Variable Frequency Drive Market
Report ID: SQMIG55E2065
Report ID: SQMIG55E2065
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Report ID:
SQMIG55E2065 |
Region:
Global |
Published Date: January, 2025
Pages:
189
|Tables:
120
|Figures:
71
Global Variable Frequency Drive Market size was valued at USD 23.13 Billion in 2024 and is poised to grow from USD 25.01 Billion in 2025 to USD 46.63 Billion by 2033, growing at a CAGR of 8.1% during the forecast period (2026–2033).
Growing usage of connected devices in industries such as oil & gas and automotive, along with increased demand for variable frequency drive (VFDs) from a wide array of industries, including power generation, are some of the factors that are expected to positively affect the market. Furthermore, the increased demand for HVAC systems with the growing investment in infrastructure is also fueling the growth of the market. This is because it requires solutions that enhance energy efficiency of building systems, positively impacting the growth of the market as well.
The increasing pace of industrialization in the fast-developing nations is contributing towards industrial and manufacturing growth which in turn propels the demand for VFD components. Similarly, the power industry is extensively employing variable frequency drive for controlling large motors and integration of processes that require ongoing change in speed. Hence, the increasing demand of variable frequency drive in the power generation sector is likely to fuel the growth of the market. Various industries like metal & mining, food processing, and oil & gas use a range of plants for their activities that are technologically diverse. VFDs are used by induction, forced draft fans, boiler feed pumps, service water pumps and conveyors with high power, accurate speed control and energy saving capabilities.
Market snapshot - 2026-2033
Global Market Size
USD 21.4 billion
Largest Segment
AC Drive
Fastest Growth
Servo Drive
Growth Rate
8.1% CAGR
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Global Variable Frequency Drive Market is segmented by Product, Power Range, Voltage Type, Application, End User and region. Based on Product, the market is segmented into AC Drives, DC Drives and Servo Drives. Based on Power Range, the market is segmented into Micro, Low, Medium and High. Based on Voltage Type, the market is segmented into Low Voltage and Medium Voltage. Based on Application, the market is segmented into Pumps, Electric Fan, HVAC, Conveyors, Extruders and Others. Based on End User, the market is segmented into Oil & gas, Industrial, Power and Infrastructure. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Based on product, the AC drives segment is dominating the market with the largest variable frequency drive market share. The reason for this high demand can be associated with the benefits of AC drives, where the most important ones are high power, simplicity of application compared to the others, and low maintenance. These advantages enhance its appeal to the end-users in the industries, like automotive, power-generating, and food and beverages. The AC drives help these sectors to enhance efficiency of operations. As a result of the notable growth in the industrial sector, there is a strong demand for AC drives, and this is anticipated to drive the growth of the segment.
The servo drives segment is expected to grow at a significant CAGR during the forecast period. Servo variable frequency drive is designed in a way to assist the permanent motors known as servo motors. Therefore, it can be stated that these motors are controlled by flux. The operation of servo motors is now being made easier by the adjustable frequency rotary control through the application of voltage onto the stator of the device. The uses of servo motors are quite few due to the motors being quite complex, as well as the difficulties that come with powering the motor using the VFDs. However, these drives are becoming more popular with low power devices due to their horsepower restrictions dictated by feedback systems. Servo drive possesses benefits such as flexibility while working on machine tools.
Based on end-use, the oil & gas segment is dominating the variable frequency drive market. The oil and gas industry commonly depends on applications like oil production, distribution, and refining. These procedures require heavy power motor-driven pumps and pumping systems. To operate these electric motors at their maximum speed and with the least amount of energy consumption, a variable frequency drive is incorporated. The effort to maximize the operating profit is predicted to drive the demand for variable frequency drive in the future in the oil & gas segment.
As per variable frequency drive market analysis, infrastructure segment is experiencing tremendous growth in recent years. The strong demand for infrastructure segment is supported with development of commercial and residential infrastructure in both developed and developing countries. These projects are creating the demand for variable frequency drives in the construction industry. Furthermore, the replacement of hydraulic and mechanical drives by electric motors in construction applications is increasing the demand for energy efficient devices. This transformation is in line with government policies which are focusing on energy saving objectives. This is increasing the use of variable frequency drive in the infrastructure segment.
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North America is dominating with the largest variable frequency drive market share. There is a growing awareness regarding emissions along with big investments in smart grids and smart meters, which are fueling the market growth in this region. The increase in smart grid technology adoption in the region will help optimize the electricity infrastructure, strengthen energy systems flexibility and resilience, and speed up the integration of renewable energy sources. Due to the transformation of existing systems to more energy efficient ones, the deployment of variable-frequency units has been gradually increasing. The rollout of small, medium and large-scale projects in end user sectors including metals and mining, oil and gas will also stimulate the adoption of variable frequency drive in the region, contributing to the growth of the market.
Over the course of the projected period, it is anticipated that Asia Pacific would expand with the highest growth rate. Developing IoT technologies has led to the growth of the market. Companies can run tests, supervision, and the process itself from an off-site location and, as a result, remove any circumstances that can result in unexpected interruptions of the system. Remote operations increase the efficiency of operation management providing better results for customers. In 2024, the variable frequency drive market in China had significantly increased because of its focus on developing infrastructure in various industries like manufacturing. Furthermore, the favourable policy of the Chinese Government has facilitated the integration of variable frequency drive in high-performance industries to increase productivity, leading to the growth of the market.
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Rapid Growth of Digitalization and Automation
Increasing Government Regulations and Policies
High Installation Expenses of VFD System
Stagnant Growth of Oil & Gas Sector
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The competitive landscape in the variable frequency drive industry is formed by the various key players who provide a large range of products for various applications. ABB, General Electric Company, Hitachi, Ltd. and Schneider Electric are some of the key companies engaged in the variable frequency drive market. Organizations are focused towards increasing their customer base so as to gain an advantage in the industry. For this reason, key players are undertaking various strategic initiatives such as mergers and acquisitions and particular joint ventures with other leading companies. To expand their product range and help the variable frequency drive market grow, the top players are investing on projects aimed at finding new solutions. Additionally, market participants are also carrying out several strategic activities to enhance their presence such as new product development, signing new contracts, mergers and acquisitions, increasing capital, and partnerships with other companies.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the variable frequency drive industry is majorly driven by the rising demand for connected devices in commercial, industrial, and residential sectors due to rapid automation. In addition, the increasing need for stable and reliable T&D networks owing to increase in energy demands at global level are upgrading existing power infrastructure which in turn is fostering positive market dynamics. Also, an enhanced focus on sustainable development is leading to a higher product uptake in a wide range of end use industries, primarily manufacturing, chemical and petrochemical, paper and pulp, and heavy machinery, for diverse applications. Some of the other factors further contributing to the market growth include the increasing penetration of the Internet of Things in industrial applications, favourable government regulations promoting energy conservation, rapid industrialization and the advent of Industry 4.0.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 23.13 Billion |
| Market size value in 2033 | USD 46.63 Billion |
| Growth Rate | 8.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Variable Frequency Drive Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Variable Frequency Drive Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Variable Frequency Drive Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Variable Frequency Drive Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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