An Incisive, In-depth Analysis on the Variable Frequency Drives Market
This study offers a comprehensive, 360 degree analysis on the Variable Frequency Drives market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Variable Frequency Drives market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Escalating energy prices and increasing deployment of industrial robotics have led to the rise in need for energy-efficient motor control systems. With the aim of reducing energy consumption, process engineers and other executives managing the operation department are getting increasingly inclined towards deployment of variable frequency drive (or variable speed drive). The global market for variable frequency drives is anticipated to witness considerable growth in the coming years. In recent years, technological advancements in variable frequency drives have led to the minimisation of the overall weight of drives. Also, emergence of new application areas and the various advantages of VFDs, such as reduction in operational cost of electric motor, are factors expected to create favorable growth opportunities for the VFD market over the projection period.
Market Value and Forecast
The global variable frequency drive market is anticipated to expand at a CAGR of over 7%, both in terms of value and volume, during the forecast period. Growth of the global variable frequency drive market is mainly driven by factors such as upsurge in energy prices, introduction of variable frequency drives that can be retrofitted on existing electric motors, widening application areas and stringent energy efficiency norms issued by governments across the world. Currently, the major trends witnessed in the global variable frequency drive market are: development of industry-specific drives, introduction of motor-drive combo packages and diversification of product portfolio by major players.
Segmentation, by Drive Type
The global variable frequency drive market is segmented, based on drive type, into AC, DC and ‘Servo’ drive. Of these segments, the AC variable frequency drive segment dominated the market both in terms of value and volume and accounted for over 70% share of the global variable frequency drive market in 2014, while the ‘Servo’ variable frequency drive segment is expected to expand at the highest CAGR, both in terms of value and volume, during the forecast period.
Segmentation, by Voltage Range
In this report, the variable frequency drive market is segmented on the basis of voltage range into medium and low voltage variable frequency drive segments. Among these segments, the low voltage range segment dominated the global variable frequency drive market in terms of revenue contribution in 2014.
Segmentation, by Application Type
By application type, the market is segmented into standard and regenerative application types. Of these segments, the standard application type segment dominated the market in terms of both value and volume contribution in 2014.
Segmentation, by End-use Application
By end-use application, the global variable frequency drive market is segmented into pump, HVAC, fans, compressor, conveyor systems and others application segments. Among these segments, the pump segment dominated the overall market in terms of value, accounting for over 30% share of the overall market in 2014 and is expected to witness a decrease of 90 BPS by the end of 2026 over 2014 in its market share.
Segmentation, by End-use Industry
By end-use industry, the market is segmented into oil & gas, food processing, automotive, metals & mining, pulp & paper and other end-use industries. Of these segments, the oil & gas end-use industry segment dominated the market in terms of both value and volume contribution in 2014.
On the basis of geography, the global variable frequency drive market is segmented into seven major regions – North America, Western Europe, Asia-Pacific Excluding Japan (APEJ), Japan, Eastern Europe, Latin America and the Middle East & Africa (MEA). Of all these regions, APEJ dominated the overall market in terms of both value and volume, accounting for over 30% share of the overall variable frequency drive market in 2014. In terms of value, the North America market ranked second, accounting for more than 20% share of the global market in 2014, followed by the Middle East & Africa market. In addition, Latin America is anticipated to become the fastest growing region in the global variable frequency drive market over the forecast period.
Some of the key players identified in the global variable frequency drive market are Fuji Electric Co. Ltd., Mitsubishi Electric Corporation, Siemens AG, ABB Ltd., American Electric Technologies Inc., General Electric Company, Hitachi Limited, Honeywell International Inc., Rockwell Automation Inc., Johnson Controls Inc., Emerson Industrial Automation, Toshiba International Corporation and Schneider Electric SE. Major players in the market follow the strategy of introducing innovative and cost effective variable frequency drives to buy out competition. In addition, a majority of the variable frequency drives manufacturers are getting increasingly inclined towards entering into collaboration with electric motor manufacturers in order to enhance their presence in the market.
The scope of applications for energy-efficient motor control systems has been expanding in a wide range of industrial areas, and consequently, the demand for variable frequency drives has also increased to a new high. Most end users operating in various industries are resorting to adjustable frequency drives in order to achieve a significant amount of energy-saving.
Global leaders and big companies in the variable frequency drives market and manufacturers of inverter drives are focusing on entering the HVACR industry, where energy-efficient and sustainable appliances are witnessing high demand. Furthermore, market players are also introducing micro variable frequency drives that can offer more precision in speed control with improved efficiency.
According to Future Market Insights, VFD (variable frequency drive) market is expected to grow at a robust 8.5% CAGR over the course of period from 2016 to 2026. This expansion is attributed towards the growing infrastructural activities, which includes optimizing energy use, reduction in life-cycle cost, strict regulations with regards to energy efficiency and construction of educational institutions and hospitals.
In the recent years, technological innovations in VFD (variable frequency drive) has resulted in minimization of the complete weight of drives. In addition, development of novel application areas along with benefits of VFD (variable frequency drive) such as decline in the operational costs of electric motor are factors likely to create favorable growth avenues for retailers operating in VFD (variable frequency drive) market over the forecast period.
Scope of the Report
VFD (variable frequency drive) market has been segmented
- By Drive Type:Servo Drive, DC Drive and DC Drive
- By Voltage Range:Medium Voltage Range and Low Voltage Range
- By Application Type:Regenerative and Standard
- By End-use Application:HVAC, Conveyor, Compressor, Fan, Pump and Other Applications
- By End-use Industry:Pulp & Papers, Mining & Metals, Automotive, Food Processing, Oil & Gas and Others (chemical processing, power generation, etc.)
- By Region:North America, Latin America, Europe, APEJ (Asia-Pacific excluding Japan), Japan and Middle East and Africa
The report includes VFD (variable frequency drive) market competitive landscape for offering readers with dashboard view depending on several categories of providers that exist in value chain, VFD (variable frequency drive) product portfolio as well as key differentiators in market. Leading players in VFD (variable frequency drive) market includes Emerson Industrial Automation, Rockwell Automation Inc., Hitachi Ltd., ABB Ltd., Fuji Electric Co., Ltd, Toshiba International Corporation, Johnson Controls Inc., GE Energy Power Conversion and Siemens AG. New product launches have been adopted as growth strategies by the leading players in VFD (variable frequency drive) market. Expansions, investments, agreements and contracts are further adopted as growth strategies the leading players in VFD (variable frequency drive) market.
Purpose of the Report
At Future Market Insights, our domain experts and researchers have been utilizing an exclusive blend of secondary and primary research with iterations and validations at each stage, for the purpose of minimizing deviation as well as to offer accurate analysis with regards to VFD (variable frequency drive) market. The research technique begins with widespread data mining, which is done with reliable sources such as independent studies, technical publications, trade magazines and paid avenues. Market forecast is developed utilizing statistical analysis together with models that are built around correlation, regression and time-variance analytics. Significant importance is given to primary research that serves dual role of not only authenticating our results but also procuring penetrating market insights that helps us acquire more clarity with regards to business environment as well as competitive leverage.
Future Market Insights uses a combination of top-down and bottom-up approaches for the purpose of estimating and segmenting quantitative aspects of VFD (variable frequency drive) market. Data has been mined from various repositories and reputed paid databases. In order to attain a comprehensive understanding of the market, understanding the entire value chain is essential and for the same purpose, data is collected from buyers, distributors and raw material suppliers. Industry dynamics regarding pricing trends, opportunities, drivers and restraints are also gathered. Consequently, the material developed consists of wide-ranging original data, which is further authenticated and cross-validated with published sources.
Market forecasting is accomplished by means of a combination of domain expertise, industry experience, technological analysis and economic tools. Exhaustive primary have been conducted over the phone as well as face-to-face for validating our assumptions and findings utilized to obtain them.
Variable Frequency Drives (VFD) Market Reports - Table of Contents
1. Executive Summary
2. Research Methodology
3. Assumptions and Acronyms