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Variable Frequency Drive (VFD) Market Size, Share & Industry Analysis, By Type (AC Drive, DC Drive, Servo Drive), By Power Range (Micro, Low, Medium, High), By Application (Pumps, Conveyors, HVAC, Electric Fan, Extruders, Others), By End-User (Food & Beverage, Oil & Gas, Power Generation, Infrastructure, Agriculture, Mining, Others), and Regional Forecast, 2019-2026

Region : Global | Published Date: Nov, 2019 | Report ID: FBI100876| Status : Published

 

KEY INDUSTRY INSIGHTS

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The global variable frequency drive (VFD) market size valued at USD 16.54 Billion in 2018 is projected to reach above USD 25.19 Billion by 2026, exhibiting a CAGR of 5.46% during the forecast period.


The rising need for energy-efficient equipment to minimize the electricity consumption coupled with rapidly developing commercial and industrial infrastructure will cater to the Variable Frequency Drive Market growth. Fast-paced installation of new heating, ventilation, and air conditioning (HVAC) systems to complement the building temperature maintenance will further propel the industry size.


Variable frequency drive or VFD is an electrical device incorporated in various electric motor driven machines to modulate the operating speed of the systems and thereby diminish the overall energy utilization. It is used to change the frequency of voltage going in the motors in order to optimize the working cycles.


The devices enable the systems to function at different speeds rather than at ordinary ‘zero speed’ or ‘full speed’ to substantially cut the operating costs. VFD also utilizes a diverse set of software solutions to monitor the functioning to manage its speed and thus maximize its efficiency.


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Rising awareness among consumers to install energy saving equipment along with positive government initiatives to increase building efficiency to reduce consumption has catered to the adoption of VFDs in various regions. Asia Pacific is projected to hold the lion's share owing to the presence of well-established production facilities coupled with rapidly developing commercial & industrial infrastructure. In August 2018, the government of India, World Bank, and Energy Efficiency Services Limited (EESL) inked loan agreement worth USD 200 million to support the country’s Energy Efficiency Scale-Up Program.


MARKET DRIVERS


“Rising Need For Energy Efficient Systems Will Cater To VFD Market Growth”


Growing demand for energy-efficient systems along with the rapid development of innovative devices for various applications will bolster the market size. VFDs control and vary the output speed of different motors without any extra mechanical devices which further results in the consumption of the only power that is required for operating the systems.


“Favorable Government Policies Is Anticipated To Positively Propel Market Size”


Various organizations and governments have introduced favorable policies and targets to keep a check on electricity intake of the structures, it is further projected to shape the industry outlook. The devices are readily integrated with the commercial and industrial infrastructures to significantly reduce the operation cost and increase the life span of the systems.


SEGMENTATION


By Type Analysis


“AC Drives Are Anticipated To Possess The Dominating Position During The Forecast Timeframe”


Based on type, this industry can be divided into AC drives, DC drives, and servo drives. AC drives are projected to account for a larger share owing to increasing usage of AC motors in various equipment along with rising awareness among consumers to cut the expenditure. DC motors can be costly over various ratings and they can operate at constant torque without a variable speed drive (VSD).


Incorporating a DC VFD or VFD can thus significantly reduce the overall cost by changing the speed by altering the voltage input to the motors. Servo drives are anticipated to witness the strongest growth due to increasing research & development activities, it would aid in enhancing the device’s position control and feedback performances.


By Power Range Analysis


“Medium Power Range Is Projected To Hold The Major Share Over The Forecast Period”


By power range, this market is bifurcated into micro, low, medium, and high. Long operational life, compact size, and adaptability to provide better control, power, and energy efficiency has catered to the market size of medium power VFDs. Micro variable frequency drives are likely to observe significant growth over the forecast timeline due to its cost-effective nature, wide applications range, precise operating features, and the ability to handle single-phase as well as three-phase motors.


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By Application Analysis


“In The Global Variable Frequency Drive Market, Pumps Application Is Projected To Account For The Largest Share”


Based on application, the VFD market can be broadly divided into pumps, conveyors, HVAC, electric fan, extruders, and others. Pumps segment is likely to lead the market size owing to its wide range of applications coupled with better flow handling to reduce the waste energy. HVAC application is set to observe considerable growth due to rising adoption of energy-efficient heating and air conditioning systems across the globe.


Increasing mining activities coupled with developing commercial landscape in various regions will cater to the conveyor segment potential. Large applications of electric fans in all the sectors along with concerns among customers to lower their power spending are set to complement the segment dynamics.


By End-User Analysis


“Oil & Gas End-User Segment Is Likely To Witness Strongest Growth Over The Forecast Period”


Based on end-user, the market can be primarily divided into food & beverage, oil & gas, power generation, infrastructure, agriculture, mining, and others. Discoveries of new hydrocarbon reserves along with rising efforts to increase productivity by using lift methods will contribute to the oil & gas industry landscape.


Encouraging initiatives by various regional governments to establish new buildings with low energy consumption rating is likely to contribute to the infrastructure end-user sector. The power generation segment is set to hold substantial share globally owing to long-standing power plant structures coupled with the construction of new generation stations to suffice the ever-increasing energy demand.


REGIONAL ANALYSIS


Geographically, the VFD market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Asia Pacific is anticipated to maintain a major share and grow significantly over the forecast period. Exponentially developing industrial infrastructure, increasing oil & gas activities, and rich agricultural heritage will cater to the regional market outlook. Key countries actively participating in the region are China, India, Japan, Australia, and other Southeast Asian nations.


Rising investments in the oil & gas sector, coupled with increasing E&P activities to develop new reserves, are set to propel the North America industry landscape. Long-standing expansions for advanced heating, ventilation, and air conditioning (HVAC) systems, along with a positive perspective to set up new and efficient infrastructure will further fuel the VFD demand in the region. In November 2018, the U.S. Geological Survey (USGS) reported discovering new continuous hydrocarbon reserves in Bone Spring Formation, Wolfcamp Shale, and Permian basin. The reservoir is assessed to be the country’s largest and is estimated to hold about 281 trillion cubic feet of natural gas, over 46 billion barrels of oil, along with around 20 billion barrels of natural gas liquids.


Asia Pacific Variable Frequency Drive (VFD) Market Size, 2018

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Europe's variable frequency drive market is projected to grow substantially over the forecast timeline. Stringent governmental norms to establish new energy-efficient infrastructure along with refurbishing of existing buildings will positively influence the industry trends. Consequently, changing the commercial and industrial groundwork has flourished the HVAC and power generation sectors in the continent. Prominent nations operating in the territory are UK, Germany, France, Italy, Spain, and Russia.


In June 2018, the European Parliament, Commission, and the council signed a new agreement regarding the guidelines for improving energy efficiency in the member states. The amended directive sets the EU countries to achieve an energy efficiency target of 32.5% by 2030.


Increasing exploration and production programs to develop untapped potential in bulk will drive the Middle East and Africa VFD industry scenario. Growing measures to increase power generation capacity along with the rising adoption of energy-saving HVAC equipment to supplement the evolving commercial sector will boost VFD adoption. Key countries contributing to the variable frequency drive market across the region are the Gulf Cooperation Council (GCC) nations and South Africa.


INDUSTRY KEY PLAYERS


“Industry Participants Like Eaton, ABB, Siemens, Danfoss, Will Continue To Shape The Market Trends”


The variable frequency drive (VFD) market has observed different regional and international participants operating at different levels. Many market players are readily increasing their focus on introducing innovative product offerings to enhance its adoption across various sectors.


List Of Key Companies Covered:



  • Eaton

  • Hitachi Hi-Rel Power Electronics

  • Rockwell Automation

  • Johnson Controls

  • Anaheim Automation Inc.

  • WEG

  • ABB Electrification

  • Nidec Motor Corporation

  • Siemens

  • Danfoss Drives

  • Honeywell International Inc.

  • TMEIC

  • Fuji Electric Corp. of America

  • Schneider Electric

  • Yaskawa America, Inc. - Drives & Motion Division

  • Toshiba International Corporation

  • Mitsubishi Electric Automation, Inc.


REPORT COVERAGE


Variable frequency drive is an electrical equipment that is commissioned in different motors to optimize their performances and subsequently reduce the operation and maintenance costs. The apparatus also delivers control and protection features by simplifying the machine harmonics for better output. It is made of numerous other small equipment such as diodes, converters, DC bus, inverter, capacitor, and other tools collectively working as a Pulse Width Modulation or PWM mechanism to maintain the voltage & frequency ratio. VFDs are also referred to as AC drive, variable speed drive (VSD), adjustable speed drive (ASD), variable-voltage/variable-frequency (VVVF) drive, microdrive, adjustable frequency drive (AFD), or inverter drive by various industry participants.


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Along with this, the report provides an elaborative analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are the recent industry developments such as mergers & acquisitions, the regulatory scenario in crucial countries, investment scenario, technological advancement, and key strategies adopted by market leaders, competitive landscape, and company profiles.


Report Scope & Segmentation














































 ATTRIBUTE



 DETAILS



Study Period



  2015-2026



Base Year



  2018



Forecast Period



  2019-2026



Historical Period



  2015-2017



Unit



  Value (USD Billion)



Segmentation



By Type



  • AC Drive

  • DC Drive

  • Servo Drive



By Power Range



  • Micro

  • Low

  • Medium

  • High



By Application



  • Pumps

  • Conveyors

  • HVAC

  • Electric Fan

  • Extruders

  • Others



By End-User



  • Food & Beverage

  • Oil & Gas

  • Power Generation

  • Infrastructure

  • Agriculture

  • Mining

  • Others



By Geography



  • North America (U.S. and Canada)

  • Europe (U.K., Germany, France, Italy, Spain, Russia, and Rest of Europe)

  • Asia Pacific (China, India, Japan, Australia, Southeast Asia, and Rest of Asia Pacific)

  • Latin America (Brazil, Mexico, and Rest of Latin America)

  • Middle East & Africa (GCC, South Africa, and Rest of Middle East & Africa)






INDUSTRY DEVELOPMENT



  • In June 2019, Siemens declared to launch a new Sinamics Perfect Harmony GH150 air-cooled drive to expand its high power drives offerings. The product is set to be the largest, single-channel, AC VFD, and targets to deliver various heat management features along with minimal stress impact on the motor.

  • In April 2019, ABB introduced an advanced medium voltage drive equipment called ACS6080 for better performance on motor control. The innovation aims to deliver higher output and enhance the company’s product penetration across critical applications like metals, mining, and marine.

  • In January 2017, Fuji Electric Corp. of America announced to add the new FRENIC-Ace variable frequency drives series to its offerings in order to expand its product portfolio. The new series is a multipurpose option delivering advanced integration capabilities and intends to increase Fuji’s product flexibility along with wide applications and reduced operational costs.


Frequently Asked Questions

Fortune Business Insights says that the variable frequency drive (VFD) market was valued at USD 16.54 Billion in 2018

The variable frequency drive (VFD) market is projected to reach USD 25.19 Billion by 2026.

The variable frequency drive (VFD) market is projected to grow steadily at a CAGR of 5.46%.

Asia Pacific variable frequency drive (VFD) market was valued at USD 5.17 Billion in 2018.

The medium power range segment is anticipated to be the leading segment in the variable frequency drive (VFD) market during the forecast timeframe.

The rising need for energy-efficient systems along with favorable government policies are the key market driver. However, high initial VFD installation costs may hinder industry growth.

Eaton, ABB, Rockwell Automation, Siemens, and Schneider Electric are among the top players in the variable frequency drive (VFD) market.

Governments of various countries have implemented targets to achieve energy efficiency in infrastructure. VFDs are devices that can reduce nearly half of the energy consumed by the motors. Therefore, energy-efficient directives will imply users to install technologies with less energy consumption and more output.

Variable Frequency Drive  Market Size, Share and Global Industry Trend Forecast till 2026
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