Market Research Report
Global Variable Frequency Drives Market - Segmented by Type, Power Rating, End-user, and Region - Growth, Trends, and Forecast
|Published by||Mordor Intelligence LLP||Product code||393108|
|Published||Content info||102 Pages
Delivery time: 1-2 business days
|Global Variable Frequency Drives Market - Segmented by Type, Power Rating, End-user, and Region - Growth, Trends, and Forecast|
|Published: May 14, 2018||Content info: 102 Pages||
The global variable frequency drives market was valued at USD 19.74 billion in 2017, and is expected to reach a value of USD 27.12 billion by 2023, at a CAGR of 5.35%, during the forecast period (2018 - 2023). The scope of the market covers AC, DC and servo drives.
The significant factors driving the growth of variable frequency drives are rising demand for energy & electricity, industrialization, and advancements in machinery, and stringent regulations imposed by the government to cut down the carbon emissions while producing electricity.
Rising Demand for Energy Efficiency
Increasing cost of electricity and focus on energy savings are driving the HVAC market across various industry verticals. Old equipment is being replaced with improved efficiency and less energy consuming equipment. HVACs are used across industry verticals and can account for more than 50% of the total energy consumption of buildings, and variable frequency drives play an important role in reducing & controlling the energy consumption. The primary role of a VFD is to provide the ability to control the speed of the motor. When used with fans and pumps that employ VFD in HVAC systems, there can be more than 30% reduction in energy consumption. Hence, the regulation of speed directly results in energy consumption, and savings. It is estimated that electric motors use 40% of the total energy used. If VFDs are judiciously used, the global energy consumption can reduce by at least 10%. Furthermore, induction motors operate at low power factor, between 0.75% - 0.85% of their load. Due to an increase in the current overheating and insulation, the life of a motor is reduced. Since VFDs operate at high power factor and adjust the load reaching the motor, their use leads to less strain on the motor. Hence, by using VFD, the lifespan of a motor is increased. Therefore, based on various benefits, and the increasing need for energy-efficient equipment, the market is expected to grow. Due to new infrastructure, along with uncertain economic scenario, costs can play an important role in the success of any business. Hence, such factors enhance the demand for VFD in the global scenario.
Infrastructure to Register the Fastest Growth over the Forecast Period
HVAC Systems are the most targeted components for energy efficiency while aiming at reduction in energy consumption of an infrastructure. Rising construction activities, expanding industrial bases, implementation of stringent government regulations to the use of power, and improving standards of living are anticipated to drive the HVAC systems market. The US industry spends more than USD 30 billion, annually, on energy costs for motor systems. It is estimated that applying variable frequency drives could save 18% of the energy. There has been an increase in the installments of variable frequency drives on HVAC systems inside a building, owing to their advanced energy-saving features. Consequently, more opportunities for energy optimization can now be found across "small-to-medium" buildings, and all the buildings in the emerging regions of the world, majorly in the APAC region, where the number of households has grown exponentially over the last two decades. The United Nations expects that urbanization in Asia will reach 64.1% by 2050, which will further open up opportunities for building & construction industry in the region, thus augmenting the growth of the variable frequency drives market.
United States to Hold the Largest Market Share
Implementation of new regulations to achieve energy efficiency is driving the demand for variable frequency drives market in the United States. California updated its energy regulations through its "Title 24 building energy efficiency standards" to reduce the state's energy footprint and carbon dioxide emissions. According to this latest standard, VFDs have to be installed on motors in HVAC applications with greater than 10 horsepower. This regulation is starting to expand into other states of the United States. Increasing emphasis on energy efficiency is driving industries to adopt energy-saving devices in order to reduce operational expenses. For instance, Len Busch Roses, a nursery for cut-stem flowers, deployed VFD to regulate airflow in snapdragon greenhouse with greater precision. There is an increase in the installation of VFDs across various industries, like pumping, HVAC, machinery equipment, and packaging, as VFDs provide additional protection and monitoring capabilities. US water & wastewater utilities are increasingly using VFDs to become more energy-efficient, and decrease the operating costs.
November 2017 - Rockwell Automation announced its investment in The Hive, a Silicon Valley innovation fund and co-creation studio, to gain access to an ecosystem of innovators and technology start-ups with a focus on applications of artificial intelligence (AI) to industrial automation.
July 2017 - Schneider signed an agreement to acquire Asco Power Technologies, a leader in the Automatic Transfer Switch market for a consideration of USD 1250 million, in an all cash transaction. The acquisition enhanced Schneider Electric's EcoStruxure Power Platform in key markets and segments.
The major players include - EATON CORPORATION, ABB LTD., CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED, GE COMPANY, HONEYWELL INTERNATIONAL INC. , ROCKWELL AUTOMATION INC., HITACHI LTD., SIEMENS AG, MITSUBISHI CORPORATION, TOSHIBA CORPORATION, SCHNEIDER ELECTRIC SE, JOHNSON CONTROLS INC., EMERSON ELECTRIC CO. DANFOSS A/S, amongst others.
Reasons to Purchase this Report
Analyzing the growing demand for energy efficiency acting as a driver to the global market scenario.
Analyzing various perspectives of the market with the help of Porter's five forces analysis.
Type and end-user that is expected to dominate the market.
Regions that are expected to witness fastest growth, during the forecast period.
Identifying the latest developments, market shares, and strategies employed by the major market players.
3-month analyst support, along with the Market Estimate sheet (in Excel).
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