What Has Been the Progress and Growth of the Variable Frequency Drives Market in Recent Years?
The variable frequency drives market has seen considerable growth due to a variety of factors.
• In recent times, the variable frequency drives market has seen significant growth. It is anticipated to rise from $19.83 billion in 2024 to $20.89 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.4%.
The past growth can be accounted for by an increase in the demand for energy efficacy and process optimization, accelerated adoption of automatic and industry 4.0 initiatives, a rapid incline of the electric vehicle (EV) market, expansion of industrial uses, market diversification, and cost-saving provisions.
What Can Be Expected from the Variable Frequency Drives Market in the Coming Years?
The variable frequency drives market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of variable frequency drives is anticipated to witness significant growth, expanding to $26.74 billion by 2029 with a compound annual growth rate (CAGR) of 6.4%.
The surge during the predicted period can be tied to factors such as the rising demand for condition-based maintenance, worldwide industrialisation, endeavours to minimise carbon footprint, government incentive programs, and an increase in the integration of renewable energy. Some of the notable trends during this forecast period are retrofitting and modernisation, intelligent and digital variable frequency drives, industry 4.0 integration, bespoke VFD solutions, and regenerative VFDS.
What Are The Leading Drivers Of Growth In The Variable Frequency Drives Market?
The surge in demand and strict government rules for energy efficiency across various sectors are propelling the market's evolution. Global industries are making vigorous efforts to optimise their energy usage. Similarly, worldwide governments are imposing stringent requirements for industries to enhance their energy efficiency. Known for their remarkable energy efficiency and ease of use, variable frequency drives play a crucial role in reducing energy consumption in industries. For example, the Energy Conservation Building Code (ECBC) in India establishes the minimum energy guidelines for newly constructed commercial buildings with a connected load of 100kW or a contract demand of 120 KVA or more. Therefore, the augmentation in governmental efficiency standards likely accelerates the growth of the variable frequency drives market.
How Are The Segments Defined Within The Global Variable Frequency Drives Market?
The variable frequency drives market covered in this report is segmented –
1) By Type: AC Drives, DC Drives, Servo Drives
2) By Power Rating: Low Power Rating, Medium Power Rating, Micro Power Rating, High Power Rating
3) By Application: Pumps, Fans, Compressors, Conveyors, Other Applications
4) By End-user: Food And Beverages, Oil And Gas, Power Generation, Infrastructure, Other End Users
Subsegments:
1) By AC Drives: V/F Control Drives, Vector Control Drives, Servo Control Drives
2) By DC Drives: Chopper Drives, Linear DC Drives
3) By Servo Drives: Brushless Servo Drives, Brush Servo Drives
Pre-Book The Variable Frequency Drives Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
How Are New Trends Expected To Influence The Growth Of The Variable Frequency Drives Market?
Numerous enterprises in the variable frequency drives market are innovating intelligent variable frequency drives to upgrade their customer experience. Incorporated with advanced technology, intelligent variable frequency drives (IVFDs) are high-end devices that regulate the pace and load of electric motors, employing clever functions for ultimate performance and productivity. For example, in June 2024, Danish manufacturing company Danfoss introduced iC2 and iC7. The iC2 drive enhances productivity by up to 40% and can accommodate various motor types, which makes it ideal for pumps, fans, and material handling. Designed compactly, it is an easy fit for the VLC Micro Drive FC51. On the other hand, the iC7 drive maximises energy utilisation across a broad spectrum of applications, including process control and packaging. Notably, it is the world's first AC drive that is 'secure-by-design', guaranteeing data security and firm protection. Both these drives have been skillfully crafted to enhance operational efficiency and promote sustainability in various sectors.
Who Are the Key Players in the Variable Frequency Drives Market?
Major companies operating in the variable frequency drives market include:
• Eaton Corporation
• Hitachi Hi-Rel Power Electronics
• Rockwell Automation
• Johnson Controls
• Anaheim Automation
• Werner Electric GmbH
• ASEA Brown Boveri
• Nidec Motor Corporation
• Siemens AG
• Danfoss
• Honeywell International
• Toshiba Mitsubishi-Electric Industrial Systems Corporation
• Fuji Electric Corp
• Schneider Electric
• Yaskawa Electric Corporation
• General Electric
• Delta Electronics
• Phase Technologies LLC.
• Inovance Technology
• GE Power Conversion
• Shenzhen INVT Electric Co. Ltd.
• Hiconics Eco-energy Technology
• VEICHI Electric Co. Ltd.
• HopeSenlan Science and Technology
• EURA Drives GmbH
• POWTRAN Technology Co. Ltd.
• Sichuan Jialing Electric Power Co. Ltd.
What Is The Most Dominant Region In The Variable Frequency Drives Market?
Asia-Pacific was the largest region in the variable frequency drives market share in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the variable frequency drives market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
