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".

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