AC Drives Market Overview
The current valuation of the AC Drives market in 2022 is US$ 25 billion and it is projected to grow at a modest CAGR of 5.2 % during the forecast period to reach a market value of US$ 41.50 billion by 2032.
Market Valuation (2022)
US$ 25 billion
Market Valuation (2032)
US$ 41.50 billion
Critical factors bolstering the growth of the AC Drives market are
- Rising demand low power AC drives due to their high fuel efficiency
- Need to abide by increasingly stringent government innovations, leading to the adoption of fuel-efficient AC drives
- Rapid urbanization and industrialization driving the adoption of AC drives
- Diverse application of market variants across different sectors
- Channelling of investment into research and development to keep up with recent sustainability trends.
- High competition in the market is prompting key players to develop highly efficient products that are affordable
Key Market Developments
- Sustainability concerns are driving demand for energy-efficient variants
- Increase in an expansion of existent players’ consumer base, acquisitions, partnerships and innovations are impacting the global AC drives market
- Based on market segmentation, the power generation segment is expected to record the highest CAGR during the forecast period. This is fuelled by the segment’s utility in saving energy and enhanced speed control system.
Waning Foreign Direct Investment to Obstruct Market Growth Prospects
Developing countries are emerging as key markets due to regional expansion of the manufacturing sector. However, in recent times there has been a substantial reduction in Foreign Direct Investment in these markets.
Owing to a lack of a robust industrial base in these regions, depleting FDI reserves would critically deter market growth.
Adoption of Internet of Things (IoT) Expected to Bolster Product Demand
Integration of the latest technologies such as the Internet of Things in product variants is expected to improve market prospects. Since the Internet of Things (IoT) finds wide application amongst diverse industries, its product integration is expected to increase the demand and utility of AC drives.
Investments in Manufacturing and Process Industries in Developing Countries
The manufacturing and process industries are engaged in transforming goods, materials, or substances into new products. Various electric components and equipment are installed based on industry type, operation mode, and voltage level requirement.
North American Market Grows due to HVAC Demand
North America continues to be one of the key players in the global AC drives market. The robust market in the region is mainly the result of the high demand for HVAC applications. This primarily encompassed the residential sector and the household appliances segment.
European Market Bolstered by Household Appliances
Europe is one of the global leaders in the production of electric motors for utility in household appliances. Recently, an increase in demand for household appliances driven by their affordability has expanded the household appliance motor market.
Asia-Pacific to Register Highest CAGR During Forecast Period
Rapid industrialization and urbanization have made the Asia-Pacific one of the largest growing markets for household appliances. Recently there is a rise in the implementation of stringent environmental regulations that are increasing the adoption of energy-efficient AC drives.
AC Drives Market: Drivers & Restraints
The major factors driving the growth of AC drives market are increased electricity prices, rising demand for energy and electricity, stringent regulations imposed by government in order to cut down the carbon emissions during the consumption and production of electricity, and industrialization & increasing urbanization.
In U.S., AC drives market demand has been reasonably strong relatively to other region, with advancement in applications such as fans, compressor, and pumps. Moreover, wide range of increasing popularity of Industrial Internet of Things (IoT) and opportunity in the replacement sector is further boosting the growth of AC drives market. Though, AC drives market growth is expected to decline due to reduction in Greenfield investment.
Additionally, growing competition within the local companies’ outlooks a significant restrain for the growth of this AC drives market. On the other side, the factors which are hindering the growth of AC drives market are increasing prices, and complex functions such as synchronization between multiple axes or low end drives used for basic positioning.
AC Drives Market: Regional Outlook
Regarding geography, AC drives market has been categorized into five key regions including North America, Western Europe, Eastern Europe, APEJ, Japan, Latin America, and the Middle East & Africa. AC drives market is expected to register significant CAGR during the forecast period. Asia-Pacific represents the comparatively high market share and grow with relatively high CAGR in forecast period due to increasing demand of AC drives in wide range of application from various industries.
North America is experiencing the rapid increase in the production capacity of AC drives, attributed to increasing urbanization and developments in end-user industries. Key factors driving the growth of AC drives market in the region include increasing growth and technological advancement of drives market, and high end-user application in various industries.
The AC drives market is projected to register healthy growth due rising usage of AC drives across globe. AC drives market for Asia Pacific is also expected to witness rapid growth during the forecast period primarily attributed to the growth of large-scale infrastructure especially in China and India.
AC Drives Market: Key Players
Some of the key players identified in the AC drives market are:-
- ABB Ltd.
- Siemens AG
- Danfoss Group
- Mitsubishi Electrical Co, Ltd.
- Fuji Electric Holdings
- Emerson Electric Co.
- Hitachi Ltd.
- Parker Hannifin Co.
- Toshiba International Corporation Ltd.
- Schneider Electric
- Rockwell Automation
The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data.
It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to categories such as market segments, geographies, types, technology and applications.
The report covers exhaustive analysis on
- Market Segments
- Market Dynamics
- Market Size
- Supply & Demand
- Current Trends/Issues/Challenges
- Competition & Companies involved
- Value Chain
Regional analysis include
- North America (U.S., Canada)
- Latin America (Brazil, Rest of Latin America)
- Western Europe (Germany, Italy, France, U.K, Spain, Rest of Western Europe)
- Eastern Europe (Poland, Russia, Rest of Eastern Europe)
- Asia Pacific excluding Japan (China, India, ASEAN, Australia & New Zealand)
- The Middle East and Africa (GCC countries, S. Africa, Rest of MEA)
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
AC Drives Market: Market Segmentation
The AC drives market is segmented into four parts based on the drive type, voltage type, application, and end-use industry.
Based on the drive type the AC drives market is segmented into:
- Reversible AC Drives
- Non- Reversible AC Drives
Based on the voltage type the AC drives market is segmented into:
- Low power AC drives (Up to 40kw)
- Medium power AC drives (41-200kw)
- High power AC drives (Above 200kw)
Based on the application type the AC drives market is segmented into:
Based on the type of end-use industry AC drives market is segmented into:
- Oil & Gas
- Power generation
- Food & Beverage
- Water & wastewater
- Metals & Mining
- Chemicals & Petrochemicals
Frequently Asked Questions
The market is likely to register a CAGR of 5.2% through 2032.
The market is currently valued at US$ 25 Bn in 2022.
The market is likely to grow to a valuation of US$ 41.50 Bn by 2032
North America is likely to be a leading market during the forecast period.