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.
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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.
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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.
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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.