Global demand for variable frequency drives (VFD) is expected to increase at over 7% compound annual growth rate (CAGR) during the period 2016-2026. VFDs are finding increasing applications in pumps, HVAC, fans, and compressors. VFDs have numerous advantages over conventional drives, including energy efficiency, advanced functionality, and reduction in component failure. Mentioned below are some of the benefits of using variable frequency drives.
Energy efficiency
In a conventional compressor setup, the compressor is powered by a motor directly connected to a power supply. Regardless of the requirements of the compressor, the motor runs at a fixed speed, consuming a lot of energy. By using a variable frequency drive, the motor rotation can be adjusted according to the requirements of the compressor. So, depending upon the output requirement, the input can be altered, resulting into energy savings. According to GAMBICA Association Ltd., by reducing the motor speed by 20%, 50% energy efficiency can be achieved.
Improved load control
In addition to energy efficiency, VFDs are also widely used for improving load controls in pumps and HVACs. VFDs allow for smooth operation and acceleration as they prevent load swings in traverse motions.
Smart functionality
Modern-day variable drives come equipped with sensors that gauge important parameters, such as temperature and pressure to drive optimal performance. The sensors automatically alter the conditions so that the motor can be prevented from overheating and wear and tear.
Regenerative energy
Using VFDs also allows for the generation of regeneration energy, which can be converted into heat with the use of a braking resistor. The regenerated energy can also be sent to the source, thus, leading to higher energy savings.
Lower starting current
VFD powered motors use lesser starting current and do not significantly impact the torque, resulting into less stress on the energy grid. Lower energy fluctuations also reduce the probability of electric equipment failure.
VFD: The State of the Market
The VFDs available in the market can be broadly categorised into Servo, AC, and DC. Currently, AC variable frequency drives account for the highest demand, holding nearly 70% revenue share of the market in 2014.
The key industries, where VFDs are used are automotive, oil & gas, pulp & paper, food processing, metallurgy, and mining. Among these, oil and gas industry accounted for the bulk of demand for VFDs, and the status quo is expected to remain so during the forecast period as well.
Demand for VFDs is highest in the Asia Pacific region, owing to presence of a large number of oil and gas companies. The Middle East, especially GCC, produces the bulk of oil and gas, employing hundreds of thousands of motors. The regional VFD manufacturing industry is quite strong, and western corporations are targeting the region, owing to its immense potential. The APEJ market accounts for nearly 30% revenues of the global VFD market, and it will continue to be a lucrative market for VFDs in the future as well.
The information presented in this review is based on the report, "Variable Frequency Drive (VFD) Market: Global Industry Analysis and Opportunity Assessment, 2016 - 2026".
The Connector and Terminal Systems for Harsh Environment Wiring Market is segmented by Product Type (Sealed connectors, Circular connectors, Rectangular connectors, Feedthroughs, Terminal blocks), Terminal Type (Crimp terminals, Stamped terminals, Machined contacts, Socket contacts, Ring terminals), Material (Copper alloys, Aluminum alloys, Stainless steel, Engineering plastics, Elastomers), End Use (Automotive, Aerospace, Industrial, Energy, Marine), Protection Rating (IP67, IP68, IP69K, Hermetic, EMI-shielded), and Region. Forecast for 2026 to 2036.
The smart junction box and power distribution box systems is segmented by System Type (Smart junction boxes, Power distribution boxes, Fuse boxes, Battery junction boxes), Voltage Class (Low voltage, High voltage, 48V systems), Vehicle Type (Passenger cars, Light commercial, Heavy commercial, Off-highway), Function (Power switching, Circuit protection, Load control, Diagnostics), Sales Channel (OEM, Aftermarket), and Region. Forecast for 2026 to 2036.
The human robot collaborative picking optimization platforms market is segmented by Platform type (AMR orchestration, Goods-to-person orchestration, Hybrid orchestration, Robotic cell orchestration), Deployment model (Cloud, Hybrid, On-premise), Warehouse type (E-commerce fulfillment, 3PL, Retail DCs, Manufacturing DCs), Core function (Task orchestration, Path optimization, Labor balancing, Exception management, Slotting sync), Commercial model (RaaS subscription, Perpetual license, Usage-based, Hybrid contract), and Region. Forecast for 2026 to 2036.
The Robotics-Ready Fulfillment Center Design and Integration Services Market is segmented by Service Type (Design engineering, Controls integration, Simulation, Commissioning, Retrofit design), Facility Type (E-commerce DCs, Omnichannel DCs, 3PL hubs, Grocery FCs, Cold-chain FCs), Automation Scope (Goods-to-person, AMR fleets, ASRS systems, Sortation, Piece picking), End User (Retailers, 3PLs, Grocers, Manufacturers, Pharma), Delivery Model (Turnkey projects, Design-only, Retrofit, Phased rollout, Brownfield), and Region. Forecast for 2026 to 2036.
The valve manifold box market is segmented by Product Type (Manual Valve Manifold Boxes, Semi-automatic Valve Manifold Boxes, Fully Automatic Valve Manifold Boxes, Hazardous Gas Valve Manifold Boxes, Others), Gas Type (Inert and Ultra-high Purity Gases, Corrosive Gases, Toxic Gases, Flammable Gases, Others), End Use Industry (Semiconductor Manufacturing, Display and Photovoltaic Manufacturing, Pharmaceuticals and Life Sciences, Research Laboratories, Others), and Region. Forecast for 2026 to 2036.
