"Actionable Insights to Fuel Your Growth"
The global AC drives market size stood at USD 10.39 billion in 2018 and is projected to reach USD 15.62 billion by 2026, exhibiting a CAGR of 5.2% during the forecast period.
Economic growth depends on the growth and survival of the industrial sector. Sustainable industrialization is essential to achieve sustainable development and the overall growth of the country. As a result, industrial development is characterized by intense competition, spending capability of consumers, merger & acquisitions, partnership & collaboration, investments, and expansion of new projects. Industries such as manufacturing and processing industries deploy various types of equipment and components, which vary in terms of technology, operation mode, and industry. AC drives are the components used in multiple sectors, which include power generation, oil & gas, metal & mining, food & beverage, among others. They are used to regulate and control rotating equipment such as fans, conveyors, machine spindles, and pumps in production processes and enhance the energy efficiency of the industry. Increasing urbanization and a growing rate of industrialization are the major factors driving the growth of the AC drive market. Significant advancement in technology such as the Industrial Internet of Things (IIoT) and development in the automation process are considered as a potential opportunity for growth of the market.
Request a Free sample to learn more about this report.
Asia Pacific is one of the leading regions in the alternating current drives market owing to significant growth in industrialization and the rising rate of urbanization. According to the World Investment Report 2018, developing economies accounted for USD 671 billion of inflow from foreign direct investment in the year 2017, which was majorly contributed by China and Singapore. Additionally, an increase in urbanization would increase consumer demand resulting from growth in the manufacturing sector, which propels the demand for AC drives during the forecast period. For instance, as per Central Intelligence Agency, China, India, Malaysia, and Vietnam have an urban population of 60.3%, 34.5%, 76.6%, and 36.6% as of 2019 which is increasing at a rate of 2.4%, 2.4%, 2.1%, and 3% respectively. Hence, a significant increase in the rate of urbanization and rising industrialization of processing industries hold a potential driver in the Asia Pacific region to propel the demand of the AC drives market.
“Increasing Rate of Industrialization and Urbanization to Fuel the Market”
Substantial increase in urbanization along with growing rate of industrialization are the major factors driving the AC drives market trends. Urbanization would increase consumer demand, which results in to increase in the manufacturing sector, propelling the demand for AC drives during the forecast period. For instance, as per Central Intelligence Agency, China, India, Malaysia, and Vietnam has an urban population of 60.3%, 34.5%, 76.6%, and 36.6% as of 2019 which is increasing at a rate of 2.4%, 2.4%, 2.1%, and 3% respectively. According to the World Investment Report 2018, Governments are parallelly focusing on improvising the industrial policies and regulations to bring a conducive environment for exploring new industries and improve the sustainability amongst competitors such as strategic investment policy priorities, entry and establishment of foreign investors, and promotion and facilitation of investment policies. Hence, significant industrialization growth helps the market to grow at a faster pace. Rising urbanization and increasing rate of industrialization act as a potential driver for the AC drive market during the forecast period.
“Supportive Government Regulations and Rising Demand For Energy Optimization to Feed Growth”
Favorable government regulations and supportive policies enhance the growth of the manufacturing industry, which helps to boost the AC drives market. For instance, implementation of standards such as ISO 50001 (energy-management-system standard) in the building & automation sector has the potential to accelerate the integration of building automation systems. Increasing demand for energy optimization has enabled many industrial players to inject huge investments in the market. For instance, in July 2017, Power Survey, a leading manufacturer of power quality products, had received an investment of USD 24 million in sectors such as connectivity, energy optimization, and energy management. Hence, increasing demand for energy optimization and supportive government regulations is set to boost the product demand.
“Wide Scope Applications of Low Power Drives to Aid Its Adoption”
Based on the power rating segment, the AC drive market is segmented into low power drives, medium power drives, and high power drives. Low power drives are predominantly used for various applications such as fan, pump, crane, fluid machine, machine tool, printing machine, metal processing machine, food processing machine, health & medical care instruments, among others. Due to the wide scope of application in vertical industries, the low power drive segment is expected to dominate the market during the forecast period. Major players in the industry are projecting the demand of AC drive based on application and technological scenario which helps to meet consumer demand. The key players offering the low power drive are Siemens, TMEIC, Fuji Electric, Nidec Industrial Solutions, and other players. Medium power drive as well as high power drive are used for low as well high power application which grows at a steady rate which helps to propel the demand for AC drives. Therefore, the wide scope of application of low power drive will dominate the segment, which will accelerate the AC drive market growth.
“The Low Voltage Segment to Continue to Dominate the Market”
Based on the voltage segment, the AC drive market is segmented into low voltage and medium voltage. Low Voltage AC drive is propelling the demand owing to its operating features such as it offers complete solution for both low and high power applications, small size, better power factor & availability, lower cost, and wide range of manufacturers offer these devices as standard product. Medium voltage AC drives are used in vertical industries catering to low as well as high voltage industrial demand, which will aid its domination in the voltage segment during the forecast period.
“Multiple Applications of AC Drives Augments the Market Growth”
Based on application, the AC drive market is segmented into pumps, conveyors, compressors, electric fans, extruders, and others. Pumps and electric fans are predominantly used in wide range of end-user industries, which includes chemical, mining, oil & gas, water & wastewater, and among other industries. Hence, growth in end-user industries would increase the application of pumps and electric fans, which will propel the demand for AC drives. Growth in the manufacturing & processing industry increases the demand for conveyors, which drives this market. Moreover, compressors are also used in various industries such as food & beverage, oil & gas, energy, semiconductors & electronics, manufacturing, healthcare, and other industries. Hence, the growth in industries would accelerate the demand for compressors in the global market. Therefore, multiple applications of AC drive bolster the AC drive market demand during the forecast period.
“Increasing Demand from Power Generation and Building Automation Industries Will Propel the Market”
Based on end-user, the AC drive market is segmented into food & beverage, oil & gas, power generation, building automation, metal & mining, water & wastewater, chemicals & petrochemicals, and others. The power generation segment is dominating the market. The global electricity demand is increasing at fast rate, which leads to growth in the power generation industry. Additionally, the building automation industry also plays a vital role, which helps to drive the demand for AC drives. For instance, according to International Energy Agency, the electricity demand increased by 4% in 2018, which is approximately twice as fast as the overall demand for energy, with China and the U.S. accounting for 70% of the global demand rise.
To know how our report can help streamline your business, Speak to Analyst
Favorable government initiatives for the development of smart cities and building automation are also expected to offer significant growth prospects for the market. For instance, the implementation of standards by Europe such as Energy performance of buildings directive (EPBD) which was revised in 2018 to boost energy performance of buildings and improve the existing building stock in the building & automation sector has the potential to bolster the integration of building automation systems. Hence, increasing power demand and consistent initiatives for developing building automation will accelerate the demand for AC drives during the forecast period.
Asia Pacific is expected to dominate the AC drive market share as it is one of the leading regions across the globe in terms of developing economies, building infrastructure, and significant investments, which aids the industrialization and commercialization processes. Increasing focus on developing the manufacturing sector, supportive government policies & regulations, and rising demand for energy optimization are the major factors attributed to the growth of the alternating current drive (AC drive) market during the forecast period. Asia Pacific is followed by North America and Europe for the growth of the AC drive market.
The substantial potential in oil and gas as well as the mining industry in North America is projected to boost the market in the region. For instance, oil production in North America had held a growth of 12.1% from 2017 to 2018 as per BP Statistical Review of World Energy 2019 report. European countries have a long history of mining, which consequently contributes to the economic progress of the region. UK, Germany, Italy, Norway, and Russia are the major countries involved in the growth of sustainable industrialization in Europe. These countries are majorly investing in the production and exploration of oil and gas to reduce their dependency which positively helps the AC drive market. For instance, in 2018, UK Oil and Gas Authority had reported an increase in oil & gas production of 1.7 million barrels per day compared to previous year. Hence, increasing oil production would help to leverage the demand for AC drives in Europe.
Asia Pacific AC Drive Market Size, 2018
To get more information on the regional analysis of this market, Request a Free sample
Currently, Asia Pacific exhibits robust economic growth owing to rapid development in industrialization and commercialization in China, India, Japan, Indonesia, and Australia, among others. China is consistently looking forward to increasing its significance in the global economy. It is projecting to increase capital investment in oil and gas exploration to boost production two-fold to meet the domestic requirement. For instance, China formulated policies such as the internet plus strategy in May 2015, which dramatically impacted the growth of businesses across all industries. Additionally, initiatives such as Make in India and consolidation of Foreign Direct Investment Policy in 2017 by India have helped to increase the market share of the manufacturing sector; moreover, these initiatives would contribute to 25% of the country’s GDP within a decade. Significant approaches by countries in the Asia Pacific for the development of the industrial sector and growing viability for ease of business helped the AC drive market grow at a faster pace.
Countries from Middle East are also augmenting the power production from renewable energy through establishing power grids, which helps to grow the market at a faster pace during the forecast period. Thus, the application of AC drives in vertical industries offers a lucrative market for the growth of this market.
“Exciting New Opportunities to be Lapped up by Major Players and Shape the Market Dynamics”
The AC drive market analysis shows that the market has various global competitors including ABB, Fuji Electric, Danfoss Group, and Siemens, among other players. ABB is one of the leading companies that provides comprehensive solutions for AC drives. The company offers a wide range of product offerings for drives, which includes micro and machinery drives, industrial drive, and industry-specific drives with purpose-designed features and functionality. Besides, Fuji Electric provides a wide range of products with power ratings ranging from 0.1 kW to 2,400 kW for various industrial applications. They include fans, blowers, pumps, extruders, rolling mills, winding machines, processing, ventilating, compressing and among other applications.
The world is changing faster than ever before, driven by population growth, urbanization, technological change, and climate change, among others. AC drives play an important role in the industrial sector, creating a flexible and energy-efficient solution for the manufacturing & processing sector. It helps to resist the high inrush starting current, regulates the acceleration by adjustable operating speed, provides reverse operation, reduced power line disturbance, and reduces the power and load, which leads to the energy-efficient solution. Hence, owing to its wide operational advantages, it is used in the industrial sector at a fast rate, which increases the AC drive market potential. Growing urbanization and industrialization, underpinned by a rapidly rising population, has helped to increase the demand for the manufacturing and processing sector, resulting in the growth of the market. Supportive government regulations have massively helped the undiscovered region to get investments and favourable growth prospects. In the forthcoming years, the global outlook for AC drives seems to be very positive as some of the leading players are making investments and incorporating new advancements in technology that are likely to drive this market.
The report provides qualitative and quantitative insights on the AC drive market and detailed analysis of the market size & growth rate for all possible segments in the market. The market is segmented by power rating, voltage, application, end-user, and region. By power rating, the market is divided into low power drives, medium power drives, and high power drives. By the voltage, it is categorized into low voltage and medium voltage. Based on the application, it is classified into pumps, conveyors, compressors, electric fans, extruders, and others. Based on end-user, it is segmented into food & beverage, oil & gas, power generation, building automation, metal & mining, water and wastewater, chemical & petrochemicals, and others. Geographically, the global AC drive market has been analyzed in North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
To gain extensive insights into the market, Request for Customization
Along with this, the report provides an elaborative analysis of the AC drive market dynamics and competitive landscape. Various key insights presented in the report are the recent industry developments in this market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape, and company profiles.
Value (USD Billion)
By Power Rating
Fortune Business Insights says that the AC drive market was valued at USD 10.39 billion in 2018.
The global AC drive market is projected to reach USD 15.62 billion in 2026.
The AC drive market is projected to grow at a CAGR of 5.2% in the forecast period.
The AC drive market in the Asia Pacific was valued at USD 3.32 billion in 2018.
Based on power rating, the low power drive segment will dominate the market during the forecast period.
The AC drive market is growing significantly due to an increase in urbanization and rising industrialization rates in many regions. Favorable government regulations, increasing demand for energy optimization, and advancements in improving energy efficiency propel the demand for AC drive market.
ABB, Danfoss Group, Schneider Electric, Siemens, Fuji Electric, and Emerson, among others, are some of the top companies in the AC drive market.
The AC Drive is used to regulate and control rotating equipment such as fans, conveyors, machine spindles, and pumps, which are used in production processes. It has various advantages such as it provides reduced starting current, reduced power line disturbances, adjustable operating speed, reverse operation, and energy-saving. Hence, the provision of its numerous advantages and applications in vertical industries is an essential product in the industrial sector.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry