Variable Frequency Drive (VFD) Market by Type (AC, DC, and Servo), End-Users (Industrial, Infrastructure, Oil & Gas, and Power Generation), Application (Pumps, Fans, Compressors, and Conveyors), Power Range, Voltage, and Region - Global Forecast to 2023
The global variable frequency drive (vfd) market was valued at USD 19.62 billion in 2017 and is projected to reach USD 27.57 billion by 2023, at a CAGR of 5.87%, during the forecast period. The growth of the variable frequency drive market is mainly driven by the increased usage of variable frequency drive across major industry verticals, industrialization and urbanization, and increasing focus on energy efficiency.
Objectives of the Study
- To define and segment the market with respect to voltage, application, power range, end-user, and region
- To provide detailed information about major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To strategically analyze the market with respect to individual growth trends, future expansions, and contributions to the market
- To analyze market opportunities for stakeholders and details of a competitive landscape for market leaders
- To forecast the growth of the market with respect to the major regions (Asia Pacific, Europe, North America, Middle East, South America, and Africa)
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments such as new product development, mergers & acquisitions, expansions & investments, partnership & collaboration, and contracts & agreements, in the market
Research Methodology
This research study involved the use of extensive secondary sources, directories, journals on power generation technologies, and other related rental markets; newsletters and databases such as Hoovers, Bloomberg, Businessweek, and Factiva, among others, to identify and collect information useful for a technical, market-oriented, and commercial study of the global market. The primary sources include several industry experts from the core and related industries, vendors, preferred suppliers, technology developers, alliances, and organizations related to all the segments of this industrys value chain. The research methodology has been explained below.
- Study of annual revenues and market developments of major players providing VFDs
- Analysis of the major end-users and applications of variable frequency drive
- Assessment of future trends and growth of market on the basis of investments in key end-user segments such as industrial, infrastructure, oil & gas, and power generation
- Study of contracts & developments related to the market by key players across different regions
- Finalization of the overall market sizes by triangulating the supply-side data, which includes product developments, supply chains, and annual revenues of companies manufacturing VFDs across the globe
After arriving at the overall market size, the variable frequency drive market was split into several segments and subsegments. The figure given below illustrates the breakdown of primary interviews conducted during the research study on the basis of company type, designation, and region.
To know about the assumptions considered for the study, download the pdf brochure
Market Dynamics
Rising need for energy efficiency
The industrial sector consumes nearly 70 percent of energy and uses electric motors for powering electrical equipment. These motors are used for applications ranging from pumps, compressors, and conveyors, to every type of machine that depends on the rotational force for its functioning. VFDs help run these motors based on required current demand, rather than running them at full speed and reducing output using mechanical controls such as throttles, dampers or gears, thereby, optimizing energy efficiency, and providing higher reliability.
The growth in industrialization is driving a continuous need for electric motors, which consume one-third of the total electricity produced, globally. Limited conventional power generation, coupled with a continuous rise in electricity prices, have led to the need for energy efficiency and encouraged companies to invest in energy-efficient equipment. Energy-intensive industries such as oil & gas, metals & mining, pulp & paper, cement, and water &wastewater are using VFDs to reduce energy consumption and CO2 emissions. Therefore, the increasing need for energy efficiency is expected to drive the VFD market.
Stagnant growth of the oil & gas industry
Oil & gas is one of the leading end-use industries of VFDs. There has been a stagnant growth in the global upstream oil & gas industry since 2014, owing to the decrease in exploration and production activities. Declining oil prices, due to an oversupplied market, have resulted in a decrease in exploration and production activities. The focus on industrial growth in countries such as Saudi Arabia, the UAE, Iraq, Canada, Iran, and Russia are dependent on oil export is gradually shifting toward manufacturing industries, as they are aiming for a diversified revenue stream.
The spot price of the European benchmark crude oil Brent dropped from USD 111.8 per barrel in June 2014 to below USD 30 per barrel in the first quarter of 2016, due to the increasing supply of oil from the US and OPEC countries (including Saudi Arabia), and the recent lifting of sanctions against Iran. This has resulted in a decline in green field investments in the oil & gas industry.
Industrial internet of things (IIoT)
The Internet of Things (IoT) has brought about a revolution in the industrial sector by improving industrial processes through the introduction of smart machines, inventory systems, and production machinery. It has also driven the use of automated equipment such as VFDs, which can be connected to the Internet and can be monitored and controlled remotely as per the process requirement. This helps consumers manage their operations more efficiently and effectively. In addition, it provides machine builders the flexibility with which they need to accommodate the end-user requirements. This includes the ability to control interfaces such as communication fieldbuses, pulse trains, and digital or analog I/O modules. VFDs that support web services bring IIoT connectivity at the device level and enables the machine builders to analyze and improve their applications or perform diagnostics locally or remotely. This enables them to implement fixes while testing and avoid the occurrence of unexpected downtime in the future, thereby, providing growth opportunities for the VFD market.
Major players operating in the global variable frequency drive market include ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Danfoss (Denmark), and Rockwell (US).
Target Audience:
- VFD manufactures, dealers, and suppliers
- Government and research organizations
- Investors/Shareholders
- Institutional investors
- Energy utilities
- Process industries and power and energy associations
- Public and private operators of power plan
Scope of the Report:
- By Voltage
- Low Voltage
- Medium Voltage
- By Type
- AC Drives
- DC Drives
- Servo Drives
- By Power Range
- Micro-Power Drives
- Low-Power Drives
- Medium-Power Drives
- High-Power Drives
- By Application
- Pumps
- Fans
- Compressors
- Conveyors
- Others
- By End-User
- Oil & Gas
- Industrial
- Infrastructure
- Power Generation
- By Region
- Asia Pacific
- Europe
- North America
- Middle East
- Africa
- South America
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the clients specific needs. The following customization options are available for this report:
Company Information
Detailed analyses and profiling of additional market players (up to five)
The global variable frequency drive market is projected to reach a market size of USD 27.57 billion by 2023, at a CAGR of 5.87%, from an estimated USD 20.73 billion in 2018. This growth can be attributed to the increased usage of variable frequency drive across major industry verticals, rapid industrialization and urbanization, along with increasing investments on infrastructure development, and shifting focus on energy efficiency.
The report segments the market, by voltage, into low and medium voltages. The low-voltage segment is expected to hold the largest market share (by volume) by 2023. Increased investment on the growth of infrastructural activities, renewable energy production, and growing need for energy efficiency would propel the demand for the AC drive segment.
The global variable frequency drive market, by power rating, is segmented into micro-power drive, low-power drive, and medium-power drive, and high-power drive. The low-power drive segment is expected to dominate the market by 2023. The low-power drive segment provides higher energy savings at low capital costs and better process control to various industries such as building, automation, oil & gas, food & beverage, and pulp & paper. Increase in production toward infrastructure activities in emerging countries would drive the low power drive segment market.
The industrial segment is one of the major end-users of the VFD market. Also, this segment is expected to hold the largest market share during the forecast period. Increasing demand for electric motors from various industries such as paper & pulp, marine, discrete manufacturing, cement, and others is likely to increase the demand for variable frequency drive for industrial applications
In this report, the variable frequency drive market has been analyzed with respect to 6 regions, namely, North America, Europe, South America, Asia Pacific, Africa, and Middle East. The market in Asia Pacific is estimated to be the largest market, from 2018 to 2023. Countries such as China, India, and Japan, are heavily investing on the renewable energy, which would positively impact the VFD market. Also, massive investments on the manufacturing industry is also one of the major factors that would propel the growth of the market. For instance, as per Asian Development Bank, the region will need an investment of USD 26 trillion from 2016 to 2030 or USD 1.7 trillion per year to maintain its growth momentum and respond to climate change.
Stagnant growth of the oil & gas industry due to declining oil prices has resulted in a decrease in exploration & production activities and could act as restraints for the variable frequency drive market. The leading players in the variable frequency drive market include ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Danfoss (US), and Rockwell (US). New product launches is the most commonly adopted strategy by the top players. This was followed by contracts & agreements and investments & expansions.
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Table of Contents
1 Introduction (Page No. - 15)
1.1 Objectives of the Study
1.2 Definition
1.3 Market Scope
1.3.1 Market Segmentation
1.3.2 Regional Scope
1.4 Years Considered for the Study
1.5 Currency
1.6 Limitation
1.7 Stakeholders
2 Research Methodology (Page No. - 19)
2.1 Research Data
2.1.1 Secondary Data
2.1.1.1 Secondary Sources
2.1.2 Primary Data
2.1.2.1 Key Data From Primary Sources
2.1.2.2 Key Data From Primary Sources
2.1.2.3 Breakdown of Primaries
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.2 Top-Down Approach
2.3 Market Breakdown & Data Triangulation
2.4 Research Assumptions
3 Executive Summary (Page No. - 27)
4 Premium Insights (Page No. - 32)
4.1 Attractive Opportunities in the VFD Market, 20182023
4.2 VFD Market, By Voltage
4.3 VFD Market, By Application
4.4 VFD Market, By Power Range
4.5 VFD Market, By Type
4.6 Asia Pacific VFD Market
5 Market Overview (Page No. - 35)
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Increased Use of VFDs Across Major Vertical Industries
5.2.1.2 Rising Need for Energy Efficiency
5.2.1.3 Supportive Regulatory Environment
5.2.2 Restraints
5.2.2.1 Stagnant Growth of the Oil & Gas Industry
5.2.3 Opportunities
5.2.3.1 Aging Power Infrastructure
5.2.3.2 Industrial Internet of Things (Iiot)
5.2.4 Challenges
5.2.4.1 Gray Market Providing Low-Quality and Cheap Products
6 VFD Market, By Type (Page No. - 39)
6.1 Introduction
6.2 Ac Drives
6.3 Dc Drives
6.4 Servo Drives
7 VFD Market, By Voltage (Page No. - 43)
7.1 Introduction
7.2 Low Voltage (Up to 690 V)
7.3 Medium Voltage (> 690 V)
8 VFD Market, By Application (Page No. - 47)
8.1 Introduction
8.2 Pumps
8.3 Fans
8.4 Compressors
8.5 Conveyors
8.6 Others
9 VFD Market, By Power Range (Page No. - 53)
9.1 Introduction
9.2 Micro Power Drives
9.3 Low Power Drives
9.4 Medium Power Drives
9.5 High Power Drives
10 VFD Market, By End-User (Page No. - 57)
10.1 Introduction
10.2 Industrial
10.3 Infrastructure
10.4 Power Generation
10.5 Oil & Gas
11 VFD Market, By Region (Page No. - 61)
11.1 Introduction
11.2 Asia Pacific
11.2.1 By Voltage
11.2.2 By Application
11.2.3 By Power Range
11.2.4 By Type
11.2.5 By Country
11.2.5.1 China
11.2.5.2 India
11.2.5.3 Japan
11.2.5.4 Australia
11.2.5.5 South Korea
11.2.5.6 Indonesia
11.2.5.7 Rest of Asia Pacific
11.3 Europe
11.3.1 By Voltage
11.3.2 By Application
11.3.3 By Power Range
11.3.4 By Type
11.3.5 By Country
11.3.5.1 Germany
11.3.5.2 France
11.3.5.3 UK
11.3.5.4 Russia
11.3.5.5 Italy
11.3.5.6 Spain
11.3.5.7 Rest of Europe
11.4 North America
11.4.1 By Voltage
11.4.2 By Application
11.4.3 By Power Range
11.4.4 By Type
11.4.5 By Country
11.4.5.1 US
11.4.5.2 Canada
11.4.5.3 Mexico
11.5 South America
11.5.1 By Voltage
11.5.2 By Application
11.5.3 By Power Range
11.5.4 By Type
11.5.5 By Country
11.5.5.1 Brazil
11.5.5.2 Argentina
11.5.5.3 Chile
11.5.5.4 Rest of South America
11.6 Middle East
11.6.1 By Voltage
11.6.2 By Application
11.6.3 By Power Range
11.6.4 By Type
11.6.5 By Country
11.6.5.1 Saudi Arabia
11.6.5.2 UAE
11.6.5.3 Qatar
11.6.5.4 Oman
11.6.5.5 Kuwait
11.6.5.6 Rest of Middle East
11.7 Africa
11.7.1 By Voltage
11.7.2 By Application
11.7.3 By Power Range
11.7.4 By Type
11.7.5 By Country
11.7.5.1 Egypt
11.7.5.2 Nigeria
11.7.5.3 South Africa
11.7.5.4 Rest of Africa
12 Competitive Landscape (Page No. - 100)
12.1 Overview
12.2 Ranking of Players and Industry Concentration, 2017
12.3 Competitive Scenario
12.3.1 New Product Launches
12.3.2 Contracts & Agreements
12.3.3 Investments & Expansions
12.3.4 Mergers & Acquisitions
12.3.5 Others
13 Company Profile (Page No. - 106)
(Business Overview, Products Offered, Recent Developments, MnM View)*
13.1 Benchmarking
13.2 ABB
13.3 Siemens
13.4 Schneider Electric
13.5 Danfoss
13.6 Rockwell
13.7 Crompton Greaves
13.8 Eaton
13.9 Fuji
13.10 Hitachi
13.11 Nidec
13.12 Tmeic
13.13 Weg SA
13.14 Yaskawa
*Details on Business Overview, Products Offered, Recent Developments, MnM View Might Not Be Captured in Case of Unlisted Companies.
14 Appendix (Page No. - 159)
14.1 Insights of Industry Experts
14.2 Discussion Guide
14.3 Knowledge Store: Marketsandmarkets Subscription Portal
14.4 Introducing RT: Real-Time Market Intelligence
14.5 Available Customizations
14.6 Related Reports
14.7 Author Details
List of Tables (87 Tables)
Table 1 VFD Market Snapshot
Table 2 VFD Market Size, By Type, 20162023 (USD Million)
Table 3 AC Drives: Variable Frequency Drive Market Size, By Region, 20162023 (USD Million)
Table 4 DC Drives: Market Size, By Region, 20162023 (USD Million)
Table 5 Servo Drives: Market Size, By Region, 20162023 (USD Million)
Table 6 VFD Market Size, By Voltage, 20162023 (USD Million)
Table 7 Low Voltage: Market Size, By Region, 20162023 (USD Million)
Table 8 Medium Voltage: Market Size, By Region, 20162023 (USD Million)
Table 9 Global Variable Frequency Drive Market Size, By Application, 20162023 (USD Million)
Table 10 Pumps: Market Size, By Region, 20162023 (USD Million)
Table 11 Fans: Market Size, By Region, 20162023 (USD Million)
Table 12 Compressors: Market Size, By Region, 20162023 (USD Million)
Table 13 Conveyors: Market Size, By Region, 20162023 (USD Million)
Table 14 Others: Market, By Region, 20162023 (USD Million)
Table 15 VFD Market Size, By Power Range, 20162023 (USD Million)
Table 16 Micro Power Drives: Market Size, By Region, 20162023 (USD Million)
Table 17 Low Power Drives: Market Size, By Region, 20162023 (USD Million)
Table 18 Medium Power Drives: Market Size, By Region, 20162023 (USD Million)
Table 19 High Power Drives: Market Size, By Region, 20162023 (USD Million)
Table 20 VFD Market Size, By End-User, 20162023 (USD Million)
Table 21 Industrial: Market Size, By Voltage, 20162023 (USD Million)
Table 22 Infrastructure: Market Size, By Voltage, 20162023 (USD Million)
Table 23 Power Generation: Market Size, By Voltage, 20162023 (USD Million)
Table 24 Oil & Gas: Market Size, By Voltage, 20162023 (USD Million)
Table 25 VFD Market Size, By Region, 20162023 (USD Million)
Table 26 Asia Pacific: Market Size, By Voltage, 20162023 (USD Million)
Table 27 Asia Pacific: Market Size, By Application, 20162023 (USD Million)
Table 28 Asia Pacific: Market Size, By Power Range, 20162023 (USD Million)
Table 29 Asia Pacific: Market Size, By Type, 20162023 (USD Million)
Table 30 Asia Pacific: Market Size, By Country, 20162023 (USD Million)
Table 31 China: Market Size, By Voltage, 20162023 (USD Million)
Table 32 India: Market Size, By Voltage, 20162023 (USD Million)
Table 33 Japan: Market Size, By Voltage, 20162023 (USD Million)
Table 34 Australia: Market Size, By Voltage, 20162023 (USD Million)
Table 35 South Korea: Market Size, By Voltage, 20162023 (USD Million)
Table 36 Indonesia: Market Size, By Voltage, 20162023 (USD Million)
Table 37 Rest of Asia Pacific: Market Size, By Voltage, 20162023 (USD Million)
Table 38 Europe: Market Size, By Voltage, 20162023 (USD Million)
Table 39 Europe: Market Size, By Application, 20162023 (USD Million)
Table 40 Europe: Market Size, By Power Range, 20162023 (USD Million)
Table 41 Europe: Market Size, By Type, 20162023 (USD Million)
Table 42 Europe: Market Size, By Country, 20162023 (USD Million)
Table 43 Germany: Market Size, By Voltage, 20162023 (USD Million)
Table 44 France: Market Size, By Voltage, 20162023 (USD Million)
Table 45 UK: Market Size, By Voltage, 20162023 (USD Million)
Table 46 Russia: Market Size, By Voltage, 20162023 (USD Million)
Table 47 Italy: Market Size, By Voltage, 20162023 (USD Million)
Table 48 Spain: Market Size, By Voltage, 20162023 (USD Million)
Table 49 Rest of Europe: Market Size, By Voltage, 20162023 (USD Million)
Table 50 North America: Market Size, By Voltage, 20162023 (USD Million)
Table 51 North America: Market Size, By Application, 20162023 (USD Million)
Table 52 North America: Market Size, By Power Range, 20162023 (USD Million)
Table 53 North America: Market Size, By Type, 20162023 (USD Million)
Table 54 North America: Market Size, By Country, 20162023 (USD Million)
Table 55 US: Market Size, By Voltage, 20162023 (USD Million)
Table 56 Canada: Market Size, By Voltage, 20162023 (USD Million)
Table 57 Mexico: Market Size, By Voltage, 20162023 (USD Million)
Table 58 South America: Market Size, By Voltage, 20162023 (USD Million)
Table 59 South America: Market Size, By Application, 20162023 (USD Million)
Table 60 South America: Market Size, By Power Range, 20162023 (USD Million)
Table 61 South America: Market Size, By Type, 20162023 (USD Million)
Table 62 South America: Market Size, By Country, 20162023 (USD Million)
Table 63 Brazil: Market Size, By Voltage, 20162023 (USD Million)
Table 64 Argentina: Market Size, By Voltage, 20162023 (USD Million)
Table 65 Chile: Market Size, By Voltage, 20162023 (USD Million)
Table 66 Rest of South America: Market Size, By Voltage, 20162023 (USD Million)
Table 67 Middle East: Market Size, By Voltage, 20162023 (USD Million)
Table 68 Middle East: Market Size, By Application, 20162023 (USD Million)
Table 69 Middle East: Market Size, By Power Range, 20162023 (USD Million)
Table 70 Middle East: Market Size, By Type, 20162023 (USD Million)
Table 71 Middle East: Market Size, By Country, 20162023 (USD Million)
Table 72 Saudi Arabia: Market Size, By Voltage, 20162023 (USD Million)
Table 73 UAE: Market Size, By Voltage, 20162023 (USD Million)
Table 74 Qatar: Market Size, By Voltage, 20162023 (USD Million)
Table 75 Oman: Market Size, By Voltage, 20162023 (USD Million)
Table 76 Kuwait: Market Size, By Voltage, 20162023 (USD Million)
Table 77 Rest of Middle East: Market Size, By Voltage, 20162023 (USD Million)
Table 78 Africa: Market Size, By Voltage, 20162023 (USD Million)
Table 79 Africa: Market Size, By Application, 20162023 (USD Million)
Table 80 Africa: Market Size, By Power Range, 20162023 (USD Million)
Table 81 Africa: Market Size, By Type, 20162023 (USD Million)
Table 82 Africa: Market Size, By Country, 20162023 (USD Million)
Table 83 Egypt: Market Size, By Voltage, 20162023 (USD Million)
Table 84 Nigeria: Market Size, By Voltage, 20162023 (USD Million)
Table 85 South Africa: Market Size, By Voltage, 20162023 (USD Million)
Table 86 Rest of Africa: Market Size, By Voltage, 20162023 (USD Million)
Table 87 Tmeic Was the Most Active Player in the Market Between 2014 & 2018
List of Figures (43 Figures)
Figure 1 Research Design
Figure 2 Breakdown of Primaries: By Company Type, Designation, & Region
Figure 3 Bottom-Up Approach
Figure 4 Top-Down Approach
Figure 5 Data Triangulation Methodology
Figure 6 Assumptions of the Research Study
Figure 7 Ac Drives Segment to Register the Highest CAGR
Figure 8 Low-Voltage Segment to Lead the VFD Market
Figure 9 Low Power Drives Segment to Lead the VFD Market
Figure 10 Pumps to Be the Leading Application of VFD
Figure 11 Asia Pacific to Lead the VFD Market
Figure 12 Supporting Regulatory Environment & Rising Need of Energy Efficiency are Driving the VFD Market During the Forecast Period
Figure 13 Medium-Voltage Segment to Register the Highest CAGR
Figure 14 Pumps Segment Accounted for the Largest Market Share in 2017
Figure 15 High Power Drives Segment to Register the Highest CAGR
Figure 16 Ac Drives Was the Largest Type and Asia Pacific Was the Largest Market in the Ac Drives Segment in 2017
Figure 17 China Was the Largest Market in Asia Pacific
Figure 18 Factors Governing the Market
Figure 19 Global Electricity Consumption, 20112016
Figure 20 Crude Oil Price Trend, 20142018 (USD Per Barrel)
Figure 21 Low-Voltage Segment Accounted for A Larger Market Share in 2017
Figure 22 Asia Pacific is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 23 Asia Pacific Led the Market in 2017
Figure 24 Asia Pacific: Market Snapshot
Figure 25 Europe: Market Snapshot
Figure 26 US Dominated the North American VFD Market in 2017
Figure 27 South American Market, By Country, 2017
Figure 28 Saudi Arabia Dominated the Middle Eastern Market in 2017
Figure 29 African Market, By Country, 2017
Figure 30 Key Developments in the Market, 20142018
Figure 31 ABB Led the VFD Market in 2017
Figure 32 ABB: Company Snapshot
Figure 33 Siemens: Company Snapshot
Figure 34 Schneider Electric: Company Snapshot
Figure 35 Danfoss: Company Snapshot
Figure 36 Rockwell: Company Snapshot
Figure 37 Crompton Greaves: Company Snapshot
Figure 38 Eaton: Company Snapshot
Figure 39 Fuji: Company Snapshot
Figure 40 Hitachi: Company Snapshot
Figure 41 Nidec: Company Snapshot
Figure 42 Weg SA: Company Snapshot
Figure 43 Yaskawa: Company Snapshot
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Growth opportunities and latent adjacency in Variable Frequency Drive (VFD) Market