The latest report by IMARC Group, titled "AC Drives Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028," finds that the global AC drives market size reached US$
23.5 Billion in 2022. AC drives, also known as variable-frequency drives (VFD), refer to devices used to control the speed of electric motors by altering the frequency of the electrical supply to the motor. The reduced energy consumption is one of the key features of these drives as they ensure the judicious utilization of resources, which helps in the sustainable management of industrial operations. They also help improve process control, reduce mechanical stress on motor control, and optimize processes. As a result, AC drives are widely utilized to control rotating equipment, such as conveyors, fans, pumps, and machine spindles, in the manufacturing process.
Global AC Drives Market Trends:
The rising automation in various industries and the widespread adoption of the Industrial Internet of Things (IIoT) represent the primary factors driving the market growth. Besides this, the surging sales of motor-driven equipment and the growing penetration of connected devices across the residential, commercial, and industrial sectors have catalyzed the demand for AC drives. Additionally, governments of various countries are introducing favorable policies and stringent regulations mandating the use of energy-efficient products, such as AC drives, to reduce power loss and enhance the energy efficiency of motors. Along with this, the increasing usage of web technologies, cloud computing, and mobile communications to control and maintain AC drives has propelled the market growth. Furthermore, the leading manufacturers are engaging in research and development (R&D) activities to launch innovative product variants, such as hybrid safety drives and regenerative energy drives. They are also developing next-gen drives integrated with network and diagnostic capabilities for enhanced performance and productivity, which is further driving the market growth. Other factors, including the advent of Industry 4.0, rapid urbanization and industrialization, heavy investments in infrastructure development, and technological advancements, are also creating a favorable market outlook. Looking forward, the market value is expected to reach US$ 33.9 Billion by 2028, growing at a CAGR of
6.2% during the forecast period (2023-2028).
- Based on the power rating, the market has been segregated into low power drives (<40 kW), medium power drives (41 kW - 200 kW), and high power drives (>200 kW). Currently, the low power drives (<40 kW) dominate the market, holding the largest market share.
- On the basis of the voltage, the market has been bifurcated into low and medium voltage, wherein low voltage represents the largest segment.
- Based on the application, the market has been segmented into pumps, fans, compressors, conveyors, extruders, and others. Amongst these, pumps exhibit a clear dominance in the market.
- The market has been classified based on the end use into food and beverage, water and wastewater, HVAC, oil and gas, power, metal processing, chemicals, and others. At present, the power segment accounts for the majority of the market share.
- On a regional basis, Asia Pacific holds the leading position in the market. Other major regions include North America, Europe, Middle East and Africa, and Latin America.
- The competitive landscape of the market has also been analyzed, with some of the key players being ABB Ltd., Danfoss Group, Schneider Electric Se, Siemens AG, Mitsubishi Electric Corporation, Fuji Electric Co. Ltd., Emerson Electric Co., Hitachi Ltd., Parker Hannifin Corporation, Rockwell Automation Inc., Toshiba International Corporation, WEG SA, and Yaskawa Electric Corporation.
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