North America Variable Frequency Drive Market

Variable Frequency Drive Market: High Absolute Dollar Opportunity to be Witnessed in 2027 over 2026 Owing to Fresh Investments in Power and Automotive Industry: North America Industry Analysis and Opportunity Assessment, 2017–2027

  • 2017-05-03
  • REP-NA-3651
  • 148 pages
  • PDF PPT EXCEL
North America Variable Frequency Drive Market

An Incisive, In-depth Analysis on the North America Variable Frequency Drive Market

This study offers a comprehensive, 360 degree analysis on the North America Variable Frequency Drive market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global North America Variable Frequency Drive 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.

U.S. variable frequency drive market revenue is anticipated to expand at a moderate CAGR over the period 2017–2027

Variable frequency drive sales value and volume consumption in the U.S. is projected to expand at the highest CAGR over the forecast period. In 2016, the U.S. variable frequency drive market was valued at more than US$ 3,300 Mn and has been estimated to increase to a little more than US$ 3,500 Mn by 2017 end, reflecting a Y-o-Y growth rate of 5.9%. The U.S. country market is anticipated to create incremental dollar opportunity of close to US$ 3,000 Mn between 2016 and 2027 in the North America variable frequency drive market. In terms of market value, the Canada variable frequency drive market was valued at US$ 911.8 Mn in 2016 and has been estimated to increase to more than US$ 950 Mn by 2017 end, reflecting a Y-o-Y growth rate of 5.2%. Revenue contribution from the variable frequency drive market in Canada is expected to increase at a CAGR of 4.8% over the forecast period. The Canada market is anticipated to create incremental dollar opportunity of more than US$ 600 Mn between 2016 and 2027 in the North America variable frequency drive market.

north america variable frequency drive market

Upsurge in energy prices and technological advancements in variable frequency drives are anticipated to fuel revenue growth of the variable frequency drive market in U.S. and Canada

Escalating energy prices has created the need for energy-efficient motor control systems. With the aim of reducing energy consumption, process engineers and other executives managing the operation department are increasingly inclined towards deployment of variable frequency drives. It acts as a substitute to throttling devices such as general valves, industrial valves and dampers and fixed speed controllers. This factor is expected to boost the growth of the variable frequency drive market in the U.S and Canada. The emergence of new application areas coupled with advantages such as the low operational cost of systems with a deployment of variable frequency drives are factors expected to create favourable opportunities for variable frequency drives vendors in Canada and the U.S.

Motors, when connected to variable frequency drives, receive power that comprises changeable carrier frequency, fundamental frequency, and very rapid voltage buildup. These factors can result in a negative impact, especially when existing motors are retrofitted with such drives. Currently, leading variable frequency drive manufacturers are introducing general purpose variable frequency drives with the added advantage of deployment compatibility with existing electric motors. This, in turn, is fuelling the growth of the variable frequency drive market in North America.

With a decreasing price of variable frequency drives, the relevant application areas are broadening. End users in North America are aware of the numerous advantages offered by variable frequency drives and are inclined towards deployment of such drives for indoor applications as well. For instance, adoption of variable frequency drives to reduce the energy consumption of swimming pool filtration and pumping systems is gaining traction in matured markets. Variable frequency drives, when installed along with a flow-meter also known as intelligent flow meter, ensure appropriate water volume and eliminate energy wastage due to worst-case design philosophy. All these positive aspects are driving the U.S and Canada variable frequency drive market.

High deployment costs associated with medium voltage variable frequency drives is predicted to hamper the growth of the North America variable frequency drive market

Although prices of variable frequency drives have declined over the last decade, medium voltage variable frequency drives come with a high price tag. For typical applications in the industrial sector, the deployment of medium voltage variable frequency drives is expected to increase during the forecast period. However, high initial costs associated with medium voltage variable frequency drives is hampering the growth of the market.  

In a new publication titled “Variable Frequency Drive Market: North America Industry Analysis and Opportunity Assessment, 2017–2027,” Future Market Insights examines technological advancements in the North America variable frequency drive market over a 10 year forecast period. We have observed that new generation power semiconductors insulated gate bipolar transistors (IGBTs) are able to function at higher switching frequencies, resulting in fewer power losses and reduced heat within the drive. Further, our analysts have noted that in the present generation of VFDs, internal line reactor is replaced with built-in DC link choke. DC link choke has the additional advantage of a lower voltage drop than the equivalent AC line reactor, translating into overall increased efficiency of the drive. According to our analysts, advancements in capacitor technology is enabling the enhancement of net energy savings. Technological innovation in newly designed capacitors ensures 80% less power loss than capacitors based on older technologies. 

Report Description

The report commences with an overview of the North America variable frequency drive market in terms of value. In addition, this section includes an analysis of key trends, drivers and restraints from the supply, demand and economy side, which are influencing the North America variable frequency drive market. Impact analysis of key growth drivers and restraints, based on the weighted average model is included in this report to facilitate clients with crystal clear decision-making insights. A detailed analysis has been provided for every segment in terms of market size analysis for variable frequency drives in the North America region. The section provides a detailed analysis covering key trends, absolute dollar opportunity and BPS analysis. The report provides a market outlook for 2017–2027 and sets the forecast within the context of the North America variable frequency drive market, including latest technological developments as well as offerings in the market. This study discusses key trends within countries contributing to the development of the market. 

In the final section of the report, we include a competitive landscape to provide clients with a dashboard view, based on categories of providers in the value chain, presence in the variable frequency drive portfolio and key differentiators. This section is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment in the variable frequency drive market value chain and the potential players for the same. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on the in-depth assessment of capabilities and success in the marketplace. Detailed profiles of providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the North America variable frequency drive market.

Market Segmentation

By Country

By Drive Type

By Voltage Range

By Application Type

By End-Use Application

By End-Use Industry

  • U.S.

  • Canada

  • AC Drive

  • DC Drive

  • Servo Drive

  • Low Voltage Range

  • Medium Voltage Range

  • Standard

  • Regenerative

  • Pump

  • Fan

  • Compressor

  • Conveyor

  • HVAC

  • Others

  • Oil & Gas

  • Food Processing

  • Automotive

  • Mining & Metals

  • Pulp and Papers

  • Other


Research Methodology

The forecast presented here assesses the total revenue by value across the market. In order to offer an accurate forecast, we have started by sizing the current market, which forms the basis of how the North America variable frequency drive market will develop in the future. Given the characteristics of the market, we have triangulated the outcome of different types of analyses based on the technology trends. Another key feature of this report is the analysis of all key segments in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the North America variable frequency drive market. We have not considered the yearly change in inflation rate while forecasting market numbers. Top-down approach has been used to assess market numbers for each product category, while bottom-up approach has been used to counter-validate the estimated market numbers.

North America Variable Frequency Drive Market Reports - Table of Contents

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Pranay Mhaisekar

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