Global Variable Frequency Drive Market Assessment, By Type [AC Drive, DC Drive, Servo Drive], By Power Range [Micro, Low, Medium, High], By Energy Storage [Voltage-Source Inverter (VSI), Current-Source Inverter (CSI), and Pulse Width Modulation Inverter (PWM)], By Application [Pumps, Electric Fan, HVAC, Conveyors, Extruders, Others], By End-use [Power Generation, Infrastructure, Oil & Gas, Food & Beverages, Mining, Agriculture, and Others], By Region, Opportunities and Forecast, 2017-2031F

Variable Frequency Drive Market is projected to witness a CAGR of 5.3% during the forecast period 2024-2031, growing from USD 23.28 billion in 2023 to USD 35.06 billion in 2031.

Variable Frequency Drive Market Size, Share, Trends 2031

The global variable frequency drive market is projected to witness a&nbsp;CAGR of 5.3%&nbsp;during the forecast period 2024-2031, growing from&nbsp;USD 23.28 billion&nbsp;in 2023 to&nbsp;USD 35.06 billion&nbsp;in 2031. The market thrives at a healthy growth rate, attributed to adopting Industries 4.0 technologies. Variable frequency drives play a crucial role in achieving energy-efficient solutions. They are commonly used in pumps, electric fans, HVAC systems, and conveyors. By incorporating variable frequency drives, power consumption can be reduced by 20 to 25%. Governments worldwide are emphasizing energy efficiency, which will boost product sales. For instance, &lsquo;Building a Better Grid&rsquo; initiative in the United Staes aims to invest over USD 20 billion in modernizing and expanding long-distance, high-voltage transmission and distribution systems.
A shift in the industrial power sources and motor equipment to generate adjustable power frequency is putting forward new smart manufacturing solutions. The evolution of variable frequency drives (VFDs) comprises the creation of static VFDs composed of power electronic devices that are now becoming active participants in industrial automation and smart manufacturing units. A VFD, also known as a frequency inverter and variable speed drive (VSD), not only accelerates and decelerates the motor speed but also varies the power and torque of a connected induction motor. Among the various applications of frequency inverters, comparatively new industries are expected to add value to the market such as wastewater treatment plants and the pharmaceutical sector.&nbsp;
Since the creation of the first low-voltage VFD in the year 1988, these VFDs have been used in a wide range of industrial automation applications, from small to large scale. It is an adjustable speed drive that is used in electromechanical drive systems to regulate AC motor speed and torque by changing motor input frequency and voltage. Furthermore, VFD vendors also design and build new drive inverters for specific applications to target a certain vertical.&nbsp;
For instance, in October 2023, a major VFD vendor, Invertek Drives Ltd., launched a new frequency inverter designed to enhance elevator motor control. The VFD, Optidrive Elevator Core, is a game-changer in lift motor control technology, offering unparalleled dimensions, performance, and power. The key features include USB C-Connectivity, a universal encoder module, and the capability of operating with a 10KHz full current at&nbsp;50&deg;C.
<h2 style="text-align: justify;">Industrial Automation, Smart Manufacturing, and Sustainable Applications to Fuel Market Growth</h2>
The market is witnessing rapidly transforming manufacturing and industrial landscape on the lines of automation and integration of major elements of the fourth industrial revolution like artificial intelligence and Internet of Things (IoT). AI technologies anticipate load variations, detect system faults, and automatically adjust VFD settings. Manufacturers are creating VFDs that have adaptive control systems that learn and improve performance over time, eliminating the need for human intervention and increasing productivity. Hence, automation has become the center point of VFD market expansion.
These variable speed drives have become smarter and more connected, enabling remote monitoring and operation. While AI enables VFD to predict and adapt, integration with IoT platforms has allowed for predictive maintenance, real-time data analysis, and optimization of energy consumption. These technological advancements also facilitate compact and modular designs, enhanced safety features, and customization. Apart from the long list of end users, VFD&rsquo;s sustainable applications, such as water treatment plants and solar-powered water pumping solutions, also fuel the market growth.&nbsp;
For instance, in April 2024, ABB Ltd. introduced an innovative solar drive for sustainable water pumping. The company launched a new ACQ80 variable speed drive (VSD). The drive comes with a maximum power point tracking (MPPT) logic that ensures the maximum power output from solar panels for maximized pump performance. Dual supply mode allows the drive to operate with both a DC supply from PV solar panels and an AC supply from the grid or generator for pumping 24/7.
<h2 style="text-align: justify;">Rising Demand for Energy-Efficient Motor Solutions to Expand Market Size</h2>
Energy efficiency is crucial in manufacturing space and makes all the difference. The VFDs have evolved to deliver the required power for any operation, be it conveyor belt operations or automotive operations. Variable frequency drives can gradually increase the speed of system component motors, thereby minimizing the mechanical stress that occurs during ramp-ups or accelerations, as well as minimizing energy usage. VFDs have an advantage over VSDs in terms of efficient process control, operational excellence, and enhanced efficiency. This allows accurate speed adjustments during start-up running conditions or stopping the motor.&nbsp;
The VFD manufacturers use regenerative modules to help VFD deliver higher efficiency. These drives deliver precision, sustainability, and efficiency across the application. However, industrial and manufacturing spaces require these more to scale productivity and ROI. &nbsp;
For instance, in March 2024, Darwin Motion Pvt. Ltd. introduced its Regenerative Drive DR Matrix 880. The motion control system comes with matrix intelligence that equips the drive with advanced algorithms and machine-learning capabilities. DR Matrix 880 caters to various applications across industries, such as machine manufacturing, robotic positioning, and dynamic control.
<h2 style="text-align: justify;">Industrial Usage and High Durability and Performance to Fuel Low Power Range Segment</h2>
Based on the power range, the low power range segment holds a decent market share. The factors fueling the segmental growth comprise a wide range of its operations. Its widespread use in general applications and position as a top alternative across numerous industrial verticals are attributed to its simplicity of configuration and quick installation time. In industries, low-voltage frequency drives are widely utilized to power equipment such as compressors, fans, belt conveyors, and centrifugal pumps. One of the main factors contributing to the low power range segment's supremacy is its widespread use across industrial verticals. Low voltage variable frequency drives (VFDs) provide precise motor speed control by altering the frequency and voltage supplied to the motor.&nbsp;
For instance, in April 2023, Danfoss A/S introduced a new generation of VLT low harmonic VFD. With as few components as possible used in the main current circuit design, the Danfoss VLT Low Harmonic VFD combines an active filter with a typical AC VFD, active suppression.\
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<h2 style="text-align: justify;">Asia-Pacific Dominates Variable Frequency Drive Market</h2>
Asia-Pacific holds the major share of the global VFD market. The growth is attributed to the rapid industrialization and infrastructure expansion in the region's emerging nations. Alongside, the dominance of key industries like power generation, oil &amp; gas, metals and mining, and food processing is advancing the region&rsquo;s space in the market. The rising population and increased disposable income have given birth to wider HVAC operations, fueling the market growth. Also, Asia-Pacific is home to several significant VFD manufacturing brands, including ABB, Danfoss, Eaton, GE, Mitsubishi Electric, Schneider Electric, and Yaskawa. Other than these industrial giants, local companies are also building VFDs using a solution-based approach.&nbsp;
For instance, in March 2023, a new generation of industrial transmission equipment, the HSF6 series high-performance VFD, was introduced by Sunwoele (Chengdu Forest Electric Co., Ltd.), a well-known automation firm in China. Variable frequency drives at the engineering level are created and built to meet the demands of sophisticated applications, such as precision machining equipment.
Future Market Scenario (2024-2031F)&nbsp;
1.&nbsp;Industrial automation, IoT, and robotics will likely enable industrialists to adopt efficient motion control systems like variable frequency drives.
2.&nbsp;A wide range of applications, along with the integration of artificial intelligence and machine learning, is expected to expand the variable frequency drive market size.
3.&nbsp;Custom motion control systems for agriculture and sustainable water-pulling operations are anticipated to create new variable speed drives (VSDs).
4.&nbsp;Wide-bandgap semiconductors like Sic and GaN are replacing traditional semiconductors, strengthening VFDs with power density and efficiency.
Report Scope
&ldquo;Variable Frequency Drive Market Assessment, Opportunities, and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, that provides an in-depth analysis and qualitative and quantitative assessment of the current state of the global variable frequency drive market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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2023
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Historical Period
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2017-2022
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Forecast Period
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2024-2031
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Projected Growth Rate
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CAGR of 5.3% between 2024 and 2031
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Revenue Forecast in 2031
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USD 35.06 billion
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Segments Covered
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Type, Power Range, Energy Storage, Application, End-use
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Regions Covered
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North America, Europe, South America, Asia-Pacific, Middle East and Africa
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Key Companies Profile
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Siemens AG, ABB Ltd., Mitsubishi Motors Corporation, Fuji Electric Corp., Yaskawa Electric Corporation, Rockwell Automation Inc., Lenze B.V., Toshiba International Corporation, WEG S.A., Honeywell International Inc., Schneider Electric SE
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report, the&nbsp;global variable frequency drive market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Type
<ul>
<li>AC Drive</li>
<li>DC Drive</li>
<li>Servo Drive</li>
</ul>
</li>
<li>By Power Range
<ul>
<li>Micro</li>
<li>Low</li>
<li>Medium</li>
<li>High</li>
</ul>
</li>
<li>By Energy Storage
<ul>
<li>Voltage-Source Inverter (VSI)</li>
<li>Current-Source Inverter (CSI)</li>
<li>Pulse Width Modulation Inverter (PWM)</li>
</ul>
</li>
<li>By Application
<ul>
<li>Pumps</li>
<li>Electric Fan</li>
<li>HVAC</li>
<li>Conveyors</li>
<li>Extruders</li>
<li>Others</li>
</ul>
</li>
<li>By End-use
<ul>
<li>Power Generation</li>
<li>Infrastructure</li>
<li>Oil and Gas</li>
<li>Food and Beverages</li>
<li>Mining</li>
<li>Agriculture</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Key participants in the variable frequency drive market include Siemens AG, Rockwell Automation Inc., and Toshiba International Corporation. Companies focus on building efficient VFD systems that are also flexible with the latest technologies like artificial intelligence, machine learning, and IoT. Brands are also building custom VFDs/VSDs for specific applications. Alongside, strategic partnerships, collaboration, acquisitions, and joint ventures are also used as the major elements of the market&rsquo;s strategic landscape. &nbsp;
In September 2023, Rockwell Automation and Infinitum entered into an exclusive development and distribution deal for a new class of high-efficiency, integrated low-voltage drive and motor technology. This solution will result in considerable energy and cost savings for industrial clients worldwide and help them become more sustainable and less carbon footprint oriented.
Key Players Operating in the Global Variable Frequency Drive Market are:
<ul style="text-align: justify;">
<li>Siemens AG</li>
<li>ABB Ltd.</li>
<li>Mitsubishi Motors Corporation</li>
<li>Fuji Electric Corp.</li>
<li>Yaskawa Electric Corporation</li>
<li>Rockwell Automation Inc.</li>
<li>Lenze B.V.</li>
<li>Toshiba International Corporation</li>
<li>WEG S.A.</li>
<li>Honeywell International Inc.</li>
<li>Schneider Electric SE</li>
</ul>
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<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
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Global Variable Frequency Drive Market Assessment, Opportunities and Forecast, 2017-2031F

A wide range of applications, expanding industrial and manufacturing spaces, technological advancements, and high-end research and development fuel the market growth. New product launches and collaborations with technological giants to make VFDs AI-enabled and IoT-friendly are adding value to the market.

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