voltage Type, Application, End User,  Geography
Companies Mentioned 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

Product Type Insights

In 2021, the AC drives segment accounted largest market share. This rise can be attributed to the advantages of AC drives, such as their high power, ease of application compared to others, and low maintenance. These advantages are enticing end-users in industries such as automotive, power generation and food and beverage, to improve operational efficiency. As a consequence of the significant increase in the industrial sector, there is a strong demand for AC drives, which is expected to boost segment growth.

Variable Frequency Drive Market Share, By Product,  2021 (%)

The DC drive sector is fastest growing segment during forecast period. Because DC technology is more expensive to maintain than AC technology, its usage in industry is limited. Furthermore, DC technology is not deemed energy-efficient and cannot work in critical settings; these issues are expected to stall market expansion.

Power Range Insights

The low power range segment led the global market in 2021. Low voltage frequency drives are used in end-use industries to power equipment such as centrifugal pumps, belt conveyors, pumps, fans and centrifugal compressors. Manufacturers are making significant investments in the development of slightly elevated, compact-size, relatively low voltage drives. As a result, broad use of low voltage frequency drive technology in industrial verticals, as well as increased investment in R&D activities, are likely to assist the sector dominate market expansion.

The medium power range frequency drive segment is expected to witness fastest growth during projected timeframe. Medium (41-200 kW) power range frequency drive gives benefits such as better operating flexibility and greater control, which is one of the main reasons its popularity is rising in many sectors such as wastewater plants, petrochemical, mining, and so on. Furthermore, strong demand from the petrochemical industry is likely to fuel segment expansion.

Application Insights

In 2021, the pumps section contributed largest share in overall market. Pumps are frequently employed in the treatment of water, metal, and petroleum industry. These pumps are equipped with adjustable speed drives, which assist them, minimise energy usage, lower the cost of pump operation, and run at varied velocities without the use of a gearbox. Thus, the stated effect of implementing VFD to pump are leading in growing demands for variable frequency drive from the water treatment plant market, oil & gas, and other industries for overloading the flow rate and improving efficiency, which is likely to boost the expected segment's growth.

The HVAC segment is estimated to witness remarkable grow over the forecast period. The increasing expansion of residential and commercial development activity is expected to enhance consumption for HVAC systems. Connecting a VFD to an HVAC system ensures greater efficiency by managing the speed of blower fans, pumps, or compressors.

Region Insights

The Asia Pacific region accounted largest revenue share in 2021. Rapid industrialization in developing nations, market liberalization, and increased building activity are all projected to boost regional market expansion. Similarly, increased energy demand is likely to promote energy companies' adoption of VFD, which will help regional growth. Furthermore, the presence of water treatment, large automotive and food & beverage producers operational in the countries such as India, China, and Japan are likely to boost supply for VFD to increase working efficiency and minimize power usage.

Variable Frequency Drive Market Share, By Regions, 2021 (%)

Latin America is predicted to grow at a notable CAGR over the projection period, primarily to privatization and urbanization in countries such as Brazil & Mexico. Similarly, growth of the market from end-use industries such as cement, chemicals, and pulp is likely to fuel VFD market expansion in this area.

Market Key Players

  •     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

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Product

  • AC Drives
  • DC Drives
  • Servo Drives

By Power Range

  • Micro
  • Low
  • Medium
  • High

By Voltage Type

  • Low Voltage
  • Medium Voltage

By Application

  • Pumps
  • Electric Fan
  • HVAC
  • Conveyors
  • Extruders
  • Others

By End User

  • Oil & gas
  • Industrial
  • Power
  • Infrastructure

 By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of variable frequency drive market?
The global variable frequency drive market size was accounted at USD 19.21 billion in 2021 and it is expected to reach around USD 43.75 billion by 2030.
The global variable frequency drive market is poised to grow at a CAGR of 9.58% from 2022 to 2030.
The major players operating in the variable frequency drive market are 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
Greater than ever industrialization and growing demand for energy efficiency.
Asia Pacific region will lead the global variable frequency drive market during the forecast period 2022 to 2030.
  • Report Code:1848
  • Category:Semiconductor and Electronic
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published


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