Marine VFD Market by End User Type (Marine Ships, and Offshore Platforms), Application ( Pump, Propulsion, Fan, Compressor, Crane & Hoist, Winch, HVAC, Steering, Scrubber, Shaft Generator, Power Electronics), & Region - Global Forecast to 2030
[237 Pages Report] The Marine VFD market is expected to grow from an estimated USD 1.1 billion in 2023 to USD 1.6 billion by 2030, at a CAGR of 5.0% during the forecast period. The nations are undergoing rapid industrialization, there is a greater demand for power. The increasing demand for energy-efficient systems in maritime vessels to control and adjust the speed and power of electric motors for efficiency and precision. This is enhancing the investment in the development of Marine VFD.
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Marine VFD market Dynamics
Driver: Increasing demand for energy-efficient systems in maritime vessels
The maritime industry is currently in the midst of a significant transformation, with a strong focus on enhancing energy efficiency. This transformation is being primarily motivated by a combination of economic factors, sustainability goals, and the implementation of strict regulations. In this evolving landscape, the marine Variable Frequency Drive (VFD) market is experiencing substantial growth and is poised for further expansion. Key drivers of this growth include international regulations and standards, such as the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII) established by the International Maritime Organization (IMO). These regulatory requirements necessitate vessels to meet stringent energy efficiency criteria, compelling shipowners and operators to invest in advanced technologies to comply with these mandates.
Restraints: High Initial Investment
Despite its considerable potential, the marine Variable Frequency Drive (VFD) market is faced with a significant restraint in the form of substantial investments associated with both retrofitting existing ships and integrating VFDs into new vessels. These cost-related challenges are expected to impede the growth of the marine VFD market.
One of the primary hindrances to the widespread adoption of marine VFDs is the significant upfront investment that is necessary. Retrofitting ships with VFDs can incur substantial costs, including expenses related to the procurement of VFD equipment, labor required for installation, engineering modifications, and the integration of the system. Similarly, the inclusion of VFDs in the designs of new ships demands allocating a portion of the ship's construction budget to this technology. These elevated initial costs have the potential to deter shipowners and operators, especially during periods of financial constraints or when budgets are closely managed.
Opportunity: Growing adoption of electric and hybrid propulsion systems
The maritime industry is currently experiencing a fundamental shift towards the adoption of electric and hybrid propulsion systems for marine vessels. The adoption of electric and hybrid propulsion in marine vessels is expected to drive the demand for marine VFDs. This shift is primarily driven by a compelling set of advantages, encompassing economic, environmental, and operational benefits. Notably, recent advancements in battery technology have played a pivotal role in facilitating this transformation, promising more efficient energy utilization, cost savings in fuel consumption, reduced emissions, and enhanced safety. Within this evolving landscape, there is a growing prevalence of electric and hybrid ships equipped with large batteries and optimized power control systems. These vessels derive significant advantages from their reduced reliance on traditional fuel sources, resulting in substantial cost reductions and a remarkable decrease in emissions, spanning CO2, SOX, NOX, and particulate matter. A notable catalyst for this shift has been the remarkable drop in battery prices, which have decreased by approximately 60-70% over the past four years, rendering battery propulsion economically feasible and attractive for a wide range of marine applications.
Challenges: Supply chain disruptions due to shortage of components and parts
The disruption in the semiconductor supply chain has emerged as a formidable challenge for the widespread adoption of marine VFDs in the maritime sector. These VFDs, known for their energy efficiency and precise control capabilities, rely heavily on semiconductor components, and the disruption in the supply chain for these crucial components has significant implications for the adoption of this technology.
According to the Semiconductor Industry Association, the semiconductor shortage took hold in 2020 due to a confluence of factors impacting supply and demand caused by the COVID-19 pandemic. In some industries, customers canceled chip purchases due to disrupted production, while in other industries, demand increased rapidly due to remote working policies. Moreover, the semiconductor supply chain disruption has impacted the innovation and development of advanced VFD technologies. The integration of cutting-edge semiconductor components, such as microcontrollers and digital signal processors, is crucial for enhancing the performance and functionality of VFDs. However, as semiconductor manufacturers struggle to meet demand across various industries, the maritime sector faces challenges accessing these advanced components for next-generation VFDs.
Marine VFD Market Ecosystem
Notable players in this industry comprise long-standing, financially robust manufacturers of Marine VFD Market and related components. These companies have a significant track record in the market, offering a wide range of products, employing cutting-edge technologies, and maintaining robust global sales and marketing networks. Prominent companies in this market include Siemens (Germany), ABB (Switzerland), Danfoss (Denmark), General Electric (US), and Rockwell Automation (US).
Fan, is expected to be the second largest market on based on application type
Marine VFDs are employed in fans on marine vessels for several reasons. They enable precise control over fan speed, allowing adjustments to match the varying ventilation requirements of different ship compartments and conditions. This fine-tuned control ensures optimal air circulation and contributes to energy efficiency by preventing unnecessary power consumption when full fan speed is not required. In addition to energy savings, VFDs in marine fans extend equipment lifespan by reducing wear and tear on fan components through soft starting and stopping. Moreover, they also play a pivotal role in maintaining air quality and comfort for crew members and passengers, crucial for overall safety and well-being during extended voyages at sea.
Low voltage, by voltage, to hold the largest market share during the forecast period during the forecast period
Low voltage is one of the dominant segments of the marine VFD market. Low voltage marine VFDs represent specialized control systems tailored for marine and offshore applications characterized by lower voltage levels, typically below 1,000 volts. These VFDs are vital components in smaller vessels like ferries, tugboats, and offshore support vessels, where the precise control and enhanced energy efficiency they offer are of utmost importance. The growing small vessel market, including offshore support vessels and ferries, is fueling demand for low-voltage VFDs.
Asia Pacific is expected to account for the fastest market during the forecast period.
Asia Pacific is a fastest market the Asia Pacific region emerged as a notably expanding market for marine Variable Frequency Drives (VFDs). This region has been subdivided into three key segments: China, Japan, and the Rest of Asia Pacific, which includes countries like India, Australia, and South Korea.
China's significant growth in the naval sector and its competitive advancements in propulsion technologies, including innovations like ammonia-fueled ships, underscore the nation's dedication to maritime progress and sustainability. VFDs play a crucial role in enhancing vessel efficiency within this context. Japan's commitment to maritime security, exemplified by the introduction of the "Rules for Construction and Classification of Indian Naval Ships 2023," along with its thriving marine economy, further drives the demand for VFD technology. Australia's strong environmental focus and the growth of its shipbuilding sector align with the adoption of VFDs as a means to improve energy efficiency and reduce emissions. In India, regulatory measures aimed at vessel modernization and the release of naval construction rules emphasize the significance of VFDs in enhancing naval capabilities and promoting sustainability. South Korea's ventures into eco-friendly marine biofuels and propulsion innovations also contribute to the promotion of VFD adoption in the region. Collectively, these factors underscore the pivotal role of VFD technology in advancing maritime efficiency, sustainability, and overall performance within the diverse and dynamic Asia Pacific maritime landscape.
Key Market Players
The Marine VFD market is dominated by a few major players that have a wide regional presence. The major players in the Marine VFD market are Siemens (Germany), ABB (Switzerland), Danfoss (Denmark), General Electric (US), and Rockwell Automation (US). Between 2019 and 2023, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the Marine VFD market.
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Report Metric |
Details |
|
Market size available for years |
2019–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Forecast units |
Value (USD) |
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Segments covered |
Type, Voltage, Application, End User, and Region |
|
Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
|
Companies covered |
Siemens (Germany), General Electric (US), Danfoss (Denmark), ABB (Switzerland), Rockwell Automation (US), Schneider Electric (France), NIDEC (Japan), WEG (Brazil), Ingeteam (Spain), Triol (Colombia), CG Power and Industrial Solutions (India), LS Electronics Co., Ltd. (South Korea), Johnson Controls (US), Honeywell (US), Parker Hannifin (US), Invertek Drives (UK), SELMA (Greece), HI-SEA (China), Bosch Rexroth (Germany), and Nord (India) |
This research report categorizes the marine VFD market by type, voltage, application, end user, and region
On the basis of type, the marine VFD market has been segmented as follows:
- New
- Retrofit
On the basis of voltage, the marine VFD market has been segmented as follows:
- Low Voltage
- Medium Voltage
On the basis of by application, the marine VFD market has been segmented as follows:
- Pump
- Propulsion
- Fan
- Compressor
- Crane & Hoist
- Winch
- HVAC
- Steering
- Scrubber
- Shaft Generator
- Power Electronics
On the basis of by end user, the marine VFD market has been segmented as follows:
- Marine ships
- Offshore platforms
On the basis of region, the marine VFD market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In May 2023, GE Power Conversion signed an agreement to renew its partnership with Nedstack Fuel Cell Technology for the development of marine fuel cell solutions. The agreement follows on from a previous cooperation agreement for collaborative work. A pilot project for a large-scale marine fuel cell application provided valuable feasibility support to a cruise provider for their technical and commercial evaluation of decarbonization solutions.
- In June 2022, ABB leads a consortium to implement shore-to-ship power connections for ferries and cruise ships at the port of Toulon. ABB’s technology reduces emissions and noise during port stops. Additionally, ABB is installing an energy storage system to handle grid demand fluctuations and incorporate renewable energy sources, ensuring a sustainable and efficient solution.
- In December 2020, Cochin Shipyard selected Siemens to implement advanced marine solutions for India’s first fleet of 23 boats equipped with electric propulsion and battery-integrated technology.
Frequently Asked Questions (FAQ):
What is the current size of the Marine VFD market?
The current market size of global Marine VFD market is USD 1.1 billion in 2023.
What is the major drivers for Marine VFD market?
The global Marine VFD market is driven by in off-grid locations is fueled by increasing demand for energy-efficient systems in maritime vessels.
Which is the fastest-growing region during the forecasted period in Marine VFD market?
Asia Pacific is a fastest market the Asia Pacific region emerged as a notably expanding market for marine Variable Frequency Drives (VFDs).
Which is the second largest segment, by application type during the forecasted period in Marine VFD market?
Fan, is expected to be the second largest market. Marine VFDs are employed in fans on marine vessels for several reasons. They enable precise control over fan speed, allowing adjustments to match the varying ventilation requirements of different ship compartments and conditions.
Which is the largest segment, by end user during the forecasted period in Marine VFD market?
Low voltage holds the largest market share. Low voltage is one of the dominant segments of the marine VFD market. Low voltage marine VFDs represent specialized control systems tailored for marine and offshore applications characterized by lower voltage levels, typically below 1,000 volts. These VFDs are vital components in smaller vessels like ferries, tugboats, and offshore support vessels, where the precise control and enhanced energy efficiency they offer are of utmost importance.
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The study involved major activities in estimating the current size of the marine VFD market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the marine VFD market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the global marine VFD market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The marine VFD market comprises several stakeholders such as marine VFD manufacturers, manufacturers of subcomponents of marine VFD, manufacturing technology providers, and technology support providers in the supply chain. The demand side of this market is characterized by the rising demand for uninterrupted power supply from end users. Moreover, the demand is also driven by the rising demand from shipbuilding industry. The supply side is characterized by rising demand for contracts from the industrial sector, and deals & agreements among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the marine VFD market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Marine VFD Market Size: Top-down Approach
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Global Marine VFD Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Marine variable frequency drives (VFDs) are specialized devices used for controlling electric motor speed and torque in maritime settings. They optimize propulsion in ships and boats, offering energy efficiency by adjusting motor speed to match the load. VFDs provide precise control, reducing wear on motors and components through gradual speed changes. They replace mechanical systems, conserving space and weight. They are used for automatic speed adjustment, which ensures optimal performance. Marine VFDs are vital for efficient, controlled electric propulsion in modern watercraft, enhancing maneuverability and reducing energy consumption.
Key Stakeholders
- Associations, forums, and alliances related to marine VFD ecosystem
- Marine VFD manufacturing companies
- Cruise and passenger transport companies
- Consulting companies in the maritime sector
- Government and research organizations
- Marine vessel manufacturers
- Renewable energy associations
- Environmental associations
- International shipping and sea trading organizations
- Shipbuilding industry
- Vessel designers, owners, and operators
- Investment banks
- Original equipment manufacturers (OEMs)
Objectives of the Study
- To define, describe, segment, and forecast the marine VFD market, in terms of value and volume, on the basis of type, voltage, application, end user, and region
- To forecast the market size for five key regions: North America, South America, Europe, Asia Pacific, and Middle East & Africa, along with their key countries
- To provide detailed information about the key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze the subsegments with respect to individual growth trends, prospects, and contributions of each segment to the overall market size
- To analyze market opportunities for stakeholders and the competitive landscape of the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze competitive developments, such as deals and agreements in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
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Generating Response ...
Growth opportunities and latent adjacency in Marine VFD Market