Global Variable Frequency Drives Market: Snapshot
As the world strives for a sustainable future, greater investments are being made in the development of energy efficient systems that minimize energy consumption. Governments worldwide are promoting the effective deployment of reliable and efficient systems that address the snowballing demand for energy. This is acting as the primary stimulant for the growth of the global variable frequency drives market. The rising urbanization and industrialization, especially in emerging economies, are also stoking the growth of the market.
According to a report by Transparency Market Research (TMR), the global variable frequency drives market is poised to reach a valuation of US$24.7 bn by 2020, rising at a CAGR of 7.0% from 2014 to 2020. TMR analysts estimate that the high implementation costs of these drives are creating a dent in their demand worldwide.
Low Voltage Variable Frequency Drives to Maintain Leadership through 2020
On the basis of voltage, the report divides the global variable frequency drives market into low voltage and medium voltage. The demand for low voltage drives is expected to remain higher throughout the forecast period, owing to their compact size and ease of operation. Moreover, these drives are cheaper than their counterparts. Low voltage variable frequency drives find applications in various industries such as petrochemicals, manufacturing, utilities, metal and mining, and infrastructure.
Based on type, the market is classified into AC, DC, and servo. AC is estimated to account for a large share in the global arena in terms of demand, due to its low maintenance cost and high efficiency. The DC segment will also witness noteworthy growth during the forecast period owing to its low complexity and cost and high acceleration and costs. However, the servo segment is anticipated to surpass both the segments in terms of volume over the same period.
By end-use applications, the global variable frequency drives market is categorized into manufacturing, infrastructure development, automotive, oil and gas, chemical processing, and power generation. The oil and gas industry will be a major consumer of variable frequency drives during the review period. The growth of the segment can be attributed to the increasing exploration activities and rising production of unconventional resources worldwide. The infrastructure development segment will exhibit a remarkable CAGR during the forecast period, owing to the rapid growth in the infrastructure, especially in emerging countries.
Asia Pacific to Remain Frontrunner Owing to Rapid Infrastructure Development
Geographically, Asia Pacific will continue to account for the lion’s share in the global market for variable frequency drives market. The growing investments in the infrastructure development along with the soaring demand for power due to the increasing population are fuelling the growth of the region. The flourishing growth of the chemical and processing industry is also bolstering the demand for variable frequency drives in APAC.
The Middle East and Africa market holds immense potential, which is likely to attract market participants to invest in the region. Aggressive investments in the manufacturing and industrial sectors towards the deployment of sustainable systems that will enable energy savings at low costs of maintenance are supplementing the growth of the region. Besides this, the robust growth of the construction sector is allowing the variable frequency drives market to gain traction.
The recovery of end-user industries from the economic downturn is likely to bode well for the market in Europe and North America. Some of the key companies operating in the global variable frequency drives market are Siemens AG, ABB Ltd., Crompton Greaves Ltd., Schneider Electric Industries S.A.S., Eaton Corporation, Danfoss VLT Drives, Fuji Electric Co. Ltd., Emerson Industrial Automation, Mitsubishi Electric Corporation and Vacon PLC.
The variable frequency drives market report by Transparency Market Research provides in-depth analysis of the global variable frequency drive industry. The report divides the market on the basis of voltage range, type, end-user and geography. It also provides the forecast and estimates for each type, range, end-use application and region. The report analyzes demand and supply characteristics of the market by providing detailed forecast and analysis of revenue for the period 2014 – 2020.
The variable frequency drives market primarily includes two types of products: low voltage and medium voltage. Growing infrastructure and manufacturing sectors are expected to be the major growth drivers for the low voltage VFD market. Medium voltage drives function at slightly higher voltages than low voltage VFDs. By nature of this property, medium voltage drives consume less electricity as compared to their low voltage counterparts. Equipment used in industries such as mining, oil and gas, and power generation function at high voltage levels. The manufacturing sector was the largest consumer of variable frequency drives globally, accounting for 29.4% of the global share in 2013. The share of the manufacturing sector is expected to further increase to 30.7% by 2020. The manufacturing sector has recently entered into a slowdown in the South American countries, while the economies of Western Europe are still recovering from their recent economic downturn.
Both the Middle East and Asia Pacific have highly developed manufacturing sectors from both economic and technical viewpoints. As infrastructure development and manufacturing activities in these regions increase, the demand for VFDs is also expected to grow at constant rates throughout the forecast period. Both the chemical processing and petrochemical industries are likely to exhibit significant growth in demand for low power AC drives in the near future.
The report includes geographical regions such as Americas, Asia Pacific, Europe and Middle East and Africa. Every region has been further bifurcated on the basis of the product segment. Revenue forecasts and estimates for each product segment have been provided for the period 2014 – 2020.
The report also provides detailed analysis and revenue of companies such as ABB Ltd., Siemens AG, Schneider Electric Industries S.A.S., Crompton Greaves Ltd. Danfoss VLT Drives, Eaton Corporation, Emerson Industrial Automation, Fuji Electric Co., Ltd., Mitsubishi Electric Corporation and Vacon PLC.
With the help of Porter’s Five Forces analysis, the report provides a detailed analysis of the various factors influencing the variable frequency drives market. The analysis also helps to understand the degree of competition prevalent in the market. Furthermore, the report analyzes the value chain and the various drivers and restraints of the global variable frequency drive market.
Global Variable Frequency Drive (VFD) Market: Voltage Range Analysis
- Low Voltage
- Medium Voltage
Global Variable Frequency Drive (VFD) Market: Type Analysis
Global Variable Frequency Drive (VFD) Market: End-Use Application Analysis
- Chemical Processing
- Infrastructure Development
- Oil and Gas
- Power Generation
Global Variable Frequency Drive (VFD) Market: Regional Analysis
- North America
- South America
- Rest of Asia Pacific
- Middle East and Africa