The global AC drive market size is projected to reach USD 15.62 billion by 2026. Rising demand for power from urban and industrial spaces is likely to be one of the core growth drivers of this market during the forecast period. According to the Fortune Business Insights report, titled “AC Drive Market Size, Share & Industry Analysis, By Power Rating (Low Power Drives, Medium Power Drives, and High Power Drives), By Voltage (Low Voltage and Medium Voltage), By Application (Pumps, Conveyors, Compressors, Electric Fan, Extruders, and Others), By End-User (Food & Beverage, Oil & Gas, Power Generation, Building Automation, Metal & Mining, Water & Wastewater, Chemical & Petrochemicals, and Others), and Regional Forecast, 2019-2026”, the market value stood at USD 10.39 billion in 2018 and is expected to exhibit a CAGR of 5.2% from 2019 to 2026.
Active Government Policy Support to Create Conducive Business Environment
Supportive government policies for development of the manufacturing sector is one of the leading AC drive market trends. These policies are seen to bode well for this market as an expanding manufacturing sector would spike the demand for AC drives. For example, certifications such as the ISO 50001 mark for energy management systems have the capacity to standardize manufacturing processes which enhance the potential of this market. Moreover, there is a surging demand for energy optimization which has prompted many companies to invest in the market.
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- By Power Rating: Based on power rating, the market is segmented into low power drives, medium power drives, and high power drives. Here, the lower power drives segment is expected to lead owing to the wide-ranging applicability of the devices across different industries. The other segments are also expected to grow at a healthy rate during the forecast period.
- By Voltage: Based on voltage, the market is categorized into low voltage and medium voltage. Here, the low voltage AC drive segment is expected to dominate on account of its operating features which allow these devices to be used in both low and high power applications. The medium voltage segment will also display steady growth in the stipulated period.
- By Application: Based on application, the market is divided into pumps, conveyors, compressors, electric fans, extruders, and others. Here, pumps and electric fans segments will lead the way due to their extensive employment in end-user industries such as oil & gas and mining. The compressors segment is also set for considerable growth as they are heavily utilized in manufacturing industries. The other segments also hold promising prospects for the market.
- By End-User: Based on end-user, the market is classified into food & beverage, oil & gas, power generation, building automation, metal & mining, water & wastewater, chemicals & petrochemicals, and others. According to the AC drive market analysis, the power generation segment is projected to dominate the market with a share of 20.5%. This will primarily be a result of the increasing global demand for energy and power and integration of building automation systems. The other segments are also anticipated to grow robustly in the forthcoming years.
- By Region: Geographically, the market is segmented into North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. Here, Asia-Pacific is expected to dominate the AC drive market share, having generated USD 3.32 billion in revenue in 2018. This continued dominance will be a result of rapid industrialization in the region along with supportive government policies and rising demand for energy optimization in the region. The other regions are also anticipated to offer lucrative business opportunities in the market till 2026.
Position Consolidation by Key Players to Stimulate Competition
Competition in this market is slated to get tight owing to companies strengthening their position by launching innovative products to diversify their offerings. Some companies are also involved in acquiring other participants.
Key Industry Developments:
- April 2019: Danfoss launched its automation software platform, Beckhoff TwinCAT, to deliver simpler yet faster performing AC drives in a bid to widen its portfolio.
- December 2018: The drives technology business arm of Regal Beloit was acquired by Sun Capital Partners, Inc. to develop high-performance motor control technology for industrial applications.
- Toshiba International Corporation
- Yaskawa Electric Corporation
- Parker Hannifin
- Fuji Electric
- Rockwell Automation
- Danfoss Group
- Schneider Electric
The global AC drive market is segmented as follows:
Value (USD Billion)
By Power Rating
- Low Power Drives
- Medium Power Drives
- High Power Drives
- Low Voltage
- Medium Voltage
- Electric Fan
- Food & Beverage
- Oil & Gas
- Power Generation
- Building Automation
- Metal & Mining
- Water and Wastewater
- Chemical & Petrochemicals
- North America (U.S. and Canada)
- Latin America (Brazil, Mexico, and Rest of Latin America)
- Europe (UK, Germany, France, Italy, Spain, Russia, and Rest of Europe)
- Asia Pacific (China, India, Japan, Australia, Southeast Asia, and Rest of Asia Pacific)
- Middle East & Africa (GCC, South Africa, and Rest of Middle East & Africa)